05 April, 2018

The Era of Share of Watch is Here

Erik Wallin
CEO at Northfork

Marketers and salespeople alike have had an obsession of share of wallet. The expression makes me want to tighten the grip of my money. The statement itself should give an understanding of how much of the value of the consumers that a company can or have captured. Increasing the share of wallet has historically been a cost efficient way of boosting revenue. So focus has often been to broaden the assortment to existing consumers. From the first sale to a customer the hunt for more access to the wallet is underway.

Even as a capitalist I think the term has a foul taste when it comes to serving the consumer. The focus is not on the values a company could provide but the cash that could be harvested from adding more products on top of existing sales.

Luckily the modern consumer is craving a change. What shoppers are demanding today is convenience. “Give me convenience and I may show you the money”, is a demand from shoppers today. The more convenience provided, the more share of wallet will be allowed.

The term Share of Wallet will perish, as the term will be replaced by more shopper relevant Share of Watch.

The phrase Share of Watch is getting more and more attention, even though searching Google for the term you end up with links to share of watch penetration in India, Rolex share of the Watch market etc. Share of Watch is all about how a shopper can optimize time, and therefore make life easier. Help optimize the consumer life, with convenience, and she will award the company with loyalty.

For retailers to survive in an era when shopping is, or already has moved online, its time to understand what triggers the modern consumer. And reinvent the business model to the new landscape.

Convenience is King.

In order to be specific in how Share of Watch could be applied I will focus on an industry with currently low online penetration but with significant growth, and a huge total market valuation — the grocery industry.

The grocery industry has since it emerged online in the late 1990s not changed. For shoppers it has been a time consuming chore, that lacks inspiration and hard to find relevant products. This is about to change.

Grocery retailers could quite easily increase convenience for shoppers, hence giving the consumer reasons to give the retailer access to Share of Watch.

But how, you may ask yourselves?

By asking one single question: “What role will our products bring to the consumer and how will the consumer use them”. It’s basically the same rationale for any industry. Within groceries the answer is simply put; the experience of a homemade meal. Understanding this, the meal should be in the center of creating convenience, and a convenient shopping experience.

For a grocery retailer then the key question is how to combine different products to ingredients, to be prepared as meals or recipes. By combining products to meals you assist the shopper with convenience and not least inspiration.

Adding a “buy all ingredients”, needed to cook the meal/recipe, time is reduced for shopping groceries.

Integrating smart technology makes it possible to add any number of recipes that are combined in order to make an optimized cart, add more convenience by reducing waste and price.

Looking at historical purchase patterns meals/recipes can be tailored to create weekly menu suggestions which increase loyalty.

All the examples of convenience can be created already today with the feature pack from Northfork, the leading authority on shop by recipe technology.

Photo by THE 5TH on Unsplash

In summary

The mindset of marketers and salespeople of how to add value to shoppers is changing. The ones that don’t adapt will lose attractiveness from shoppers and be rejected. Re-defining the way to increase sales will be directly linked to the relevance and convenience given to shoppers. The grocery industry will change tremendously the coming years.

The market is wide open to the ones adapting with technology that helps customers maximize time spent on activities that they find valuable in life.

About the author

Erik Wallin
CEO at Northfork

Erik is co-founder of Northfork, he has a long experience of the grocery industry within marketing and sales. Before Northfork, Erik founded BagHitch a P2P transportation service.