4 factors influencing consumer decision making

4 factors influencing consumer decision making

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When analyzing the factors that influence consumer decision making, one needs to look no further than the four Ps of the marketing mix: pricing, promotion, place, and product. With competitive pricing, strong promotions, optimal shelf placement, and a good product, brands can be assured of their success. However, optimizing all four of these components isn’t always possible when brands focus strictly on traditional marketing methods. Instead, brands will need to look to digital innovations to elevate their marketing mix. 

Mobile shopping apps, rewards programs, and digital marketing tactics can all be used to close the gap in these spaces. They can guide consumers to products, make them more appealing for purchase and help them stand out among competitors in the shopping aisle. By leveraging these tools to direct consumers, brands can close sales and increase their market share. 

How Digital Marketing Impacts the Factors Influencing Consumer Decision Making

Factors within traditional marketing that influence consumer decision making have not changed very much, but the way brands leverage them has—thanks to advancements in digital technology. In the past, brands would rely on celebrity endorsements, new and improved product formulas, premium shelf space, and steep discounts to drive sales. However, these all have drawbacks as they often fail to offer a reasonable ROI based on their overall expense. 

Digital spaces help brands enhance all parts of their marketing mix through more cost-effective strategies. Traditional discounts are offset by rewards. Everyday shopper recommendations on social media provide word-of-mouth marketing that outperforms celebrity endorsements. Mobile apps can direct consumers to products in the aisle and brands can differentiate their products not by changing them, but by marketing them in a new way. Here are four ways that brands can use technology to leverage the factors influencing consumer decision making. 

#1: Reduce Reliance on Discount-Based Pricing With Rewards

While price will likely always be a vital factor that drives purchase decisions, it’s not the only component consumers take into consideration. Quality, sustainability, and convenience are also crucial motivators that encourage consumers to buy. Aside from that, steep discounts actually have some opposite effects when it comes to improving sales. Some to consider include: 

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Economic unsustainability:

Competing with white-label or private-label brands is often a challenge for most large, household name CPG companies looking for long-term, sustainable results. Brand-name companies typically have higher overhead costs, meaning it’s not as easy to offer cut-rates on products and maintain profitability.

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Reduced perceived quality:

There is a direct correlation between price and quality perception. Typically, the lower the price, the lower consumers view the quality of a product. Often, quality is a deciding factor for consumers choosing CPG brands, so using steep discounts could actually deter them from buying.

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Ephemeral loyalty:

Discounts may be good for gaining one-time users, but they’re not typically strong for creating ongoing customer relationships. Discount-driven consumers will usually switch to a cheaper product as soon as the price goes back to normal. 

Discounts can be a decent strategy for brands that wish to improve sales, but relying entirely on them is a mistake. An alternative to discount-dependence is rewards programs. In such programs, consumers receive points which can be redeemed for gift cards and other items. Through the reward, the consumer gets the value-driven experience they crave, while brands gain the sale without having to offer an immediate discount. It’s not uncommon for consumers to even view those rewards as having a higher value than their simple face amount, as there is an emotional return for receiving them.

#2: Direct Consumers to the Right Place With Mobile Apps

Approximately 96% of consumers who visit a mass merchandiser or grocery store make at least one CPG purchase. This makes shelf space and visibility absolutely imperative in gaining sales.  However, premium shelf space is finite and can be expensive when dealing with retailers who use “slotting fee” systems where brands must pay for their space in the store. An alternative to paying those high fees or fighting for space is to use mobile shopping apps to direct consumers to products. 

