VMS consumers conduct research online
The online channel more and more is becoming a key channel of distribution for vitamin and dietary supplement brands. According to Clavis Insight’s latest category analysis, only 16% of all VMS sales in 2014 were sold online. But considering that 64% of all CPG sales are digitally influenced — consumers are researching their in-store purchases online to a greater degree — it won’t be long before a greater portion of the $25 billion in annual VMS sales is conducted online.
Clavis Insight recently broke down which multivitamin brands were performing best online in the U.S. market. More than 60 brands were evaluated earlier this year in June using a formula that essentially captures what the consumer sees and experiences:
Search: Can shoppers find the products based on category keywords?
Image: Does the online product listing include a key brand image?
Content: Is key product information present on product landing pages?
Ratings/reviews: What is the quantity and quality of consumer feedback on the landing pages?
Availability: Are the products in-stock and available for sale?
Auto-replenishment: Can consumers choose to automatically reorder the products?
Of the multivitamin brands evaluated by Clavis Insight, 10 really stood out. The common denominators across these brands included high quality and quantity of ratings and reviews, very few out-of-stock issues and more than half featured an auto-replenishment option, generating a repeat purchase on a predictable cycle.
Clavis Insight indexed the top-five brands across many of those metrics. Most over indexed on search, meaning the brands often came up in online searches using key category search terms; most of those brands fielded an impressive number of positive reviews; and many offered an auto-replenish option.
For example, Optimum Nutrition outperformed the category significantly on search, with a high percentage of their products in the Top 20 search results using key terms like “multivitamin.”
Ranking high on search terms is important because less than 30% of Amazon shoppers click beyond the first page of search results, Clavis Insight noted. And in-store dominance of a brand doesn’t necessarily translate into automatic online sales if customers can’t find that brand on that first page of search.
The Clavis multivitamin brand ranking focused on metrics along the consumer’s path to purchase that impact sales and “adds to basket.” Multivitamin brands positioned outside of the Top 10 brands should consider the lost opportunity in failing to maximize performance against these metrics:
Higher search ranking against key category search terms makes items easier to find and add to consumer baskets;
Developing consistent and engaging images and content leads to more clarity for consumers and longer dwell time on product pages;
A high number of positive ratings and reviews are key for consumers evaluating products; and
Improving availability minimizes lost sales through out-of-stock items and offering the option to auto-replenish product captures repeat sales in a predictable purchase cycle.
For charts from this report, click here.