Modern customer relationship building strategies for the digital shopper

Customer relationship building strategies are one of the cornerstones of marketing to help increase brand awareness, build market share and growth, and improve overall product perception. Many companies are seeking ways to leverage expansions in artificial intelligence and utilize smart technologies to create meaningful conversations with customers. Most modern customer relationship building relies on technology in one form or another, so knowing how to capitalize on will be an integral aspect of any given consumer-focused strategy.

strategies for building customer relationships

It may seem contradictory to use technology to build customer relationships since technology often lacks a human touch, but tech is the most efficient way to manage thousands of customer relationships or more. The key is to temper technology-based responses with human ones, so customers still feel as though they are being heard on an individual level. By implementing new technology—beacons, bots, and mobile shopping apps—you can build a relationship with your customers that will keep them loyal to your brand without placing an undue burden on your resources or harming your bottom line.

Customer Relationship Building Strategies With a Tech Twist

Dollar Shave Club is a great example of a company that managed to segue personal customer relationships into a billion-dollar success story. The company made a name for itself by selling memberships to an automatic razor delivery service, but it built a brand off of its outstanding customer relationships by developing experiences for consumers that still include:

  • Exclusivity: Members of Dollar Shave Club are given access to an insider newsletter and receive regular, personalized messages from the brand. Club members are also entered into a referral program that rewards them for inviting others to join the service.
  • Engagement on social media: Users of Dollar Shave Club can post images of their deliveries to the company’s Facebook page. The brand then selects their favorite posts, and the winners receive a free T-shirt. Providing a creative and engaging customer rewards program—whether for points, merchandise, or cash back—can be a powerful relationship building tool.
  • Rapid responses: The average response time to an email sent to the team at Dollar Shave Club is less than a day. Questions or complaints posted to social media sites are answered within a few hours. Rapid responses build trust between consumers and the brand and make their loyal subscribers feel their concerns are being considered and addressed.
  • Personalization: Dollar Shave Club uses data from their customers to send occasional personalized messages and upgrade offers. Use of this data allows the company to promote highly specific products in their monthly email messages, which increases the likelihood of conversion.

Each of Dollar Shave Club’s strategies is dependent on delivering their message in a personalized way, so the consumer feels the brand is speaking directly to them. Technology allows Dollar Shave Club to maintain an air of personalization, while also advertising on a mass scale.

Tech That Automates Personalization for Building Customer Relationships

Technological advancements like machine learning, data collection, and artificial intelligence, are making it possible to deliver messages and engage customers without investing significant man-hours. This allows companies to leverage the flexibility of technology while maintaining a small, intimate atmosphere around their brand.

Here are just a few options that allow even large-scale companies to manage this strategy successfully:

  • Auto response bots: Auto response bot systems are a new take on the touchtone hotlines of old. These systems are capable of recognizing important keywords and responding in a way that feels genuine. For example, a consumer might type in, “I’m having a problem with my billing.” The bot could then be set to respond, “I’m sorry to hear about that. Let me help you. I currently have your billing information as X? Is this correct or do you need to change it?”
  • Customer experience managers: Customer experience managers, which are mainly database systems designed to collect and organize your customer data, allow companies to separate said data into various audiences for retargeting. So, in the example of Dollar Shave Club, a female consumer may be more concerned with razors for shaving her legs, while a man might be more interested in how to avoid beard rash. Or, an older consumer might have more issues with ingrown hair due to thinner skin, while a younger one might have problems with shaving cream irritating acne. All of these factors can be accounted for by implementing a CEM to personalize experiences for specific consumers.
  • In-store beacons: Bluetooth-enabled devices that communicate with smartphones are helping build relationships with consumers as they’re in the shopping aisle, an aspect of mobile retail proximity marketing. Upon entering a retail location, a shopper’s mobile device receives a signal from a beacon if they have downloaded the retailer’s in-store app. The app will then offer the shopper deals, coupons, or location details for items he or she has previously purchased or shown interest in.
  • Shopping apps: Shopping apps allow brands to connect with consumers at the very moment they are looking for advice on where to shop and what to buy. These apps often offer rewards for purchasing or scanning the barcode of a featured brand. This kind of incentivized shopping experience allows brands to build a relationship and understand buyer behavior.

Connecting with consumers must include developing a way to personalize their experience quickly, efficiently, and seamlessly. This is best accomplished via the use of technology. Shopping apps, in particular, allow brands to connect directly with consumers at the very moment they are planning to make a purchase or seeking guidance.

Customization and personalization, backed by technology, helped Dollar Shave Club build a following for their brand. They understood what was important to consumers and chose to connect with them in a unique way. This customer relationship strategy helped them build their audience on an individual level, even as they expanded into a billion-dollar business. And your brand can follow suit by using a shopping app to power your connection to your buyers.

Well-designed shopping apps that make everyday shopping more personal and rewarding can give you access to real-time customer data, allowing you to make in-the-moment and relevant recommendations. They also allow you to create a relationship with a customer which can turn them into a loyal user.

Shopkick helps our partners build relationships with consumers by offering them opportunities to earn rewards for engaging with your brand. For more information on how Shopkick can help you create a stronger consumer connection, contact our team today.

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Brand awareness marketing strategies with proven ROIs

Brand awareness is the first step in growing market share for a CPG brand. When consumers are aware of a brand, they’re more likely to give it a try and possibly become a regular user. However, gaining this brand awareness is a challenge as a crowded marketplace has been a CPG industry trend in recent years—and will continue into 2018.

marketing strategies for brand awarenessAn effective brand awareness marketing strategy is not simply one that reaches your target audience but also one that has the potential to convert that new audience into active customers. There is still an abundance of opportunities to reach out to consumers despite growing competition in the sector, whether it be at brick and mortar locations, through social media, on television, or via radio advertisements.

While the strategies available to CPG brands looking to grow awareness are numerous, the effectiveness of each option varies greatly. To gain a greater ROI from your brand awareness marketing strategy, you need to be able to connect with consumers in a way that makes your brand memorable. Many established companies have already successfully managed this—and you can use their examples to guide and educate your own growth efforts.