This is a strategy Shopkick uses when improving in-store sales for partners. A leading cleaning product brand partnered with the mobile shopping app with a goal of increasing in-store purchases. The campaign featured branded greetings when consumers arrived at a participating location, putting the product at the top of shoppers’ minds upon entry. By awarding consumers with kicks (reward points) for scanning the brand’s products with their smartphones, Shopkick was able to drive shoppers right to the product at shelf and incentivize interaction and purchase. Following their choice to contact Shopkick, the brand saw an overall 92% increase in purchase conversion on days when the promo was in effect. In addition, 52% of purchasers reported they were driven to try the product due to the content they saw in the app.
Mobile shopping apps have a strong impact when driving in-store sales as they encourage consumers to seek out specific products. Even premium shelf space can’t get consumers to do that, as they may see the product but never handle it. Shopkick’s strategy leverages priming by encouraging consumers to physically touch the product, which instills a sense of ownership and increases sales. Of course, not all mobile shopping apps are created equally. To leverage this strategy in the shopping aisle, brands must seek out an app which: 
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Gamifies the consumer experience:

Gamification, or turning an everyday exercise into a game, engages consumers during their shopping journey and encourages them to participate. In Shopkick’s case, the app works like a digital scavenger hunt. This makes the experience fun and keeps user retention high.

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Rewards them for participating:

Rewards need to tread a thin line between offering affordability for the brand while providing enough of an incentive that the consumer believes the app is worth it. If consumers feel it is too hard to obtain these rewards, they’ll likely stop using the app.

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Engages them with pre-trip ads:

While most purchase decisions are made in the shopping aisle, brands must still prime consumers for sale before they reach the store to gain the best results. Using an app that allows them to view digital content like mobile video can ensure the brand is top-of-mind both before and during the consumer’s shopping trip. 

Mobile apps allow brands to gain an advantage in the store and engage consumers on a deeper level. Not only can this increase sales, but it can also help boost brand affinity and encourage ongoing product loyalty.

#3: Carefully Cultivate Influencers to Promote Products

In the age of social media, brands are now turning to influencers to help endorse their products. These individuals have massive online followings, which many brands leverage to drive sales of their products. The assumption is that the right product recommendation from an influencer can garner hundreds of thousands of sales. In some cases, if the relationship is carefully cultivated, this is true. In others, the ROI fails to meet expectations as there wasn’t enough leg work done in selecting the influencer. 

It’s estimated that advertisers will lose $1.3 billion due to fake follower numbers this year. For that reason, many well-known brands, like Unilever, are pulling away from larger influencer marketing and are targeting individuals with smaller followings. These individuals have clout within their social circles and know many of their followers outside of the digital space. By targeting these individuals with offers and discounts, brands can benefit from their trustworthiness.
Influencer marketing isn’t going away any time soon, but the brands who use this method are changing their approach. Instead of looking solely at the number of followers these individuals have, they check out user engagement through comments and mentions. They work closely with these influencers so they can understand the real ROI of such campaigns. Before closing a deal with an influencer, a brand should consider: 
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Follower count vs. comments:

Often, if an influencer is buying followers, their comment count won’t correlate to their overall follower count. If they have a million likes but only one or two comments, it’s a likely sign that their numbers are inflated. Even if the numbers are genuine, the lack of comments indicates a lack of engagement that will result in poor sales.

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Available content:

Brands should do a thorough review of the influencer’s content not just to see if they’ll represent the brand well, but if there will be conflicts. For example, if the influencer has been touting the benefits of Brand A since they started their channel on YouTube, viewers will likely be suspicious when they suddenly switch camps and start endorsing Brand B. It’s best to find influencers that are already actually using branded products, or ones without existing preferences.

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Growth potential:

There’s a certain lifecycle to consider in gaining the right influencers as their popularity window is shorter than that of a mainstream celebrity like a movie star or professional athlete. Ideally, brands want to connect with someone before their fame reaches their peak to get the best endorsement deal and benefit as the individual’s clout in the market grows. 

Influencer marketing continues to be crucial for brands that want to effectively promote products online. However, brands need to cultivate these relationships carefully and determine some acceptable key performance indicators to gain the greatest benefits from these partnerships.  

