Category: b2b

Why the Best QSR Rewards Programs Must Be Mobile

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Why the Best QSR Rewards Programs Must Be Mobile

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Quick service restaurant (QSR) brands have a lot of opportunities in today’s fast-paced market, but must be poised to take advantage of them—and in a way that resonates with consumers. Consumers aren’t as patient as they used to be. Many no longer sit through commercials, send letters, or wait more than a few days to receive their online orders. It stands to reason, then, that QSR brands, with their efficiency-based business model, are particularly appealing to them.

However, with that speed comes a challenge: a consumer’s decision about which QSR brand to patronize is often made in mere seconds. QSR brands have a very slim window of opportunity to appeal to potential customers. This is why their rewards programs must be mobile, so they can be as accessible as the brands themselves.

Rewards programs that make life more convenient for QSR customers can be powerful drivers for increasing market share. Consumers want to be able to collect points, find locations, and get more information on company products right from their phones. QSR brands that offer those resources, via rewards programs on a mobile app, are the ones who will have the edge in the split-second decisions about tacos versus burgers and fries.

The Factors Affecting Which QSR Brands Consumers Choose

QSR brands face a challenge that’s entirely unique to them when compared to other models in the foodservice industry: When consumers choose a QSR brand, they do so impulsively. One study showed that less than half of those who dined out at a QSR left the house with the main intention of eating at one. Generally, when someone is destination dining, i.e. when their specific reason for going out is to eat at a restaurant, they do so with full-service restaurants. QSR brands are usually just one stop that a consumer will make while they’re out shopping, running errands, or headed to an ultimate destination.

Specifically, consumers choose QSR brands based on:

Convenience:

Convenience is the number one factor in why a consumer chooses one QSR over another, with 48% of eaters choosing a restaurant based on simplicity alone. This encompasses many considerations, like short wait times and accessible locations. It can also include the availability of online menus and ordering opportunities that allow consumers to place an order in advance and pick up their items without having to wait.

Loyalty:

Despite the fact that only about half of consumers specifically went out with the intention of eating at a QSR, once they had made the decision, about 78% knew exactly where they wanted to go. This indicates that quick service customers are a loyal group and tend to stick with brands they are familiar with.

Food preference:

Menu options were a factor for about 32% of consumers that chose a QSR, for obvious reasons. One area where this is becoming more significant is that an increased number of consumers are now seeking options with less artificial ingredients, which is why many in the industry are eliminating everything from GMOs to additives and preservatives. As ingredients are very important to customers, being able to give them this information via mobile can help create an edge.

Price:

While price would be expected to be a primary driver in QSR decision making, it’s surprisingly low on the list. In fact, it was noted that only 12% of consumers use price as a primary motivator.

When setting up a QSR rewards program, it’s important to understand why consumers choose QSR in the first place: convenience. If the consumer must go to a website, keep receipts, or hold onto a punch card, you’re probably not going to see a lot of engagement through the program. Customers should be able to easily participate and enjoy the benefits without having to take a lot of steps to use them. A mobile rewards program is ideal for this as it delivers your brand’s message when the consumer is most likely to pay attention to it.

Following Consumers With a QSR Mobile Rewards Program Campaign

These days, rewards programs must be mobile to make an impact. Mobile rewards programs offer your brand the ability to deliver timely messages while the consumer is likely to visit a QSR. Taco Bell is one such brand that has used the convenience of mobile rewards apps to improve conversion—even using it to boost participation in a fundraising event—and is constantly testing out new avenues to drive market share.

A recent example of this occurred through the brand’s mobile-based Location for Good campaign. Taco Bell used its smartphone-based rewards program to notify users of an upcoming event designed to raise funds for its Live Más scholarship. Users of the rewards app were notified via a personalized mobile ad that portions of the purchases of the Doritos Locos taco would be paid into the program over a two-week period. The message was sent when users were close to a participating location. As a result, the brand increased store visits in the US by about 170,000 in two weeks. One out of every four of their rewards users participated.

As convenience was the primary driver, sending a targeted, personalized message as consumers were close to a location improved their fundraising efforts. This is a strategy all QSR brands can use to increase sales and market share as the power of mobile will allow them to leverage convenience as a conversion driver.

What Customers Want From the Best QSR Mobile Rewards Programs

Mobile rewards programs aren’t simply beneficial for gaining the consumer’s attention through timely advertising. Nearly one-third of consumers use mobile almost every time they visit a QSR. Many of these rewards programs offer amenities that consumers want, which can be used to increase the size of their order and the frequency of their visits. The most engaging features are:

Menu browsing:

Consumers who use mobile rewards apps want to be able to review all the offerings of a location on their phones. This should also include ingredients, calorie counts, and other specifics about menu items.

Location searching:

This is possibly one of the easiest parts of a mobile app to leverage thanks to the regular use of GPS via smartphones. Consumers want to be able to search for locations, not in a specific zip code or city but, instead, they want to be able to view location options based on where they are physically located in the moment.

Order placement:

The most important aspect of QSR brands’ delivery is the speed of service. Consumers do not want to wait in long lines for their food. This is why mobile options that allow them to order and pick up quickly are highly appealing.

Rewards tracking:

Of course, the main reason a consumer will use a rewards program is to gain points for their purchases. As such, they want to join programs that give them the opportunity to track rewards easily. Using mobile allows them to easily collect and track their rewards points without having to save receipts or carry a membership card. Easy access to their rewards encourages them to participate.

