Instacart has added games and personalized coupons to its smart cards.
Speaker BDo you think the Instacart people can hear us over there?
Speaker AI think they can.
Speaker AI think they can.
Speaker AI think they should.
Speaker ACome on over.
Speaker BWe're talking about you, Instacart.
Speaker ACome on over because we're gonna tell it like it is.
Speaker AAll right.
Speaker AAccording to Grocery Dive, Instacart announced Monday three new capabilities for its tech integrated shopping carts.
Speaker AAnd are you ready?
Speaker AOne, gamification.
Speaker AYes.
Speaker ATwo, location based coupons.
Speaker BI like coupons.
Speaker AAnd three, quote, aisle aware advertising format.
Speaker AWith the new features, customers can embark on interactive, quote, gamified quests that Instacart says will make grocery shopping feel like an adventure.
Speaker AYeah, I can't wait for that.
Speaker AAnd yes, this is also our put you on the spot question of the week, which for those of you who have not heard our podcast, is the question that we get on the spot from the A and M consumer and retail group each and every week.
Speaker AAnd here it is.
Speaker AThis week you interviewed Instacart's chief connected stores officer at grocery shop, Mister David McIntosh.
Speaker BWe did.
Speaker AAnd discussed these enhancements from that conversation.
Speaker ADo you believe that Capercart's gamification is an effective way to get consumers over the hump of using smart carts?
Speaker AAnd can they truly, joyfully enhance two adverbs, truly, joyfully enhancement the standard grocery trip, which has been historically thought of as mundane and one to get through as quickly as possible?
Speaker BOkay, so this is a very multi part question here, so let me break this down quickly.
Speaker BNumber one, do I think that gamification is going to get people over the hump?
Speaker BThat's a stretch for me.
Speaker BI think that once they use it, then yes, you still got to get.
Speaker APeople to use it.
Speaker BI think, like, like we talked to David about yesterday, like, yes, if you can get a streak going, yes, I would start to use the cart more frequently.
Speaker BI mean, all the data that instacarts put together shows that once you start using these carts, you continue to use them.
Speaker BThe NPR or NP's score is high.
Speaker BPeople get value from being served up coupons in real time as they're walking through the store.
Speaker BSo I like this idea.
Speaker BI still think that from the retailers that we talked to that are using them, it's still getting people to use them.
Speaker BSo that's number one.
Speaker ARight.
Speaker BI think that it will enhance the grocery shopping trip because you're getting money back in real time.
Speaker BIt's helping you get through the store.
Speaker BAnd we both looked at the cart yesterday.
Speaker BI have to say we're going to be on stage later today talking about what our most surprising technology is of the show.
Speaker BAnd the caper cart is one of my most surprising technologies.
Speaker BI've kind of written it off, and now we're looking at it again and seeing the benefits that it's providing.
Speaker BI would say overall, I think that, yes, this is going to be a more joyful shopping experience.
Speaker BGamification is a cool way to do it.
Speaker BIt's still going to take some effort, though, to get mass adoption and scale.
Speaker BWhat do you think, though?
Speaker AYeah, the cart's growing on me.
Speaker AIt really is.
Speaker AThe whole idea.
Speaker AYeah.
Speaker AAnd you know what?
Speaker AYou know what?
Speaker AOne of the most interesting sessions that I sat in was when Pepsi's vp of digital commerce was case studies for the application of retail media in store.
Speaker AAnd it was funny because the two he singled out were the Sam's club scan and go app and the caper cart.
Speaker BYeah.
Speaker AAnd that's because you can actually measure the impact that both of those are having.
Speaker ASo they're both a great conduit to achieve what you're trying to achieve, which is the personalized physical shopping experience.
Speaker ARight.
Speaker ABut so the question to me still comes down to, and this is why it's great, because it's like, let's take the Pepsi challenge literally on which one of these ideas is best.
Speaker ARight?
Speaker ASam's club sees 30% adoption on scanning.
Speaker AGo.
Speaker ALike I said before, Capercart's adoption is growing, but it's still not at that level.
Speaker ADavid McIntosh said, what?
Speaker AIn their best store, 10% of transactions are going through the capercart.
Speaker ASo my thought exercise is, you know, why doesn't a grocer have the guts to do what Sam's club is doing and go all in on the cart?
Speaker ALike, you could force the customers to use the cart.
Speaker AThey could still use the cart.
Speaker AIt's still a cart.
Speaker ARight?
Speaker AThey don't have to use the screen if they don't want to.
Speaker AThey can choose to.
Speaker ABut I wonder if there are other fundamental things that are preventing grocers from taking that approach.
Speaker BIt's an expensive cart.
Speaker AIt's an expensive cart.
Speaker AYou got to recharge the cart.
Speaker AYou got it.
Speaker AThere's nowhere to put a kid in the cart necessarily.
Speaker AWithout an add on, there's no place to put the water bottles as well.
Speaker AThe business model comes into play in terms of how instacarts work with the groceries, too.
Speaker ASo there's all these factors, but I'm waiting for the day where someone gets as auditions at Sam's club and says, let's take this Pepsi challenge and see what happens here.
Speaker ABecause I think, to your point, if people use it, yeah.
Speaker AThey really like it.
Speaker ASo let's get people using it.
Speaker BMore people like it.
Speaker BThey use it.
Speaker BThe retail media payoff is there.
Speaker B40% of people are using the digital coupons from the cart that weren't before.
Speaker BLike, there's clearly an ROI there.
Speaker BIt's just, how do you get the upfront capital to support it?
Speaker BAnd, and which grocer out there of all of you in grocery shop land are going to try it first?
Speaker BChris dares you.
Speaker AI dare you.
Speaker AYes.
Speaker BRight.