#4: Differentiate Products With Digital Value-Adds

CPG brands are challenged by the ability to differentiate their product in a crowded marketplace. About 30,000 new consumer products are launched every year and the vast majority fail to gain a following. Standing out in this marketplace isn’t a matter of creating an entirely new product. Instead, it’s about finding methods to offer old products in new ways. This is a strategy that many challenger brands have leveraged with great success. 

Consider Dollar Shave Club, a niche company that started out as a small indie brand before being acquired by Unilever after its service took off. The company didn’t reinvent the razor. Instead, they reinvented how razors were delivered. They turned shaving into a subscription service that provided consumers with something they value just as much as discounts or high quality; convenience. Consumers didn’t have to remember to buy razors anymore. Instead, they paid a monthly subscription fee and received razors in the mail as they needed them. This is a type of strategy that’s only possible in the digital space because brands need to be able to advertise the service as a value-add. It’s the service that helps the product stand out from other razors in the marketplace.
Another great example of this comes from General Mills and the company’s long-standing Box Tops for Education fundraiser. There are hundreds of different cereals on the market, but General Mills has managed to stand out with their educational fundraising. Through the fundraising efforts, General Mills establishes itself as a brand parents can trust. In the past, the company ran this through a physical program where box tops were actually mailed in. However, they’ve shifted to a digital program to improve giving and cut expenses. Soon, consumers will be able to scan their receipts from General Mills products and then donate to the school of their choice. This will occur through a mobile app which will also allow individuals to track the giving efforts. It’s a way of digitally breathing new life into an old program that set General Mills apart. 
Marketing mix standards of product, pricing, promotion, and placement continue to influence consumer decision making, but digital marketing has made it easier to enhance these aspects. Mobile apps allow products to stand out, both from the competition and in the shopping aisle, while rewards and influencers help to establish trust and affinity for brands. By leveraging a strategy that incorporates all of these components, brands will be poised to increase their sales and improve their market share. 
Our partners take advantage of the factors influencing consumer decision making through our intuitive app. Check out our success stories for more details on how our app improves in-store sales.
Posted in b2b

How to Make Grocery Shopping Fun for Kids

Let’s be honest: grocery shopping with kids doesn’t always sound like a good time — but it can be. Growing up, my parents made grocery trips feel like an adventure. From helping with the list to pushing the cart, I felt like part of the process — and I actually looked forward to it! 

If you want to make grocery shopping a little more fun (and a lot less stressful), here are five simple ways to get your kids involved and entertained. 

1. Plan Meals Together

Invite your kids to help plan meals for the week while you’re making your grocery list. Even picky eaters get excited when they’ve had a say in what’s for dinner. Plus, when everyone’s on board with the plan, there’s less begging for extras in the store. 

2. Turn It Into a Scavenger Hunt

Turn shopping into a game! Use the Shopkick app to find products to scan for kicks (our version of points). Kids love the hunt, and you’ll earn rewards toward free gift cards while they help track down items. 

3. Use a Kid-Sized Cart

If your store has mini shopping carts, take advantage! Little ones love having their own cart to push and fill — it gives them a job and keeps them engaged. Perfect for short trips or light shopping days. 

4. Watch & Earn

Shopkick videos are another fun way to keep kids busy while you shop. After scanning items, check for videos to watch right in the app for bonus kicks. They can also explore the Discover Tab to watch and earn from the cart. 

5. Make It One-on-One Time

Grocery shopping can double as quality time. Turn it into a mini “date” with one child at a time. It’s a great way to connect, chat, and knock out an errand together — without distractions. 

Got your own kid-friendly shopping tips? Share them with us on Facebook or Instagram (@shopkick)! And if you haven’t already, download Shopkick to start earning rewards today. 

The future of retail: 6 growing trends in retail

The future of retail: 6 growing trends in retail

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One thing to remember about the future of retail is that it’s not a question of whether consumers are shopping online versus at a brick-and-mortar location. Instead, it’s about how internet-enabled technology will improve the consumer’s experience on all shopping paths, whether they’re on the internet or in the shopping aisle. Treating both as part of the same marketing strategy is beneficial, as evidenced by the fact that opening a new physical location increases a store’s website traffic by an average of 27%. Brick-and-mortar and e-commerce can complement each other. The future of retail will be all about blurring the line between the digital and physical space. 