One surprising statistic about those who frequently visit QSR brands is that 85% would visit certain QSR brands more often if the QSR offered apps that improved their experience. That tells us there is a lot of opportunity not just for sales in QSR apps, but for gaining market share via these apps as well.

How Offering Mobile Rewards Programs Benefits QSR Brands

Aside from simply getting consumers through the door, mobile-based rewards programs offer brands additional opportunities to grow their market share, engage customers, and increase revenue. Mobile-based programs allow QSR brands to follow customers through their day, giving them the opportunity to create an ongoing relationship. Interacting with a consumer through a rewards program can:

Increase basket size:

The convenience of mobile ordering and menu browsing can create a major avenue for stores to increase sales. Taco Bell reported seeing a 30% higher average checkout via mobile when compared to in-store ordering. Giving consumers more time to browse the menu, at their convenience, is likely a strong reason why more money is spent via this avenue.

Drive future visits:

Using mobile location-based advertising can encourage undecided consumers to choose a specific location. As most consumers who choose QSR don’t decide ahead of time, in-the-moment advertising allows brands to reach out to them during that short window of opportunity. As it was noted that QSR customers are often very loyal, sometimes getting them through the door once is enough to keep them coming back time and time again.

Create permissive use:

Rewards programs are ideal for gaining an attentive audience for advertisements, as consumers expect to receive them and opt-in as part of the program. This allows QSRs to reach out to them for future promotions and events, which creates an ongoing benefit for both the user and the brand.

Improve brand perception:

When a rewards program is used in conjunction with a fundraiser, like in the example of Taco Bell, this creates a unique opportunity to allow consumers to give back by shopping. The mobile notification of the event makes it convenient, encouraging more customers to participate. And, effectively marketing the event improves public perception of the brand.

Offer customer insights:

Another benefit that can’t be denied is the data which can be leveraged by offering mobile-based rewards programs. Instead of just knowing which stores make the most revenue, brands can gain actionable insights to see exactly where these consumers are coming from and increase their advertising in those areas. For example, if the brand notices a high number of consumers coming from a nearby shopping plaza, they may decide to distribute flyers or put up signs in that area to improve conversion. The data gained from mobile rewards programs can then be easily used to inform future marketing plans.

These are just a few of the reasons why mobile shopping rewards programs work for QSR brands. Mobile is the key, though, as consumers don’t research QSR brands in advance. They decide on the go, as they’re out and about completing their daily tasks. As the only opportunity you’ll have to connect with them may be via mobile, this is the medium you must leverage for delivering your brand’s message. To reduce the expense of this while taking advantage of the benefits, some QSR brands choose to partner with third-party apps.

Third-Party Apps and QSR Brands

When trying to decide how to roll out a mobile campaign, marketers generally have two choices: they can create an in-house app or they can partner with a third-party solution. Sometimes, they choose to do a combination of the two by using their own app in conjunction with one or more additional platforms. This is the approach Taco Bell took during its scholarship campaign. It’s also one frequently chosen by brands that have underperforming in-house rewards apps.

The problem with effectively leveraging a mobile app created solely for an individual QSR is adoption. To gain users for a branded app, you have to get them in the door in the first place. That’s not practical for reaching out to a customer who has never tried your brand because QSR customers tend to stick with what they know—unless they’re given a reason to try something new. However, third-party apps that combine rewards programs from several different brands can be used to reach new target audiences.

As a third-party app will often combine many different brands under one rewards program, consumers will likely be using them when they’re out shopping. This creates a cross-marketing opportunity: when that consumer decides to go to a QSR, they’ll probably turn to that app for a suggestion.

Using a third-party app also helps offset the cost of launching an app while simultaneously exposing your brand to that app’s existing and active audience. This is how you can get your brand’s mobile message in front of consumers who may have never tried it before. Leveraging third-party relationships can allow you to take advantage of everything mobile advertising has to offer—without having to worry about the tricky element of adoption.

It’s clear that one of the best opportunities for QSR brand growth comes from mobile rewards programs. QSR patrons make the decisions of where they’re going to eat in only moments. If you can get your brand’s message in front of them during those moments, you can get them through your doors. A high performing third-party app can be your best ally in taking advantage of a mobile rewards program.

Shopkick’s platform is designed specifically for working with customers on the move. Our partners see the benefit of mobile rewards programs through access to our diverse, active audience. To get in touch with our team about how you can become a partner, contact us today.

How Retail In-Store Apps Are Reshaping Modern CPG Marketing

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Although it’s a hot topic, in-store advertising is not a new or rare practice. Consumer packaged goods (CPG) brands do it all the time since retail spaces are often the best locations for them to grow. Typically this is done by negotiating the best spot on the shelf or by putting up in-store displays and ads. However, it is becoming more common for brands to advertise in-store using mobile apps.

rewards program apps for retail storesThese apps can interact with beacons within a retail location, delivering offers to the consumer once they are within a certain proximity to the store, working in accordance with GPS tracking. This is particularly effective since 59% of consumers are using their mobile devices while they’re out doing their weekly grocery shopping.

While advertising through a mobile app offers a direct line to the customer, it still needs to effectively grab their attention. Brands must find ways to leverage in-store experiences to get consumers interested in trying their products. Finding a unique slant on this is paramount to creating a successful campaign. Luckily, more than a few brands have built effective conversion strategies and have created unique experiences that you can use with your in-store mobile marketing plans.  

