Shopper marketing blog

Introducing new products at the start of the year can be quite a journey. The path to success for any new product development is fraught with challenges and often leads to a dead end. According to Harvard Business Review, 90% of new products fail within their first year despite significant investments by FMCG companies.

To give your new products the best possible start in the New Year, we will highlight the crucial importance of consumer reviews. Here are four strong reasons why obtaining a substantial number of consumer reviews as early as possible is crucial for the success of your new offerings.

1. TO BUILD CONSUMER CONFIDENCE
2. TO DRIVE CONSIDERATION
3. TO CREATE AN AURA OF POPULARITY
4. TO KEEP UP WITH THE COMPETITION

* Coke Image from Coca-Cola, final image copyright CheckoutSmart

PS For even more on why reviews are critical for NPD, see our post 10 Reasons why Shopper Reviews are Vital for Successful New Products.

At the request of one of our brand partners, we are stepping into the world of FMCG brand tracking. We are going to research some of the top brands in the UK and find out what shoppers think of them in terms of buyer recommendation, and the results may surprise you. 

These are the brands we included were:

NB All these brands are "Top" brands in the UK. They were chosen after shoppers selected ones they bought regularly from a long list of brands to ensure a significant number of responses for every brand. As a result, this list's "bottom" performers are still amongst the most frequently bought and top recommended brands in the UK.

Introduction

In the fiercely competitive beverage industry, standing out on the shelf involves more than just striking designs and impactful displays. Today's consumers seek authenticity and trustworthiness in the brands they select. This is where genuine customer reviews become crucial, significantly swaying purchasing decisions.

Recognising this trend, Heineken launched an innovative campaign for Inch’s Cider, utilising CheckoutSmart’s SmartReputation program to tap into the power of genuine customer feedback. This case study delves into how CheckoutSmart assisted Heineken in transforming ordinary customer reviews into a compelling shopper marketing program, enhancing the brand's reputation and influencing buyer behaviour across Tesco and Sainsbury's.

Images from Heineken materials

When a product’s rating falls below the critical 4.0 mark, it is easy to panic or bury your head in the sand. After all, consumers rely heavily on reviews to guide their choices, and a poor score can signal trouble ahead for your products. Yet, rather than viewing these ratings as a dead-end, they can represent a valuable opportunity for growth and improvement.

At CheckoutSmart, we see these poor reviews not as a problem but as a unique opportunity to transform your product with SmartReformulation.

The Hidden Opportunity in Poor Reviews

Our analysis reveals that the bottom 20% of products with at least 30 reviews in UK supermarkets since 2023 have an average rating of less than 4.0. This figure underscores a vital truth: these products don’t need more reviews—they need reformulating to succeed.

Instead of trying to drown out the negativity with more reviews (which is rightly banned under recent legislation), it’s time to listen to your customers. Using the right tools, these less-than-ideal reviews can become a goldmine of insights that guide product improvement, revitalise your brand, and boost your sales.

Product reviews play a significant role in helping potential customers make informed decisions about purchasing a product or service. In the UK, specific laws and legislation regulate product reviews and testimonials. Businesses must understand and comply with these laws to avoid legal consequences and maintain customers' trust in reviews and review sites:

1. Prohibition of Fake Reviews: Under UK law, businesses are prohibited from pretending to be customers and writing reviews about their products or other businesses' products. Commissioning third parties to write fake reviews is also considered illegal, and businesses may be liable for their actions.

2. Transparency and Inducements: Offering inducements, such as money or gifts, to customers in exchange for positive reviews is against the law. Review transparency is essential, and any payments provided for reviews must be disclosed to the reader to ensure they are aware of potential bias.

3. Compliance Requirements: Businesses should not pretend to be customers and write reviews, commission third parties for fake reviews, or offer inducements for positive reviews. Businesses can maintain consumer trust and contribute to a fair and transparent online marketplace​​​​by complying with these requirements.

See the full article for more, including the vital Do's and Don'ts:

NB This article has been written with best efforts based on current (16/07/24) publically available information. It is not intended as legal advice or to be relied upon in any way. For advice or questions, consult a specialist lawyer.

The recent meteoric rise of artificial intelligence (AI) models is revolutionising how we interact with computers and access information online. But has AI made a significant difference in ratings and reviews, and is it what shoppers want?

Amazon has rolled out generative AI to create succinct product-level summaries of reviews for many of its products to support shoppers' decision-making process. Several clients have asked us to explore how this has impacted a shopper’s experience when using Amazon and understand how these features are perceived compared to ‘traditional’ ratings and reviews.

To do this, we created a study to research how regular Amazon shoppers use the site. The study simulates the shopping process for a selection of grocery category products. 

We received over 2500 responses, and our key findings challenge the notion that AI automatically benefits users.

The 4 key takeaways are:

1. Individual Ratings and reviews are as important as ever
2. Shoppers don't hang around when shopping for groceries on Amazon
3. Amazon's AI features are hardly used or even noticed
4. There is little evidence of AI improving the shopping experience, but the generations split opinion

The 3Ps of Supermarket Shopper Marketing

When launching your long-planned and lovingly-developed grocery NPD into supermarkets, it’s critical that it appeals to and is tried by the target consumers. Getting it into the hands, baskets and homes of the right grocery shoppers can be a daunting task, but here’s what you need to remember and how to go about it.

Supermarket shoppers are the key to NPD success as they are the ones who actually pick the product off the shelves and take it home, regardless of whether they, or someone else in their household is the end consumer. This is the crux of  Shopper Marketing and understanding the art  of getting shoppers to Pause, Pick up & Pay for your product is known as the 3 Ps of shopper marketing.

In 2018 we conducted research that showed 65% of our members look at our app when they are planning their food shopping, and 35% while they shop in the supermarket*. It is clear that grocery cashback apps are an excellent route to deliver shopper marketing goals (we have more on the whole Shopper Marketing approach here)

For example, we can use Geo targeting to serve brand advertising right onto consumers mobile devices at the first moment of truth, but the power of these apps goes a lot further than simply helping to raise brand awareness.

Based on our experience as Europe's No.1 grocery cashback organisation, here are the top 10 ways you can start using these apps to your advantage today:

Join Andrew Pearl VP Strategy and Insight EMEA at eCommerce performance analytics company Profitero and Paul Lees our Group Managing Director at CheckoutSmart, as they discuss fascinating original research on grocery ratings and reviews.

This study was specifically undertaken in the UK amongst over 3,700 online grocery shoppers to support the understanding of FMCG leaders and eCommerce teams, by answering their questions:

This is a summary of the work we have done using hybrid AI/Human analysis of shopper reviews of the sweet biscuit category in Ocado. This analysis uses AI to understand what is new and different across huge volumes of text while the experienced human sifts the output looking for category relevance and actionability.

Highlights

• Ocado has 875k (11.4%) of the 7.7m reviews across all categories in the Top 6 online grocery retailers*.

• The Category has 4k (1%) of the 421k reviews across all brands in Ocado over 2021-23. 

• 85 Biscuit brands have reviews on Ocado with an average of 47.8 reviews per brand

• There is a big opportunity for all brands to improve their review presence in Ocado by getting at least 30 reviews per SKU and the important area to shoppers of the most recent 3 reviews.

• Looking at individual SKUs in the category (see the Appendix for the full category list) 277 of the 308 listed need new reviews to optimise their sales online and in-store (see “How to get more reviews” below).

*Reports are available for the Top 6 grocery retailers (Tesco, ASDA, Sainsbury’s, Morrisons, Ocado and Waitrose plus Boots and Superdrug)