The meaning of purchase convenience has changed during the pandemic, with the rise of the digital consumer. See how F&B brands should shift.

Importance of Purchase Convenience During COVID | Union

How Purchase Convenience Has Changed with the Rise of the Digital Food & Beverage Consumer During COVID

Since the rise of the first grocery and retail stores, purchase convenience has been defined by the model of traditional shopping. Customers walk into a store, grab your product off the shelf, pay and then leave with your product. 
Simple, right? 
That all changed with COVID-19. Stay-at-home orders and government-mandated business lockdowns have shut the door (literally) on the traditional retail method of conveniently getting your products into the hands of your consumers. 
Customers have had to evolve, adapting to the new normal by accelerating their use of digital technologies to meet their shopping demands. 
Specifically, they’ve done this through: 
<ul><li>Online ordering.</li><li>Subscriptions/recurring plans.</li><li>Contactless delivery and pickup.</li></ul>
However, even though the shopping channel has changed, consumer expectations haven’t. F&amp;B consumers still place immense value on the convenience of a purchase when deciding whether or not to complete an order. 
A study conducted by the <a href="https://nrf.com/research/consumer-view-winter-2020">National Retail Federation</a> earlier this year found that 83% of surveyed consumers say convenience while shopping is more important now compared with five years ago.
Let’s explore COVID-19’s impact on each of these purchasing methods, as well as the key takeaways you need to know to grow your brand in 2021.

Whether it’s buying an item from the safety and comfort of home or securing instantaneous ownership by shopping at a local retailer, the convenience of completing a transaction is a substantial factor in the purchase considerations of today's customer.
While there is a bit of subjectivity when it comes to labeling a purchase as convenient, we’re defining a convenient purchase as one that has: 
<ul><li>Frictionless payment.</li><li>Reasonable time-to-ownership.</li><li>Guaranteed product availability.</li></ul>

The composition of a convenient purchase

<h2>Online ordering</h2>
It's no surprise that online purchases have increased during the pandemic. After all, online shopping provides health-conscious consumers the ability to shop from the safety and comfort of their homes. A new study published by <a href="https://www.digitalcommerce360.com/article/coronavirus-impact-online-retail/">Digital Commerce 360</a> found that 36% of respondents are now shopping online weekly (up from 28% pre-COVID).
A closer look at US-based F&amp;B shoppers shows that <a href="https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/survey-us-consumer-sentiment-during-the-coronavirus-crisis">30% of consumers</a> expect to get more grocery and household supplies online post-COVID. 
Key takeaway: Ensure that your online shopping portal is set to meet the growing demand of your consumer base. Don’t have an online store? Now’s the time to build and launch an ecommerce platform that allows your customers to purchase your products without having to go anywhere.
<h2>Subscriptions and recurring orders</h2>
Taking the convenience of online shopping one step further, online subscriptions and recurring orders have also seen growth in consumer adoption during the pandemic. According to <a href="https://www.juniperresearch.com/press/press-releases/subscriptions-for-physical-goods-to-overtake">Juniper Research</a>, the market for consumer subscriptions for physical goods may grow from an expected $64 billion in 2020 to more than $263 billion in 2025.
A key factor of convenience is the availability of a product. While an item may still go out of stock or on back-order, subscriptions and automatic recurring purchases provide consumers with the peace of mind that they’re guaranteed to have access to it as long as the item is in stock. 
Key takeaway: Consider incorporating product subscriptions into your offering mix to allow customers the opportunity to receive regular shipments from their favorite F&amp;B brand. 
<h2>Contactless delivery and curbside pickup</h2>
When making their purchasing decision, many CPG consumers consider how they will safely take ownership of the product.
<ul><li>Contactless delivery and curbside/in-store pickup provide customers with the convenience of an online ordering experience while also helping to mitigate the risk of exposure to the coronavirus. </li><li>Curbside/in-store pickup offers the added benefit of faster time-to-ownership and receipt of the purchased product.</li></ul>
Both delivery methods have seen an increase in adoption by consumers during the pandemic. 
A recent study by <a href="https://www.numerator.com/resources/blog/update-impact-coronavirus-consumer-behavior">Numerator</a> found that 15% of respondents who placed an online ship-to-home order indicated it was their first time doing so. That same study states that 37% of click-and-collect (curbside or in-store pickup) customers were new or “new lately.”
At the same time, <a href="https://venturebeat.com/2020/09/10/why-in-game-ads-have-become-the-go-to-revenue-strategy-infographic/">Instacart has reported</a> that customer order volume has increased more than 500% year-over-year. <a href="https://www.usatoday.com/story/money/2020/03/31/coronavirus-curbside-pickup-social-distancing/2901743001/">Adobe Analytics </a>released a statement earlier this year saying that their studies show an 87% year-over-year jump in click-to-collect orders. 
Key takeaway: Partner with retail channels and delivery companies to offer a contactless experience. Communicate that your product is available for in-store, curbside or locker pickup. Educate your customers on the various COVID-friendly ways they can receive your product.

3 Convenient ways F&amp;B consumers are completing purchases during COVID-19

The <a href="https://www.retaildive.com/news/convenience-vs-value-what-retailers-need-to-know-about-the-great-consumer/523086/">convenience of a purchase</a> is just as crucial to a customer as its cost. Don’t lose customers by refusing to adapt to the new trends in consumer purchasing. Foster long-term brand loyalty and reach your 2021 revenue goals by providing your customers with multiple convenient options to purchase and receive your product. Let the customer decide their preferred purchasing method; just make sure you have the tools and technology to meet their evolving expectations. 
Ready to invest in customer convenience? <a href="https://union.co/contact">Schedule a call with us today</a> to learn more about how we help F&amp;B brands thrive in a COVID and post-COVID world. 
And, to learn more about adapting your marketing strategy to engage with the COVID and post-COVID F&amp;B consumer, check out our new whitepaper, <a href="https://union.co/white-papers/food-beverage-brands-driving-growth-in-a-covid-and-post-covid-world">Driving Growth in a COVID and Post-COVID World: What Food &amp; Beverage CPG Brands Need to Know About Changing Consumer Trends to Secure Success in 2021</a>.

Convenience is a brand choice

Valtech + Union is a creative &amp; performance marketing agency that creates omni-channel campaigns, unleashing creativity on a data-driven world, helping brands produce memorable, measurable and repeatable results. Obsessed with data-driven performance, we believe every marketing dollar should be viewed as an investment. Our clients expect a meaningful return and we prove the ROI of our work with quantifiable data.

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