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Top 5 most effective marketing strategies for retail

Posted on by shopkick

Top 5 most effective marketing strategies for retail

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Despite rumors which abounded since the creation of e-commerce, brick-and-mortar retail isn’t going anywhere. Approximately 75% to 80% of purchases made today are made at physical retail locations. There are a number of reasons that consumers choose to shop in the physical space, but one that retailers need to be aware of is the fun component. Shopping isn’t just an errand anymore. It’s a social experience that gets consumers out of the house and interacting with the environment around them. As a result, it’s shortsighted to assume that all digital marketing ideas should focus on e-commerce. 

Mobile provides a path where retailers can engage consumers in the shopping aisle and increase their purchase intent. Whether mobile apps are used to provide convenience, offer exclusive options or incentivize consumer shopping behaviors, these apps are a proven path to increasing sales. Here are five options for using mobile apps as part of the most effective marketing strategies for retail. 

#1: Use Mobile as an In-Store Assistant

Convenience is key in the endless retail aisles that consumers must contend with to find the products they need. These individuals tend to become rapidly frustrated when they can’t locate an item or find a sales assistant to answer their questions. Offering mobile guidance eliminates that confusion and keeps brand affinity high. 

The vast majority of consumers—77%—have used their mobile devices as digital sales assistants in the shopping aisle. These individuals may complete price comparisons, check out availability and pay with their smart devices. For them, mobile devices aren’t just for marketing in the store; they are indispensable tools. 
Mobile has the ability to provide an endless well of information for consumers, while a human sales assistant’s knowledge can be limited. The consumer who wants to know the possible benefits of a vitamin supplement, for example, can easily look this information up on their mobile phone. A store sales assistant would probably not have this expertise and would be unable to help. Mobile provides a way for retailers to offer VIP sales assistance in a cost-effective way. 

#2: Engaging Shoppers in the Moment With Location-Based Strategies

With mobile, brands can send location-specific advertisements, details, and offers to consumers. This helps to connect with the consumer on a more personal level, as the offers have the potential to reach them at the right moment while they’re near a store. Location-based advertising can also create an exclusive experience that boosts sales. 

Starbucks is famous for offering location-based advertising that drives consumers to enter the store and make purchases. Consumers passing by will receive offers for discounts or reminders about specific events that places the company top-of-mind even if they hadn’t previously considered stopping in. The coffee company’s mobile app is among the most popular customer loyalty program apps because it provides location-based offers that consumers can use to: 

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Gain rewards points:

Starbucks tiers its rewards points so consumers who have more “stars” enjoy heightened rewards. As such, consumers who visit Starbucks locations more often receive the highest level of rewards.

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Avoid lines:

Through the Starbucks app, consumers can both enter orders for pickup and pay for them in advance. This helps them to avoid the most frustrating part of the morning coffee run; lines.

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Enjoy exclusive events:

Starbucks hosts double star days where consumers can gain double the rewards points for stopping by one of their locations. They are notified through push notifications sent to them as they pass stores.

Location-based marketing helps to guide consumers through the entryway of stores and increase their purchase intent. They can also work to make operations more efficient by taking over some time-consuming tasks for employees. 

#3: Personalize the Consumer’s In-Store Experience

The ability to personalize the consumer experience in retail is a strong sales driver, as it creates a deeper connection. It’s also a crucial aspect of marketing as 40% of consumers report that personalization is a major purchase driver for them. However, with the volume that a popular brick-and-mortar location sees every day, this may seem an insurmountable task. Some retailers look to rewards programs to create this personalized experience.  

Target recently announced its plan to roll out a rewards program that creates a greater personalized experience for shoppers. Through Target Circle, consumers can enjoy personalized offers on products, rewards on their birthdays and overall savings on purchases. As an added benefit, consumers will be able to vote on Target’s giving initiatives. Through their program Target enjoys several benefits, including:  

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Enhanced consumer affinity:

Providing personalized recommendations and incentives helps Target solidify itself as an ally for consumers during their shopping trip, which increases purchase potential.