Online Brand Awareness Strategies That Offer Strong ROIs

When building brand awareness for a CPG brand, you need to consider the goal of your target audience when they begin a search that will eventually lead them to your product. Consumers don’t always begin an online search with the intention of buying a specific product. Commonly, they are searching for information, a story, or simply to be entertained. Here are a few ways that successful brands have used online strategies to grow brand awareness:

  • Coca-Cola and connecting through icons: Many people have heard the rumor that Santa’s red outfit actually came from a Coke campaign. While not exactly the whole truth, there is a grain of reality to it, as the Santa we see today is heavily influenced by Coke’s marketing campaigns from the 1920s that depicted a very realistic Santa. By connecting their brand to an iconic figure, Coke was able to significantly increase their brand awareness. That awareness reached a point where some would say that Coke also managed to increase Santa’s brand awareness—at least the US version of him. Essentially, Coke managed to connect their product with a beloved figure, which transferred some of the adoration for that figure to their product.  
  • Dollar Shave Club and shock value: In 2012, the Dollar Shave Club rolled out of the gate with a viral marketing video that gained a lot of attention on a crowded platform. The video showed surreal images and came with the tagline, “Our Blades Are F**king Great.” The shock value of the video helped it gain 4.75 million views, with many of those coming from social media shares. The clear irreverence of the campaign gave the company an ‘everyman’ feel that consumers were quick to connect with and remember. Keep in mind: shock value doesn’t always prove successful as it can alienate some would-be customers. Ultimately, this is a decision you need to consider with your target audience in mind. Will the users it brings in develop a strong enough connection to make up for the ones that may be permanently turned off? For Dollar Shave Club, the answer was yes, as their target demographic of younger, blue-collar men, were more likely to be amused, rather than offended by the strategy.
  • Pedigree and building an emotional connection: In 2015, Pedigree rolled out its “First Days Out” campaign. The campaign featured the stories of two recently released convicts and shared how their dogs helped them reconnect with a society that had changed significantly in the time they were in prison. While it was a bold choice, as many would not consider convicts the ideal brand ambassadors, it targeted individuals with a strong belief in second chances. Specifically, it targeted an audience of dog owners who would choose to adopt a dog from an animal shelter, rather than buying one at the pet store, connecting that whole ‘second chances’ theme. The tagline “You save a dog. A dog saves you” was one that resonated with those dog lovers. The four-minute video gained a lot of attention for the brand and helped them connect with consumers in a memorable way.

All three of these brands used unique ways to connect with consumers as market share growth strategies. Either by partnering with icons they loved, creating a shocking moment, or tugging at consumers’ heartstrings, they were able to solidify their brand in front of a new audience. This is something that any brand is capable of achieving—and can be adapted to work with today’s digital platforms.

Adapting Your Brand Awareness Marketing Strategy to Maximize Your ROI

While the brands from the above examples focused on large campaigns, brands can also do all of the above on a smaller scale and achieve similar positive ROI results. Every measure that gets your brand in front of a new audience can offer a valuable opportunity. Simply by breaking down the larger campaigns into smaller components, we can see how this is done:

  • Partnerships: Your brand doesn’t need to integrate well-known icons into every commercial. Instead, you can leverage smaller partnerships to cross-market your products. This can be via partnerships with an online personality, or even with another, complementary CPG company. Shopping apps work to increase brand awareness as they expose your brand to an entirely new and actively engaged audience.
  • Anti-advertising: One of the reasons that the Dollar Shave Club video was so unique was that it allowed the brand to gain consumer attention through something other than outright product advertising. The video was played for laughs and, because of that, it drove viewers to want to watch—and share—it. Your brand can adapt this strategy by offering information or stories to consumers in a way that’s intriguing and memorable.
  • Personalization: The Pedigree commercial was memorable because it connected specifically with pet owners. Your brand can do this by finding a way to personalize communications based on who you’re reaching out to—or even when you’re reaching out. Consider the case of shopping apps again, only this time in regards to leveraging geolocation technology. If a consumer is in a store aisle looking for a whitening toothpaste, they may receive an advertisement for a specific brand of this or a complementary product. This is contextually relevant because the person is in a shopping environment, and are then offered incentives to either visit a store or interact with a specific product, driving awareness of your brand.

You don’t need a massive marketing campaign when using the strategies of other successful brands for building brand awareness. You simply need to be able to leverage the partnerships available to you to create a compelling message in the right moment. Shopping apps offer just such an opportunity. In partnering with an engaging third-party app to deliver your message to new and current target audiences, you can create a brand awareness marketing strategy that also ushers them through the sales funnel—ensuring your campaign delivers a positive ROI.

Shopkick is a shopping app that allows our partners to take advantage of the latest technology to share messages with consumers in real time. For more information, contact the Shopkick team today.

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Retail consumer apps: How to engage in-store shoppers on mobile devices

Many retailers view mobile apps only as an expansion of their online shopping space, and not as a route to in-store sales. This is a mistake. By their very nature, consumers use apps while on the go and, more often than many retailers believe, they’re using them for in-store shopping. When you’re evaluating which features to offer consumers within a retail app, you must think beyond online shopping. You must connect current consumer retail app technology to a physical, brick and mortar shopping experience.

retail apps for consumersIn order to evolve along with the modern shopper, retailers must be ready to acknowledge and capitalize on the fact that mobile shopping is only one component of the consumer retail app experience. Any brand can build an mCommerce space. However, innovative retail mobile apps have additional success when they’re designed to work in-store, traveling with the consumers as they visit brick and mortar locations.

Retail companies, then, need a thorough understanding of exactly what these users are looking for—and must be prepared to deliver it, either via a branded, proprietary option or by partnering with an established third-party shopping app.  

What Retail Consumer Apps Must Offer In-Store Shoppers

Retailers need to take a consumer first approach to retail app development as adoption is key in order to achieve a return on investment for your marketing dollars. Consumers generally prefer retail shopping apps that:

  • Provide convenience: Convenience is the main reason that consumers use apps. In fact, the majority of consumers, 60%, will choose an app over a store’s website. This is because they’re using the app as they’re out and about and smartphone apps, unlike many websites, are designed to cater specifically to mobile device users.
  • Create a connection: 48% of smartphone users say apps strengthen the brand connection when they feel like the app caters to their specific and individual needs. Consumers want shopping apps to feel like their personal concierge service; i.e. that the app guides them and tells them what they need to know about the retail store and its brands as applies to them, thus creating a connection.  
  • Offer in-store options: About 77% of smartphone users have used their devices to help them shop while they’re in the seemingly endless retail aisles. Creating an in-store experience via a mobile app is a key factor in encouraging consumer use.
  • A memorable customer experience: If the consumer using the retail app runs into an issue with the technology more than once, about 54% will delete it. Meanwhile, 21% will seek out an app with similar functionality to replace it with. That means you have a very small window of opportunity when it comes to keeping consumers loyal to your app.

One thing that should be noted about all these attributes and features is that most consumers are not loyal to a specific retailer’s app. A retailer can use a third-party option and get the same results, provided that third-party app offers a positive, engaging, and somewhat personalized experience. In fact, a third-party app may even provide more opportunities than a branded app.  

Why Retail Stores Are Partnering With Third-Party Shopping Apps

Creating a retail consumer app that combines all of the functionality and features that consumers demand is often an arduous and expensive process. However, partnering with a third-party shopping app can allow you to leverage all of the advantages of offering a retail app while minimizing your expenses. In addition, these shopping apps offer a few benefits that branded retail in-store apps can’t, including:

  • A wider audience: If your current target audience is already using your branded store app, they’re included in your current market share as well. However, by partnering with a third-party shopping app, you can expand that target audience—and, therefore, your market share—by gaining access to consumers who may not yet be regular or loyal shoppers.
  • Fast innovation: While retailers develop apps as a single component of their marketing campaign, app development companies have a singular focus. They are, therefore, in a position to take advantage of technological innovations, like smarter beacons and cross-platform functionality, much faster than companies who aren’t at the forefront of new technology.
  • Incentivizing without discounting: Third-party shopping apps often gain consumer interest by offering rewards. This allows their partner brands to gain in-store attention without having to discount their products. Retail apps, on the other hand, are often designed around promotions and discounts as a means of gaining buyer engagement. That’s a costly strategy that hurts ROI and the company’s bottom line.