How Top Brands Leverage In-Store Mobile Advertising

In-store mobile-based marketing is a relatively new marketing avenue, so many brands are approaching this medium with pilots. In-store events, advertisements, and offers have been developed by many different brands with varying levels of success. Additionally, in-store beacon technology is enabling these campaigns to be more successful.  These are some of the tactics that the most successful brands use to take advantage of these innovations:

  • Exclusive location-based offers: One way that Best Buy drove adoption of its rewards program was by using it to push in-store mobile marketing offers. Consumers who downloaded the app would receive exclusive offers when they went to the store. Once they entered a store, they were also able to unlock rewards points that they could use on purchases and exclusive deals.
  • Cross-marketing opportunities: Often, there are in-store marketing opportunities from advertising alongside related products. For example, if you set up a beacon that advertises creamer or sweetener near the coffee aisle, the consumer will have more incentive to purchase it. The consumer may have come into the store to purchase a specific item, but now their app has enticed them to purchase additional products.
  • In-store engagement: One thing that can really get consumers involved in-store is to get them to play games or interact with the brand via their mobile device. Ace Hardware does this through in-store sites where consumers are encouraged to text a phrase to them, at which point they receive an offer in return. Their app engages consumers by acting as a virtual scavenger hunt, which can improve conversions.

Using in-store beacons to reach a customer on his or her mobile device increases the likelihood that consumers will try out a new brand. At the very least it drives brand recognition, as in-store mobile experiences are particularly memorable. This is because consumers are engaged in using the app, so they’re more likely to remember the brand than if they were just passively watching television or browsing a website.  CPG brands can model their in-store campaigns after those that other successful brands use. This helps ensure that their in-store messages have a lasting impact.

Tips For Building An In-store Campaign

Several brands have already found unique ways to leverage in-store marketing through mobile apps—and more are catching on. Consumers are responding to it too. For example, 70% of consumers in the CPG-focused Mobile Audience Insights Report reported that they decided to purchase a product for the first time after viewing mobile-based advertising. That number has nearly doubled since 2013. Nearly 70% also reported using their mobile device to research a CPG brand prior to purchasing it at a retail location.

Mobile advertising is changing the way that consumers shop, which is why you should change the way you leverage mobile in-store apps. That means creating a campaign that encompasses the following:

  • A value-driven approach: Value-driven doesn’t necessarily mean discounts. Instead, it means that the message gives the consumer something, whether it’s a reward, information or simply an enjoyable experience. Basic advertisements have large impacts in-store, but they are not long lasting. However, advertisements that engage the consumer by interacting with your brand tend to have a greater overall impact.
  • Proper consumer targeting: In-store advertising still needs to be focused on specific consumers. Consider two different consumers that are shopping in the same store. One is purchasing diapers, baby formula, and wipes. The other is purchasing a frozen pizza and a two-liter bottle of soda. Those purchasing behaviors allow you to draw conclusions in order to properly target the right consumer. So, if your brand is selling disposable baby bottles, then the first consumer is your ideal target. If your brand is selling chips, on the other hand, you’d likely want to target that second consumer. An app with high conversion potential will give you the data you need to make decisions like that.
  • Is not heavily focused on discounts: Simply offering one-time coupons via an app may get you a one-time sale, but it’s not a powerful brand converter. Relying too heavily on discounts is a mistake. This is because it generally only attracts price-conscious consumers. It can also lower the way your brand is perceived. In-store apps should leverage rewards rather than discounts as a way of gaining consumer attention.

Mobile in-store advertising is changing the way brands target and convert consumers. This type of advertising allows your brand to follow consumers through their purchase journey, reach them at the right moments, and increase the likelihood that they will try your brand. Several brands have already used this successfully by creating unique personalized and interactive campaigns that pull in users.

As beacon-based advertising technology and mobile geolocation are both relatively new, it’s best to choose to work with a company that already has some understanding of the industry.

One thing that these brands do is leverage partnerships with third-party experts who understand the unique opportunities presented by mobile apps. As beacon-based advertising technology and mobile geolocation are both relatively new, it’s best to choose to work with a company that already has some understanding of the industry. This is where third-party shopping apps come in.

Third-party shopping apps allow you to access these in-store marketing opportunities quickly, without having to create an expensive, long-tailed marketing campaign. These apps also give you access to a database of active users who want to connect with your brand. For any company that wants to make a stronger in-store impact through mobile marketing, third-party platforms are the ideal choice.  

Shopkick is a unique shopping app that allows its partners to leverage all of the best parts of in-store mobile advertising. To work with us and increase your in-store conversion, contact our team today.

Image courtesy Pixabay user kc0uvb

3 ways to unlock your greatness

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James Smilkstein, Brand Partnerships

Once upon a time, there were creators, and there was an audience. One group led and one group followed. Then the world changed…

I recently had the opportunity to hear from some of the world’s greatest minds. Iconic leaders and experts including Sir Richard Branson, Steve Forbes, Jack Welch, Robin Wright, Simon Sinek, Guy Kawasaki, Malcolm Gladwell and Gary Vaynerchuck took the stage at The Synergy Global Forum in New York City.

This powerful lineup of innovators discussed topics including leadership, purpose, strategy, efficiencies, growth, and marketing. Although each speaker set their own agenda, each speaker shared the same core values demonstrating gratitude, empathy and optimism.  These core competencies enabled them to thrive as leading motivators to an audience that was captivated by creativity and the thought of leaving a meaningful legacy.

I encourage readers to embrace the following takeaways as they embrace new challenges seeking a richer sense of fulfillment.

Dr. Daniel Goleman, a psychologist and NY Times bestselling author took the stage to talk about emotional intelligence. He defined this as “the capacity to recognize the impact our own feelings have on ourselves and to tune into the feelings of those around us, to manage our emotions and our actions, and to interact skillfully with the people around us.”

