Customer incentives are rewards offered by brands in exchange for the completion of brand-building behaviors. Continue reading “Why brands should leverage incentive-based marketing strategies”
Category: b2b
Market share 101: How to gain market share in retail
Are you wondering how to gain market share in retail and build a successful retail empire? Continue reading “Market share 101: How to gain market share in retail”
Forty Percent of Millennials and GenZ Drinking More Wine than Pre-Pandemic
Firstleaf and Shopkick share tasty data for National Red Wine Day and find GenZ prefers Rosé
Continue reading “Forty Percent of Millennials and GenZ Drinking More Wine than Pre-Pandemic”
4 examples of effective customer loyalty rewards programs
While many businesses tend to focus on new customer acquisition, it’s the loyal, repeat customers who represent long-term profitability. One effective method of retaining customer loyalty is through comprehensive customer loyalty rewards programs. A study by Bond found that 79% of customers agreed that loyalty programs make them more likely to continue doing business with a brand. The study goes on to say that 73% of consumers are more likely to recommend brands with satisfactory loyalty programs, and 71% of consumers find loyalty programs to be a meaningful part of the customer-brand relationship.
The best loyalty programs are those which help companies stay consistently engaged with their customers across multiple retail channels. That is why mobile loyalty programs have been found to be the most popular and effective way to interact with customers. Nearly 75% of shoppers say they would show more engagement with their loyalty programs if they could access them via their mobile devices.
A smartphone app is accessible on-the-go, limits the number of physical cards or coupons a shopper has to carry, and offers a personalized experience. Relevant mobile data can be collected and analyzed by companies to gain valuable insight into buyer behavior, stored in a customer relationship management database, and later used to create highly optimized marketing campaigns.
Below are four key examples of today’s top brands and retailers effectively creating and managing profitable customer loyalty rewards programs.
The app also features AI technology which enables users to give themselves virtual makeovers using selected products, as well as access customized recommendations that match each of their beauty types.
- Over 17 million people have downloaded Sephora’s app
- Loyalty members make up 80% of annual sales
- App improvements boosted eCommerce sales 150%
Kraft® partnered with Shopkick, a popular third-party mobile rewards platform, to boost baking product sales at Walmart locations during the busy holiday season.
Their campaign started with pre-shop branded content that included recipes with the three featured products— Baker’s Chocolate, JET-PUFFED Marshmallows, and Jell-O Instant Chocolate Pudding. Introducing the products before consumers visited the store helped boost purchase consideration, and rewarding shoppers for their at-home engagement built a positive brand-affinity pre-shop. Once consumers were in-store, Shopkick guided them to Kraft’s featured products at-shelf, and provided reward points (“kicks”) for those who scanned the select items’ barcodes, or for making a purchase. They also offered bonus kicks for those who purchased all three products.
Rewarding shoppers for their engagement and purchases builds positive brand affinity, boosts future purchase intent and loyalty, and increases the likelihood of them purchasing from your brand over a competitor.
The campaign resulted in:
- Over 9 million in-store product engagements nationwide
- More than 18 million total campaign impressions
- 27% of scanners converted to purchase
- 55% of purchases were unplanned
- Greater than 7:1 ROI
For top retailers like Best Buy and TJ Maxx, shopBeacon™ technology is an innovative tool that allows large crowds of consumers to each have a personal shopping experience. Beacons welcome each shopper by name and reward them immediately upon entering a partnering retailer. This creates a positive brand affinity early on in the shopping journey, and inspires consumers to keep shopping for additional kicks in-store. This tool links in-store activity with at-home browsing data, filling gaps in the customer shopping journey for our partners.
By eliminating manual check-in, Shopkick makes it easy for consumers to participate in their loyalty program and earn points. Plus, the lack of GPS tracking data helps retailers avoid privacy issues.
Kicks
Brands and retailers who partner with Shopkick can offer rewards for customer loyalty that don’t involve discounts, coupons, or price cuts.