Third-party shopping apps leverage the opportunities that mobile advertising provides without forcing individual retailers to develop and attract an audience for a branded, niche app. If you choose to partner with an existing shopping app that offers high engagement rates, you can reach out to a new group of consumers while seamlessly offering them exactly what they’re looking for—convenience and personalization.

When you’re using a retail consumer app to grow your market share, increase brand awareness, or build your company’s reputation, you need to maintain a focus on user experience, something that is automatic when you partner with a popular third-party option already established on the market. If consumers are actively engaged with the app to assist them as they shop, you are guaranteed an opportunity to travel with them into stores—and reach them when it matters most.

Shopkick offers their partners a shopping app platform for reaching customers with proven ROI—their active user base is proof of the effectiveness of their strategy. If you want to learn more about partnering with a third-party shopping app, and what it can do for your brand, contact the Shopkick team today.

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Why market share is important for growth: A guide for CPG brands

When you’re green, you grow; when you’re ripe, you rot. This well-known adage speaks to the marketing concept that the only way a company can survive is through continuous growth. There is no standing in place when it comes to the consumer packaged goods (CPG) industry.

market share for growth is important

Continue reading “Why market share is important for growth: A guide for CPG brands”

The Best Customer Engagement Strategies in Retail for CPG Brands

The Best Customer Engagement Strategies in Retail for CPG Brands

Many CPG brands, new and established, struggle with standing out on a retailer’s shelves. The CPG industry is going through a rapid growth phase and is estimated to be worth around $14 trillion by 2025, up from $8 trillion in 2015. That equates to more brands clamoring for limited consumer attention. And, when it comes to brick and mortar retail, they’re doing it all in the same aisle. However, your brand can gain the edge on your competitors by using mobile to help steer customers to your products both online and offline.

In the digital age, smartphones are your best connection to your customers. A successful customer engagement strategy in the retail space involves leveraging mobile opportunities not only for online sales, but for customers who are browsing the retail aisles as well. You can use mobile marketing to connect, build powerful moments, and help your brand stand out in a sea of competitors.

Now is the time to boost your CPG brand’s customer engagement  using technology that lets you travel with consumers, whether you’re sending a personalized message, responding to customers via social media, or using micro-moments to create brand recognition. The agility of smartphones to move with consumers can help you create a connection with your target market of existing and new customers—and help to guard your market share as the CPG industry continues to expand.

Perfecting Personalized Customer Communications as an Engagement Strategy

The fact that personalization is a major sales driver for consumers is no secret. In fact, 70% of companies consider personalization their top priority in 2017—and it’s likely that number will only increase in 2018. But what is personalization, exactly?

There’s a fine line between using a customer’s data to give him or her a positive and unique experience, and using that data in a way that a customer will find invasive. On top of that, in-store personalization means that you have to effectively use that data quickly, to both recognize the customer’s needs and then offer them an option to meet those needs in the short moments before they make a purchase decision.

One brilliant campaign from Snickers encompassed all the best parts of personalized advertising. The company monitored Twitter posts based on emojis. The higher the uptick in negative emotion emojis across the platform, the lower the brand dropped the price of a Snickers bar at select 7-11 locations. Consumers following the brand could then lock in a low price via their smartphones for the next time they bought a Snickers at a participating store.

This was a clever campaign that also tied into its television commercial slogan, “You’re not you when you’re hungry.” This was another successful aspect of Snickers’ strategy: they aligned their mobile campaign to their television and print campaigns as well. Then, they took this strategy a step further by using it to personalize messages to consumers who posted a negative emoji and offer them a discounted price on a Snickers bar in order to improve their mood. The campaign used freely available data to reach out to consumers, but made sure to walk the right side of the line when it comes to personalization without privacy invasion.

The Key Takeaways:

Use data consumers freely give away:

The key to Snickers’ successful campaign was that they used publicly available data that consumers chose to share. They simply looked at the emojis consumers used on social media to measure their mood. The use of that data wasn’t invasive. Instead, consumers felt as though Snickers was listening to them. Permissive use is crucial when leveraging consumers’ data to make a personalized recommendation. Social media, purchase history, and data that consumers opt to share with apps can be a great way to permissively gather information.

Don’t make assumptions:

There’s a difference between using a customer’s prior purchase history to make an assumption versus using it to guide your suggestions. For example, if a customer previously purchased a gluten-free frozen meal, it may be safe to recommend another gluten-free product. However, if a customer bought a home pregnancy test, you should not assume they would be interested in a coupon for diapers. One is a suggestion based on a prior purchase. The other is an assumption that companies should steer clear of. Personalize the message by using it to guide messages, but don’t jump to conclusions.

Make Magic With Micro-Moments

Micro-moments are those short instances when a person turns to their phone for information. 82% of smartphone users say they consult their phones on purchases they’re about to make in a store. One way to make an impact in those micro-moments is to use the personalization recommendation mentioned above and tie it into that mobile interaction.

This is what Pantene did when it teamed up with a popular weather app to provide hair styling advice to consumers. When the weather app indicated that the humidity had reached a certain level, Pantene would recommend products designed to keep hair under control in those conditions. They would explain why humidity caused hair to fall flat and recommend their own products to combat the problem. This allowed the company to leverage their very specific product focus and knowledge to gain the attention of the right target audience in immediate need of their offerings.

There’s a reason why 48% of smartphone users are more likely to buy from companies whose mobile sites provide instructional video content: those companies have proven themselves to be experts in their industry. Consumers trust them, so they purchase from them more confidently and regularly. Through their personalized micro-moment campaign, Pantene was able to gain a 10% increase in sales and secure a top position in the highly competitive beauty market.

The Key Takeaways:

Recognize the consumer’s problem:

When a consumer buys a product from a CPG brand, they’re generally doing so to fill a specific need or solve a problem. Pantene recognized the impact that humidity had on hair and used weather apps to deliver messages about how to combat the problem.

Use your knowledge:

Every CPG brand has an area where they consider themselves to be an industry expert. Using that knowledge to answer consumers’ questions can be a successful way to create a micro-moment that leads to consumer trust and loyalty.

Make use of beacons:

Pantene used sensor beacons located in Walgreens stores to notify them when consumers entered and then offer them information on a Pantene hair product that would help them combat humidity. As they were able to reach out as soon as the customers walked through the doors, they were able to direct those customers straight to their aisle in the store with little distraction.

