Category: b2b

How to market a new product successfully using social and mobile

Posted on by shopkick

How to market a new product successfully using social and mobile

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Many of the tips on how to market a new product online are familiar. Study what your competition is doing, know your demographics and target the right audience, adjust your marketing message to them, and connect with consumers on social media are all common recommendations. While those may be useful tips, they only scratch the surface of Internet marketing. When looking at how to sell a new product in the digital age, brands must be prepared to create deeper connections via an online engagement campaign that builds trust.

One area where brands may struggle is digital consumer engagement. Most consumers don’t regularly interact with brands in the digital space, choosing instead to socialize with friends, family, and other community users. Consumer interaction is imperative if a brand wants to build buzz for a new product, but getting consumers to speak up in public can be a challenge. Often, a more impactful way to interact with these consumers is to do it on a personal level, via the use of a third-party mobile marketing app. Third-party apps connect brands directly with consumers in the digital space, enabling them to engage with these potential customers when a new product is released.

For brands attempting to market a new product, knowing some essential strategies and techniques—from what to assess in a competitive analysis to how to partner with influential third-party apps—can mean the difference between failure to gain traction and massive industry recognition.

How to Perform a Digital Competition Analysis

When evaluating marketing competition for a new product, brands need to do a SWOT analysis (strengths, weaknesses, opportunities, and threats) of their largest competitors. This will give insight on what competing brands are doing in terms of social media marketing. It will also help a brand discover marketing opportunities their competition may have failed to capitalize on. A SWOT analysis of a social campaign analyzes:

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Strengths:

Strengths speak to what the brand is doing right. If it has a high performing Facebook page or a Twitter account with at least a six-figure following, those would be clear strengths for the brand—and practices worth imitating.

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Weaknesses:

Weaknesses are anything hurting the brand’s image and limiting its impact. Having, for example, a weak social media following or being embroiled in a controversy over something posted on one of the brand’s accounts would be considered a weakness.

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Opportunities:

Opportunities in digital marketing lie where your competition may have left holes in the market. Many brands advertise on major platforms like Facebook, Instagram, and Twitter, but miss lesser known but still incredibly popular niche sites. Reddit is a prime example: The site boasts 330 million users and has a wide range of categories and subtopics but is rarely leveraged by marketers.

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Threats:

Threats in digital marketing can come in the form of new competitors on a platform, like the possibility that a competitive brand will bulk up its presence on a social media site and target your potential audience. They can also come in the form of a sudden decline in the popularity of a particular site, where a brand may be positioning a new product. If a brand gains a large following on Facebook, for example, only to have consumers abandon the social media site altogether, that could be a threat for the brand.

Doing a SWOT analysis of your competitors’ digital marketing efforts helps you identify their strength and weaknesses—which may be similar to yours—and leverage this knowledge against them. It will also help you find holes in the market where you can advertise your product. If, for example, Brand X has a new product nearly identical to yours, along with a massive following on Facebook, it might be wiser to place your marketing campaign somewhere they are not.

Create Buzz with Social Media

One issue marketers run into with social media campaigns is that advertisements are frequently ignored. While paid social campaigns can deliver some sales conversion, they rarely generate buzz. That’s because ads don’t create enthusiasm, people do. To get people to participate on a brand’s social media page—thereby creating buzz—brands must interact in ways consumers find meaningful. Within social media, there are a few tools brands can use:

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Purpose-driven marketing:

Purpose-driven marketing isn’t designed just to sell a product, it’s designed to bring attention to an issue or cause. Del Monte Foods is a prime example. Del Monte uses its Facebook page not just to share information about products, but also to share the brand’s passion for natural, organic, and healthy foods. This strategy has helped the brand align itself with individuals who are also passionate about healthy, organic eating—a built-in audience Del Monte can market to when launching new products.
Purpose-driven marketing campaigns reach consumers on an emotional level, and brands can capitalize on this in order to gain attention when new products launch.

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Solution-based messages:

One of the oldest rules of marketing is to know your audience’s pain points and address them with your message. Dannon utilizes this strategy with its #KnowYourYogurt Twitter campaign. Yogurt may fall into the healthy food category, but it’s often not as healthy as consumers think, thanks to high sugar content.