Mobile will be a crucial aspect of these omnichannel experiences as it will be used as a vehicle for delivery. Already, mobile is edging out desktop in terms of internet usage, with 57% of traffic coming from mobile devices. Brands and retailers that want to market to these users need to be where they are, and that’s on mobile. Due to that, many predictions on the future of retail center around devices that travel with consumers. 

#1. Deep Learning Will Drive a Shift Towards Discovery Shopping

Deep learning algorithms that track consumer purchase patterns, preferences, location, and interest will enable retailers to provide more proactive recommendations. Even something as simple as the consumer’s facial expression could be used to determine customer satisfaction and offer guidance to improve experiences. 

This data is crucial in supporting the growing trend of discovery shopping in the digital space. In the past, consumers who shopped online typically searched based on a specific need. Now, however, they may be driven to buy based on information they see on social media or via a digital lookbook. Essentially, it’s a form of digital window shopping that allows consumers to view a wide range of products.  

These consumers aren’t looking to fill a specific need. Instead, shopping is a leisure experience where consumers browse for fun. Using data to better curate content increases the chance that these browsers will be intrigued to make a purchase. With discovery shopping, brands should focus on creating an engaging user experience which drives consumers to interact with their products in a digital space.
In a way, Amazon’s Prime Day could be considered a form of discovery-driven shopping. Consumers who follow the platform on Twitter will see notifications about deals on specific products. This drives interest and improves purchase intent. The platform also uses data to send notifications to mobile users who’ve purchased similar items before. Finally, it engages users by building up the products and not announcing the sale until the exact moment of price reduction.  

#2. Rapid Delivery Will Aid E-Commerce Leaders in the Future of Retail

Same-day delivery is no longer an added service. It’s something consumers expect. Twenty-five percent of consumers report they will abandon their online shopping cart if same-day delivery isn’t an option. Retailers enhance their distribution options to respond to this demand. They open more centers in various locations to serve a growing pool of consumers who demand immediate services. However, investing in a massive distribution network isn’t always an option. In those cases, retailers turn to one of three options: 

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BOPIS:

For consumers who must have an item on the same day they order it, offering an option to buy online and pick it up at the store is ideal. Not only does this solution satisfy the same-day delivery need, but it also gets them to go to a physical location and possibly purchase more.

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Curbside delivery:

For some consumers, the inconvenience of walking into the store and waiting in-line is enough to make them abandon their cart. However, curbside pickup, where consumers can park in a designated spot and have their items brought out to their car, resolves this issue. This is a low-cost solution which provides the benefit of same-day delivery without the added expense.

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Third-party partnerships:

Some retailers are choosing to partner with third-party delivery services like Lyft to offer same-day delivery to consumers. This is especially popular in the grocery sector, as consumers are willing to pay more to receive perishable items the same day without the need to go to the store.

As demand for same-day delivery increases, so will the options for providing this outside of traditional mail services. Partnerships are likely to expand, which will enable stores to find more unique ways to offer this feature to consumers. 

#3. Brick-and-Mortar 2.0 Will Tie the Digital to the Physical Space

While online retail is popular, it’s still only expected to account for 20% of sales by 2025. Brick-and-mortar locations will still make up the brunt of transactions, but they’ll shift to support an increased need to be digitally connected during the path to purchase. This is the beginning of brick-and-mortar 2.0 and mobile optimization is needed for its success. 

Mobile connects consumers to the internet while they’re also browsing the shopping aisle, which exponentially improves the ability to market. Retailers and brands don’t even have to invest a lot of money into proprietary apps to make this happen. They can look to third-party partnerships. 

