Category: b2b

Attract and connect: How to engage customers in retail

Posted on by shopkick

Attract and connect: How to engage customers in retail

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The best way to determine how to engage customers in retail is to understand them on an individual level. While this may seem like an impossible task, big data and machine learning are making it easier to discover what drives consumers to buy and stay loyal to a brand. Individuals freely provide data brands can use to better understand consumer buying behavior. Marketers just need to know where to look for this information. By engaging with consumers in the places they congregate online, and using that information to heighten the in-store experience, brands can improve sales and increase market share.

When attempting to compete with digital shopping, retailers look to digitally enhancing the brick-and-mortar experience rather than pouring all of their resources into eCommerce. Brick-and-mortar shopping still offers many benefits to consumers that online-only options can’t compete with, like the ability to physically interact with products and take immediate delivery. Using mobile options can improve the ability to connect with consumers in the store and target them with personalized offers.

Understanding the Needs of Customers Through Big Data

Social media mining is one of the main tactics brands and retailers leverage to gain information about consumers without invading their privacy. This strategy makes use of public text posts to discover trends and determine which types of marketing provide the highest ROI. Brands may target one particular platform when mining this information, or they may use an aggregation of data based on brand name mentions.

Unilever—a company that boasts over 500 brands in its portfolio—has an active data analyses program which helps them gain insight on consumer perception and how it impacts sales across their categories of products. The company uses their own proprietary process for acquiring this data and uses it to make informed marketing decisions. Unilever underlined the power of this strategy in an evaluation that disproved all the assumptions made regarding one of their most popular brands: Ben & Jerry’s.

Ice cream as a product has a few typical assumptions made about it which would impact marketing. Most individuals consider it a summer treat, designed to cool people down in hot weather. They may also think of it as an impulse buy, rather than a product consumers plan to purchase. These assumptions impacted ice cream marketing industry-wide for decades.

However, in 2015, Unilever’s data showed that ice cream is not an impulse buy. They noted individuals tended to talk about it on social media from Wednesday to Friday but saved their purchasing for Saturdays. Also, those same posts showed Unilever that consumers didn’t typically care about the weather when it came to buying ice cream, choosing the treat on rainy days as often as sunny ones.

This data was used in the planning of Unilever’s programmatic and organic content marketing. The company knew that banner ads for Ben & Jerry’s, for example, wouldn’t perform well on Sunday, Monday or Tuesday, as social media showed individuals spoke about the product later in the week. This allowed the company to time their ads more appropriately. They avoided wasting PPC funds on advertising on low-interest days and were able to put those funds towards increased ad purchases on higher-interest days. Through data, the company was able to gain insight into consumer behavior.

Brands should consider how they may have allowed assumptions regarding certain products to color their marketing. Then, they should use the data that’s already available to prove or disprove those existing theories. This strategy helps brands target advertising more effectively and discover new markets. It can even assist in guiding consumers through the purchase journey in the shopping aisle.

Using Mobile Apps to Guide Consumers in the Store

Mobile apps can enhance the customer shopping experience by helping to guide them to products which may interest them. Consumers download mobile apps and agree to receive advertisements and other information from them, which eliminates the often disruptive aspect of marketing. These apps deliver a level of personalization which other advertisements can’t. There are several reasons for this, including:

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Access to user details:

Retailer rewards programs have access to more information which offers a way to customize a message based on an individual’s specific details. Consider a virtual video greeting that pops up when a consumer enters a store and greets them by name. This app-based program establishes a dialog with the consumer and gets them more invested in their shopping experience. It also reduces the need for a physical greeter in the entry-way, allowing stores to better allocate personnel.

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Location tracking:

Messages based on a consumer’s location offer heightened impact as they display when a consumer is near a specific product. This proximity marketing piques interest and can drive sales by making consumers aware of a product which they weren’t before receiving the message. It also allows places like restaurants and service-based businesses to offer limited-time deals during high traffic hours.

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Branded interaction and priming:

Mobile app advertising helps brands guide consumers to products in the aisle. This strategy is one Shopkick implements to improve purchase conversion. The consumer receives a listing of participating products which they can seek out and scan with their phone’s camera. Through this, the consumer is encouraged to pick up the product. The simple act of physically handling the product builds awareness, drives consideration, and primes the consumer for purchase.