Dannon used a solution-based messaging tactic when it announced new, healthier ingredients and better labels that offered more transparency. Creating a solution for consumers concerned about high-sugar content in “healthy” foods built trust, and promoting that change helped show the brand had addressed consumer concerns. Encouraging transparency also helped align consumers with the cause and the brand.

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Appropriate hashtags:

Hashtags are an essential tool that every brand should use when posting on social media. Hashtags allow consumers to discover content. Brands should also encourage consumers to use their branded hashtag in order to improve product visibility.

Hashtags are something Hallmark manages well on its Instagram page. The brand regularly uses hashtags to draw attention to timely content, such as April stories featuring hashtags such as #AprilShowers, #April, and #umbrellas. The brand also encourages consumers to use its hashtag, #MyHallmark, for a chance to be featured on its page.
While hashtags such as #AprilShowers may be non-branded, they allow consumers to discover the brand when searching for the popular hashtags. Meanwhile, branded hashtags improve engagement.

These social media interaction methods pique consumers’ interest in the brand and make them more receptive to messages about new products. Followers of the brand can then become brand ambassadors for a new product by sharing it on their pages or within their feeds. This creates a snowball effect and can create buzz.

Brands, however, also need to be aware that many of their followers will never interact unless the brand reaches out to them directly.

Get The Likes: How to Market a New Product to Passive Social Media Consumers

Lurking, an Internet phenomenon where someone regularly reads content but never responds to it, is so common there’s a rule about it: the 90-9-1 rule. This states that 1% of social media users generate the majority of content; 9% interact irregularly; and 90% observe but rarely interact publicly.

Being able to connect with the 1% and 9% is imperative, but so is reaching that silent majority. While connecting with users who don’t comment or interact can be a challenge, there are a few ways brands can encourage silents to speak up when a new product is launching:

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Keep online channels conflict-free:

Often, lurkers are hesitant to post for fear of conflict. Brands should police their pages so consumers feel comfortable. Ensure there are moderators on staff who will guarantee that topics stay on subject and users remain civil to one another. When someone does post for the first time, they should be welcomed warmly and encouraged to continue participating.

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Make contributing easy:

Having to create content or post comments might be a bit overwhelming for lurkers, but activities such as submitting an opinion, engaging in polls, and clicking “like” or “share” can be simple. Encourage lower-key participation from users and you may find the lurkers come out of the shadows.

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Reward interaction:

When a brand rewards interaction—whether it’s with a free product or simple recognition—user engagement tends to increase. Ask consumers to share information about a new product on their own pages for a chance to earn a reward or free product and they will often participate.

Brands must remember that the vast majority of their online audience will never directly interact with the brand. The brand will likely still reach those consumers; however, creating the kind of emotional connection that gets that consumer interested in your new product can be a challenge.

An alternative to attempting to connect with consumers on social media is to reach this audience through third-party mobile apps, especially those that travel with the customer as they’re in the shopping aisle.

The Benefits of Using Mobile Apps to Market a New Product

A mobile shopping app can be a useful ally in the effort to spread awareness of a new product, including when that product is available at brick-and-mortar locations. Mobile apps allow brands to connect with consumers at the right moment, and can even funnel them to a department, aisle, or shelf location. They can help ensure consumers seek out, and can locate, new products on the very day of release.

Mobile interaction is a strategy that Shopkick leverages in its app, which provides users with rewards for finding and scanning products in the shopping aisle. A brand using the app when releasing a new product could offer points to consumers who seek the product out in the store. Once the consumer holds the product in their hands to scan it they may be tempted to purchase it, too.

Third-party mobile apps such as Shopkick also allow brands to identify the ideal consumer and then target the very best message to them. A brand marketing a new puppy chow, for example, only wants to market to dog owners. With a high performing mobile app, the brand would be able to pinpoint those who own dogs and may be interested in the product.

Another benefit of third-party mobile app marketing is that it allows a brand access to an audience it may never have reached before. That’s because the third-party shopping app will have its own set of existing users. Having this kind of built-in audience is a boon for marketers, and partnering eliminates the need for a brand to develop its own app, which can be a challenging and expensive.