Offer Social Customer Service to Help Engage Retail Consumers

Customer service is no longer tied to customer hotlines or even to email. Now, consumers ask questions and file complaints in full view of the public via social media platforms like Twitter, Instagram, and Facebook. Due to this fact, about 81% of companies integrate social customer service in some way. This allows companies to be transparent in their dealings with customers, which also leads to engaging with them in-store. In a study, it was found that 10% of all tweets directed at a CPG company occurred while the customer was in-store.

Duncan Hines is one of the strongest performing CPG brands using a social media strategy today. The company strategically focused on gaining user-generated content, such as photos of creations made with Duncan Hines products. They even went so far as to offer suggestions to consumers via social media while they were in the store looking for baking inspiration.

Since the company has made its commitment to engaging customers via social media, Duncan Hines now generates more mentions than any other CPG brand on Facebook. This is in large part due to the fact that they like and comment on posts that mention their brand, they share user-generated comments on their page, and they respond to social media questions and concerns almost immediately. This is a full-time job that requires constant interaction, but it is a strategy that has paid off for them in spades.

The Key Takeaways:

Focus on a specific audience:

Duncan Hines used social media to find and market to people who specifically enjoyed baking. They were able to creatively engage with them and offer suggestions as they choose products in-store.

Respond quickly:

When a consumer sends a message to Duncan Hines on social media, the response is almost instantaneous. Duncan Hines has proven to be very proactive when someone is seeking help regarding one of their products, creating consumer trust.

Gain user-generated content:

An important component of interacting with consumers is allowing them to share their content regarding your brand on your brand’s public spaces. Users of Duncan Hines products are encouraged to share their experience with the brand on the company’s page and, most importantly, the company always responds to that interaction.

Leverage Third-Party Apps for Successful Customer Engagement Strategies in Retail

Many companies run into trouble generating a positive ROI with mobile marketing as they believe that they must create their own proprietary app to connect with consumers in stores. This isn’t the case, however, as there are many third-party apps that brands can partner with which will give them exposure that’s often more profitable than the exposure they’d get via their own in-house app. These apps are specifically useful when they’re designed to be used in-store, like in the case of shopping apps. As consumers have these apps out and running when they’re in the store searching for items to check off their list, brands are able to advertise in the moment of a purchase decision.

Shopping apps allow you to combine all three of the prior customer engagement strategies in retail. You can use a shopping app to share information about your brand, help consumers solve a problem—and you can even use them as a social platform. Many shopping apps are specifically designed to work with in-store beacons as well, which makes it easier to direct consumers to your products’ shelves. Finally, consumers get the incentive of gaining customer rewards to keep them engaged, rather than discounts, which keeps you from having to cut your prices and put a dent in your bottom line.

All CPG brands are challenged by gaining attention in the retail environment, but mobile marketing makes this strategy easier and more profitable by allowing you to travel with your consumers. Use data to craft personalized messages and beacons to help them locate your product in stores. Offer them the opportunity to share their experience with your brand and manage this all through the use of intuitive shopping apps that put your products in front of eager and interested target audiences. By studying the stories of Duncan Hines, Pantene, and Snickers, we’re able to see that consumers respond to personalized and in-the-moment social marketing. A shopping app allows you to harness that power—and use it to grow your own brand’s presence in a crowded marketplace.

Shopkick is a beacon-enabled shopping rewards app that allows our partners to connect with consumers in the retail space. If you’re interested in using our app to help guide customers to your products in-store, contact our team today.

5 Trends from Thanksgiving to Cyber Monday

Throughout the beginning of the year, the media was consumed with stories of a retail apocalypse; exemplified by mounting bankruptcies and store closures as well as consumer spending shifting away from retail and towards experiences, dining and travel.  So all eyes were on the biggest shopping weekend of the year, Thanksgiving-Cyber Monday, to evaluate both the current health and the long-term viability of the beleaguered retail industry.

The results? Blockbuster sales all weekend long for both physical and online retailers, propelled forward by aggressive promotions and a surge in mobile shopping. Adobe Analytics reported that American consumers spent $19.62 billion online over the five-day period from Nov. 23, 2017 (Thanksgiving) through Nov. 27 (Cyber Monday). This was $2.6 billion and 15% more than they spent during the same timeframe last year. At Shopkick, our users actively shopped throughout the long weekend both in-stores and on their phones at retailers like Amazon, Best Buy, TJX, Walmart, Kohls and eBay.

Below, we explore 5 key Thanksgiving-Cyber Monday trends and what they mean for the rest of the holiday shopping season.

1. Shopping is spread out throughout the whole weekend

Given that discounts are readily available to consumers year-round, and holiday discounts started in early November, Black Friday has mostly lost its significance as THE make-or-break shopping day. Also the nature of the event has changed, as better online and mobile experiences has meant that the days of millions of consumers waiting outside for doorbuster deals and enduring jostling crowds are largely over as consumers can shop from the comfort of their own homes or phones.

While Shoppertrak found that foot traffic did decline on Thanksgiving and Black Friday by 1.6% from last year, sales were up, especially online sales.  Thanksgiving Day saw a surge in online spending in the U.S., with purchases growing 18.3% to $2.87 billion compared to last year’s $1.3 billion, according to Adobe Analytics. On Black Friday, a record $5.03 billion was spent online, an increase of 16.9% over last year and a new record for the day. A good deal of the shopping took place on the websites of physical retailers – not just online only retailers. Finally, on Cyber Monday, a record $6.59 billion was spent online, an increase of 16.8 % over 2016, making it the largest mostly U.S.-based online shopping day in history and nearly a billion dollars more than last year at $5.6 billion.

2. A surge in mobile shopping

Consumers are now much more comfortable shopping and transacting on mobile devices. On Black Friday, Adobe reported smartphones accounted for 45% of visits and 26% of revenue for online retailers, working out to just under $2 billion in sales. On Cyber Monday, purchases made on smartphones broke records with $2 billion in sales. Adobe said early data for Cyber Monday activity showed mobile driving nearly 40% of online sales.

Another positive sign is that conversion rates on mobile are improving, due to improved apps, wallet integrations, and mobile transactions closing at a 12 percent higher rate year on year. Conversion rates on smartphones were at 3.5%, a 10% increase over last year according to Adobe.

3. Amazon vs. everyone else

Amazon continued to assert its dominance, and not just on Cyber Monday. Amazon accounted for half of Black Friday online sales. Based on web traffic, Amazon and Walmart increased their combined market share by 1.5%, while Target, JCPenney, and Sears all lost ground. Cyber Monday was Amazon’s biggest shopping day in company history, beating out the previous record holder, Prime Day. Amazon isn’t planning on slowing down anytime soon as their Amazon Prime subscriber growth — in terms of both numbers and how much they spend — sets them up nicely for the rest of the season.

4. Differences between online and in-store shopping

NRF and Prosper Insights found that more Americans shopped both in-stores and online, rather than sticking with just one channel. 38% of shoppers shopped both online and in-stores whereas 33% shopped online only and 29% shopped in-store only. These multichannel shoppers are more valuable to retailers, spending $82 more on average than the online-only shopper, and $49 more on average than those shoppers who only shopped in stores.