This is one of the reasons many brands choose to work with Shopkick. Shopkick partners with brands and retailers by giving them access to our highly engaged user base, which improves in-store engagement with products. This was the case when Rimmel London partnered with us on a campaign that leveraged consumer’s mobile phones to direct them to products in the shopping aisle.

Consumers could scan participating products with their phone’s camera and receive kicks (rewards points) which could later be redeemed for gift cards. Overall, this engagement helped the brand increase its market share in participating stores by 14%.

A plethora of options is available for brands who wish to partner with third parties to enhance in-store experiences. They should seek out those with a strong base of active users to garner the best results. 

#4. Technology Will Enable More Self-Driven Customer Service

Consumers in need of assistance with a product prefer to help themselves before they seek the aid of an associate. In fact, 67% of consumers prefer self-service over speaking with a company representative, with 75% noting it’s the most convenient way to resolve customer service issues. There are many options to provide these services, which vary widely in sophistication. Here are a few:  

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Forums:

Forums are probably the least sophisticated option, but they’re still a solution for helping customers help themselves. Individuals can publicly post their questions and receive answers from the company as well as from company personnel.

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Basic FAQs:

It’s crucial that all companies have some basic questions listed and answered if they’re frequently asked the same questions. These are often the first stop for a consumer with a problem, and when their issue is covered, the fix is simple.

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Interactive FAQs:

Smarter FAQs can take consumers through a series of questions to best determine their issue and help them resolve it. These troubleshooting programs are excellent for self-service as the individual gets a customized answer without the need to reach out to customer service.

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Sophisticated chatbots:

Chatbots have become so sophisticated that often, consumers don’t even know they’re talking to a computer program. These chatbots run on data which is analyzed for context and can guide them to the best solutions for these answers. As artificial intelligence grows, these bots will only become more sophisticated and capable.

The need for consumers to have access to self-service assistance is also a boon to retailers, as they save time and labor costs in responding to customer inquiries. By providing methods where consumers can get most of their questions answered, retailers and brands build affinity and prevent poor reviews due to response delays.

#5. Direct Sales Will Increase Across All Categories

The reason challenger brands have seen so much success is that they’ve been able to cut out the retail middle man by leveraging the internet to sell directly to consumers. This isn’t a strategy that works for all brands, as the product must be unique or offer an added service. 

Russel Stover is one such brand that has a unique selling point which works to drive direct sales. While the brand offers its pre-packaged candies in the store, consumers can also visit their site and make use of their “Build-a-Box” service to create customized treats. This provides added value to the product and encourages consumers to purchase directly from the brand.
Customization will drive a shift towards direct sales for all brands. The hardest-hit categories are likely to be items that consumers either buy on a schedule, like razors and vitamins, or need assistance buying, like baby care products. Brands in these categories should begin exploring direct sale options now to prepare for the future. 

#6. Online Search Will Move Beyond the Screen

It’s estimated that by 2020, 30% of all searches will occur without screens. This is largely interpreted to feature voice search but could also include more immersive categories like virtual and augmented reality. These new types of searches could present a paradigm shift for retailers, who have relied heavily on keyword-based text searches in their digital strategies. 

While this is a difficult category to predict, retailers should begin to focus on market leaders who gain the most attention from consumers in relation to their screenless experiences. Amazon, for example, is a market leader when it comes to smart speakers, which is why brands would do well to improve their listings on the Amazon platform to prepare for voice searches. 

Augmented and virtual reality are a bit more difficult to pinpoint as so many companies are delving into these areas. However, we can expect to see some movement from major retailers. Walmart, for example, has already filed patents for at-home virtual reality shopping experiences and it’s likely other retailers are developing their own solutions.
Of course, consumer adoption will play an integral role in how lucrative these new search options become. Voice was slower to take off as consumers haven’t quite gotten over the learning curve. Virtual and augmented reality will probably face the same issues. The screenless searchers retailers will see over the next few years will stem from early adopters and their retention rates will help them determine if the avenues are worth pursuit. 
Digital experiences that work both in the store and out are the future of retail. Today’s brands and retailers are leveraging better technology to provide faster shipping and aid customers. They’re also boosting their marketing results with better direct sales options, in-store mobile experiences, and updated features like voice search and augmented reality. All of these options improve the customer experience and can be used to enhance sales along with market share. 
Shopkick aids our partners in capitalizing on the future of retail by providing an innovative app with an active user base. For more information on how our app increases shopper engagement, see some of our success stories.  
Posted in b2b