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Access to shopping data:

Through the app, Target will be able to gather more shopping data which will help the retailer personalize the consumer’s experience even more. The company will be able to keep building on this data until they have an app capable of thinking with near-human intelligence.

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Opportunities for in-store upsells:

Target can forward in-the-moment marketing messages that will encourage consumers to try new products they might enjoy, which will likely increase the consumer’s overall shopping cart value.

With mobile data, retailers have more access to the information they need to create personalized experiences for consumers. Through intelligent personalization, retailers enjoy stronger connections with consumers that drive them to make purchases. 

#4: Reward and Incentivize Purchase Path Behaviors

Retailers that want to direct consumers once they’re in the store can use mobile rewards programs to do so. This is a marketing strategy that’s also been proven effective for CPG brands, as it can be used to get consumers to check out specific items in a brand’s catalog.  This was a strategy Kraft leveraged when the brand wanted to increase sales of its baking products in Walmart locations during the holidays. Working with Shopkick, they established a tiered program that drove interest, directed consumers to products and improved purchase intent. The strategy worked in three stages: 

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Pre-shop consideration:

In-app content that was holiday-inspired drove consumer interest before visiting the store. This content included recipes consumers could consider for holiday events while highlighting specific products.

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In-store engagement:

Once they arrived at the store, consumers were incentivized to seek out products on the shelf in exchange for kicks (aka rewards points). They received these kicks for scanning UPCs on products, which encouraged them to handle items and primed them for sale.

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Post-purchase follow-up:

Consumers who purchased all three of the featured products from Kraft received heightened rewards after they scanned their receipts. This established a positive brand impression that fostered ongoing goodwill.

Through this campaign, Kraft saw 18 million total campaign impressions. With an average 27% of scanners converting to purchase, the campaign drove an impressive ROI of 7.6:1 and more than half reported they had not considered purchasing Kraft products prior to the campaign. 

#5: Follow Up After the Purchase

Following up after the consumer makes a purchase makes them feel valued. It can also act as a form of remarketing that encourages consumers to return to the retailer and buy more. Mobile apps make this possible by providing data from the consumer’s shopping trips, as well as contact information to send emails, rewards, coupons, and marketing messages. Mainly, there are four categories of messages that retailers can send to consumers after they leave their store, including: 

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Thank you messages:

A simple thank you for shopping goes a long way towards establishing brand affinity. Retailers can make it more impactful by offering rewards or coupons for future trips.

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Survey invites:

Surveys provide insight into store operations that can be used to enhance customer experiences. Inviting consumers to participate—with the promise of rewards or discount codes—helps retailers discover issues that customers encounter.

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Review requests:

Online reviews are particularly crucial for retailers who are emerging or new to the area. Follow-ups post-shopping trip help remind consumers to review their local store and share their experience with others.

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Promotion updates:

If a consumer has just signed up for a rewards program or indicated they’re new to the location, it can be helpful to let them know of future events and promotions in their area to encourage them to return.

Following up with the consumer helps to encourage retention. That’s a major benefit for brands because a repeat or long-term customer tends to be more valuable than a one-time customer. It’s a lot less expensive to keep a customer than it is to acquire a new one.  

Mobile Options for Leveraging the Most Effective Marketing Strategies for Retail

Mobile is a key component in all the above methods as it allows the retailer to travel with the consumer through their trip and strategically influence their shopping behaviors. However, this type of marketing requires permissive use, in that the consumer has downloaded an app and opted into receiving messages from the retailer. To establish this permissive use, the retailer has two options; proprietary app creation and third-party partnerships. Both strategies have their pros and cons which brands must consider. 