Aside from shoppers, successful omnichannel retailers are tailoring their marketing and merchandising strategies to each shopping environment. Walmart, for example, had more discounts online for heavy or bulky items like electronics that are more suitable for shipping, whereas in-store was stocked with deals for smaller, impulse buys.

5. Driving the sale: differentiated experience or discounts

Retailers essentially had 2 options to drive sales during this time: either rely on discounts or create a differentiated experience. Those that can drive sales through differentiated experiences, such as product assortment or a stellar in-store and mobile experience will protect their margins and equity against those that solely rely on heavy discounting.

Smart, not blanket, promotional strategies will win out as retailers are under tremendous pressure to feed today’s discount-driven consumer, with research showing that more than 60% of holiday shoppers are motivated by discounts. In fact, retailers have already discounted goods 10% more this year than last. These major discounts early in the holiday season lead consumers to believe that deeper discounts will be coming.

A positive outlook for the rest of the season!

While the immediate week following Black Friday was slower, as consumers recuperate and remember the doorbuster deals, December is poised to be strong for retailers. Healthy economic conditions for consumers and strong confidence should result in robust sales for physical and online retailers alike. Retailers must focus on strategies that engage shoppers across channels with relevant content, merchandise, experiences and promotions.

Video advertising: Advantages and disadvantages for brand growth and awareness

Video advertising’s potential advantages and disadvantages are open to debate. Many companies have found video to be a powerful converter and have made it an integral part of their marketing campaigns. Others choose to go with more traditional advertising avenues. Determining if it will be profitable for your own brand is something that’s often difficult, though, as calculating the return on investment for video advertising isn’t possible until after you’ve run a campaign and can crunch the numbers. However, if you’re aware of the common barriers to success related to video marketing, you can overcome them and effectively utilize the medium to boost consumer awareness of your brand, and, as a natural result, sales.

Positioning video advertising to get your brand’s message across can be highly impactful on your brand awareness and bottom line, provided you use the right tools to make it visible. One way  to see a significant return is by crafting a compelling message and delivering it through third-party platforms. First, however, you must have a firm grasp on the advantages—and disadvantages—of video advertising in the digital age.

The Advantages of Video Advertising for Brand Growth and Awareness

It can’t be denied that video has a certain appeal that text and image-based advertisements don’t. While it can be a bit more expensive or time-consuming to develop than other mediums, it allows you to deliver a message that connects with consumers in a deeper and more genuine way.

Here are a few of the advantages of video advertising for brands:

the advantages and disadvantages to video marketing on apps

  • Video is popular: The first and most obvious reason to choose video is that it’s simply what consumers want. More than 70% of the online US public regularly watches streaming video online. This is an audience that can’t be ignored.
  • Video is a powerful converter: Video is an excellent way to increase brand recall. In one study, it was noted that 80% of respondents remembered the videos from brands they’ve watched in a 30-day period. That’s not the case for text and photos, which consumers are inundated with so often they rarely remember individual instances of advertising.
  • Video gives your brand a personality: Video allows you to give your brand or product a personality. They allow your consumers to connect with a person or situation, rather than an image, which can help to humanize your brand.
  • People share videos: It’s estimated that 92% of individuals who’ve viewed a video have shared a video. If you’re looking for an innovative way to increase brand awareness, then this is a number that you need to consider, as the more people who share your brand’s message, the more that awareness will grow.

Video is clearly an advantageous option for many brands of all sizes as it allows you to create a message with genuine impact. It’s specifically successful for growing brand awareness, as people remember and share videos more often than they do any other kind of content. That being said, it must be noted that video can have its disadvantages as well.

The Disadvantages of Video Advertising for Brand Growth and Awareness

While video might be a great medium for marketing, it needs to be acknowledged that not just any video can compete against a similar product or company that puts out quality text and images. A bad video can cost your company more in the long run as you could invest a lot only to see a minimal return on your investment.

Here are some of the potential disadvantages to consider with video advertising:

  • The market is saturated: While video advertising has a lower cost of entry now than it did in the past thanks to new tools like low-cost cameras and free-to-use hosting platforms, that benefit creates a disadvantage as well in that anyone can make a video. It’s estimated that 300 hours’ worth of video is uploaded to YouTube every minute! That’s a large pool that your brand is going to have to compete against.
  • Video doesn’t promote itself: Due to the staggering number of videos online, it’s not possible to simply post a video and hope for the best. Marketers need to essentially market their own advertising tools by sharing it—and ideally convincing others to share it as well.
  • A commercial is still a commercial: If your video is strictly advertisement-based, don’t expect a strong conversion. A big part of ad conversion is ad viewability. After all, a commercial is still a commercial. About 65% of consumers who watch online videos skip commercial ads. Brands that do the best with video don’t advertise. They offer content with real value.

While there are disadvantages of video, they can be overcome with better marketing, the right partners, and the right timing. By being aware of potential pitfalls, you can use the benefits of video to its full advantage.

Balancing the Advantages and Disadvantages of Video Marketing

The types of videos that get shared and improve brand awareness aren’t advertisements. Instead, they’re videos that provide useful content to the viewers. If you’re going to release video as a medium to advertise, it’s important to create branded content over pure product advertisements. Branded content may include:

  • How-to videos: These can be videos that show how to use your product or answer questions about it. They can also be videos that show your product being used in a new or unique way.
  • Product reviews: User-generated content, like product reviews, are a good way to share your brand’s message through a third-party. While not as easy to control, if you get a good review, ask for permission to share it on your brand’s page.
  • A behind-the-scenes look: People want to work with companies that feel human to them. Giving a consumer a sneak peek inside your company or interviews with your employees, for instance, helps to humanize your brand.

The options are extensive but the key to video advertising is to create content that’s not simply based on making a sale. Put yourself in your consumer’s shoes and ask yourself “Would I watch this?” when you’re considering a video campaign.

In addition, you need to put your marketing muscles behind that video. Share it on social media, your website, and encourage consumers to share and comment as well. One good way to leverage video is to offer it via a shopping endemic publishing platform, such as a shopping app. You can leverage strategically placed videos within these apps to help your brand stand out and increase consumer awareness.

When partnering with a shopping app, there’s a built-in and engaged audience at your fingertips. By creating a compelling video with a powerful, branded message, you can grow awareness of your brand exponentially.

Shopkick offers our partners the opportunity to reach users with video messages within an endemic shopping environment. If you’re interested in gaining more attention for your branded video content, contact our team today to learn more.

Image courtesy GaudiLab

Continue the battle to defend net neutrality

With Black Friday and Cyber Monday just behind us and the busy holiday shopping season still very much in swing, our free and open Internet is still at risk. We have tried to fend off the attacks, but the Federal Communications Committee (FCC) is now calling for a December 14 vote to end Net Neutrality as we know it.

What is Net Neutrality?

Right now we have access to every website from every Internet connection in the world. This freedom of information is easy to gloss over and often taken for granted. After all, this is all we know – the Internet started this way and has always been this way. Net Neutrality is the basic principle that protects our free speech on the Internet.