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Incentivization:

Consumers receive perks such as deals and rewards points when participating in a mobile app program like Shopkick. These incentives don’t just encourage the use of the app. They also build brand affinity, as the consumer attributes the rewards to the brand they used to get them. These incentives often have a higher value to the consumer than their simple dollar value, due to the emotional return of receiving them. Rewards points can provide multiple opportunities for brands to interact with consumers, while coupons and deals are more of a one-time interaction.

Mobile apps offer brands the opportunity to connect with consumers as they travel. Through these apps, brands can help build customer engagement with products and improve sales. As these programs are scalable, they often offer a higher ROI than other traditional methods like television advertising or non-targeted banner ads.

Creating Digital Events for Boosting Sales and Driving Product Interest

Digital events offer retailers a way to improve sales during slow periods and heighten awareness of products. In some cases, retailer-specific events can even become national. This phenomenon can be seen through Amazon’s Prime Day, initially established in 2015 to celebrate Amazon’s 20th birthday. After its early success, many other retailers chose to piggyback on the idea to the point where it’s now a recognized shopping day for most big companies.

Target is one such retailer that used Amazon’s Prime Day to bolster its online sales in 2018. The retailer reported its best online traffic increase ever thanks to the event. To compete with Amazon and its massive shipping network, Target used 1,800 stores as mini-distribution centers for customer pickup and local shipments. The event didn’t just improve sales. It got consumers to view Target as a channel for online shopping while tying in the brick-and-mortar experience.
The strategy allowed consumers to engage with Target in digital and physical spaces. Having consumers pick up items in-store presented the opportunity for them to view other products and potentially purchase even more. Through this strategy, Target leveraged their competitor’s advertising, as they recognized how Prime Day impacts overall online shopping.

How to Engage Customers in Retail With Unique Digital Features

Newer digital features intrigue customers and improve their experience both online and in the store. These features can remove common purchase barriers as well, such as long lines or difficulty gaining in-store assistance. Here are just a few examples of how brands and retailers are enhancing the customer experience with digital features.

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Augmented reality:

L’Oréal has updated its makeup sampling experience with an AR platform which allows users to virtually try on products and gain more information. AR is a particularly potent strategy for cosmetics brands, as it’s tricky for consumers to gauge which color or shade to purchase online or even in the store, without sampling them. Through AR, the brand saves money on real-world samples and improves the customer experience in the digital space.

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Mobile pay:

Starbucks offers an extensive mobile platform for consumers who want to skip the wait and streamline their coffee stop. With the mobile pay option, consumers can pay for their drink before they even get to the location, to ensure it’s waiting for them. Long lines are a typical complaint of consumers industry-wide. Mobile ordering and payment apps eliminate lines and make in-store customer service more efficient.

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In-store info apps:

IKEA offers an in-store app for consumers which can help guide them to products and find deals. Such apps are an ideal strategy for mapping large retail locations, where consumers may find themselves frustrated if they can’t locate an associate. These apps can replace the need for a sales assistant by allowing consumers to search for the items they want at locations near them, without the need to wait for an associate to call around.

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AI behind the scenes:

Walmart is enhancing its supply chain by using artificial intelligence to help drivers plan routes and stores stock shelves. This strategy streamlines supply management to ensure stores always have needed items. It improves the customer experience by making it easier for them to locate the things they need and receive delivery quickly.

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Delivery apps:

Whole Foods delivers groceries to consumers locally through its Prime Now app which allows customers to place and track same-day orders. App-driven delivery programs like these help retailers provide local delivery of groceries to consumers without taking on liability themselves. Consumer demand is high as these apps streamline shopping and save them time.

Emerging digital features in retail are increasingly app-based, as these offer the most scalability and ease of use. Also, as smartphone penetration is at about 70% in the U.S., brands can connect with the vast majority of household decision makers. A strategy which leverages a variety of apps and mobile features will help brands gain the attention of consumers in the shopping aisle.
When considering how to engage customers in retail, brands should look to technology to help them better understand what these individuals want. Big data provides a way to offer a personalized message in mass markets. Meanwhile, mobile apps and other unique digital features engage consumers as they shop. In-store events enhanced with digital aspects also boost sales by intriguing consumers. As brands and retailers work to engage customers and heighten their experiences, marketing innovations driven by mobile can provide a path to success.
Shopkick provides our partners with the opportunity to reach more consumers as they shop through our intuitive app. To learn more about how our app improves in-store engagement and primes consumers for purchase, contact us.

