Retailers, Still Got ‘Out Of Stocks’? Smart Substitution Can Help. ~via @Katadhin Please add these hashtags to the top of the post... #RetailRelevancy #ShopperMarketing #SmartCommerce
Out of stocks are still the bane of many shoppers and, by association and reputation, retailers. OOS is partly a pandemic supply chain problem, but it is also a problem that has always been a challenge for retailers and brands. In the best of times, in-stock positions were in the low 90% range. Today, the apply chain is really out of whack and depending on the category, location and even day (‘yes’ day), this can morph into 20% to 30% out-of-stock (OOS) positions.
No one is happy about this. Not the brand, nor the retailer, and certainly not the shopper. Not only is it an inconvenience, but it also breaks shopper confidence in the channel and brand and sends them looking for an alternative for one or both. If shoppers can’t depend on a channel, they will find one that they can rely upon. Retailers and their brand partners are very aware of this problem and are working together to ensure that in-stock positions are maintained at the highest possible level.
“Out-of-stocks cost retailers of fast-moving consumer goods (FMCG) $82 billion in missed sales last year,
-NielsenIQ 2021 COVID-19 Impact on Out-of-Shelf report
Shopper expectations, and awareness, of retail supply chains are higher than ever due to a growing set of options for how they shop and receive goods. Many retailers are focused on understanding the shopper with all manner of data, as are their brand partners. This goes beyond marketing and advertising, it is the essence of trust for retailers. Price, the long-standing stalwart of retail competition, is now often a secondary consideration to convenience and ease of acquisition/service/payment/return. Even for low-engagement products, removing friction is at the core of value for many shoppers.
Simply put, shoppers have choices. Freedom of retail choice creates dangers and opportunities for both retailers and shoppers. Pivot to an eCommerce first mentality and remove friction. Make it easy for them to shop, and they will reward you with their business and loyalty. It is easier said than done, of course and it's frustrating that we are still talking about a single view of the shopper, but the reality is that many shoppers don't want to be ‘known’; they only want to shop. The magic of ‘understanding’ shoppers is providing an excellent experience for all shoppers, not just the ones you have data for.
The Growth of Cart Only eCommerce Shopping
Shopper behavior drastically changed for many during the pandemic. Many new behaviors emerged or experienced rapid growth as retail shifted to the reality of the situation. For many, they use their online shopping carts for purposes beyond just immediate shopping. The cart is now a remember button, a list builder and a “tell me more” resource for a growing number of consumers. Many shoppers will add things to a cart to access later so that they aren’t interrupted doing what they are currently doing.
Click2Cart Provides eCommerce Acceleration
Additionally, smart carting technology like Click2Cart from SmartCommerce can help reduce out-of-stocks by leveraging its smart substitution process that finds the next best item in a brand portfolio instead of adding friction and disappointment to the sale.
These direct-to-cart shoppers aren’t seeking additional information, they aren’t looking to buy 'in the moment; they are just skipping to the end of the process and putting it in their cart to access later for a variety of reasons. Please, respect these shoppers and don’t get in their way. Not only because it is at the core of shopper enablement but it is also a great business practice. We all know that every additional click reduces conversion but we seemingly can’t help ourselves.
Carting only behavior is growing and we should all help those shoppers get in the cart when that is all they want to do. Retailers that make it easy will win the loyalty of the cart shopper.