Shopkickers earn kicks (points) by actively engaging with partners in a variety of ways:
- Walking into select retail locations
- Scanning the barcodes of select items in-store
- Going on “treasure hunts” for featured items in-store
- Watching branded videos
- Browsing curated lookbooks
- Purchasing promoted products
- Linking a credit card and shopping online or in-store
- Inviting friends to use the app
App users accrue kicks toward gift cards of their choosing. Many Shopkickers earn one or more gift cards every month simply for shopping and engaging with Shopkick partners. Retailers and brands that offer gift cards in the Shopkick rewards store find very profitable returns, as most people typically spend more than the gift cards are worth.
Videos
Videos have been one of the main driving forces behind Shopkick partners’ success. Shopkick’s Discover Tab features short, campaign-exclusive promotional spots, allowing partners to make a quick yet memorable impact with video. Plus, time-strapped shoppers appreciate these visual, to-the-point clips.
Video marketing dominates in 2020, and is expected to continue to reign:
- 92% of firms deem video important
- Viewers watch approximately 100 min. of video daily
- 95% of video budgets will increase
Consumers largely prefer video to text marketing, with 72% of shoppers saying video is a “convenient and effective” way to learn about products of interest.
Most of Shopkick’s campaigns see viewing completion rates of 99% or higher!
Nike+
Nike loyalty program members are treated to exceptional perks like free expedited shipping, reward redemption for in-store merchandise, birthday discounts, surprise gifts at checkout, and exclusive product access.
Nike+ members also receive rewards for staying active. Partnerships with Apple, Headspace, and ClassPass—offering the added value of music, guided meditation, and guided workouts—make it easier to reach fitness goals.
- Nike+ boasts 185 million members
- Loyalty app users spend 3x as much as non-members
- Digital business has grown 38% in the past few years
- ECommerce surpassed $10 billion in Q3 2019
Sprint/Amazon Moment
Amazon ventured into the B2C mobile rewards sphere in 2019 with a new program called Amazon Moments, an intuitive, cross-platform applications programming interface (API).
With a Moments marketing campaign, companies set desired actions for consumers to perform that generate specific rewards. Amazon then tracks user engagement and completed actions, and automatically fulfills the rewards. Business partners pay a cost per action (CPA) fee.
Sprint partnered with Amazon Moments for a five-week campaign during the 2019 Concacaf Gold Cup. Customers downloaded the Fútbol Mode Rewards Wallet Pass to complete challenges during each of the five stages of the tournament and accumulated Amazon credits that could be redeemed for over 500,000 choice items. Additional points could be earned by referring friends to the app and uploading videos of themselves engaging with Sprint. Rewards included TAG Heuer watches, Samsung electronics, and Nike soccer gear.
Throughout the different stages of the campaign, Sprint saw:
- A 3x increase in engagement
- 74% challenge completion and reward redemption rate
- 26K influx in website visitors
Partner with Shopkick to create an effective customer loyalty rewards program that will deliver an increase in brand awareness and ROI, as well as long-term trust and brand affinity. Read how leading brands like Claritin, Tyson, and Purina benefitted from a partnership with Shopkick or get started on your very own campaign by contacting us today!
Shopkick celebrates 10 years!
This August we are celebrating 10 years of Shopkick, and all of the milestones we’ve hit this past decade. Continue reading “Shopkick celebrates 10 years!”
