Yes, People Are Searching For Gum

“Shoppers will go through the online research process for gum. It’s a process they’ve learned from researching the $40,000 SUV.”
– Jim Lecinski, Google’s Managing Director of US Sales & Service

The online habits of consumers have changed in the last few years. The same methodologies that consumers are using to research a TV or even a car are the same methods that users are employing at an increasing rate for everyday products like grocery items. You can see how conscious people are with review research over small decisions like a 99 cent iPhone app or even a free app (!!!). I saw the power of reviews when I managed a 10 dollar app I used to run.

Sources like the Wall Street Journal and agencies like G2 are publishing supporting stats. But one of the most compelling studies about this movement was just published by Google in their June 2011 book Winning The Zero Moment of Truth or ZMOT. 

There are numerous compelling quotes and stats from Google in ZMOT but I’ll take a select few:

CPG is not too small
 

“No MOT (Moment of Truth) is too small. If consumers will do research online for houses and health care, they’ll also do it for Band-Aids and ballpoint pens.”

Shoppers are researching grocery products online in high numbers

What would you guess the percentage of users researching CPG products online in 2011? Your guess is probably wrong! Here’s what Google had to say in ZMOT:

Percentage of shoppers influenced by digital source prior to purchase (ZMOT)

Grocery Products: 61%
Health/Beauty/Personal Care: 63%
Over-the-Counter Health: 78%

Those are astounding numbers. It’s safe to say from this that the majority of consumers are now researching grocery, health, beauty and personal care products online, whether before going to the store or once in the store. I’m impressed because those consumers have dealt with what I’ve dealt with; fragmented sources of information.

Number of sources used by the typical shopper

Grocery Products:  7.3
Health/Beauty/Personal Care: 7
Over-the-Counter Health: 9.8

Sounds pretty fragmented to me.

Making Smart Choices Fast

One of the prototypical Zero Moments referenced is not surprisingly a “minivan mom” (their words not mine). Her son is sick, so she uses her smartphone to research a decongestant.  She’s about to make the decision to buy it and where to buy it. What influences her? Seeing it has positive ratings and that her local store has a discount. It’s a slam dunk that the sale is going be made.

The Average Household spends $312 a month on groceries in 2010

That’s according to the U.S. Department of Labor. Simply put, the average family can’t afford to make the wrong decisions with groceries. Every so often someone will say something based on perception rather than fact like “Social is for high engagement products/services, not a $3.99 cereal,” I think two things. One, they haven’t bought a box of cereal in 10 years because I wish cereal was still $3.99. Two, they aren’t in the real world with the majority of the population who does have to consider that replacing a product means you have to spend over your budget. Here’s a pertinent example from ZMOT:

“I’ve got four boys and I’m at the grocery store five days a week and it’s just killing us. We’ve got college coming in a few years. I’ve got to start looking at how I’m spending my money.”

Digital word of mouth

I often talk about the “new word of mouth” opportunity in the age of Twitter and Facebook. I now think this opportunity is better referred to as digital word of mouth. I love this quote from Wharton Professor Dave Reibstein:

“Digital word of mouth is one-to-millions. If you have a good experience, it’s shared and re-shared with millions. You post it and suddenly, it’s flying.”

The Fear…

I talk to agencies and brands regularly and the savviest ones actually embrace the good and the bad reviews. That’s for a good reason. Bad reviews can actually legitimize and add authenticity to a conversation (just like nobody is perfect, no product is perfect). And if your product is good, it’s going to stand on its own. 

“Negative reviews increase conversion rates… because people know they’re shopping in a truthful environment.”

-Brett Hurt, CEO Baazarvoice

How this affects women

In my experience I get two types of reactions that split down gender lines when I explain what our long term goal is for Consmr. Men say “I could definitely use that” and women says “that’s GREAT! I REALLY need that!” Why the discrepancy? I have theories around the different types of fast moving consumer goods we buy, but ZMOT points to the idea that the way in which women share online is very different than men.

“Women have deep, deep sharing habits: product reviews, articles they’re forwarding, conversations, discussion boards…”
 

Along those lines, the Chief Marketing Officer for General Mills (Mark Addicks) spoke about the research his team has done in grocery stores. They’ve watched moms go into the grocery store and “pull out their phone and start looking online.” What are they doing? Things like looking for recipes and comparison shopping for cheaper brands. 

The choice of a new generation 

Ultimately, the recurring theme and central emphasis in ZMOT is that research habits around consumer packaged goods are now significant. No one is saying that people are searching more for cars. That’s pretty much at the saturation point. It’s that a new category has emerged. And if there is anyone who knows people’s evolving search intents, it’s Google.

Try the gray stuff. It’s delicious! Don’t believe me? Ask the dishes!

 

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