Proprietary Apps Third-Party Partnerships
Pros
  • total control over the app design
  • no competition with other retailers
  • ability to gain data from consumer use
  • continuous availability and improvement opportunities
  • app developer handles development cost
  • rapid access to an established platform 
  • built-in base of active users which will likely continue to grow
  • access to app upgrades and innovations without the expense
Cons
  • expensive development process 
  • must gain user buy-in and drive retention 
  • impact is minimal for obtaining new users
  • creating and gaining user buy-in is extensive
  • limited control over the user experience 
  • security risk if the third party is disreputable 
  • competition from other retailers and brands
  • dependence on a third party for maintenance and error resolution
To gain the absolute maximum benefit from a mobile app strategy, it’s much wiser for retailers to use a combination of third-party and proprietary apps. This is already a strategy that established retailers like Target and Walmart use with great success. Through their proprietary apps, they can reward their existing loyal consumers, and by working with third parties, they can connect with new potential customers. 

The most effective marketing strategies for retail require the use of mobile to provide consumers with a strong user experience that will guide them to products in the store. These apps work at every part of the purchase journey, from pre-shopping trip planning to checkout and beyond. Such strategies establish strong consumer relationships that create loyalty and drive ongoing sales.

Our partners know the most effective marketing strategies for retail leverage the power of mobile apps in the shopping aisle. To learn more about how our app boosts results, contact us.

Five Tips for Easy Meal Planning with Shopkick

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My social media feeds are currently filled with families celebrating the first few days of school for their kids. It seems almost everyone embraces the harmony this season brings! One of the common fall rhythms that is back once again is new requests for meal planning tips to enjoy after busy school and activity days. Whether you are a fellow parent celebrating the school year or a young professional cooking for one, I thought now would be a great time to explore five easy ways to meal plan with Shopkick.

1. Check Pinterest:

Pinterest always feels like a treasure trove of some of the best recipes. There are plenty of recipes for food sensitive family members, quick and easy one pan, pot, or sheet options, or new ideas to try for lunch. Bon Appetit, Cookie & Kate, Food Network, and SkinnyTaste are a few of my go-to accounts to review whenever I’m searching for something new. Plus, Shopkick has three boards filled with recipes – healthy recipes, easy cooking, and sweet treats – that are definitely worth a follow!

2. Explore the Discover Tab:

As you’re searching for new ideas or planning your grocery list, check the Discover Tab in the Shopkick app! Some of the most well-loved brands share simple step-by-step recipe ideas and easy to find ingredients. Plus, the Discover Tab is also a great spot to learn about recently released products. You can’t mix up your meal routine more than when you introduce a new find!

3. Plan It Out:

I love the ease of searching digitally, but once I’ve found my what I want to try I turn to paper. I find writing each day’s meal idea into my planner is my best bet because it’s a tool I use daily, and I like viewing a full week of plans at a glance rather than a single day. Typically, I’ll try 1-2 new recipes each week, reserve a night for pizza and another to eat out, and then add in tried and true favorites for all other days. That schedule helps to broaden my meal horizons while also keeping my realistic availability in check. Once you have a plan, make your grocery list!

4. Try Ordering Groceries Online:

Once your grocery list is ready to go, the most obvious step is to shop in person. However, if you’re short on time, try ordering groceries online from a store like Walmart Grocery. You can still purchase all of the brands and ingredients you buy every week, and you can add to your cart from the comfort of your house or even your car via your phone.

5. Save Your Favorites:

After you try a new-to-you recipe, decide whether or not you and your family enjoyed it. Then take things one step further, and pin it onto a Pinterest board noting the recipes you and your family enjoy. You can also create a second board of recipes you didn’t like to help to ensure you don’t make them again even if they pop up in the future. By doing this, you will collect a great variety of options over time, which will allow meal planning to become quicker and easier!

How do you and your family plan your meals? Chime in on Facebook and let us know!

6 tips for building an effective online retail marketing strategy

Posted on by shopkick

6 tips for building an effective online retail marketing strategy

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An online retail marketing strategy requires the management of a lot of moving parts. Retailers must connect with consumers online and gain their attention with organic and paid search strategies. They must also compete with a host of other retailers who may offer lower prices or faster shipping. The most effective strategies aren’t focused on connecting with customers for the first time. Instead, they’re about making the most of repeat visitors. 

