Author: shopkick

71 Percent of Americans are Driving Less Due to Rising Fuel Prices

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Shopkick is Giving Away $10,000 in Kicks to Ease the Pain at the Pump 

The average price of a gallon of fuel has increased by approximately 47 percent ($1.36) since last year, and consumers are feeling the impact. According to recent data by Shopkick, a leading shopping rewards app, nearly all (99 percent) consumers have noticed an increase in gas prices, and 86 percent have been affected by the recent surge. Of those impacted, 71 percent are driving less, 59 percent have tightened their budget, 28 percent are purchasing less fuel, and 7 percent are entirely unable to buy fuel.

To fully understand how rising gas prices are affecting Americans and discover ways to help, Shopkick surveyed more than 36,000 consumers between March 17-20, 2022.

Key Findings Include:

  • Consumers are Getting Less Fuel: Before the spike in gas prices, 87 percent of consumers would fill their tank all the way up, and now, only 59 percent fill it completely. Thirty-one percent of drivers are now choosing to only fill their tank halfway when getting fuel, compared to 10 percent previously.
  • Cost Concerns: An overwhelming 95 percent of consumers are worried about rising gas prices, and 62 percent saying they are extremely worried. When asked how much additional money in their wallets would help consumers feel more secure while fueling up, 24 percent say between $21-$40, 23 percent say $41-$60, 12 percent say $60-$80, and 13 percent say $81-$100.
  • Cutting Back on Non-Essentials: In the last month, the majority (72 percent) of consumers have altered their spending habits for non-essential purchases, with 64 percent cutting back and 31 percent skipping non-essential purchases altogether.
  • Less Frequent Trips: Gas prices may be rising, but 56 percent say they are not shopping online more frequently now than they were before. However, 74 percent of consumers have cut down their frequency of trips to the store.

To help out the Americans impacted by high gas prices, Shopkick is launching a nationwide fuel sweepstakes – giving 100 users $100 (25,000 kicks each) to use at the pump. Between March 24-28, 2022, every Shopkick user who earns just one kick by Monday, March 28th will automatically be eligible and entered to win. Trying to avoid driving and save money? Shopkick makes it easy to earn kicks, even from the comfort of your home.

How to earn a kick: 

  • Watch videos at home
  • Shop online through the app 
  • Walk into a store
  • Scan items in-store
  • Shop with a linked card
  • Submit a receipt

“Inflation and rising gas prices are causing financial concern across the country, especially as 46 percent of consumers are required to drive to work every day,” said Brittany Billings, EVP, strategic markets & marketing at Shopkick. “Our user community is at the center of all we do at Shopkick, and we recognize the economic challenges many are facing. We decided to create this giveaway to support them through this hard time and help fill up their tanks stress-free.”

To participate in the Shopkick Fuel Sweepstakes, consumers can download the free Shopkick app on iPhone or Android devices. 

Shopkick Fuel Sweepstakes entry ends on 3/28/22 at 11:59 pm PST. One hundred winners will be selected and awarded 25,000 kicks each. Winners will be contacted and announced following the contest end date. Find the full contest rules: here

Cultivating Loyalty Is More Challenging Than Ever: Here’s What Customers Want And Brands Should Know, According To The Latest Data

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Coke or Pepsi? Visa or Mastercard? Uber or Lyft? Apple or Android? Think about the brands you are loyal to. Does that allegiance extend to the exclusion of ever buying or using rival brands? Why or why not? What is it about commodity or luxury products and services that keep you faithful – and what would tempt you to switch?

Companies are working hard to understand this and it’s not easy. Both Gen-Z and Boomers have significant purchasing power (in 2020, consumers 65+ upped their online shopping by 53%), yet these generations sit on opposite sides of the preference and behavior spectrum (and individuals in those cohorts vary just as wildly). Legacy brands have armies of nimble D2C challengers nipping at their heels. The rapid shift to a new and permanent 1:1 economy is dizzying.

How do brands drive and maintain customer loyalty in the midst of ever-changing, oftentimes unpredictable market forces and shifting consumer demographics? To better understand what’s driving loyalty today and learn more about the ways in which consumers and brands are reacting to change, I spoke with John Hendricks, founder and CEO of ERGO.

John thinks a lot about the loyalty topic as some of the world’s largest brands such as American Express, Delta, Blackrock and Ameriprise have used his company to build long-term relationships and loyalty with consumers through the power of modern email newsletters. Together, we examined some of the latest data from Prosper Insights & Analytics.

Gary Drenik: Traditionally, we think about value (price relative to quality) as the main driver of loyalty. But are dollars and cents the only way for brands to compete and build customer loyalty?

John Hendricks: Brand loyalty is completely psychological, equal parts rational and emotional. On the rational side, there’s no getting past the fact that American consumers are definitely feeling the pressure of inflation. According to data from Prosper Insights and Analytics, a large percentage of consumers have noticed price increases across multiple categories from gas and groceries to pet supplies and prescription drugs.

Add to inflation the recent holiday gift-giving season, and it’s no surprise that consumers may currently be choosing cost savings over brand loyalty. Nearly one third (27%) of consumers across generations, Gen-Z, Millennials and Gen-X said they were buying more store brand/generic items due to price increases. 25% of Adults said they were doing more comparative shopping online.