Through his studies he has understood that leaders with emotional intelligence are better equipped to inspire and mobilize others towards making a positive impact in the world. When distinguishing competencies amongst star performers, Dr. Goleman learned that jobs of all kinds comprised of 33% IQ and Technical Skills while 66% leaned in majority favor of emotional intelligence. Among jobs in leadership a slim 15% was factored in IQ and technical skills while a whopping 85% was weighted in emotional intelligence. His theme is simple – a group’s effectiveness is not measured by the sum of IQ’s but rather the level of harmony where they understand their strengths and weaknesses.

Takeaway:

If you want to have an emotionally intelligent conversation with someone, eliminate any distractions. That includes your phone. Focus on the person in front of you. If you ask someone how their weekend was or how they feel, then listen actively. Feel what they feel. Try to understand their strengths/weaknesses. This builds up trust, and as the trust matures so do the open doors for people to take risks. It’s these risks that contribute to a greater level of harmony.

The most energetic of the bunch was Jack Welch. He lit up the stage! As the CEO of General Electric, he grew revenue from $27 billion to $130 billion from 1980 to 2001. Some of his notable quotes included,

  • “Find a better way, everyday.”
  • “Be positive, it turns people on.”
  • “Culture eats strategy for breakfast.”
  • And he must have said this at least 6 times, “You want your workplace to be the fun, cool kid’s basement”

What he means is are you making your working environment fun? Is your company the place that everyone wants to be? Do you create a culture that allows people to be themselves so they can thrive? Well at Shopkick, we are for sure the fun cool kid’s basement. Take a look for yourself.

team holiday photo

 

SKNY party shot

 

In addition to fostering a positive environment, Welch credits candor for his sustained success. Acting with integrity is your brand. It’s your reputation and what people say about you behind your back is the true reflection of how you make people feel. Whether it’s within the walls of work or not, the ability to be open and honest with people creates trust. A trust that opened the door for empathic interactions, all of which allowed Welch to express his vision that grew the company’s revenue by over 380% during his tenure.

Takeaway:

Trade on your personal brand, your legacy. Doing the right thing, is always the right thing. Celebrate the small victories. Laugh more at company parties as happiness is addicting. Encourage happy hours. Make your workplace and culture the fun, cool kid’s basement.

Last on stage was one of the world’s most distinguished and illustrious entrepreneurs – Sir Richard Branson. Some will say what’s even more impressive than the 400+ ventures he owns, are his awards and accolades including Time magazine’s “Top 100 most influential People in The World”.  His perspectives of gratitude, putting people first, and curiosity has and will continue to shape the world.

When asked for his checklist for leaders who create extraordinary companies he’s quoted as “If they are great motivators of people; if they’re always looking for the best in their staff; if they’re praising, not criticizing; and if they create products that people who work for them feel really proud of. … If the leaders are people who listen and don’t always want to hear their own voice; [if] they get ideas from their employees and write them down. “It sounds simple,” Branson said, “but make sure your people are really happy…Leadership is literally being a human being.”

Branson also publicized his 6-word motto that’s been a driver in his prosperous life. “Screw it. Let’s just do it” he said. This attitude comes from his belief that every minute of your life is meant to be enjoyed. Do not spend time and energy towards dreadful feelings of “Ohhh, I’ve got to do this today.”

Takeaway:

Always look for the best in people. When your heart is into it –  screw it, just do it. Take one risk a day.

…So the world is changing. Now more than ever groups are collaborating, innovate thinking is leading to actionable execution and the boundary between creators and everyone else is blurring, and will soon disappear altogether. We are all one people and this is our one world. #OneTeamOneDream.

Creative Customer Rewards Program Ideas to Engage New Shoppers

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While loyalty is important to maintaining a brand’s current market share, pulling in new leads is the catalyst for true growth. Increasing market share is easier said than done, however, as your company’s goal is the same as millions of other companies—and there are only so many consumers to go around. In a crowded, overly saturated marketplace, your brand must find a way to rise above the static and noise.

Continue reading “Creative Customer Rewards Program Ideas to Engage New Shoppers”

How to Measure Video Advertising ROI: The Metrics Brands Must Know

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The brain processes images from photos and videos about 60,000 times faster than it processes text. With stats like that, it’s not surprising that brands want to leverage visual mediums as a powerful way to share their message. In fact, more than half of all marketing professionals state they see a stronger ROI with video advertising than with any other form of marketing campaign.

Continue reading “How to Measure Video Advertising ROI: The Metrics Brands Must Know”

The Mobile Proximity Marketing Advantages and Disadvantages Retailers Must Know

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The mobile market is maturing, with 82% penetration anticipated by 2020 in the US. With the majority of adults now with a smartphone in hand, it stands to reason that retailers will want—and need—to leverage these devices to gain foot traffic, sales, and new customers. Continue reading “The Mobile Proximity Marketing Advantages and Disadvantages Retailers Must Know”

The Best Market Share Growth Strategies for Consumer Packaged Goods Companies

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The Best Market Share Growth Strategies for Consumer Packaged Goods Companies

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By 2025, the money spent producing goods for the CPG industry will reach nearly $14 trillion, according to a McKinsey study. That represents a 100% growth rate over a period of a single decade. But while the CPG sector may be ready to double its production of goods, the population isn’t growing at the same rate. That equates to an increased number of brands all competing for the attention of a stagnant number of consumers. It’s safe to draw some conclusions here, namely that the CPG industry is going to see many brands fade out in the years to come. If you don’t want your brand to lose traction within this highly saturated market, you must commit to a strong growth strategy.