A new normal: Preparing for changes in consumer behavior post-COVID-19
Consumption habits have been deeply disrupted by the emergence of COVID-19, leaving shoppers and retailers with much uncertainty about the path ahead. Continue reading “A new normal: Preparing for changes in consumer behavior post-COVID-19”
Retail post-pandemic: How retailers can solidify customer trust in-store now
Transparency and openness are at the heart of any trust-based relationship, and customer relationships are no different. Continue reading “Retail post-pandemic: How retailers can solidify customer trust in-store now”
Mobile: The most effective in-store marketing channel
In-store marketing is relatively affordable when compared to other forms of advertising like billboard ads and TV spots. Continue reading “Mobile: The most effective in-store marketing channel”
3 CPG digital marketing trends changing how brands reach consumers
3 CPG digital marketing trends changing how brands reach consumers
Technology has made it easier and more convenient to shop, which is something brands can capitalize on when trying to reach new and existing consumers. As we’re halfway through 2020, this year’s prevailing trends indicate the lines between online and offline shopping have blurred. It’s not an “either/or” proposition, but rather a combination of the two. The brands that understand current trends and how to harmoniously integrate different channels will be the leaders.
Below, we’ll discuss CPG digital marketing trends like micro-influencers, ephemeral video, and third-party mobile shopping apps, along with some of the offline trends—like direct-to-consumer and same-day delivery—and how they intersect with the digital marketing landscape. No matter which combination of trends you implement as part of your marketing mix, the goal is to provide a seamless omni-channel experience that delivers the convenience, personalization, and quality customers have come to expect.
Direct-to-Consumer Subscriptions
Direct-to-Consumer (DTC) brands are products, services, and experiences designed, produced, marketed, and sold by the same company, bypassing the retail channel. More than 40% of brands sell DTC in some capacity. The industry is growing year-over-year, expected to reach $130 billion by 2025.
Consumers flock to DTC models for a myriad of reasons. Some customers prize convenience and cost savings, while others appreciate the personalization and discovery aspects. DTC offerings cut out the time and hassle of browsing through retail stores, and generally boast exceptional customer service. Many models incorporate “VIP” services and provide exclusive access to rewards.
- Pay-Per-Result Marketing: Just as DTC strategies hinge upon quantifiable marketing, digital marketing relies upon securing a return on investment (ROI). The DTC method of performance marketing—paying only when a specific result is achieved—has inspired digital marketers to look at free trials, coupon codes, first-month discounts, and rewarded in-app content as ways of getting a shopper’s foot in the door.
- Subscription Services: DTC’s focus is not on the short-term sale, but on delivering continuous value. Likewise, digital advertisers for CPG brands are considering how to create and encourage direct subscription services that generate long-term sales. Though the DTC model has struggled with scale and profitability, the wildfire success of Nike, Disney, and Kellogg’s forays into DTC has many CPG brands taking a deeper look at the model.
- Personalization: Lastly, shoppers delight in the personalization available with DTC brands. CPG brands would be wise to emphasize similar options on their websites and email correspondences. By using quizzes, custom gamified experiences, and augmented reality (AR), brands are able to tailor their offerings and messages directly to the individual.
Omni-Channel Experiences
Marketers used to fret that “retail is dead,” and that eCommerce would take over the world. We now know that’s simply not true.
Although online sales increased another 17.9% from 2018 to 2019, shoppers still enjoy in-store experiences. They love to touch and feel items in person, get out of the house, talk to store associates, and experience the instant gratification of purchasing a product and having it immediately available for use.
Nevertheless, blurring the line between in-store and digital retail is an increasingly important trend. Social commerce and digital ad spend are still being budgeted for, but CPG executives are also investing in new tools like Instagram Shopping posts, mobile apps, artificial intelligence (AI), and AR tech in physical store locations, as well as automated or mobile checkout to remain aligned with future trends.
Specifically for digital strategies, an emphasis has been placed upon micro-influencers, ephemeral videos, and third-party mobile shopping apps to deliver experiences customers want at home and in-store.
Micro-Influencers
Years of high-profile scandals, frauds, and fakes has brought the macro-influencer industry to its knees.
Only 4% of people trust what paid social media influencers say. A study by Stackla found that people are 9.8x more likely to make a purchase based on a social media friend’ recommendation, rather than a high-profile influencer. As it turns out, real people have real influence.