Prosper – Doing As A Result Of Price Increases
Prosper Insights & Analytics

More than half of consumers across every generation except Millennials (48%) said that choosing familiar brands when buying clothes was not important.

Prosper – Familiar Labels Are Important
Prosper Insights & Analytics

On the emotional side it’s now more important than ever to make a strong impact with a solid customer experience. Household name brands (those that normally engender loyalty) will need to deliver more than discounts, rewards, and coupons. Brands can offer experiential rewards such as exclusive or early access to events or products that go beyond transactions and help drive deeper relationships and a sense of community with other customers.

Prices go up and down in tandem with economic cycles, but brands that find creative ways to offer incentives beyond fleeting discounts or irrelevant rewards will find it easier to maintain customer loyalty during tougher times or earn regular business back when wallets loosen up again.

Drenik: So, it sounds like beyond price, customer experience is a critical factor to winning and maintaining customer loyalty?

Hendricks: Absolutely. All consumers – even those in older generations – expect digital- first experiences in what’s become a highly on-demand culture. Brands that deliver speed and seamless omnichannel experiences consistently will have a long-term advantage when it comes to customer loyalty. Brands that get personalization right will also have a leg up.

However, good CX today goes beyond just selling and focusing only on triggered marketing messages. Consumers crave tangible value beyond the sale and it’s important for brands to predict customer needs and delight them with information they didn’t already know.

Transactional messages drive sales, which are no doubt important. Brands are in business to make money. However, experiences focused on relationship building and rooted in brand values will increase total CLTV (customer lifetime value), which is important for brands especially in high churn industries like technology, CPG, and financial services.

Drenik: Let’s shift gears and address the point of brand values. Many brands have stepped up in recent years to demonstrate that they share the same social values as their customers. Should we expect this trend to continue in 2022?

Hendricks: Corporate social responsibility matters. This has come into stark relief over the past two years with various social movements that have sparked conversations around sustainability, equity, and inclusion. Prosper Insights & Analytics found that a quarter of Gen-Z and Millennials will increase spending with a brand that takes a strong stand on a social issue they support.

The numbers are even more significant when it comes to environmental issues, with nearly 30% of Adults 18+ reporting that they’ll spend more with brands that are environmentally responsible.

These current numbers aren’t as high as other industry studies and again may reflect the tight financial times many consumers are in. However, these stats underscore that even during tough times, brands that maintain, demonstrate, and communicate their values can still garner a larger share of wallet and long-term loyalty. Authenticity is also key. Consumers are very good at sniffing out fake attempts to embrace Corporate Social Responsibility (CSR) by brands and that almost always backfires.

Drenik: Any final thoughts or tips about cultivating loyalty in 2022 and beyond?

Hendricks: I can’t help but come back to the importance of getting personalization right as a driver of loyalty moving forward. Us folks in the marketing technology world know how much of a buzzword it’s become, but there’s such a strong opportunity to rethink what personalization means and how to approach it in a way that provides the best customer experiences while respecting privacy. Much of this will be driven by Artificial Intelligence and we are just at the tip of the iceberg in terms of what these loyalty-driving experiences can and will look like.

Drenik: Thanks for your time and expertise, John. It will be interesting to see how things continue to unfold in the coming year.

This article was written by Gary Drenik from Forbes and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to legal@industrydive.com.

Americans’ Shopping Habits Have Changed Due to Rising Prices and Stock Shortages

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82 percent of consumers have noticed price increases on everyday essentials; 81 percent say it has affected the way they shop.

Over the past year, consumers have been faced with significant supply chain issues and massive inflation, directly impacting the way they shop. In fact, 81 percent of consumers are now more likely to wait on making a purchase until there is a sale or coupon due to price increases and 79 percent would purchase the next best option if their favorite brands are sold out or low-in-stock, highlighting their wavering loyalty to brands.

Shopkick, a leading shopping rewards app, surveyed more than 20,000 consumers across the country from February 17-24, 2022 to uncover how consumer behaviors have evolved since 2021.

Key Insights Include:

  • In-Store Shopping Behavior Shift: The majority of consumers (88 percent) are still shopping for their household essentials in-store, however more than half (62 percent) say their in-store shopping habits have changed over the past year. When consumers were asked how in-store habits have shifted, 69 percent say the time of day and frequency during the week, 56 percent say their safety practices, and 44 percent say the retailers they shop at and brands they buy from.
  • Consumer Changes: For those in-store shoppers whose time of day and frequency has changed, 52 percent say they now go to the store at less busy times, 23 percent say they go to the store fewer times a week and 17 percent say they are going to the store at less busy times AND fewer times a week. The majority of consumers who say they have changed where they shop (59 percent) are now shopping at big box retailers like Target and Walmart more frequently, as well as doing more research online before making purchases in-store (43 percent) and shopping more at local, independently-owned retailers (27 percent).
  • Out of Stock Items: Out-of-stock issues are nothing new for shoppers but 80 percent have noticed that more shelves are out-of-stock or low-in-stock at their usual retailers and grocery stores than they were 12 months ago. Items they have noticed that are unavailable include meat products (53 percent), dairy products (52 percent), boxed goods (50 percent), canned goods (48 percent), toiletries (50 percent), fresh produce (30 percent), bottled water (29 percent) animal supplies (28 percent), and medicine (23 percent).
  • Limited Loyalty: Brand loyalty is wavering as the majority of consumers (65 percent) say they would buy the next best option if their go-to brands are sold out or low-in-stock, and 59 percent say they are very willing to try a new brand and do so regularly. When it comes to what influences consumers’ loyalty to brands, the majority (75 percent) say the taste, flavor or quality of the product is most important.
  • In-Store Experiences: When asked what in-store experiences are most important to consumers, the majority (62 percent) say the ability to try on, touch and see products in-person. Other important experiences include better deals and lower prices (62 percent), the ability to confirm the quality of the product (61 percent), convenience (49 percent), in-person interactions or support from store associates (23 percent), and product sampling (14 percent).
  • Online Shopping Behavior Shift: It is not just in-store shopping that has shifted, 51 percent of consumers say their online shopping habits have changed too. Of those, 76 percent say they are making more online purchases, 26 percent have signed up for more online memberships to take advantage of shopping rewards and promotions and 20 percent have tried new brands due to their go-to brands rising in price or being out of stock.
  • Purchasing Perks: There are many perks of online shopping but 85 percent of consumers say the most important is free shipping and returns. Other important advantages include fast shipping (56 percent), avoiding crowds and contact with others (43 percent), high quality products or brands (38 percent), buy online pick up in-store options (34 percent), flexible return policy (21 percent), and buy now, pay later options (14 percent).

“This survey data has revealed that consumer habits and priorities have transformed over the past year as a result of ongoing supply chain issues and inflation,” said Brittany Billings, EVP of strategic markets and marketing at Shopkick. “In order for brands and retailers to retain customers’ share of wallet, heart and mind, it is more important than ever to deliver a frictionless – and connected – online and in-store experience to ensure a positive interaction each and every time.”

What Do Consumers Want In 2022? Retail Analysts Reveal Shifting Behaviour

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What do consumers want in 2022? New research examines how customers behaviour has shifted during the pandemic, and what this means for how retailers should interact with them.

The past 18 months has reshaped the retail landscape and sent retail analysts into overdrive trying to understand how consumers behaviour has adapted and shifted during the pandemic.

What was once accepted truths about shopper’s habits have been disrupted, and understanding what this means for big or small retailers is paramount in 2022.

Capgemini’s new report ‘What Matters to Today’s Consumer’ helps unpick changes in consumer behaviour, and understand what might be temporary or more permanent shifts. It highlights how the ‘conscious consumer’ is becoming commonplace and emphasises the impact of ongoing supply chain issues and cost of living increases.

Supply chain issues set to continue

In late 2021, business leaders from a range of sectors told the House of Commons business, energy and industrial strategy committee that small businesses would bear the brunt of labour shortages and price rises until 2023.

Tim Bridges, global sector lead for consumer products, retail and distribution at Capgemini speaking via email, underlines what is at stake. “Retailers mustn’t take their eyes off supply chain challenges this year. They can spend huge amounts of money marketing but if the product availability is constrained it’s all for nothing”.

He adds that “fifty-four per cent of consumers prefer local or regional products" and highlights that a move to a more localised supply chain "not only drives brand purpose but also creates agility and flexibility to be able to deliver in supply-constrained scenarios.”

Cost of living sky rockets

Consumer spending has been a major driver of the economic recovery, but with consumer confidence dropping to its lowest level in 11 months as people worry about surging inflation and fuel bills, there are suggestions that rising living costs will slow the household spending recovery.

Bridges explores how retailers are tackling this issue. “We are starting to see two different approaches to tackling price rises. One is a move to subscription models. Here, price increases are spread out over time. The other is to let consumers decide – do they want what they’re after, or an economy option? Often, consumers still opt to pay a premium – as long as they are offered a choice.”

The holy grail – brand loyalty

Brand loyalty, the ability of retailers and brands to retain customers, is highlighted as a key to success in Capgemini’s study. Accenture also examined brand loyalty in a recent report on the impact of the pandemic, looking at how we want to consume has been shaped by the seismic shifts in how we live.

Accenture’s work notes that the pandemic encouraged consumers to look inward, “elevating concepts of relationships and responsibility and re-evaluating their priorities.

It highlighted how these "new mindsets are shaping where, what and how consumers buy, which companies must be acutely aware of as they aim to build loyalty with the consumer in 2022. Through their purchase choices, they are purposefully seeking to influence their communities and the environment, and to confirm how they see themselves in the world."

Bridges agrees, noting that as well as being aware of what is driving today's consumers, retailers must stay tuned in to what customers are saying and thinking. Consumer product companies have many more avenues today to promote brand awareness and loyalty that’s additive to the retailers selling their products. The most active channel is social media, both for promotion and for understanding consumers’ reaction in
real-time – and, therefore, being able to make adjustments just as quickly”.

Consumers know what they want

Today’s consumer expects many things for the businesses they buy from. The ethos and ethical standing of not only the product but the company is extremely important to them. In addition to aligned values, they also want convenience. Whether that’s a multi-channel experience with fast, easy delivery and fulfillment alongside straightforward, multi-payment options, the bar has been set high.

