Grocery e-commerce is witnessing massive shifts in consumer behavior. While grocery shopping was almost entirely brick-and-mortar as little as five years ago, innovations in fulfillment, such as same-day delivery and click-and-collect, have made grocery e-commerce more attractive. The number of households ordering groceries online has risen over 145% from August 2019 to March 2020, and 43% of households surveyed said they are either extremely likely or very likely to stick with online grocery buying even after the current pandemic is over. But grocery brands are leaving money on the table by not optimizing their CPG product listings according to the way consumers are searching.
How has shopping behavior changed?
Grocery shopping has changed in ways beyond moving from brick-and-mortar to online, however. The consumer journey no longer starts with the brand, as most grocery searches are unbranded. Instead of staying within a restricted set of offerings available from an individual brand, consumers are searching for products based on things they care about — their current dietary regimen, food sensitivities, or environmental stewardship and animal welfare concerns. And they buy products from a collection of brands whose products meet their needs and preferences.
But many shoppers are frustrated when a search turns up very little — or worse, when search results include the very thing they’re specifically trying to avoid. For example, a search on Amazon for “peanut-free cookies” returns results that include peanut butter cookies and peanut butter coconut cookies. This happens frequently because few grocery CPG brands are optimizing their product listings to reflect how customers are searching. Products that could be showing up in a search result aren’t appearing because the listings don’t include keywords for the attributes being searched.
What does this mean for brands?
When customers are unable to find what they’re looking for, they lose confidence in the retail platform and the brands they sell. They either go searching on another platform featuring brands that are optimizing for attributes, or they try another search term and hope for the best. They may even abandon the search entirely, especially if the product is a want rather than a need.
Because of this, brands are neglecting revenue opportunities from missed sales and losing market share they could be claiming if they were optimizing for searched attributes.
Just how much revenue is being lost by grocery CPG brands who fail to optimize for popular attributes? Research from an analysis of Q4 2019 customer data from Label Insight’s e-commerce insights platform and shopper panel data showed that the dollar amount of revenue lost is substantial. Here are just a few of the key insights:
Targeting the right keywords in product descriptions makes a difference to a company’s bottom line. Identify and optimize for the right attributes, and your sales will show it.
Optimize Your Product Data
Smart CPG brands are optimizing their product listings with the attributes that consumers are searching for, to ensure the products that meet the criteria appear in searches. Because so few brands are taking advantage of this strategy, there are plenty of opportunities for brands to benefit. Label Insight offers robust product attribute data paired with e-commerce search data to surface the most popular trending attributes for a product, helping brands increase discoverability and transparency for their products.
Want to see more insights and find out exactly how much revenue specific brands are losing? View the full report, Top 100 Missed Revenue Opportunities for Grocery CPG Brands Not Optimizing for Product Attributes.