What are we fighting for?

Today, this very fundamental right is under threat. The companies that provide the Internet network connections (telecom and cable companies mostly) want to charge more for our right to access certain websites depending on the content within them. This will mean that the Internet will become more like cable TV, and will offer premium ‘channels/websites’ for an additional fee.

Furthermore, the free and open internet is fueling economic growth with e-commerce growing to nearly $400 billion in retail sales last year. Our current net neutrality rules support innovation and free and open competition for retailers and entrepreneurs.

The FCC recently released a draft order that would end this open commerce. Without net neutrality, internet service providers will be able to favor certain websites and e-businesses, or the platforms they use to garner new customers. They can control the speed at which content is delivered to visitors based on how much the websites and businesses pay.

What can we do about it?

At Shopkick, we proudly join many major tech companies including Airbnb, Reddit, and Pinterest in the fight to save Net Neutrality. Together, we can stop censorship and corruption. Our recent letter to the FCC warned of this disastrous net neutrality reversal.

This is one step in the right direction, but everyone’s help is needed. Join the battle to save the Internet.

QSR customer experience: How mobile apps are enhancing restaurant visits

A positive, memorable QSR customer experience can turn a casual visitor into a restaurant regular. However, QSR companies are challenged with the limited time they have to spend with their customers. The focus of the visit is a fast, convenient meal, but the in-restaurant experience is what will either drive them to return or to seek other options in the future. How, then, does a QSR location create a positive and memorable customer experience in the limited window that a typical customer will spend in the restaurant?

QSRs must take advantage of mobile app technology to enhance in-person interactions and drive value for consumers beyond simply a quick and low-cost meal. Marketing professionals looking to create a memorable QSR customer experience must be prepared to deliver that experience rapidly and in a manner that is easy to interact with while on the go. More than a few QSR brands have managed to get this right by offering engaging mobile apps. Let’s explore ways your QSR company can model the most crucial techniques of these successful mobile marketing strategies.

Using Technology That Matters to Customers to Drive Positive Experiences

Many marketing professionals are surprised to learn just how important mobile technology is for QSR customers in the digital age. In a National Restaurant Association study, one-quarter of QSR customers state that technology was a factor in their decision to visit a restaurant.

qsr restaurant experience for customer

Some suggestions for how a QSR company can interact with its customers during a visit are:

  • Increased personalization: Your Pie is a QSR that focuses on custom pizzas for its customers. They keep a history of all orders placed via their app so that they can use it to inform on future selections. So, for example, if a customer ordered a gluten-free pizza in the past, and the company came out with a new gluten-free menu item, they can target those specific customers with marketing for their new product. This increases the personalization of the interaction with the QSR. The consumer will feel like the app understands what’s important to them and is designed to cater to them.  
  • Rewards management: In the past, Dunkin Donuts used a card-based rewards system. In 2014, the brand rolled out a new mobile-based program and saw its participation numbers rapidly increase. Their app has garnered 10 million downloads and has significantly increased the company’s revenue. They have seen rewards upsells be particularly profitable. When a customer uses the mobile app in-store to redeem a free coffee, for instance, they’ll very likely buy another menu item in addition to redeeming those points for something. Making it easy for a customer to cash in on rewards also makes it easy for them to spend more while in your restaurant.
  • Deliver branded content: Companies can encourage a greater customer connection to their QSR through branded content within an app. Panera Bread uses branded content to improve customer relations. Content that’s directly related to a customer’s prior purchases is displayed to them via the restaurant’s app. So, if the consumer ordered an apple fritter in the past, they might see an article about apples. If they like spicy food, the company will share content about exotic spices and the countries they come from. This is a clever way to use branded content while also keeping customers engaged during their visit.

The window that QSR companies have to make an impression is short, which is why Your Pie, Dunkin Donuts, and Panera have each designed their apps to work quickly and be used while their customers are waiting in line. Failure to deliver a timely message could cost your company a sale. Thankfully, this is where geolocation technology comes in.

Why Location Technology is Key for the QSR Customer Experience

Even the best mobile campaign will fail to gain customer interaction if the timing isn’t right. This is where beacons can be used to capitalize on perfect timing and create a better QSR customer experience. When you’re trying to enhance your in-store marketing, you want to be able to automatically note when a customer has entered or is near a location. Location technology, such as beacons, makes this possible.

Beacons, for example, work with mobile apps to help provide a positive QSR customer experience via:

  • Push notifications: Push notifications can be used to remind a customer that they have downloaded your app and can use it to benefit themselves, such as by taking advantage of a promotion.
  • Improved retargeting: A customer can allow a company to gain information from prior purchases and other app-related details. A QSR can then use that information for retargeting, such as creating recommendations based on location. This is not something that’s possible without geolocation technology.
  • Managing store traffic patterns: Technology like beacons can also be used to better determine peak times and customer behaviors, as well as determining purchase intents that drive sales. These insights can be collected via mobile devices teamed with a beacon, and that data can be used to advise on everything from future marketing plans to staffing needs and store hours.

Geolocation technology is a critical aspect of creating engagement via mobile while a customer is in your restaurant as they allow you to gain data and insights on customer behavior. You can, in turn, use that information to improve the customer experience. If, for example, you notice a peak wait time at 1 pm on weekdays, you can then increase staffing, or add other options like mobile ordering, to improve QSR customer experiences.

Mobile apps make this new wave of marketing in the digital era possible. The stories of the QSRs above who have taken advantage of app technology all showcase examples of how QSR companies can easily leverage mobile apps and beacons to improve services, gain greater customer interaction, and offer greater value to their restaurant visitors. This is possible even when time is limited as mobile can conveniently connect with those customers the second they walk through your doors—quickly enough to create a memorable QSR customer experience.

Shopkick helps partners leverage beacons and other geolocation technology to improve the customer experience for QSR companies. If you’re interested in seeing what this unique technology can do for your restaurant, contact our team today.

Image courtesy BodnarPhoto

How to increase market share of a CPG product using a mobile app

It’s no secret that many CPG product categories have fierce competition and are often purchased on price. This is perhaps why the CPG market is considered to be the most difficult for even established brands to grab a larger share of. If your goal is to increase market share, a mobile CPG marketing strategy that penetrates a consumer’s time in-store could help you achieve it.

increase a product's market shareMobile app marketing is a cost-effective method for increasing market share for CPG products. Alternative options, like ramping up advertising spend, are expensive and not always guaranteed to offer a significant return on investment. Marketing via mobile apps, however, can give you a competitive advantage by differentiating your product as they reach customers in the moment of truth in-storen, driving consideration for your product.

Below, explore how your company can leverage mobile tools like geolocation, timely contacts, and shopping rewards to deliver the conversion you’re seeking from your marketing dollars. Strategies for how to increase market share of a product can be as simple as partnering with a mobile app.