The key to success in 2022 will be recognising that these demands exist, and plotting a course to not only meet expectations, but exceed them in ways that build trust and loyalty.

This article was written by Catherine Erdly from Forbes and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to legal@industrydive.com.

Ignore the doomsayers – brand purpose still beats out bombardment

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On any given day, up to 10,000 discrete advertisements bombard consumers during their waking hours. Consumers – especially the youngest generations – are expecting more from these messages than just details about the latest seasonal sale. But this begs the question: is it possible for brands to prioritize purpose-driven initiatives without sacrificing business performance?

These initiatives serve as an effective way to win customers – and as a gateway to growth. According to research conducted among C-Suite executives and consumers as part of Deloitte’s annual Global Marketing Trends Report, consumers are becoming more discerning about whether a brand supports diversity, equity and inclusion both publicly and internally. Because marketing and advertising often serve as the face of what a brand stands for, marketers have an opportunity to elevate equity inside and outside of their organizations.

Making DEI commitments in all spheres of influence is key to effective branding

In our survey of 11,500 global consumers, we found that the youngest respondents (from 18 to 25 years old) took greater notice of inclusive advertising, while non-white respondents were up to two-and-a-half times more likely to be aware of a brand prominently promoting diversity when making a purchasing decision. But it’s not enough to just market inclusiveness or diversity – our results also show 57% of consumers are more loyal to brands that commit to addressing social inequities in their actions. Appealing to the loyalties of future customers can require brands to demonstrate they are promoting equitable outcomes in all their spheres of influence: in the workforce via hiring and retention, in the marketplace using diverse suppliers, or in society through meaningful community partnerships.

The impacts of measurable DEI commitments are highlighted by high-growth brands (defined as those with annual revenue growth of 10% or more), which are more frequently establishing key performance metrics for DEI objectives than their lower-growth competitors. Notably, in our survey of over 1,000 global executives, we found that the highest-growing brands are committed to achieving equitable outcomes across all their areas of influence – workforce, marketplace and society –in ways their lower-growth peers are not.

Additionally, 27% of high-growth organizations have established equity metrics for community investments (versus 18% for negative-growth organizations) and 38% of high- growth organizations have established similar metrics for their brand messaging campaigns (versus 30% for negative-growth organizations).

These demonstrable commitments to DEI can help bolster brand visibility, prominence, and trustworthiness among its consumers – particularly its youngest demographic. An overwhelming 94% of Gen Z consumers expect companies to take a stand on important social issues. Without legitimate commitments to DEI in all spheres of influence, attempts at inclusive marketing or promotion of diversity can fall flat and appear disingenuous to consumers who are expecting more from the brands they purchase from.

Elevating equity inside and out

How can marketers avoid the pitfalls of hollow messaging and win the hearts of consumers? We’ve highlighted three actions across an organization’s ecosystem.

Firstly, ensure teams and suppliers reflect your market. Marketing teams – both internal and external – that closely reflect the markets they serve can reduce the cultural and demographic distance between the brand and the consumers they aspire to reach.

Secondly, bring a diversity of voices to the organization. Chief marketing officers should use that position of influence to continuously monitor and bring the needs of underrepresented communities to their organization – and feature those voices and faces in campaigns.

Finally, make your commitments measurable. Ultimately, no amount of messaging can help a brand overcome the hurdle of being labeled disingenuous. One way to solve for this is to make sure your DEI goals are not just checking a box but creating real, measurable outcomes.

In the end, future generations and increasingly diverse communities are expecting more from the brands that they support. Simultaneously, the highest-growing brands are reducing the cultural and demographic distance between the makeup of their teams and the markets they aspire to reach. Marketers can help their organizations not only hone their messaging but also support their company’s transformation to a more equitable, diverse and inclusive organization, thereby underpinning their brand messaging with authenticity.

Christina Brodzik is a principal at Deloitte Consulting.

This article was written by Christina Brodzik from The Drum and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to legal@industrydive.com.

Three Ways The Future Retail Store Will Change

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The fundamental role and purpose of retail stores are changing. Digital transformation forced brick-and-mortar outlets to evolve as more of the path to purchase shifted online. Now, as e-commerce expands, retailers are
reimagining the functionality of stores and tapping into digital tools to keep those stores relevant.

Physical retail will remain the largest and most important channel for the foreseeable future, but how space is leveraged will transform. In Euromonitor’s recent Commerce 2040 virtual event, Jason Goldberg, chief commerce strategy officer at Publicis, noted that stores are no longer a singular touchpoint in the shopping journey; now, stores play several roles, becoming platforms that serve multiple missions and stakeholders.

Recently, retailers have reduced footprint entirely or used physical outlets to support online fulfillment operations or branded experiences. Personalized, immersive and collaborative concepts will advance the store experience of
tomorrow.

Check in before check out

A hallmark of the future store will be identifying the customer at check in rather than check out. Historically, stores have not been equipped to detect the identity of a shopper until payment, limiting the ability to personalize in- store shopping trips.