One of the biggest challenges to guiding consumers through the online sales funnel is cart abandonment. The current cart abandonment rate hovers at about 75% for online retail sales. There are common barriers during online shopping that keep consumers from moving to sales completion. When planning an online retail marketing strategy, it’s critical to understand, address and resolve those checkout barriers. 

Common Causes for Cart Abandonment

The last crucial step within the online shopping journey, checkout, is where most sales are lost. For some reason, before the consumer submits the official order, they often choose to navigate away from the web page. Typically, their failure to make the purchase will fall into one of six categories: 

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Low buying intent:

This is arguably one of the most common causes of cart abandonment, in that the consumer never intended to make a purchase or wasn’t extremely motivated to buy. They may have added items to their cart out of passing interest or accident, but they had little intention of following through.

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Lack of retailer trust:

Trust is an important component in online sales, both in customers sharing credit card data, and having confidence in the efficacy of the product. Without it, consumers are unwilling to purchase products.

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Comparison shopping:

Consumers may have multiple windows open as they shop and often seek out the lowest cost option. In this case, they abandon one cart because they found a better deal elsewhere. 

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Excessive shipping time:

Shipping can be a deal-breaker for customers, especially with powerhouses like Amazon and Walmart offering same-day options. Fifty-six percent of shoppers ages 18 to 34 expect same-day delivery, meaning demand for rapid shipping is only going to grow. 

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Distractions:

Outside distractions that require an individual’s attention, like a knock at the door or phone call, can keep consumers from finishing their sale. Once they’re off the website, they’ll be less likely to return to make the purchase. 

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Sticker shock from add-ons:

Taxes, shipping fees, and other add-on costs can significantly increase the price that the consumer initially thought was fair. This is another one of the most common causes of cart abandonment and can damage trust as well. 

Retailers must have strategies in place to combat cart abandonment, no matter the reason. In the digital space, there are possible solutions to every one of the above causes that should be part of the online retail marketing strategy.   

1: Leverage Limited Time Offers to Encourage Purchase

Consumers who window shop make up the low buying intent crowd. They’re not particularly focused on purchasing anything, so they can be a hard sell. A retailer who understands shopper buying behavior will use this as an opportunity to improve the buying intent of these consumers by leveraging scarcity.

Typically, retailers do this by offering a coupon code or discount that is only available at that moment, but these types of margin-diluting strategies aren’t necessarily required. Amazon’s time tickers and quantity listings underneath each ad are examples of using a non-discount-based scarcity strategy.
The consumer will see a notification if quantities are running low, like “only 12 left, order soon.” Or, they may receive an alert that lets them know they only have so many hours left to order and receive free next or same-day shipping. Both of these small statements let consumers know that time is of the essence, prompting them to take immediate action.

2: Engage in Online Reputation Management to Establish Trust

Lack of consumer trust is more of a problem for emerging retailers than it is for established ones as consumers can easily see evidence that an established retailer is trusted. They look to several avenues both on and off a retailers site to determine the level of trust. Some may include: 

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SSL Certificates:

An SSL certificate ensures consumers that their payments are secure on a given website. The indicator is provided by the “https” in front of the web address, with the “s” denoting a current SSL certificate. Even consumers who don’t know to look for this “s” will likely receive a warning from their security software if they are on a site without a current SSL Certificate. In some cases, they’ll be blocked from visiting it entirely.

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Onsite reviews:

Consumers will check the reviews on a retailer’s site regarding a specific product. However, they’re more likely to look off-site to see the overall reputation of the retailer as they’d expect a more unbiased perspective. 

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Organic search:

If the consumer wants information on the reputation of a retailer, the first thing they’ll likely do is plug the name into a search engine and see what comes up. If there are sites that mention negative experiences, problems with products or lack of security, they’ll be unlikely to continue on to purchase. 

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Social media:

Social media creates transparency for individuals who want to see how retailers respond to consumer criticism, complaints, and questions. This can be a great place for retailers to establish trust by addressing customer issues quickly and openly. 

