ROPO – This is the value added to the business from going onto grocery e-commerce sites like Tesco.com, then walking into a physical store to make a purchase.
Most of our clients don’t have a clear idea of this value, but they have a feeling the number of sales e-commerce shopping influences, is A LOT more than just e-com sales alone.
Some people we speak with say, that because e-commerce is only 15% of total baskets, and only 9% of total value sales, that their NAMs should only spend 10% of their time on it.
In a world of channel and loyalty splintering, isn’t there a role e-com can have to drive online AND physical store sales.
So, we’ve started calculating our clients e-com value to the business from the physical store shops e-com influences.
Here’s an example of a milk company:
- If 15% of shops are online
- The retail value of milk sales is 85% of 3.2bn = 2.72bn
- The online value of milk sales is 0.48bn
Now, 78% of mySupermarket shoppers are purchasing from PHYSICAL stores within 48 hours AFTER visiting mySupermarket
And, we estimate that 30-40% of Tesco.com shoppers go to purchase in physical stores shortly after their online visit.
This means that: 30 to78% of online shoppers = 4.5 to 11.7% of shops that are influenced by e-com
So in milk, the ROPO influence would mean that e-com channels are influencing £144m-£374m of sales.
A lot, right?
Does this calculation make sense to you?
Would you like us to do the same for your category? If so, get in touch below…