How technological advances in retail are shaping the future of shopping

Posted on by shopkick

How technological advances in retail are shaping the future of shopping

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Technological advances in retail are helping to take the burden off employees while providing consumers with better customer service. Features like third-party delivery, intuitive apps, chatbots, voice searches, and image recognition offer brands a way to guide consumers to products and make purchases easier. These retail technology innovations are reshaping how consumers shop, whether they’re online or in the shopping aisle.

Third-party developers play a vital role in this retail technology, as brands often don’t have the resources to develop high-tech programs in-house. By working with outside developers, brands can bring new services to shoppers which enhance their experiences. They can offer in-the-moment advertising to drive sales while streamlining campaigns to target the right individuals. These cost-effective initiatives are changing the way customers shop while helping brands forge better connections.

Offering New Features With Third-Party Partnerships

Many traditional brick-and-mortar retailers added services like curbside pickup and delivery to their offerings in recent years. Such services were made possible via partnerships with companies like Uber, Postmates, and InstaCart. By 2021, online grocery purchases will account for $30 billion in sales, and these third-party services are the primary drivers. They allow brands to quickly roll out delivery programs with little runway or upfront investment.

Retailers are unable to implement in-house delivery programs without taking on extensive expenses. They must cover employees, insurance for those employees, and the cost of vehicles. There’s also added liability to consider, as retailers could become responsible for employees who are injured in accidents during deliveries.  
Third-party options allow retailers to pass the risk on to another company while reducing the staffing costs. The third party is responsible for connecting with contractors and vetting them, as well as maintaining the apps used for offering these experiences. Also, brands can use multiple apps and multiple partnerships to reach a wider pool of consumers and further improve services. Third-party options make delivery scalable, cost-effective, and intuitive regardless of the retailer’s size or available resources.

Creating a Welcoming Atmosphere With Virtual Greeters

Virtual greeters allow retailers and brands to welcome consumers to a location and share information about deals. These short, app-enabled messages replace the traditional door greeter while offering more thorough information than a human sales assistant could.

Virtual greetings work through beacon technology and GPS. When customers reach within a specific range, retailers can direct a message to play for anyone who uses the app. That message could include a video greeting from a spokesperson, an announcement of current events, or even rewards points for store entry. The message creates a positive experience that sets the tone for the consumer’s trip and puts them in a favorable purchase mindset.

Improving Sales With Personalized In-Store Ads

Advertising in the shopping aisle is traditionally mass market. All consumers see the same displays, end caps, and offers. In recent years, retailers have used technology to innovate many in-store advertising methods and provide personalized greetings.

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Digital end cap offers:

End caps are highly desirable sales locations in the store, and competition among brands is fierce. Digital end caps provide a more flexible solution for retailers. Kroger recently implemented a test program around this using their app and its users. The company, with the assistance of Microsoft, installed end cap cameras capable of recognizing the age and gender of individuals. It would then deliver a preloaded, targeted offer based on those specifics. The display was even capable of greeting the individual by name using their membership details.

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Shopping apps:

Shopping apps help brands connect with consumers in the shopping aisle. Shopkick, for example, offers a digital scavenger hunt that incentivizes consumers to seek out products by rewarding them for certain purchase behaviors. This technology offers brands an innovative way to help their products stand out, even when in-store shelf space is less than optimal.  

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Omnichannel events:

Many brands are tying the digital and physical experiences together to promote new products. A recent example occurred with a cross-promotion between Disney and Levi’s. Levi’s offered consumers a unique Snapchat-enabled augmented reality experience at an Orlando store. Visitors received a temporary offer along with an exclusive Snapchat filter when they visited the location, and were able to purchase a Disney branded cap using the app. The campaign was a major success because it leveraged scarcity and exclusivity. This strategy is ideal for a new product launch marketing plan as it creates a scalable event based on a specific location.

Technological advances in retail allow brands to reach consumers when they’re most likely to make a purchase. Through technology, brands can scale and target in-store advertising materials. Such strategies improve sales while increasing the marketing ROI.

Lowering Overhead With Cashier-Less Grocery Shopping

Retailers often look to technology to solve staffing woes. By automating certain in-store tasks, like checking out, brands streamline shopping and reduce workloads. Self-checkout kiosks set the stage for a far more high-tech future, where consumers can complete their shopping trip without the need to check out at all.