Growth marketing isn’t about creating an iconic commercial or logo; it’s an ongoing effort to gain an audience and spread your brand’s message. Success for CPG brands requires the ability to create an accessible, transparent image that consumers want to connect with. It requires developing a relationship with consumers so those engaged customers begin to help drive your sales. Gaining market share is all about building personal relationships on a mass scale. We’ve already seen some excellent examples of this from brands across industries. By following their examples of the best market share growth strategies, your brand can continue to grow even as the CPG industry becomes increasingly more competitive.

Personalizing Mass Marketing as a Market Share Growth Strategy

Personalization is now a huge driving point for successful marketing campaigns. While it might seem impossible for a CPG company to run a cost-effective personalized campaign when they’re trying to advertise to a mass audience, it’s become crucial to consumers that brands be willing to make a connection with them. In fact, nearly half of consumers buy more from companies that provide a personalized experience across marketing channels.

Consider the Share a Coke campaign. In early 2011, Coke began marking bottles with popular local names in Australia. By the end of their campaign, they had sold 250 million named bottles and cans—despite the fact that the population of the country is only 23 million. This equates to an average of ten beverages for every person in the country. aa

Their success was attributed to one simple idea: feature the top 150 Australian names on labels. Coke created a unique, personal connection for every person who bought a bottle. The best part was that they didn’t need to use any expensive data collection or studies, they simply used common information to create the illusion of familiarity.

The takeaways for your brand:

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Small can be meaningful:

Consumers are drawn to products they believe connect to them, even in small ways. This can be something as simple as shifting the focus of your packaging to what most consumers are seeking out, like healthier options, seasonal items, or timely back-to-school promotions. By referencing common life events, you can create a personalized experience on a mass scale.

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Personal doesn’t have to be costly:

Remember, building a connection isn’t a matter of changing a product but instead of changing how the product is represented. There’s no need to spend a lot of money redeveloping a product when you can simply use what you’re already selling to deliver an experience.

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Personalization can be societal:

While data collection is valuable for personalization, it’s not entirely necessary as there are ways to engage consumers without knowing them on an individual level. Keep in mind what brings your target audience together on an emotional level, whether it’s their families, their desire for healthy foods, or a national holiday.

Big advertising to a mass market may no longer be the most viable option for most smaller brands seeking brand awareness to increase market share. Larger brands, as well, may need to complement their above the line ad campaigns. In general, brands need to shift their thinking from making a large impact with a single, oversized campaign to making a hundred smaller, more personalized impacts with repeated interaction on social media platforms such as Facebook, Instagram, and mobile apps. With the technological resources available today, this can be done inexpensively and has the potential to reach a far more targeted audience.

Advertising in the modern media age should center around capitalizing on shorter attention spans and the consumer’s desire for more meaningful interaction. This approach works for brand awareness campaigns because it offers:

  • Highly target audiences: Expanding the focus from mass media to social media allows you to better target campaigns based on demographic and prior purchase behaviors.
  • Increased ROI: Using less costly tactics – that are still highly effective – increases ROI
  • Shareable content: Social media allows consumers to share your marketing material, organically increasing brand awareness with no additional investment required.

Gaining Attention for Good Causes to Incentivize Consumers

84% of consumers believe that big brands have the opportunity to change the world, so it should come as no surprise that they are demanding more social responsibility from the companies that they give their money to. Consumers are willing to spend more on brands they believe are good for them, their families, and their communities, but are especially open to engaging with brands that are socially conscious.

Consider Kellogg, an extremely well-known company that capitalized on its brand name to help people in need. The company rolled out a new initiative to provide breakfast foods to underprivileged people. The program is far-reaching, from providing free breakfasts for school children to donating food to nations in need, with the goal of impacting 3 billion people by 2025.

Thanks to these efforts, Kellogg has gone from a faceless brand to a brand that cares. While the company has always had a very positive attitude towards charitable giving, it was only once they highlighted their own charitable nature that they gained significant recognition for it. That recognition, in turn, became a greater market share. The company has maintained a positive image in the eyes of its consumers even as modern consumers have begun to turn from the big brands to smaller, more personalized options.

The takeaways for your brand:

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Use charitable giving to tell a story:

Rather than simply telling consumers what you give, tell them why you give. This validates your brand’s reasons for being charitably-focused so that consumers don’t assume it’s simply about PR.

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Include consumers:

Invite consumers into the process by encouraging them to give as well. For instance, box top campaigns, where consumers turn in box tops to earn rewards for schools, are a great way to interact with consumers in a meaningful way.

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Choose long-tail programs over one-off events:

Ongoing campaigns give credibility brand initiatives and offer a more positive impact than simply a one-time donation or charitable event. Consumers recognize that your brand is in the program for the long haul, increasing their trust in your authenticity.

However, micro moments aren’t entirely dependent on mobile search. In fact, mobile-based apps can offer an even greater opportunity to connect with consumers.

Building Brand Authenticity to Strategically Increase Market Share

Brand transparency is quickly becoming one of the most important aspects of CPG marketing. Approximately 39% of consumers report they’re willing to switch to a new brand if that brand is more authentic than the one they’re currently using. But what does brand authenticity mean? It means being completely transparent in what goes into a product, whether it’s the ingredients or the labor behind it. This transparency can be leveraged even when the cause of the needed transparency is less than ideal.

In 2015, Chipotle Mexican Grill faced a challenge after several of its chains were linked to an E. coli outbreak. Instead of taking a silent approach, the company elected to be honest in its efforts to repair the problem. They were clear about how the issue occurred and, most importantly, what they were doing to fix it. As a result, when the affected stores reopened, sales bounced back to normal almost immediately.