There are a number of ways CPG brands are engaging micro-influencers. They’re monitoring hashtags, responding to mentions, and using new tools to find, engage, and reward organic advocates and unofficial ambassadors. Some strategies include:
- Running inspirational contests and giveaways.
- Giving out promotional items and goods like free swag.
- Offering VIP experiences.
- Inviting members to join their communities.
It may not be as simple as paying a celebrity with millions of followers for a promotion, but the micro-influencer pitch works wonders for increasing authenticity and trust.
Ephemeral Videos
Content is diversifying in new ways. Long-lasting “evergreen” content used to be the standard, but now consumers have demonstrated a demand for short, fresh, relevant videos.
The word “ephemeral” is an eloquent way of saying “short-lived.” Think Instagram Stories, Snapchat, or TikTok videos, for instance. Engaging visual clips that appear today, but are gone tomorrow, create a sense of urgency and FOMO (Fear Of Missing Out).
With over 500 million active users in 2019, TikTok is a popular platform (particularly for Gen Z) that attracted CPG brands like Kind, Red Bull, Kool-Aid, Pepsi, and Lay’s.
CPG brands can use these platforms in a more casual, interactive way. They might offer a behind-the-scenes glimpse of the company, ask a live poll, countdown to an upcoming event, or create a contest.
Third-Party Mobile Apps
With 85% of customers using smartphones while shopping in-store, we can safely assume apps are now a staple element in the path to purchase.
Third-party shopping apps are an easy, accessible, and affordable foray into this burgeoning market. Instead of developing a constant stream of app content, brands only need to create campaigns, which they can test, alter, and change as they please.
Through Shopkick, clients’ campaigns have delivered noticeable ROI and increases in brand favorability thus far.
For instance, when Claritin partnered with Shopkick, they achieved a 4:1 ROI on their campaign during the busy allergy season. By the end of the campaign, 28 million impressions were made, and 59% of consumers who went on to purchase the product originally had no plans to.
Same-Day Delivery and BOPIS
Consumers’ desire for instant gratification is well-known, but now brands have the tools and technologies to facilitate this desire like never before. In a startling move, Amazon announced that their Prime two-day shipping guarantee would soon become a one-day shipping guarantee in 2019. This announcement made waves as retailers sought ways to compete.
Kohl’s, Best Buy, Macy’s, and Target went one step further and made same-day delivery available, while Apple and Walmart went on to offer next-day delivery. Many supermarkets used (and continue to use) Instacart to facilitate immediate order fulfillment or developed their own proprietary system.
Over the past year, we’ve seen a considerable rise in stores offering BOPIS (Buy Online Pick Up In Store). CPG brands have responded by finetuning their supply chains to keep products moving fluidly from the warehouse to the store.
The coronavirus pandemic placed a high premium on quick delivery, particularly among cleaning supply brands, meat products, and other household staples. CPG brands adapted by reallocating resources from traditional media and other investments to digital eCommerce strategies like grocery delivery and in-store pickup.
Shopkick is a third-party shopping app that partners with CPG brands to deliver incremental sales, ROI, product awareness, and brand affinity. Users spend an average of two hours per month watching partner brand videos, flipping through curated lookbooks, locating products at-shelf, and purchasing campaign items in exchange for reward points (“kicks”). Read a few success stories or contact our team to learn how you can benefit from these new CPG digital marketing trends.
America’s New Shopping Routine: Stocking Up and Spending Less
Latest Shopkick survey finds consumers in states hit hardest by new COVID cases are still shopping in-store
Continue reading “America’s New Shopping Routine: Stocking Up and Spending Less”
4 tips to improve your mobile app marketing strategy
The need for a strong mobile app marketing strategy resonates truer now more than ever. Continue reading “4 tips to improve your mobile app marketing strategy”
Shopper marketing: How mobile technology is transforming shopper engagement
Shopper marketing is a broad term defined as last-minute efforts to influence a shopper’s behavior at the point of purchase. Continue reading “Shopper marketing: How mobile technology is transforming shopper engagement”