A recent example comes from startup Caper. The company developed a unique AI-powered smart cart which scans barcodes and charges consumers for goods once they put them inside the cart. Caper reports use of its carts in stores increased sales by 18%, and future innovations could drive this higher. The Caper cart is just one example of how technology is changing the shopping trip entirely.
One of the benefits of eliminating cashiers in the store is that it allows consumers to check out faster. This option speeds the path to purchase and makes consumers less likely to back out of a sale. Smart carts aren’t the only options in this realm, either. Many retailers look to scan and go technology which allows consumers to check out on the sales floor without ever having to stand in line.

Image Recognition Guides Consumers to Products and Unlocks Features

Image recognition is gaining a lot of attention for its potential in retail. Growth in AI allows developers to categorize millions of images along with their meanings. Machine learning teaches these systems to recognize critical components and match those features to existing data. There are two primary developments for retail image recognition of which brands should be aware.

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2D in label recognition:

2D image recognition turns the labels of products into their UPCs. This process is useful in both managing supply and delivering customer experiences. Consumers could, for example, scan a product’s label with their smartphone to unlock features like product information, deals, and rewards points. It also allows brands to monitor stock on the shelves and reorder products proactively.

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3D in reading consumer behavior:

The application of 3D image recognition is a bit more controversial, as it leverages technology to read a consumer’s facial expressions and make a determination about their overall satisfaction. It can also enhance rewards programs by using stored facial data to recognize consumers quickly and greet them by name.

These image recognition programs improve the customer experience by cutting out steps in the path to purchase. Consumers can simply take a picture of an item to find a place to purchase it or order it online. They can access more information and enjoy improved branded interaction. Image recognition is likely to play a more prominent role in marketing in the years to come, as retailers discover new ways to leverage the technology.

The Growing Impact of Voice in Online Shopping

The ever-increasing popularity of the smart speaker has expanded the use of voice search and by extension, voice ordering. Voice technology presents a new opportunity for CPG brands to reach consumers by leveraging their brand’s reviews and existing reputation. This opportunity lies in how voice search indexing will differ from that of its text-based counterpart.

Voice searches are different from text-based searches as keywords play a less critical role. There are a finite number of keywords to use and consumers ordering via voice tend to err on the shorter side of phrases. Competition among those short verbal phrases is high, even in the early adoption phase.
Content strategies around voice must leverage user-generated content to enhance their visibility. A consumer may issue a voice search for “bandages,” as an example, and the smart speaker will return the results with the most relevance and the highest ratings, with little regard for the brand’s own advertising. Average sales, ratings, and customer reviews will drive brands to the top of voice search, which increases their likelihood of gaining sales from these searches.

Enhancing Chatbots With AI for Delivering Top Tier Customer Service

Chatbots are certainly nothing new in customer service, but they are much smarter than they used to be. About one-quarter of all organizations will use the services of these chatbots by 2020, and it’s very likely consumers won’t even notice that they’re communicating with a computer.

Retailers already have extensive data on hand from prior customer chat interactions. Using that data, they can establish templates for an endless list of customer complaints and scenarios. Essentially, these programs create customer profiles and categorize them. They then answer the consumer’s questions using natural language which is almost indecipherable from a human customer service agent’s.
The benefit of these programs lies in their ability to triage complaints. They won’t eliminate the need for associates entirely, but these bots can handle far more of the conversation based on today’s technological advancements. In some cases, they can take the customer all the way through to resolution, which allows companies to better allocate staffing resources.

Preparing for Technological Advances in Retail

Brands that wish to leverage the newest technological advances in retail must carefully evaluate the cost. Third-party partnerships allow them to enjoy the benefits of these programs without the high upfront cost of developing features in-house. However, brands must thoroughly vet these partnerships, as working with less reputable third-parties can damage the customer relationship.

It’s critical that brands carefully review data collection and storage policies of these third parties to ensure customer information stays protected. They should also seek out developers that follow industry-recognized reporting standards to reduce the risk of becoming victims of ad fraud. Third parties who are verified by TAG and have audits completed to MRC compliance standards tend to pose the least risk, as they must follow stringent reporting standards when communicating results to clients.
Technological advances in retail help brands better allocate staffing resources while providing scalable in-store marketing. They enhance the customer experience by expediting shopping trips through delivery, cashier-less shopping, and image- and voice-based search. Brands can best prepare for the future of retail by partnering with third-party developers to deliver unique, heightened customer experiences that drive brand affinity.
Shopkick partners connect with consumers at brick-and-mortar locations by leveraging our intuitive app as part of an in-store marketing strategy. For more information on becoming a partner, contact us.