Consumer Checkout Behavior is Changing Rapidly

The reason? It’s probably in your pocket right now.

Just 20 years ago, if you went to the grocery store and had to wait in line, what would you do while you waited? You’d probably flip through the latest magazine, maybe grab a pack a gum. Not anymore. Now, due to the mobile revolution, people are Facebooking, Tweeting, checking their email and Four-Squaring while they wait.

Due to this change in habit, the Alliance for Audited Media has reported a sharp downturn (an 8.2% drop from one year ago) in the sales of single copy magazines in the second half of 2012. Gum sales aren’t doing much better – Hershey’s CEO reports that their sales have dropped 5.5% from last year.

Because of this change, the world of point-of-purchase (POP) displays is also changing – rapidly.

Taking Back the Aisles
To counter the effects of mobile technology, retailers are starting to move their products back into the traditional aisles. For example, Coca-cola coolers are now found in many deli sections along with traditional checkout aisles. Magazines are moving into temporary cardboard displays in traditional aisles.

Many Are Pairing Up
Many companies aren’t going the new consumer world alone – instead they are pairing up to attract customers’ attention. For examples, magazine giant Hearst recently ran a display with coupons, their Food Network magazine and bottles of wine last fall, creating a 50% rise in magazine sales. Similarly, Coca-cola teamed up with Cosmopolitan, offering a discount on a six-pack of Diet Coke and a copy of Cosmo.

Capitalizing on Mobile
There is good news in store for retailers willing to take advantage of this new mobile standard, including an increase in sales and greater brand retention, while those who aren’t adapting are getting left behind.

Companies are currently taking advantage of the trend by:

  • Offering coupons to customers as they walk by products.
  • Offering loyalty programs to customers while they are in store with easy sign up.
  • Making sure mobile websites and apps are available. (According to a recent survey by Empathica, 37% of shoppers visited a brand’s website and 26% downloaded a brand’s app while shopping in store. Another survey by comScore indicates that half of smartphone owners use apps for local searches.

 
Adaption is Mandatory
Mobile use is on the rise, especially when it comes to consumer’s research and searches. With this new technology, companies that don’t adapt are sure to fall behind.

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