Fetch Rewards, Cadent Consulting Launch Ongoing Behavior Study
The first in an ongoing series of studies designed to analyze real-time and future consumer shopping and usage behaviors was released this month. Created by Cadent Consulting Group and Fetch Rewards, the “CPG Clarity Study" will be issued monthly to industry leaders across the consumer packaged goods industry. The findings marry extensive consumer surveys with purchase data gathered from more than 3 million consumers across the U.S.
“This analysis goes deeper than your typical market research,” said Wes Schroll, founder and CEO of Fetch Rewards. “Thanks to our direct, one-to-one relationships with millions of shoppers across the country, Fetch Rewards has the unique ability to provide nuanced, contextualized insight into both consumer sentiment and behavior. This combination is key, and we're excited to share our findings over the course of the study.”
Cadent Consulting Group is leveraging its advanced analytics capabilities in conjunction with Fetch Rewards’ proprietary shopping receipt data to produce the studies. For each study, Cadent will survey more than 1,000 shoppers of groceries and home essentials. The first installment of the CPG Clarity Study takes a look back at the shopping behaviors exhibited when shelter-at-home orders were first issued focusing on such categories as ready-to-eat meals, nut butters, beauty, personal hygiene, canned vegetables and beer/wine/liquor. The study goes on to track actual usage by analyzing ongoing consumer spend across these categories.
Cadent has also developed a “Clarity Projection Model” that combines qualitative and quantitative data from Fetch to provide a more informed view of future projections.
"There is a gap between what consumers report buying when surveyed and what we’re seeing them actually purchase when shopping. This provides a valuable lens into usage,” said Ken Harris, managing partner of Cadent Consulting Group. “We are calling this the “Say/Do Gap,” and one of our most telling findings is that the beauty category hasn’t totally fallen off a cliff. Unlike other quite dire predictions, our informed forecast does indicate a softening in the category, but we anticipate beauty sales decreasing by just 7% in the near term."
The study finds that 41% of shoppers say they’re going to purchase fewer beauty products while only 12% of shoppers say they will purchase more. While this is a net difference of -29 percentage points, the study shows that, in actual purchase behavior, the net difference is only -9 percentage points.
While stay-at-homeorders and social distancing will drive reduced usage of beauty products in the short term, the decline won’t be as dramatic as some experts have predicted. The overall category is being buoyed by increased purchases of hair color, hair removal and other hair treatments, along with body fragrance and face and body makeup.
“Fetch’s ability to illustrate exactly what is being purchased allows our brand partners to direct their spending and promotional efforts in an exceptionally informed way,” added Schroll. “With the CPG Clarity Study, we are now able to provide an additional layer of forecasting, which is especially important as we enter this new era of consumers facing challenges they’ve not encountered before.”
The study outlines the challenges shoppers have faced in recent weeks and how they’ve navigated those challenges. It examines how the dynamics of shopping trips changed initially and what trends are being cemented in this new normal. The study then goes on to closely examine purchase habits by category.
Cadent Consulting Group has 25-plus years of experience bringing consulting leadership to consumer marketing, retail, supply chain, and sales. Fetch Rewards is a fast-growing consumerloyalty and shopper rewards app with nearly 8 million downloads total downloads and 3.2 million active users, The company has processed more than 377 million receipts and delivered nearly $61 million in savings since launching in 2017.