Finally, many third-party apps feature rewards programs. Rewards programs allow brands to incentivize product engagement while limiting the expense of discounting. Brands know how expensive a product launch can be, so the ability to leverage a marketing medium that does not rely on discounting is imperative.

Any brand looking at how to market a new product in the digital age needs to study their competitors, find areas of opportunity for marketing, and leverage that knowledge. While interaction with consumers is critical, brands must also recognize that the majority of users on social media do not frequently interact in a public space. Thus, brands should make interaction comfortable for users and leverage mobile apps to connect with consumers. Mobile shopping apps regularly serve as a bridge to consumers for brands trying to market a new product.

Shopkick effectively helps partners gain awareness and trial for new offerings both online and offline.  For more information on how our app can benefit your brand, contact us.

The top factors that influence consumer purchasing decisions you haven’t considered

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Throughout the history, two primary factors have influenced consumer decision making: the internal and external locus of control. Those with an internal locus of control attribute their success to their own practices and abilities. Those with an external locus of control attribute success or failure to fate and external forces.

factors that influence consumer purchasing decisionsThese beliefs and practices can extend all the way to of marketing, and to how consumers purchase decisions are influenced by external and internal opinions. External opinions are related to the social perception of your brand, and what influencers in the consumers’ peer group think of the brand. Internal opinions are based on the consumer’s existing brand perception, as well as their emotional mindset when entering the path to purchase.

When attempting to influence consumer purchasing decisions, marketers need to focus on a combination of these two factors. Multiple tactics make this possible. For instance, marketers can either connect with a consumer one-on-one by sending a marketing message directly to them. Or, they can connect with consumers indirectly by first reaching influential members of the consumer’s peer group. Mobile marketing can be used in either situation to improve brand perception, connect with influencers and interact with consumers as they’re in the shopping aisle, and even help convert prospects into sales.

Social Groups As Factors That Influence Consumer Purchasing Decisions

Brands can’t make someone influential, but they can leverage an influential person to improve perception of the brand. This is why celebrity endorsements have become such a common method for reaching consumers. Yet even non-famous people act as influencers in their daily lives.

Consumers will have different levels of influence based on three group dynamic systems:

  • Reference group: A reference group is any group a consumer uses to model their behavior. As these groups evolve and change, the consumer’s behavior may also change. As an example, a consumer’s spending habits will be different when they’re with a group of single friends than when they’re with couples with children.
  • Family group: The role a person plays within a household will determine their spending habits. A mother purchasing for her family, for example, will likely be more price conscious than that woman’s teenage daughter.
  • Social status: This is the classic example of “keeping up with the Joneses” where a person of higher social standing often becomes the trendsetter their group. If a member leaves the group or a new person is added, social standings typically change within the group, too. Very generally, a new addition to a social group will hold less sway over the opinions in that group than an established member.

Depending on the group we choose to spend time with, our sphere of influence changes. For example, a woman may have a high sphere of influence when it comes to the purchase decisions of her household. At the same time, she may be a new member of her social group, giving her a lower sphere of influence over the purchase behaviors of those friends. In either case, spending decisions are impacted by those around us.

When brands want to leverage an individual’s social influence, they need to reach out to those with the most influence over the specific groups associated with that product. One of the best means of achieving this is through social media, which can provide brands the insights needed to identify ideal influencers. By understanding how someone impacts the groups they are a part of, brands can better target those customers who act as influencers in their social pools. These influencers can be reached individually with timely marketing messages delivered via mobile apps.

How Mobile Moments Influence Consumer Purchasing Decisions

The simplest and subtlest influences can impact consumer purchase decisions on a personal level. One watershed study revealed that when a supermarket played French music, French wine outsold all other wines. When German music was played, consumers opted for German selections. This study into subconscious level advertising laid the groundwork for the future of advertising and revealed just how impactful a single moment can be when a consumer is already in the shopping aisle.