Transparency is increasingly important to customers. They want to feel like companies respect their intelligence and will be honest with them when needed. Chipotle was able to leverage this expectation to ensure it was able to recover even after a potentially brand devastating event.

The takeaways for your brand:

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Be transparent—in every circumstance:

When things go wrong, be open about the issue—and how you are going to resolve it.

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Don’t try to spin an issue:

Treat customers how you would want to be treated—don’t use “spin” advertising. Instead, present your brand in a full, clear light.

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Be direct:

Use clear language to explain your brand rather than burying your message in industry speak.

Implementing Proximity Marketing as a Strategy for Growth

The value of proximity marketing, where consumers receive offers as they’re out and about, can’t be underestimated. Proximity marketing uses a consumer’s location in order to offer them timely marketing, an effective way to strategically gain market share.

Zatarain’s is one of the first CPG brands to use this type of technology in-store. The company used a beacon-based program to notify consumers of rewards points, deals, and other product-related items when they were near the brand’s location in a store. They reported a significant jump in purchases following this marketing campaign because they were able to remind consumers of their brand while they had the motivation and immediate ability to buy. Any brand can accomplish this by leveraging app-based marketing that shares their brand with consumers while they shop—without the high cost of in-store marketing options.

The takeaways for your brand:

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Timing is everything:

Reminding consumers of your brand as they’re shopping and motivated to buy can increase conversions over more static marketing strategies

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Capitalize on the digital age:

Use digital avenues to drive consumer sales in brick and mortar locations.

Maximizing Conversions and Market Share with Multi-channel Marketing

Multi-channel marketing requires delivering a consistent brand message across multiple platforms, be they in store, on social media, or mobile. This practice is commonly acknowledged to help build brand awareness, which can lead to greater market share. According to a recent study, 43% of marketers report that cross-channel marketing is a top priority.

Pinkberry, however, knew this before it became common knowledge. In 2011, the company used the ephemeral messaging platform Snapchat to drive consumers into their stores. The plan was simple: customers would go to Pinkberry, take a photo of themselves there, and then receive a coupon they could use in store.

The approach tied social, mobile, and brick and mortar marketing together into one big campaign and was a major success, helping Pinkberry earn the 11th spot on the Restaurant Social Media Index, which tracks online mentions and activity surrounding a brand. The frozen yogurt purveyors even beat out several older established brands like Domino’s and Subway.

Getting consumers to follow you across several platforms can go a long way toward increasing your brand’s market share. It’s essentially using the old-fashioned sales funnel in a new way: your brand lets consumers know of a campaign on social media which drives them to download a mobile app. The mobile offer received on the app then pushes them into retail locations.

The takeaways for your brand:

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Utilize the power of social media:

Leverage mobile marketing through well-known social media apps to connect with consumers who primarily check social media via mobile. This offers an existing user base you can share your brand’s message with.

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Reward engaged consumers:

Encourage consumers to engage with your brand by offering a reward for participation. That may mean they need to follow your brand online, check in at one of your locations, or share a post. Regardless, some level of interaction with your brand is necessary to make these campaigns effective.

Successful Lessons for Developing the Best Market Share Growth Strategy

Many companies have been able to carve out an increased market share by being first in line when it comes to new marketing avenues. Thanks to our rapidly increasing digital space, these avenues become more prevalent every single day. By taking tips from the successful campaigns of the past, companies can gain greater market share. The key is to choose new ways to stand out from the crowd in an increasingly saturated marketplace.

The above campaigns all leveraged digital marketing in some way to drive brick and mortar sales. Your brand can follow these examples to strategically increase market share. Whether your consumers are interacting with your brand on social media or via mobile apps, your message can be honed to reach consumers in the right places and at the right time. Beacon technology and personalized programs create a connection with the consumer that makes them more apt to try out your brand. It’s time to shift your brand’s marketing focus from one-off advertising campaigns to creating a consistent, personal, and ongoing connection with your consumers in order to gain market share and increase overall growth.

Shopkick offers personalized, mobile marketing solutions for our CPG partners interested in growing their brand recognition and awareness. For more information on how you can increase your brand’s market share with the help of our app, reach out to our team today.

The Best Brand Awareness Campaign Ideas for 2018

Posted on by shopkick

The Best Brand Awareness Campaign Ideas for 2018

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Building brand awareness in the modern marketing era is no easy feat. Ironically, it’s because there’s almost too much opportunity to build it. The once high expense of advertising acted as a gatekeeper. However, thanks to the rapid rise of technology and innovative marketing mediums, consumers are now exposed to up to 5000 ads per day compared to only 500 in the 1970s.

Television, newspaper, and radio ads used to be the most effective options for marketing branded content. Then came the introduction of internet-connected devices continuously pushing branded advertising. As a result, marketing professionals looking for opportunities to gain brand awareness in 2018 are at the forefront of a new era in advertising, one with a much lower barrier to entry.

Brand awareness has become less about how much a company is willing to spend and more about how well content connects with consumers, regardless of budget. If your marketing team is trying to expand brand awareness or market share in 2018, you’re likely going to have to consider options that were unheard of even a few decades ago.

Advances in all realms of technology have companies rushing to adopt the latest high tech approaches to gaining an audience’s attention. However, some of the best brand awareness campaign ideas for 2018 aren’t going to be high expense advertisements. Instead, they’re going to be designed around personalizing the consumer’s experience by traveling with them and reaching them right where they are.