Shop for Groceries Online and Save with Walmart Grocery

Do you love grocery shopping? Sometimes, it’s fun to stroll the aisles and discover new finds. But let’s be honest — on a busy day or when life’s throwing more exciting plans your way, grocery shopping can feel like a chore. That’s where Walmart Grocery comes in. Whether you choose pickup or delivery, it’s designed to save you time, help you stick to your budget, and keep your pantry stocked — without the hassle. And when you pair Walmart with Shopkick, you can make your grocery trips even more rewarding.

 

Why Walmart Grocery is Convenient

Shopping online with Walmart Grocery is designed to make your life easier — seriously, it couldn’t be more convenient! Whether you’re restocking pantry staples or hunting for seasonal must-haves, you can shop by department, event (hello, back-to-school!), or even specific items. Got go-to products you buy regularly? Add them to your favorites list so they’re ready to pop into your cart in seconds. This little feature saves so much time, you’ll wonder how you ever shopped without it!
The streamlined design of Walmart Grocery keeps everything at your fingertips. See something you need? Add it to your cart with just a click or two. It’s grocery shopping made simple, quick, and stress-free — exactly how it should be.

Delivery and Pickup Options

Walmart Grocery knows life gets busy, which is why they offer flexible options to fit your schedule. If you’re in an area where delivery is available, your groceries will be brought straight to your doorstep. But if delivery isn’t an option near you, don’t worry — Walmart’s pickup service has you covered.

 

Here’s how it works: place your order online, then drive to the store when it’s ready. Park in one of the designated Walmart Grocery pickup spots, and their team will bring your order out to your car. No lines, no lugging heavy bags around, just quick and easy service!

 

Budget-Friendly Shopping Online

We’ve all been there — walking into the store with a list and walking out with a cart full of things we didn’t plan on buying. Those impulse purchases can seriously add up. Shopping online with Walmart Grocery? Total game-changer for your budget!

 

By shopping online, you can focus on just the items you actually need, without the temptation of in-store distractions (looking at you, snacks and seasonal décor). Plus, seeing your total as you shop helps you stay on track financially. It’s a great way to plan meals, stick to your list, and save money — all from the comfort of your couch.

 

Variety and Bulk Shopping

Whatever you need, Walmart Grocery has you covered! From everyday essentials to specialty items, their selection is massive. You can easily shop for back-to-school supplies, baby products, pet essentials, and even toys or sports gear. And if you love buying in bulk, Walmart’s Stock Up section is a must-visit — it’s packed with the products you use most, offered in larger quantities for even greater convenience and savings.

 

The variety is endless, and it’s all available in one place. Whether you’re preparing for a busy school week, restocking the pantry, or getting your home ready for guests, Walmart Grocery makes it easy to check every box.

Earning Kicks with Walmart + Shopkick

While Walmart’s old Savings Catcher program is gone, you can still earn rewards with Shopkick when shopping online at Walmart.com through the Shopkick app. Simply:

 

  1. Open Shopkick and navigate to Walmart.com from within the app to see current kick offers
  2. Complete your purchase as usual to earn kicks toward free gift cards
  3. For in-store purchases, link your Walmart account for eReceipts to earn automatically on qualifying buys

 

This way, you’re not just saving time — you’re working toward rewards you can use for everything from your next grocery run to a little personal splurge.

 

Ready to simplify your grocery shopping? Try Walmart Grocery for delivery or pickup, and pair it with Shopkick to make every trip more rewarding.