Today, brands can create these moments through smartphones, connecting with consumers at any time, and wherever they may be. There are several ways brands can connect with individuals as they go about their daily lives:

  • Branded video content: Not all video content has to be advertising. Brands can better interact with consumers by offering content that reveals how to use products or gives an inside look at the company, for example. To make the most of this kind of subconscious messaging, a brand should ensure its logo is visible in the video and provide a call to action capable of converting passive viewers into buyers. Even among those who aren’t ready to purchase these cues stick. They also help establish the brand as an authority and can serve as an unconscious reminder of the brand when future purchasing opportunities arise.
  • Interactive mobile displays: Displays that encourage consumers to interact with products in the store are great options for gaining attention to a brand as they draw consumers to its products and encourage them to learn more. An interactive display may be as simple as providing product samples. Or, it may be more complex, like a makeup company providing product demonstrations via a touchscreen tablet or offering consumers the ability to digitally try on products via their smartphone.
  • Mobile apps: Mobile apps, like Shopkick, travel with consumers and can reach them when they’re most motivated to make a purchase. By incentivizing consumers’ visits via a mobile rewards program, such shopping apps can drive traffic. Take, for example, the case of a QSR working with Shopkick that wants to increase traffic to a location during midday. A consumer using the app during her lunch break who receives a notification of rewards available at the QSR is more likely to choose that location to dine.
  • Rewarded video: When trying to get consumers to watch advertising content, incentivizing them to watch to completion has been proven highly effective. Consumers who receive rewards for watching a video will be more receptive to the brand’s message, which can also lead to sales.

All of these moments can best be leveraged through a mobile app marketing campaign. Smartphones offer brands unparalleled access to consumers and even allow those brands to connect with them as they travel.

Both external and internal opinions of your brand act as factors that influence consumer purchasing decisions. Understanding these factors, as well as group dynamics, helps marketers reach the right influencers in the right circles.

In addition, using retail mobile apps can be a powerful means of connecting with a consumer when they’re in a buying mindset. Connecting with key influencers through mobile apps allows brands to create affinity, capitalize on powerful moments in the decision cycle, and even sway consumer purchase decisions.

Shopkick offers our partners a great way to connect with shoppers through an innovative shopping app. To learn more about how our app can benefit your brand, contact us.

Image courtesy of onephoto

The CPG ecommerce trends shaping the 2018 consumer packaged goods landscape

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The CPG ecommerce trends shaping the 2018 consumer packaged goods landscape

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Now is a very important time for the consumer packaged goods industry, as the CPG ecommerce trends taking shape in 2018 will impact the entire market for years to come. These trends have already altered the customer’s path to purchase and have made room for new market entrants. Now, challenger brands are better able to compete with big household names, as they’re capable of connecting with the growing market of online-focused consumers. The current climate of change in the CPG industry means that brands must be prepared to use ecommerce to gain online sales and drive brick-and-mortar business.

CPG brands used to be heavily invested in brand recognition, but as consumer loyalty shifts, recognition alone is no longer as powerful as it once was. Instead, consumers are seeking  alternatives to popular brands, and big name brand recognition is becoming less of a deciding factor in the path to purchase. Tech also increasingly plays a role. To reach consumers who have the option to choose between myriad options, and who demand the convenience of ecommerce purchasing, brands should also deliver high tech experiences as part of their CPG marketing.

Ecommerce is Essential to CPG Brands

Fast moving consumer goods (FMCG) is a growing market for ecommerce sales. Online sales in this category jumped to $74 billion last fiscal year due to both new market entrants and increased global access. While online sales makes up only a fraction of the $771 billion market, it also represents high growth in the segment. Online sales were responsible for 90% of the CPG market’s overall growth.

What we can understand from such data is:

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Ecommerce has the highest growth potential:

Since the majority of growth in the CPG industry occurred via online channels, it is clearly where brands can focus when looking to reach new markets. Ecommerce also makes it possible for consumers in remote global regions to connect with brands, a huge area of opportunities for CPGs.

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New markets begin online:

Many new markets are emerging in CPG ecommerce, including offerings like meal prep kits and online groceries, both of which are major contributors to the increases seen in fast moving consumer goods. Ecommerce has opened up a wealth of services and products that many consumers had never considered purchasing online before.

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Online CPG ordering is moving toward the mainstream:

The rapid growth of purchases of small, inexpensive items online indicates that consumers are growing more comfortable with paying for shipping and waiting on delivery.