These are the primary digital indicators that will help consumers determine if they can trust a site or not. They may also ask friends and family if they have had any experience with the site before making a purchase. Retailers must carefully cultivate relationships with consumers to create the necessary trust needed for online sales success. 

3: Use Rewards to Provide Greater Value to Customers

Nearly one-quarter of online shoppers compare the prices on a brand or retailer’s site to other purchase platforms to see if they can get a better deal. Removing this barrier to purchase is difficult, as the primary factor is often not flexible. Retailers don’t usually want to sacrifice profit so they must find an alternative to keep consumers on their site and reduce their urge to comparison shop. 

Retailers can do this by using rewards platforms as a portal to products. This was a strategy that eBay leveraged when working with Shopkick to improve its overall mobile experience. The online retailer used Shopkick’s app as the jumping-off point, where consumers received rewards points (aka kicks) for viewing and purchasing curated products through the app. Through this strategy, eBay increased sales, gained new users, and improved the overall app installation rate.
This also kept consumers from comparison shopping and seeking products elsewhere as receiving the rewards points required entrance through Shopkick. The incentive took the place of any cost reduction the consumers would have seen through comparison shopping, making it a reasonable trade-off. 

4: Partner With Third Parties for Faster Shipping

Rapid shipping is no longer a bonus to consumers—it’s a requirement. The longer a consumer must wait for an item, the more likely they will be to abandon their cart. Rapid shipping also improves retention as 75% of consumers report that they are more likely to purchase from a company again after receiving same-day delivery on their first product. 

Many retailers are taking a more segmented approach to distribution, opening multiple centers in strategic locations where they can deliver products faster. However, these set-ups are often long, multi-million-dollar endeavors and do nothing to solve lack of shipping channels in the short term. There’s also the issue of grocery items, which consumers typically expect to receive either the same day or within a single day. 
An alternative is to partner with a third-party provider like Instacart, Postmates, or Shipt. These third party delivery services do the shopping for consumers, and allow them to quickly receive products without actually visiting the store. Of course, a brick-and-mortar location is a necessity. The same goes for curbside delivery and in-store pickup, which can also be viable alternatives for speeding consumer product receipt. For online-only vendors, using either a shipping service or establishing shipping partners will be a necessity. 

5: Make Remarketing Part of Your Online Retail Marketing Strategy

Consumers often abandon their carts if they don’t have the time needed to complete their purchase. Retailers can improve follow-through by taking the complication out of their checkout—for example, by allowing consumers to check out without creating an account and saving payment information for later. However, when that doesn’t work, brands can also look to remarketing and follow-up emails to remind consumers of the product they left behind. 

Retailers who make use of follow-up emails should typically plan out three messages that incorporate various conversion marketing elements to encourage consumers to buy. This typically works as follows: 

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First email:

The first email is a simple reminder with a link that the consumer can follow to return to their cart. This one should go out on the same day—or ideally within one hour—of them leaving their cart. This works to get consumers who’ve simply forgotten to check out to return. 

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Second email:

The next email should go out 24 hours after the first—or if there is an event like a sale—at the same time the event begins. This can help to encourage consumers who may not have had high buying intent but are still interested in the product. 

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Third email:

The third and final email should go out one week after the consumer abandons their cart. This email can include a coupon code, promise of free shipping, or other rewards to drive scarcity and incentivize a return visit. 

After the third email, the consumer is unlikely to return, so the retailer will want to move on to warmer prospects. In cases where the retailer isn’t given an email, they can instead look to remarketing to gain a potential customer. 

Remarketing software will store session cookies, allowing brands to display ads of the abandoned product on Google, Facebook, and other websites the consumer visits. This will remind the viewer of the product and provide an easy way to return to the site when they’re ready to purchase. 

6: Maintain Transparency to Reduce Sticker Shock

When a consumer sees one price on the website, and then a much higher one when they try to check out, they’re likely to abandon their cart and feel misled by the retailer. This is bad for sales and for relationship management. To avoid this, retailers must strive to be as transparent as possible during checkout. 