In the future, facial scanning will recognize customers upon entry, enabling retailers to tailor the in-store experience based on personal information and purchase history. As of 2021, one-third of global digital consumers are open to companies using facial recognition software to personalize in-person interactions, according to Euromonitor International’s Voice of the
Consumer Digital Survey:

This sentiment is strongest among younger cohorts—40% of millennials are comfortable using this technology to power more personalized interactions. Leveraging facial recognition across the store will allow associates to assist consumers with product choices in the context of what they own , for example.

Experiential ticket entry

Retailers will leverage technology to remove the hassles of shopping for mundane items while tapping into the innate desire and curiosity to test and try before buying. For products that require more consideration, such as furniture or electronics, physical retail will shift from stores where products are sold to a stage for immersive brand experiences.

In recent years, consumers adopted a minimalist mindset, prioritizing experiences over continued accumulation of products. In fact, 46% of global consumers would rather spend money on experiences rather than things, and this percentage increased 10 points in the last five years, according to Euromonitor. Creating unique engagements have the potential to generate new revenue streams. For example, consumers could go to a sports-themed experiential center and compete against top athletes in an alternate reality experience. Retailers looking to capitalize on this concept will need to create a playground-like atmosphere that ensures the experience matches the price tag.

Community collaborations

Brick-and-mortar outlets can become places where store associates and shoppers come together to design and co-create products. This in-store experience will emphasize onsite product customization for the end- consumer. Shoppers may be able to pick specific colors or textures for shoes, clothes or accessories to create the ultimate one-of-a-kind product.

Retailers that focus on community collaborations could also drive sustainability and target values-based buyers. Globally, 32% of consumers will buy from brands that support social and political issues that align with their values and 27% will go so far as to boycott brands that do not, according to Euromonitor International’s Voice of the Consumer: Lifestyles Survey 2021. This store concept presents the opportunity to bring consumers employees and local experts together to collaborate on circular projects that repair or upcycle previously purchased items.

“The store will become more of a hub of a community in the future,” Emily Xu, chief marketing officer of Mitchell Gold + Bob Williams, said during Euromonitor’s event. Xu noted that this type of in-person experience could be used to teach consumers about concepts like sustainability.

The retail store of tomorrow

Stakeholders operating across retail need to rethink long-term strategies. While the first wave of digital disruption was about how stores could compete with e-commerce, this next wave will be about integrating and uncovering synergies. Data will be key to providing the necessary business agility to do so.

“If you cannot move quickly on the real-time prescriptive recommendations that are coming to the store or restaurant, it is all for naught,” Barry Thomas, head of international customer marketing and future of commerce at The Coca-Cola Company, emphasized during the aforementioned event.

In the future, retail outlets will be multidimensional, with stores simultaneously operating as transactional, fulfillment, engagement and branding spaces.

This article was written by Michelle Evans from Forbes and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to legal@industrydive.com.

How To Seize The Opportunity Of In-Store Marketing And Promotions

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The past decade—and particularly the past two years—have seen exponential growth in the utility of digital tools for marketing teams to leverage.
Audiences can now be targeted better, messaged more effectively, and, in the case of promotions and discounts, be smartly served optimized prices to motivate sales without sacrificing margins.

At the end of the day, what all of this innovation boils down to is maximizing opportunity. It’s using emerging consumer data initiatives to offer customers the right motivation at the right time to drive a sale. Now more than ever, the digital tools that have worked to optimize online commerce are connecting the dots to the in-store environment. For smart retailers, honing in on in-store marketing and promotions can help round out omnichannel marketing efforts across the board.

Now Is The Time to Act On Optimizing The In-Store Experience

As pandemic conditions begin to recede (for the time being), consumer comfortability with in-store shopping is getting back to some degree of normalcy. Statistics show that 70% of consumers are comfortable shopping in store, which is a 2.4x increase at this same time last year.

Additionally, as supply chain weaknesses make online shopping less reliable, particularly for time-sensitive purchases like holiday gifts, consumers may be opting for the guaranteed product-in-hand assurance that in-store shopping affords.

Buying options have also helped contribute to in-store foot traffic. The buy online, pick up in store shopping method has exploded in the past year, representing $72.46 billion, a 106.9% growth rate over 2019. All of these factors mean more opportunity to convert those crucial first moment of truth and impulse sales. During the heights of the pandemic, brands and retailers struggled to put consumers in positions to buy outside of the strictures of digital commerce; now, as more eyes return to shelves, these existing avenues are becoming available once more.

Successful marketing means connecting the dots and seizing the moment, meeting shoppers where they are and putting the right offer in front of them at the right time. In-store shopping is returning, and it’s returning at a time when retailers have had months developing technologies to maximize these touchpoints.

The Digital Transformation Changing The Landscape Of In-Store Marketing and Promotions

As mentioned, the opportunity for in-store conversions is also coinciding with technology that is integrating digital identifiers into the real-world. Brands have been confronted with the imperative to bolster their stores of first-party consumer data for months, which has led to better, actionable insights that can now be leveraged in in-store settings.

With more and more customers relying on their phones during the shopping experience, retailers and CPGs are able to actualize this level of consumer connectivity to provide frictionless interactions and buying experiences with customers in-store, rooted in data gleaned from online first-party data efforts.

Retailers are able now to provide real-time discounts and activated offers right at the shelf to help motivate buying decisions. From digital coupons to exclusive in-store pricing, the synergy of technology and product assortment is creating conditions for in-the-moment conversions in ways that hadn’t existed before.

