The traditional model of the path-to-purchase has guided generations of marketers in planning and activating their campaigns, picturing shoppers moving through a funnel from Awareness to Consideration, then onto Conversion and hopefully Repeat. As useful as this model has been, it has always been an oversimplification of the messy reality of shopper behaviour.
Shoptalk believes such linear thinking is increasingly obsolete, driven by three key factors:
- AI-powered user interfaces that increasingly blur search, discovery, and conversation;
- New business models, especially the factory-direct model as exemplified in fashion by TEMU and SHEIN, which significantly shortens the time from awareness to conversion; and
- The rapidly evolving media landscape.
The latter factor has perhaps seen some of the greatest change, with digital channels now attracting double the marketing spend compared to traditional marketing channels – a reversal of the situation just a decade ago. The reach of social media has been key here, and now demand for short-form visual content is fuelling the ongoing growth of TikTok, Snap, and Instagram.
A Continuous Loop
Therefore, for today’s 'always on', digitally native consumer, the path-to-purchase is better envisioned as a continuous loop of inspiration and awareness, exploration and consideration, community and advocacy, and loyalty.
Across retail, the adoption of such thinking is creating new routes for demand creation, both in digital marketing (such as shoppable video, livestream and influencer content, in-store retail media, and gamified loyalty and discounts), and physical product initiatives (drops, limited-time deals, and collabs).
In the low-margin, efficiency-driven grocery industry, the adoption of these tactics has been slower than in other sectors. Yet with volumes flat across many categories and European markets, learning such next-generation demand creation tools can unlock hard-fought-for growth.
Groceryshop 2024
In Las Vegas in October, Shoptalk will be holding its 2024 Groceryshop event, the world’s leading event for grocery and CPG innovation. This is a topic that will be explored in-depth with panels, case studies, and leading technology vendors who can unlock this for your business.
More info on Groceryshop can be found here: https://hubs.la/Q02G9JvQ0, and you can secure your tickets here: https://hubs.la/Q02G9Jv40.