Targeted, Not Big, Advertising for the Best 2018 Brand Awareness Campaigns

Back in 2004, Chanel No. 5 earned a Guinness Book of World Records slot for creating the most expensive marketing campaign ever. The star-studded, four minute long film cost $33 million to create and certainly garnered a lot of attention during its release. Primarily displayed in movie theaters prior to feature films, the advertisement was successful in creating brand recognition for the iconic perfume among a new generation.

This is a prime example of big advertising, where the goal of the ad is to create buzz throughout the industry. However, it’s also a huge risk. Chanel could only afford to do such a massive campaign because they already had an extensive, recognizable brand. For the most part, these major advertising campaigns won’t work for smaller brands because:

The ROI is limited:

The math for the ROI on Chanel No. 5’s commercial is pretty simple. The commercial cost them $33 million to make. The cost per bottle of perfume is around $130. To break even on the commercial, the company would have to sell about 255,000 units. That’s an extremely high break-even threshold that most smaller brands offering products at a lower price point can’t reasonably hope to meet.

The audience isn’t targeted:

Big advertising means a broad audience. It’s a bit like that old saying about fishing with dynamite. While the ad may get exposure to a giant audience, only a percentage of that audience is interested in buying the product. Without targeted marketing, consumers don’t feel a personal connection to a brand.

Consumers’ attention spans are getting shorter:

Commercials are short for a reason. According to a Microsoft study, the average human attention span is about 8 seconds when it comes to advertisements. That’s down from ten seconds in the early 2000s. Much of this can be directly attributed to increased competition for consumers’ attention. In 2004, when the Chanel advertisement came out, the iPhone was still three years away from being released, so cell phones posed less of a distraction than they do now.

Big advertising to a mass market may no longer be the most viable option for most smaller brands seeking brand awareness to increase market share. Larger brands, as well, may need to complement their above the line ad campaigns. In general, brands need to shift their thinking from making a large impact with a single, oversized campaign to making a hundred smaller, more personalized impacts with repeated interaction on social media platforms such as Facebook, Instagram, and mobile apps. With the technological resources available today, this can be done inexpensively and has the potential to reach a far more targeted audience.

Advertising in the modern media age should center around capitalizing on shorter attention spans and the consumer’s desire for more meaningful interaction. This approach works for brand awareness campaigns because it offers:

  • Highly target audiences: Expanding the focus from mass media to social media allows you to better target campaigns based on demographic and prior purchase behaviors.
  • Increased ROI: Using less costly tactics – that are still highly effective – increases ROI
  • Shareable content: Social media allows consumers to share your marketing material, organically increasing brand awareness with no additional investment required.

Micro Mobile Moments Are Behind the Best Brand Awareness Campaigns

The average consumer touches their phone an astonishing 2,617 times a day. Sometimes it’s only for a few seconds to check an email. Other times, it’s to look something up online, watch a video, check social media, or send a text. Nearly every one of these moments, though, is an opportunity to market. Brands can use these micro mobile moments to quickly connect with consumers and build brand awareness.

Goodyear is a company that has capitalized on these micro moments. Instead of focusing on advertising, they focused on catching consumers’ attention during these tiny slots of time when users turned to their phones for information. When consumers type in a phrase like “how do I change a tire” or “how much should a rotation cost me,” results from Goodyear are prominent.

While the company doesn’t use these opportunities to directly advertise their services, their answers are branded with their logo. This approach naturally increases brand recognition by offering a memorable and, most importantly, personalized moment. When a consumer is looking for information about a product or service, the brand that provides the answers is the one that gets to capitalize on that moment.

Micro mobile moments offer brand recognition through repetition. By leveraging mobile opportunities, your brand can create a campaign that connects with the right audience at the right time, even if only for a moment. This approach is one of the best brand awareness campaign ideas for 2018 because:

Repetition is king when it comes to brand awareness:

Repetition through micro moments increases brand recognition—and consistently reinforces that awareness.

It approaches consumers where they are—their smartphones:

This approach leverages the personal device most consumers use to research products.

Your brand gains trust points:

By answering consumers’ questions, you’re able to present your brand as a subject matter expert, which doesn’t just increase a consumer’s awareness but improves consumer opinion of your brand.

However, micro moments aren’t entirely dependent on mobile search. In fact, mobile-based apps can offer an even greater opportunity to connect with consumers.

App-Based Opportunities in Building Brand Awareness Campaigns in 2018

Building brand awareness via apps can be done one of two ways. Either the company can create a branded app or they can leverage an existing third-party app. Branded apps are designed specifically for your brand, which sounds like a benefit. However, they’re challenging to get consumers to adopt. In fact, 75% of apps are downloaded once and never used again.

Unless you’re in a position where you’re able to create a unique, useful app that prominently displays your brand, it’s unlikely that you’ll see significant success with a branded app. For the most part, consumers don’t use branded apps focused on a single brand or product regularly, the exception possibly being retail stores such as Target and Walmart as their offerings are more diverse.

While number of downloads is the primary metric for many companies, average daily users is a far more useful number. This is the key to success when you’re leveraging mobile apps for marketing as 24% of apps downloaded in 2017 were only used once. As such, instead of using a branded app, companies instead may piggyback on an existing app, partnering with a third party that has an already established audience. This allows the brand to instantly gain access to a high volume of average daily users, easily increasing brand recognition within a highly targeted audience.

When choosing a third party app to represent your brand, you should consider the following elements:

Relevancy to your brand and product offerings:

When you partner with a third-party app, it needs to be relevant to your brand and fill a need for your consumers. Disney Parks did this when they partnered with Lyft for their Minnie Vans program. The promotion used the Lyft app to provide transportation to Disney Parks.