Brands that have long been trailblazers in the in-store promotions and discount space are adapting their offerings to this new digital ecosystem. Neptune Retail Solutions, for example, has been one of the most prominent names in in-store discounting for decades. Recently, they’ve augmented their approach to include a more digital-first strategy, leveraging AI-driven dynamic pricing and promotions and digital coupons for a mobile-first shopping audience.

Putting These New Tools To Use

With a push back into stores for consumer goods purchases coupled with consumer demand for digital and contactless engagement and commerce options, now is the time for retailers and CPGs to act on upgraded and expanded in-store marketing and promotions. As brands and retailers look to improve first-party data collection and innovate in all things digital, including websites, digital ads, loyalty and email programs, the in-store marketing opportunity is massive for digital-first and omnichannel marketers.

This article was written by Jonathan Treiber from Forbes and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to legal@industrydive.com.

Galentine’s Day Activities

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Galentine’s Day is the unofficial holiday we think every woman should celebrate. Whether you’re in a relationship or not, making time for your girlfriends is always necessary. They’re there for you when you’re down and right next to you when you’re feeling great, so dedicating a day to your friends is a fantastic way to show your appreciation to them and have some fun! So, be sure to clear a day on the calendar this February and pencil in girls’ day. Here’s a list of ways to spend Galentine’s.

1. Spa Day

Planning a spa day not only gives you something to look forward to but also gives you a reason to relax! Whether you plan a DIY one at home with homemade face masks or a day getaway at a local spa, you’re bound to end the day glowing!

2. Have a picnic

Romantic activities don’t have to always be with your significant other! Grab a blanket, candles, wine, and hit the park. This outdoor outing is also the perfect photo opportunity! Remember – it will be cold – so wear something warm and make it cozy with blankets!

3. Pink Breakfast Party

Themed events are always fun – why not host a Galentine’s themed breakfast or brunch? Make pink pancakes, mimosas, and pastries. To make the party even more themed, have everyone wear pink!

4. Host a game night

Game night with the gals is a fun way to incorporate some friendly competition! Whether it be cards, board games, outdoor games, or a combination of all three – this is a fun and engaging way to spend this holiday!

5. Have a good-old-fashioned slumber party

When it comes to sleepovers, age doesn’t matter. Grab your girls and go on a weekend getaway, or have one right at home! Wine, chocolate, and movies – you can’t go wrong.

Well, there you have it! We hope you have an excellent day celebrating, and eat lots of chocolate! Whatever you do, Galentine’s day should be about spending time with your friends.

Majority of Americans are Shopping In-Store for Valentine’s Day Gifts

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Shopkick survey finds that 79 percent of consumers plan to make V-Day purchases at least a week before February 14. 

It has been an unpredictable start to 2022, but that is not stopping Americans from enjoying Valentine’s Day. The majority of consumers (67 percent) plan to commemorate the special day by giving gifts, and many consumers are getting ready to spend as 33 percent plan to make their Valentine’s Day purchases two to three weeks ahead of the holiday. Shopkick, a leading shopping rewards app, surveyed more than 18,300 people to see how they are planning to celebrate Valentine’s Day this year. The online survey was conducted between January 10 – 13, 2022.

Key Insights Include:

  • Store-Bought Goodies: Consumers are eager to find the perfect gift for their Valentine, and they are headed to the store to do so. The majority of consumers say their Valentine’s Day shopping will take place in-store (87 percent) compared to online (36 percent).
  • Sticking to the Classics: Of the 67 percent of consumers planning to give gifts to their loved ones, the majority are taking the traditional route by purchasing Valentine’s Day cards (60 percent) and candy (59 percent). Consumers will also give loved ones clothing and accessories (26 percent), gift cards (26 percent), food items (24 percent), and flowers (21 percent).
  • Not Just The Thought That Counts: Cost is top of mind for nearly half (49 percent) of Valentine’s Day gift-givers, but other V-Day gift considerations include style (21 percent), brand and value alignment (19 percent), and convenience of delivery (11 percent).
  • Some Splurge, Some Save: The majority of consumers (63 percent) plan to spend about the same amount of money on Valentine’s Day this year as they did last year, however, the 19 percent who plan to spend more say it is because they want to make up for not being able to fully celebrate last year (31 percent). Those who plan to spend less (18 percent) are doing so because their finances have been impacted and they need to budget (49 percent).
  • Tokens of Love: When it comes to how much consumers are anticipating to spend this Valentine’s Day, 50 percent say $50 or less. Other consumers plan to spend between $51 and $100 (23 percent), $101 and $150 (9 percent), or over $151 (8 percent).
  • “Buy” My Valentine: Swapping Valentine’s at school is a tradition that lives on according to more than half of consumers (52 percent), but most parents (81 percent) are buying them for their kiddos rather than making them by hand (19 percent).

“Consumers fully plan to celebrate Valentine’s Day this year and are shopping in-store to find the right gifts for their loved ones,” said Brittany Billings, EVP, strategic markets & marketing at Shopkick. “For the next couple of weeks leading up to the holiday, retailers should be prepared for foot traffic, and offer a pleasant and safe in-store experience.”