These three factors are significant for the CPG industry as a whole. In the past, consumers were less enthusiastic about making small purchases online, due to shipping costs. At the same time, it was a lose-lose scenario for retailers, as offering ecommerce for small, low-cost items was an expense that outweighed the benefit. As shipping costs decreased and online purchases increased, this market became a prime place for ecommerce growth. Much of this can be attributed to how ecommerce changed the consumer’s path to purchase.

A Revision of the Consumer’s Path to Purchase

In the past, the path to purchase was very straightforward: Demand for a product led to brand discovery; brand discovery led to interest, which was followed by purchase. However, this process has become increasingly complex in the digital marketplace. Essentially, the entire course has become cyclical.

The new steps that have become very prominent throughout it are:

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Roundabout to word-of-mouth:

Consumers often discover their need for a brand or product as a result of an online discussion. Consider the case of a forum for new mothers, where one mother asks for advice on diaper rash. Another mother may recommend a specific cream or ointment, which could drive a discussion of the brand.

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In-store evaluations:

Based on a Nielsen study, 75% of grocery shoppers have used a physical store to evaluate a product before purchasing it online. Consumers may be increasing their online purchasing, but that doesn’t change their desire to physically interact with products.

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Plan:

Whether they’re shopping online or shopping in a store, consumers purchasing CPG items tend to plan their shopping trips in advance, which means brands must optimize their ecommerce experience to ensure it works equally well in connecting with consumers in the shopping aisle as it does in connecting with them online.

Another thing about these steps is that they can occur at different points in the path to purchase. A consumer may plan to purchase a product, then discuss it online, then evaluate it, then discuss it again before making a purchase. This change in the path to purchase is largely due to technology, but also a reflection on growing shopper demographics.

Changing Demographic Desires in the Marketplace

In the broadest of terms, different generations are motivated to make CPG purchases for different reasons. While not all members of one demographic will behave the same, studies have shown that certain behaviors can be anticipated based on overall generational preferences. For instance, grocery sales are often driven by CPG sales, and trends in the grocery market reveal both which generations spend the most on CPG, and how they make purchase decisions:

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Silents:

These individuals, age 72 and up, are often motivated by value. They are also less likely than any of the other groups to embrace technology in shopping. Ironically, they’d be the most likely to benefit from this technology, due to issues with physical mobility and travel.

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Baby Boomers and Generation X:

Together, these generations spend the most on groceries. Both are also considered proficient in technology as they’re likely to use it in their jobs. These groups are likely to look to ecommerce when seeking information on CPG products, although for the most part will continue to make CPG purchases at brick-and-mortar locations.

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Millennials:

While they don’t spend as much on groceries as Generation X and Boomers, they are highly motivated to use technology while shopping. That makes ecommerce an area of high potential in this demographic. In addition, millennials often use their mobile phones while in brick-and-mortar locations to assist them in making purchase decisions. A shopping app, like Shopkick, can be used to connect with these tech-driven consumers, both online and off.

Data around grocery sales are important as they tell us who is doing the shopping in the household and where they’re buying. These statistics show us whether CPG consumers prefer ecommerce or in-store purchasing and, specifically, what they demand from brands. Challenger brands commonly leverage consumer demand to gain market CPG share.

Online Access Drives the Rise of Challenger Brands

Challenger brands are unique. While they may not be market leaders, challenger brands are able to connect with consumers to gain market share. Part of the reason these brands are emerging as competition to larger brands is because growth of ecommerce has given them access to new markets. These brands may not offer a new product, but they may offer it in a new way, which gives them the ability to challenge even the largest names in the market.

Because the Internet evens the playing field between challengers and big brands, CPG challenger brands thrive on ecommerce platforms. They may not have the funding of big brands, but challengers can get by on a grassroots campaign by using the digital space to share their message. They can also take a direct-to-consumer approach, allowing them to provide customers the personalized shopping experience they crave, and earning the brand consumer loyalty.

Consider Lavazza Coffee, a high-end Italian coffee brand that was able to gain attention in the U.S. market by connecting directly with consumers. While the brand had a significant following in its home country of Italy, it struggled to gain a foothold in the crowded U.S. market.