Common Barriers to Market Share Growth in the CPG Industry

There are several common market share growth barriers in the CPG industry that could block your attempts to gain attention for your products. These barriers are the things that keep consumers from choosing your product, despite advertising and shelf visibility, so you must find creative and effective ways to combat them in order to grow.

Generally, a market share growth barrier will fall into one of the three following categories:

  • Loyalty: It seems odd to treat loyalty as a negative, but it certainly is when a significant portion of your product’s target demographic is loyal to a competitor. Customers who are already engaged with a brand are five times more likely to choose that brand’s products over another.
  • Similar products: The CPG market in the US alone is worth $670 billion, which should confirm to any CPG marketer that competition is fierce. If your product is difficult to differentiate from others in its category, it can be next to impossible to make a dent in your market share. The less your product stands out, the harder it will be to garner new attention from consumers. This is especially true if your product’s price point is higher than your competitors’ without offering some additional benefit.  
  • Price point: About 10% of consumers are willing to stick with the lowest priced product, even when they’re aware of a similar product which will provide a superior experience. Consumers who are focused on price point will always be focused on price point. Because of this, pulling these consumers to your brand will only work if you discount your prices lower than others. However, as soon as your price increases again, you will likely lose that customer—and the market share they represent.

A majority of the issues that CPG brands run into when trying to increase market share for a product is that their barriers span all three categories. Their product may be difficult to differentiate from others and may not have the lowest price point, meaning they can’t gain the price-conscious consumers. However, they also haven’t earned the loyalty from consumers who are focused on quality over price. One strategy to stand out from the CPG crowd and combat each of these barriers is utilizing a mobile app to showcase and differentiate your product.

Learn How to Increase Market Share of a Product Using Mobile Apps

Despite the common barriers listed above, it is still possible to gain greater market share in your category. One of the most effective marketing strategies you should leverage is mobile shopping apps. These apps allow you to reach out to customers when they are in the moment of making a purchase decision. Third-party apps in particular, like shopping rewards apps, are ideal for increasing market share as they allow your brand to connect with a new and receptive target audience.

Here is how mobile apps help you combat the barriers to increasing market share of your products:

  • Compete against lower price points without cutting prices: If you don’t want to lose margin by discounting, or want to focus on quality, shopping apps offer an alternative to incentivize price-conscious shoppers via rewards. While consumers don’t receive an immediate discount, they do earn rewards points for their purchases. This allows them to feel thrifty and budget-minded while eliminating the negative impact of discounted prices on your bottom line.
  • Utilize geolocation to gain contextual relevance: Shopping apps can be designed to work hand-in-hand with beacons and other location technology. Via these technologies, shopping apps notify a consumer when they’re near your product and provide information about it. If you’re in a product category with high competition, this can allow you to gain the attention of your target audience at the right moment—i.e., when they are ready and able to make a purchase decision.
  • Convert loyal customers with a trusted audience: Consumers who use shopping rewards apps tend to be very loyal to their favorite app. Often, their trust of the app will extend to any featured product or brand as well. This can be enough to pull a competing brand’s loyal customer to your side of the endless CPG aisle.

Shopping apps can increase your product’s market share without the high expense of awareness campaigns or competitor acquisitions. By partnering with a well-established third-party shopping rewards app, you can easily overcome common market growth barriers like competitor loyalty, lack of product differentiation, and price-focused consumers. Mobile shopping apps allow your product to stand out on overcrowded store shelves by communicating in the moment to an engaged and interested audience.

Shopkick’s mobile platform is used by a wide range of partners looking to increase their market share. If you’re interested in learning more about what Shopkick can do for your brand, contact our team today.

Image courtesy dolgachov

The CPG Industry Trends of 2018 That Brands and Retailers Must Prepare For

The CPG Industry Trends of 2018 That Brands and Retailers Must Prepare For

There was a time when both consumers and industry experts believed that the retail sector was safe from the impact of increasing online sales. CPG brands appeared to be firmly attached to local brick and mortar shelves. That, however, is no longer the case as access to rapid shipping, curbside pickup, and mobile shopping have impacted every industry revolving around consumer packaged goods.

As recently as 2013, online sales of CPG products accounted for as little as 1% of total web sales revenue; however, it’s anticipated that by 2025 that will jump to 20%. The widespread use of online ordering, coupled with a growing consumer dependence on technology, has led to a major shift in how consumers make purchases. Emerging CPG industry trends for 2018 will require brand managers to shift the way they approach marketing by focusing on how they reach out to consumers in the digital space, as well as on how they advertise in-store and on shelves.

Amid this change lies opportunity, however. Our global marketplace has created an environment where CPG brands no longer have to think locally—or even nationally. Instead, they are able to successfully connect with consumers in brand new global markets never open to them before. Brand managers must capitalize on the digital 2018 CPG industry trends by gleaning insights from companies who have been early adopters of the digital forward march—and by leveraging mobile and web-based tools to understand and influence modern buyer behavior.

A Newly Globalized Marketplace: The Top CPG Industry Trend of 2018

In the past, CPG brands were limited to the consumer segments local to them and, as a result, focused the bulk of their marketing attention there. However, the most influential 2018 trend in the CPG industry is access to new, emerging markets of consumers. The internet now allows brands to get in front of millions of consumers that have not, in the past, been a marketing consideration, meaning there is a need for realigning marketing strategies in order to increase market share.

This was the case for Nestle when they chose to roll out their offerings in China’s ready-to-drink coffee market. The company quickly realized that Chinese consumers were not as willing to spend money on this product as American consumers—the price had to be right. The company reduced their costs by 30% by creating a supply chain within China and passed that on to the consumers. This decision allowed them to grab a market share in China, where they continue to be leaders in the ready-to-drink coffee market.

Before Nestle entered the Chinese market, they had, of course, done their research. However, until they were directly operating in the market, they couldn’t definitively predict sales. By tracking consumer behavior, however, they were able to adjust their strategy and successfully align their product with the needs of the Chinese consumer.

CPG brands, then, hoping to jump on the industry trends of 2018 by growing into new digital and global markets must adapt their advertising to genuinely speak to a vast pool of consumers based on geographic segments. The key takeaways for digital marketing and brand managers are:

Understand the new market:

As business goes global, you must be prepared to segment your marketing to focus on what’s important to consumers in different regions. In the US, consumers who drink Nestle’s coffee products are looking for a quick and easy ‘pick me up’. In China, the consumers were more focused on price. Understand what’s important to consumers in a given market and you’ll be able to cater to them. While that may be the price point, brand perception and quality can also be major converters as well.

Establish local contacts:

While the internet has allowed CPG brands to globalize at a rate never achievable before, the need to have a local presence still has not changed. Establish contacts in the local market when going global so you can continue to meet specific cultural and regional consumers needs.

Don’t anchor to a specific plan:

Nestle did research on what price points Chinese consumers found acceptable in their segment, but, in the end, that research didn’t align with the actual buyer behavior. They could have chosen to pull out of the market; instead, they shifted their plan to focus on what was important to those consumers. By reevaluating their position, they turned the push into the Chinese market into a success story simply by recognizing what was most important to consumers and then capitalizing on it.