The 5 Biggest Shopping Trends For 2022

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Based on the past almost two years of living through the peak and valleys of COVID, retailers have upped their game in terms of the shopper journey. Here are the top five trends that customers can expect when shopping in the new year:

Trend 1: Physical stores remain a critical force for retail shopping

While online commerce will exceed $1 trillion in 2021, the brick and mortar stores will still be very relevant for shopping with 84% of sales coming from physical stores. The stores will become more experiential and will incorporate more technology within the shopping journey. QR codes will be used for product descriptions and information, finding stock or demonstrating product usage. Mobile phones will integrate with in-store shopping for price and stock checking, as well as for checking out seamlessly. Social interaction and shopping, one of Americans’ greatest pastimes, will be even more important as the country rises out of the pandemic next year and consumers will look for more opportunities to cultivate a sense of normalcy.

While online sales exceed $1 trillion in 2022, the brick and mortar stores will still be very relevant for shopping with 84% of sales coming from physical stores.

Trend 2: Bridging the gap between online shopping and in-store experiences

Better experiences between shopping online and visiting stores will be evident as retailers have worked hard over the past two years to build up these capabilities. Shoppers have witnessed this build-up over the past year in a major way with the curbside pickup, buy-online-pick up in store and direct shipping from vendors when stock is not available in stores. Retailers will continue to work on these types of strategies.

Trend 3: Shopping goes viral on social media

The hashtag tiktokmademebuyit, which has over three billion views, has given rise to social commerce. Andrew Lipsman eMarketer principal analyst of Insider Intelligence, in a recent webinar on Retail Trends 2022, predicts that viral commerce is a key growth area. Lipsmans discussed the $45 billion social commerce business which essentially is shopping through social media. Users can expect to see more offers, a broader range of products being offered through social media and an increase in special collaborations between brands, retailers and influencers. A recent trend on TikTok users posting their latest purchases with the hashtag tiktokmademebuyit which has over three billion views. Retailers, like Amazon, are curating online assortments that come from TikTok best sellers.

Trend 4: Near real-time delivery continues as shopper demand rises for these services

A rise in third-party delivery intermediaries has been seen across all sectors of retailing. Shoppers will see more and more retailers offering same day delivery with many retailers offering services within a two-hour window. Shipt, which is widely used by and owned by Target, has continued to grow in terms of number of product offerings and in terms of number of retail partners. Instacart does over $1.6 billion per year and plans to go public in the near future. Another aspect that facilitates this type of shopping is the growing usage of micro-fulfillment centers which are mini-distribution centers in local areas near where customers live. Retailers are using these centers to help with delivering products to the customer homes. Many retailers are offering areas in the mini-distribution centers where customers can pick up their orders. In some cases, individual stores have become fulfillment centers with pickers scouring the aisles for consumer orders.
A significant technology transforming micro-fulfillment is automation. Walmart, for example, is using automated bots to retrieve goods for online orders in the smaller fulfillment centers. The last area in delivery that shoppers may expect to see is more widely used is driverless trucks to transport products to customer homes.

Trend 5: Curtailed and more curated assortments

Supply chain disruptions abound throughout the last year and a half. This year has been particularly troublesome for many retailers and brands across a wide variety to product categories. As a result, many retailers have significantly reduced the assortment of products within categories. Shoppers can expect to find less choices in terms of style, color, or features. The U.S. market has historically been overstored and over assorted with product choices, especially in the fashion goods category including clothes, accessories and shoes. Less choice and better curated assortments should translate to a positive shopping experience for customers. As we reflect back on the shopping experiences from the past year, it can be said that the overall experience and convenience of shopping has greatly improved. This overall trend will continue well into 2022.

This article was written by Shelley E. Kohan from Forbes and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to legal@industrydive.com.

Omicron Impact: Consumers Experiencing a Shortage of Retail Workers and Increased Wait Times at Checkout

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Shopkick survey finds 73 percent of consumers are vaccinated but still expect retailers to enforce safety precautions as Omicron cases continue to rise

Although it is officially 2022, it may feel like years past as the Omicron variant continues to sweep the nation, forcing Americans to face another year of the pandemic. The impact is real, as the majority of consumers (73 percent) say they have noticed a shortage of retail workers while shopping in-person, as well as an increase in wait times while checking out (71 percent) and less available essential items (52 percent).Shopkick, a leading shopping rewards app, surveyed nearly 8,500 consumers across the country to gain an understanding of how the Omicron variant is impacting their shopping habits and behavior. The online survey was conducted between January 6 – 13, 2022.

