How Contextual Commerce Can Drive Incrementality For Retailers
Today, online shoppers are key to driving sales for retailers. After all, omnichannel shoppers are 14.7 times more likely to be loyal to the same grocery store than in-store-only shoppers. To reach them, retailers and brands must pair retailer-centric strategies with off-platform, contextual commerce programs. In the grocery world, this looks like in-recipe advertising.
Below, we outline the incremental value that contextual commerce brings to grocery retailers by growing their first-party data, earning new shoppers and driving incremental products to basket.
Use Contextual Commerce to Drive Incremental Shoppers
Today, most retail media network tactics are on-platform (on-site media, paid search, etc.) and thus geared towards marketing to existing shoppers, already on or visiting the retailer’s site. Even off-site media campaigns are nearly always based on retailer shopper segments who have already purchased a specific or relevant item. This significantly limits a retailer’s potential reach — and sales — because they are only talking to existing shoppers.
Off-platform strategies reach new and lapsed consumers earlier on in the omnichannel path to purchase, which can, in turn, support on-platform tactics. Contextual, off-platform commerce strategies significantly expand campaign reach and attain shoppers at the right moment — the planning or inspiration moment — and in the applicable environment. This means they’re more likely to try a new retailer. A study with a major retailer showed that with Chicory’s contextual advertising, 33% of the traffic pushed to the retailer’s site via Recipe Activation comes from new or lapsed shoppers. Think of it this way, a busy parent is eyeing a lasagna recipe that showcases a contextual, in-recipe ad for Barilla pasta at Walmart. Because this consumer is in an inspiration and solution mindset, she is open to trying a retailer who makes her life easier.
Grow Retailer Data Sets with Contextual Commerce
With incremental shoppers comes incremental data. Retailers’ first-party data sets hold enormous value, as illustrated by the growing presence of retail media groups. But for these networks to maintain or increase in value, new shoppers need to be continuously funneled into the retailer’s universe. Contextual commerce is the flywheel that pushes new users into a retailer’s first-party data set. This data can then fuel CPG-supported retail media marketing tactics. In-recipe media also drives shoppers to the retailer’s site, teeing them up to be marketed to via on-site strategies.
Contextual commerce is the flywheel that pushes new users into a retailer’s first-party data set. This data can then fuel CPG-supported retail media marketing tactics.
Retailers need to keep driving new shoppers into their funnel to keep their data pool flush and fresh. For context, the industry-standard window between first purchase and lapse is six months. Having some amount of shoppers lapse is inevitable, but if retailers are marketing effectively, they have more coming into their eligible data pool than exiting. Contextual commerce, which has been proven to drive lapsed shoppers, can be a key part of a retailer’s win-back strategy.
A contextual commerce platform like Chicory aids in acquiring new shoppers and increases the pool of identified shoppers by providing advertising and true shoppability within contextually relevant content. Adding shoppable touchpoints to relevant content allows a brand to engage with potential customers before they even get to the retailer’s site.
Drive Incremental Product Sales with Contextual Commerce
As online grocery adoption levels out, the competition for ecommerce sales is heating up. Getting incremental items into the basket on ecommerce orders has proved to be a challenge, as online grocery shoppers are very loyal: 85% of surveyed online grocery shoppers are likely to buy the same things weekly. Contextually targeted campaigns are a powerful way to engage shoppers in an environment where they're receptive to change and new products. After all, recipes are the number one driver of new product trial, year after year.
Not only can contextual commerce help retailers gain incremental shoppers and traffic, but it can also drive incrementality from current shoppers too by funneling new or additional items into the basket. By partnering with CPG brands to activate shoppable media in recipes, retailers can reach shoppers pre-shop, getting the advertised item in their cart.
Contextual off-platform strategies are truly a complement to on-platform retail media tactics, not a competing strategy. By reaching shoppers sooner in their path to purchase, they extend the runway which shoppers can get onto to reach the retailer’s site and only bolster on-site tactics.
To learn more about how contextual commerce can help drive incrementality as a retailer, reach out to hello@chicory.co.