Trending in 2018: An Increased Need for CPG Brand Connections

The adage used to be “The customer is always right.” However, in today’s digital marketplace, it seems that the most relevant adage is now closer to, “The customer is always informed.” This is another significant trend that is going to change the way the CPG industry must think of marketing due to an increased importance placed on consumer connections. Consumers no longer only want information about a product; instead, they want to connect with the company behind it.

Most consumers used to only research high-ticket items. Due to the ease of garnering information online, however, many modern consumers research every purchase. In fact, it was estimated in one study that nearly one-third of all purchases, across all categories, were spurred by a recommendation on a digital platform.

Consider the case of Harry’s, an online shaving and razor start-up company. It was started by two hopeful entrepreneurs who bought a defunct factory and wondered what to do with it. Then, they realized that a solution-driven approach was one which could guide them. Consumers of both genders always needed razors. Ideally, they needed them at a decent price and on a consistent basis. That’s when the founders decided to fill that need. They opened their factory doors, and even their company books, and approached those consumers in a straightforward manner. They even went so far as to create a biography about their brand.

Initially, the strictly online brand didn’t have much of a following. But, eventually, that strategy of being genuine and open with consumers worked. Today, Harry’s is a $100 million company with a significant base of loyal, dedicated consumers. By letting consumers in on their company’s journey, they turned their razors into a lifestyle.

Companies can take tips from Harry’s to create a brand that truly speaks to, and connects with, consumers. The key takeaways are:

Share your story:

Every brand, whether established or new, has a story—and consumers want to connect with it. By encouraging consumers to interact with your brand, you create the relationship needed to keep them coming back.

See a need, fill a need:

Razors are a fact of life for men and women alike. By seeing that need and filling it in a convenient and interesting way, Harry’s created a niche presence for themselves within the market.

Never underestimate the power of word of mouth:

Much of Harry’s business can be attributed to their willingness to connect with consumers via social media and other online mediums. One satisfied customer told their positive brand story and created ten more customers. Get customers to want to share your brand’s message by showing them its human side.

Shoppers Seek Out Sustainability: An Ever-Growing Trend in 2018

The next big trend is one that was spurred by necessity: sustainability. Consumers want to purchase from brands that are environmentally friendly. This trend is particularly noticeable in the CPG industry. Per one study, it was noted that 81% of consumers are willing to sacrifice convenience and comfort to reduce their environmental impact. If those consumers are willing to sacrifice, they expect it from their brands as well. Often, brands don’t have to change the way they do business to achieve this, though. Instead, they just need to make their sustainability efforts more visible.

General Mills is one such company which has clearly stated its dedication to sustainability. The brand focused on reducing carbon emissions at its plants and is also spearheading clean label movements designed to minimize ingredients in foods in order to limit the need to source and transport these products. The company CEO, Ken Powell, reported that demand from employees and consumers is what led the brand to make a change, stating that customers “want to know that the company that makes [their] food shares [their] values.”

Sustainability will continue to be a growing concern for consumers, which is why companies need to be prepared to meet that need. This could require changing ingredients and packages, or an action as simple as making public commitments to reduce waste, water usage, and carbon emissions.

The key takeaways for CPG brands in 2018 are:

Share your customer’s values:

Modern consumers care about their impact on the environment and want to work with companies that share those concerns. Consider ways your brand could reduce its environmental impact.

Discuss your goals publicly:

General Mills made its announcement not as a means of tooting its own horn, but instead to double down on a private commitment. By publicly stating that they were planning to reduce their environmental impact, they made it clear that they were dedicated to the cause.

Encourage customers to participate as well:

Encourage customers to participate in sustainability efforts by taking their own small steps in improving the environment. Ask them to then share those stories with your brand. This creates a sustainability partnership between you and your customers which will help keep them engaged.

Tying the CPG Industry Trends of 2018 Together with Consistent Engagement

Globalization, sustainability, and consumer connections are the three major trends which will be prevalent for the CPG industry in 2018. A lesson that all brands can derive from these trends is that the CPG industry must find a way to create an ongoing dialog with consumers. Brands must be attuned to what consumers in new markets want. By connecting with and understanding consumers, brands can create an engaging story that will keep them invested in their products.

While brands may see the globalization of markets as a challenge, there is also great opportunity. Brands can reach out to consumers they never could have in the past through the digital marketplace.

Here are just a few ways your brand can communicate with consumers about those trends:

Create a social media presence:

Consumers demanding greater transparency need more opportunities to interact with your brand. About 22% of the world’s population uses Facebook and nearly 70% of your North American customers are on the platform. If they’re on the platform, you should optimizing your presence there as well. This step is an important part of brand transparency, as through social media you make your brand accessible. This is also a good place to drive sustainability initiatives, as you can share your company’s plan for an environmentally-friendly future and get consumers to provide feedback on those plans.

Use data to develop experiences:

Consumer mobile data can help you target the right individuals at the right time, as well as glean what’s important to them. Many consumers use their mobile devices as they shop, to gain more information on products and companies. By using data about their buying behaviors to target them with offers, you can improve conversions and increase market share. This can help when approaching the globalization of brands, as you can see what’s important to consumers in different geographical areas. It can also help with creating a strong buyer connection by allowing you to get to know your loyal users on a deeper level.

Encourage customer interaction:

When consumers have a question or a concern, answer it. But also, encourage them to share their story with your brand. Consumer-generated content can help to humanize your brand and your products. This is another avenue for voicing sustainability efforts, as you can encourage consumers to share their own efforts for improving the environment.

Build new relationships with shopping apps:

Shopping apps allow you to get your brand in front of consumers who otherwise may never have heard of it. They give CPG brands a significant advantage as these apps can be used both online and while shoppers are visiting brick and mortar locations. Essentially, you can connect with these consumers via their mobile device and give them information about your brand. By doing this on a mobile shopping app platform, you gain the opportunity to interact with a new audience—and at the moment when they are ready to make a purchase. This is particularly useful when entering a new global market in which consumer buying behavior is invaluable, and when trying to create that sometimes elusive consumer connection.

CPG brands are facing a challenging time in a crowded global marketplace, but it’s also a time rife with opportunity to leverage the available resources in the digital space. Shopping apps can be an empowering tool in your brand’s efforts to seize on trending CPG opportunities in 2018. They allow you to connect with consumers in new global markets by using geolocation technology to make them aware of your brand as it enters that market. They allow you to create a personal experience by allowing for naturally engaging interactions. And, they can even be used to share advertisements and information about your sustainability programs.

As consumers constantly carry mobile devices that keep them connected to the internet, you can travel with them through their purchase journey. You can create a relationship that will get them to remember your brand and seek it out in-store. CPG industry trends of 2018 are tied deeply to the internet, so using an internet-based platform to capitalize on them is imperative for any brand looking to increase market share in 2018.

Shopkick provides a mobile-based shopping app platform for brands to gain an edge in the growing global marketplace. For more information about becoming a partner with us, contact our team today.