Key Insights Include:

  • Consumers and Vaccines: It has been a year since vaccinations rolled out across the United States and the majority of consumers (73 percent) have chosen to get fully vaccinated, with 47 percent having also been boosted. When asked why they decided to get vaccinated, the majority said to protect themselves (85 percent) and protect others around them (81 percent). Comparatively, 20 percent say they are not vaccinated and do not plan to be.
  • Omicron Fallout: Due to COVID-19 cases rising, the majority of consumers have noticed a shortage of retail workers while shopping in-person and an increase in wait times while checking out (73 percent and 71 percent respectively). Additionally, nearly half of consumers (47 percent) have experienced a shortage of at-home COVID test kits at their local pharmacy and grocery stores.
  • Still In-Store and Gathering Indoors: Despite the spike in Omicron cases, the majority of shoppers (59 percent) are taking the same number of trips to the store as they were a month ago and over half (53 percent) are still comfortable participating in public indoor activities.
  • Shopper Safety Precautions: Consumers are still taking trips to the store, but 73 percent are taking additional precautions while shopping due to the rise of Omicron. Precautions include masking up (90 percent), using disinfectants on hands and carts (79 percent), shopping at less busy times (69 percent), using self-checkout (63 percent), using touchless or contactless payments to avoid exchanging cash (31 percent), and frequenting cashier-less stores (7 percent).
  •  Retailer Safety Precautions: Consumers also want retailers to take steps to protect shoppers, as the majority (71 percent) expect in-store safety precautions such as disinfecting carts (84 percent), enforcing social distancing (65 percent), mandating masks (72 percent), limiting store capacity (40 percent), and putting a cap on the number of essential products each shopper can purchase (37 percent)
  • Gen Z Stocks Up: While the majority of consumers (66 percent) are not stocking up on essential items in preparation for another lockdown, Gen Zers are most likely to stock up (41 percent), compared to Baby boomers (35 percent), Millennials (35 percent), Gen X (34 percent), and the Silent generation (34 percent).

“As consumers continue to shop in-store, it is essential that retailers prioritize safety and implement the necessary precautions to keep shoppers’ minds at ease,” said Brittany Billings, EVP, strategic markets & marketing at Shopkick. “The COVID-19 pandemic has been continuously forcing the world to adapt and the Omicron variant has presented new challenges for consumers and retailers alike. These survey findings further reveal the need for retailers to adopt seamless, omnichannel shopping channels that can help address the pressing issues of supply shortages and a reduced retail workforce.”

About Shopkick, Inc.

Shopkick, a Trax company, is a leading shopping rewards app, bringing moments of joy to everyday shopping – both on- and off-line. For brands and retailers, Shopkick provides high consumer engagement along the entire path to purchase. The company’s unique pay-for-performance model has been proven to deliver high ROI while driving incremental traffic, product engagement, and sales. Some of its leading brand and retail partners include Kraft-Heinz, Barilla, GE, Kellogg’s, TJ Maxx, and Unilever, among others.Shopkick is available for free on iPhone from the App Store and for Android from Google Play. For more information, please visit www.shopkick.com.

Retailers turn to hybrid cloud and AI to meet shifting consumer behaviors

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As the pandemic has transformed the nature of work with more employees working from home than ever before it has also changed how consumers shop according to new study from IBM and the National Retail Federation.

The new global study of over 19,000 titled “Consumers want it all” revealed that hybrid shopping which mixes physical and digital channels in shopping journeys is on the rise as a result of shopping habits consumers adopted out of necessity that are now becoming routine.

Of those surveyed, almost three quarters (72%) said that they use retail stores as all or part of their primary purchase method. The reasons they gave for visiting a store include touching and feeling products before buying them (50%), picking and choosing their own products (47%) and getting products right away (43%).

However, 27 percent of respondents said that hybrid shopping, where part of their shopping journey is conducted online and the other half takes place in a retail store, is their method of choice. When it came to the generation most likely to be a ‘hybrid shopper’, Gen Z consumers lead the way when compared to other age groups.

VP of research and development and industry analysis at the National Retail Federation, Mark Matthews explained in a press release how hybrid shopping represents a fundamental shift in consumer behavior, saying:

“While many surveyed consumers still place high value on the traditional in- store shopping experience, they also now expect the flexibility to build their own shopping journey – according to the behaviors prevalent to their age
range, available tools and the product category they are looking to purchase. This ‘hybrid’ approach is a fundamental shift in consumer behavior.”

Growing importance of sustainability

While adoption of hybrid cloud, AI and other technologies can allow retailers to create bespoke hybrid shopping experiences, IBM’s new study has also revealed that they’ll need to keep sustainability in mind to retain and grow their customer base.

Purpose-driven consumers that choose products and brands based on their own values like sustainability are now the largest segment of consumers surveyed (44%) according to the study. At the same time, 62 percent of respondents are willing to change their purchasing habits to reduce environmental impact which is up from 57 percent two years ago.

Half of respondents said they are now willing to pay an average premium of 70 percent for sustainability which is roughly double the premium from 2020. Still though, there is a gap between intention and action with only 31 percent of respondents saying that sustainable products made up most or all of their last purchase.

Global managing director of IBM Consumer Industries, Luq Niazi provided further insight on the study’s findings and the growing importance of sustainability to consumers, saying: “The survey shows over the last year, sustainability became increasingly important to consumers, though there’s still a gap between their intentions and actions due to lack of information in the buying process. Increasingly, it’s becoming essential that retail brands demonstrate sustainable choices and options in each step of the customer experience. At the same time, hybrid shopping has taken hold in most categories, particularly in home goods and apparel; and while stores continue to play the predominant role in grocery, hybrid shopping is growing in these categories too.” We’ve also rounded up the best e-commerce platforms and best shopping cart software.

This article was written by Anthony Spadafora from TechRadar and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to legal@industrydive.com.