While eliminating unnecessary fees is the obvious first step, brands should also clearly state fees that can’t be eliminated, like shipping and tax. Walmart does a good job of maintaining transparency during the checkout process, as consumers will see the price they pay, shipping options, and estimated tax based on their area prior to entering their information. In addition, the retailer offers free shipping on many of its items to keep sticker shock down. 
A strong online retail marketing strategy isn’t just about getting new customers to visit a site—it’s about getting prior browsers to return. These hot leads are more likely to make a purchase as they’re already familiar with the site. Retailers should make it a priority to remove the common barriers during online shopping to encourage sales. With strategies centered on reducing shopping cart abandonment, online retailers can significantly improve their marketing ROI. 
Our partners use our innovative shopping app to improve sales and encourage return visits to their digital commerce spaces. For more information on how Shopkick can enhance your online retail marketing strategy, contact us.

Shop and Save with Shopkick Over Labor Day Weekend

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Labor Day is only a few days away, which means some of the best sales of the late summer and early fall seasons are on the horizon! In between beach trips and pool days, I always like to check the online sales in order to score some of the deals I’ve been waiting for all season long. From fashion and décor to beauty and fun experiences, keep reading below to learn where you can save and earn extra kicks with Shopkick this holiday weekend!

Online Labor Day Sales | www.shopkick.com

FASHION: 

Summer is a favorite season, but it always feels refreshing to be able to add layers to styles once more as we welcome fall’s arrival. LOFT and Lane Bryant are both having great sales this weekend, and you can also earn elevated kicks. LOFT is a personal favorite of mine, and I also know many of my friends who are teachers love their options because they’re professional while still being comfortable and in style.

If you’re shopping for back to school or even slightly more formal styles to wear to dances, formals, or weddings, don’t miss the sales (and extra kicks!) currently happening at ASOS and Express. Both always have great prices, and the range of styles available at ASOS, in particular, is incredible!

As a new season begins, it’s also a great time to stock up on new undergarments. Make sure to check out Catherines and earn extra kicks!

BEAUTY:

The Body Shop offers a complete line of products, including skin, hair, makeup, body, and even fragrance. Who doesn’t love a place that’s known for their quality and how they honor their pledge to not test their products on animals that just so happens to be a one-stop-shop for all things beauty? Stock up on all of your favorites, especially if you’re in college or going back soon, and make sure to try new to you products as well with your Shopkick app!

DÉCOR:

I speak from personal experience when I say Pier 1 feels like a hidden gem while shopping for home décor! I always know I am going to find unique pieces that are high quality – two of my forever must-haves while searching for décor – every time I shop with them. And, their prices are always on point! Their pillows and blankets are two things I tend to purchase each season to bring new colors into my spaces, and Pier 1 is also one of my first stops whenever I’m looking for new furniture. Did I mention Joanna Gaines designs a line for Pier 1? She does, and the rugs are beautiful in person and incredibly soft. I could keep going, but I’ll let you see for yourself when you shop online with your Shopkick app and earn extra kicks! 

FUN: 

I always think the fall is one of the best times to enjoy the outdoors. So many of my friends plan hikes almost every weekend, and there’s also another group who loves to camp. There’s still time to canoe and kayak before it gets too cold. So, stock up on all of your adventure needs at Backcountry through your Shopkick app! They have nearly everything you could ever want or need for an outdoor excursion, and the quality of their products can’t be beat. 

Finally, don’t miss out on scoring deals with SeatGeek. Baseball season is still underway, football has kicked off once again, and there are plenty of opportunities to go to concerts and more. SeatGeek makes purchasing tickets easy, affordable, and fast. So, purchase tickets as a gift or as a way to gather friends and family together for an afternoon or evening out together. Make sure to use your Shopkick app to save and earn kicks!

Download Shopkick for free in time for Labor Day weekend, and join our Facebook community for more shopkicking fun!