The brand took a direct-to-consumer approach and connected with their target demographics at events and in privileged settings. Lavazza partnered with both the U.S. Open and the Guggenheim Museum in New York to “create an aura of eliteness.” At the events, the company offered branded packaging, like cups and napkins, which could be used to direct consumers to its website to make direct sales. The brand left the digital space to connect with their consumers in their places.

Lavazza is able to compete in the highly competitive U.S. coffee market strategies such as:

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Focus on the consumer:

The brand connects directly with consumers by sponsoring high-end events and then uses them to drive sales both at online stores and through retailers like Target and the Seattle Coffee Company.

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Position brand as elite:

Lavazza has a higher price point than other coffees and uses its Italian background to set itself apart from other high-end coffee brands.

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Educating consumers:

On the brand’s ecommerce site, consumers can review the blends and learn about things like coffee profiles, roasting styles, and intensity ratings. Consumers don’t go to the site only to buy coffee, but also to learn about coffee from industry experts.

Lavazza doesn’t ignore brick-and-mortar locations in favor of ecommerce, but connects with the right audience in the right place. As a result, it is able to challenge big U.S. based coffee companies even when Lavazza’s product is at a higher price point.

How CPG Ecommerce Trends Impact Brick-And-Mortar Shoppers

Brick-and-mortar can act as a pathway to ecommerce—and vice versa. For example, a consumer may discover a product in an ecommerce site and then decide they want to see it in the store before they make a purchase. Or, they may seek out an ecommerce product and not want to wait for shipping, so they go to the store instead. There’s also a hybrid of this where a consumer will order an item online and pick it up in store.

All of these methods show us that ecommerce isn’t just an access point for product purchase but is a route to product discovery. Brands can gain consumer attention by delivering experiences that work equally well in the digital world as they do in the physical one and thereby make the most of both markets.

One way to deliver experiences that work in both the real world and the digital world is through the use of retail shopping apps, like Shopkick. A good shopping app can allow a brand to incentivize purchases both at online stores and in brick-and-mortar locations. Shopkick uses this multi-channel strategy by allowing consumers to gain rewards, known as kicks, for interacting with brands in-store or for viewing specific content, like advertisements, online. This hybrid approach works well for addressing consumers in the CPG market, whose purchase avenues have grown extensively in the past few years.

CPG brands are often challenged by the direct-to-consumer approach as these brands have primarily focused on selling through retailers. However, the things that attract consumers in a store are the same things that attract them to ecommerce. They also enjoy being rewarded for interacting with brands.

These emerging CPG ecommerce trends do not have to act as industry disruptors. Instead, they allow CPG brands to enhance their relationships with customers and create true brand affinity, whether that consumer is ordering directly from a brand or through an online retailer. The largest potential for market growth in CPG is based on marketing to tech-savvy consumers who buy these products many different ways. Using shopping apps to assist consumers through the new, more complex path to purchase is the best way to leverage these CPG ecommerce trends.

Shopkick helps our partners in the CPG industry stand out in the crowded ecommerce space. To gain consumer attention on our platform, contact us.

Rewarding consumer experiences anytime, anywhere

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Bill Demas, Chief Executive Officer

Our vision as a company is to create rewarding consumer experiences for our users anytime, anywhere. We are taking another step in fulfilling that vision today by releasing a web version of Shopkick. This gives users more ways to earn kicks and discover new products, brands and services.

For our partners, the expansion to desktop completes our omnichannel solution, offering deeper insight into consumer behavior across channels and throughout the fragmented shopping journey. Brands and retailers now have the opportunity to reward our users for shopping across desktop, mobile and brick and mortar.

Launch partners include Walmart, Macy’s, Groupon, JCPenney, Sephora, Sam’s Club, Payless, the Body Shop, Stride Rite, Ann Taylor, Loft, Nordstrom, Francesca’s, Lane Bryant, Foot Locker, Sur La Table, and See’s Candies. In addition, we continue to expand our online merchants in the Shopkick app. Most recently we have added Asos, eBags, Etsy, Fandango, the Home Shopping Network, Hulu, Lane Bryant, and Living Social.

Stay tuned for more announcements coming soon on our exciting product roadmap! To learn more about our new e-commerce offering, get in touch at partners@shopkick.com.

If you have any feedback on this new initiative or any other Shopkick omnichannel solution, send me your thoughts at ceo@shopkick.com.