A targeted demographic:

Before your brand partners with an app, thoroughly understand its demographics and break it down to its niche audiences. It’s no longer enough to focus on gender or generations. Mobile apps offer the opportunity to understand your audience on a deeper level. Individuals often access these apps by signing in through social media, which shares info not just about gender and age, but also about marital status, if the user has children, prior purchases, income, and more. When choosing a partner app, confirm that your brand can access that data to give you a very specific picture of their average user.

Timely marketing opportunities:

Ideally, you want to be able to leverage the app at the right time. So, while gaming or social media apps might be popular among consumers, they aren’t used for a specific task. However, a consumer who uses a shopping app while grocery shopping is motivated to buy and therefore an extremely valuable audience for gaining brand awareness—and converting that awareness into market share.

Permissive use for marketing:

While social media apps are filled with active, regular users, these users aren’t there to be marketed to, they’re there to be social with friends and family. As such, heavily pushing advertisements to consumers on these apps is often frowned upon. However, apps specifically designed for consumers seeking out purchase options, like shopping apps, are ideal. Consumers using these types of apps are open to advertisements—that’s the reason they signed up for the shopping app in the first place.

Shopping apps are particularly effective at gaining brand awareness as they fulfill each of these components, facilitating interactions between brands and consumers. Shopping apps also travel with the consumer throughout their day via their smartphone. And a partnership with a popular, well-respected app allows for successful cross-marketing opportunities.

Consumer dependence on technology has inevitably changed the world of advertising. Brands are presented with thousands of opportunities every day to use that to their advantage for building successful awareness campaigns. In 2018, the ideal way to leverage those opportunities is via third-party shopping apps. Consumers are already using mobile devices to assist them in choosing products; mobile shopping apps make it easy to then incentivize purchase and increase your market share—the ultimate goal of most brand awareness campaigns.

Is the Average ROI on Mobile Coupon Advertising Strategies Worth the Investment?

Posted on by shopkick

Advertising might have seen its fair share of changes over the years but one thing remains consistent: giving customers a deal is probably the first thing marketers think of when they’re trying to get them to try out a new product. As technology has advanced, deals have gone digital, with coupon codes and mobile apps replacing the standard circulars of old. In 2015, 80% of retailers who invested in digital advertising reported they spent at least a portion of their advertising dollars on mobile coupon strategies.

average roi coupons for smartphonesHowever, the question needs to be asked if this strategy offers the kind of brand awareness and market growth companies are seeking—or if marketing professionals are erroneously choosing coupon advertising as a marketing mainstay because it appears safe. When we do the math, we can clearly see that the average ROI on mobile coupon advertising isn’t quite as high as many brands may hope.

If you’re considering digital coupon offers as an aspect of your brand’s growth strategy, you must first consider the potential cost, which includes not only the cost of the discount that will inevitably cut into your bottom line but also the cost of implementing the program, converting consumers to buyers, and paying for the technical aspects of the program. These combined costs have the potential to make that seemingly safe marketing bet decidedly less so—especially when there are more profitable options that have the ability to maximize conversions while limiting campaign costs, both incidental and direct.

Calculating the Average ROI on Mobile Coupon Advertising

Calculating the ROI on mobile coupon advertising is challenging as you can’t always obtain the most accurate numbers until after you have run the campaign. One thing you can’t argue, though, is that coupons are effective for at least a one-time conversion, as 79% of consumers report that they have tried a new brand based on receiving an offer. However, that one-time conversion might actually come at a loss.

Here’s what you must consider when calculating the potential return on investment of mobile coupons for your brand:

  • The price of your featured product: This is the amount the consumer pays for your product.
  • The cost of the discount: This is the immediate cost to your company for selling the product at a discount.
  • The cost of the campaign: The is the overall amount you pay to make consumers aware of the coupon deal.
  • The number of times redeemed: This is how many times your coupons are used at purchase.
  • The campaign cost per redemption: This is the cost of the campaign divided by the number of times your coupon is redeemed.

Additionally, it should be noted that while the average redemption rate for mobile offers is 25%, the actual redemption rates of the coupon can cause your costs to fluctuate significantly, as you cannot successfully predict how many consumers will use your coupon. And, mobile coupons have some unique traits that limit their effectiveness over the long term, meaning you may not be making up that loss with future purchases at full cost.

Issues that Reduce Mobile Coupon Impact and ROI

When a company chooses to implement a mobile couponing strategy, they’re often seeking out ways not only to make an immediate profit but to increase market share. However, this isn’t always as effective as brands may hope for a number of significant reasons:

  • Mobile coupon advertising comes at an immediate cost: Taking a loss, even a small one, when trying to sell a CPG product is a risky strategy. Right out of the gate, you’ve already cut into your bottom line by reducing your product’s price—with no guarantee it will pay off in the end.
  • Product perception may be harmed: There’s a reason why high-end brands don’t focus heavily on discounts; consumers often equate low-cost with low-quality. This is an issue for brands as quality is quickly becoming a brand differentiator. Reducing your price can reduce the perception of that quality—and 86% of consumers report they’re willing to pay more for better quality, across industries.
  • It may not accurately target the right audience: Consumers who seek out discounts tend to be price-focused. That means that when they’re looking for a new product to purchase, they’re not going to use loyalty as a basis for purchase, but price. Unless you discount the product every time they buy, you can’t hope to gain return customers over the long-term.

Mobile coupons may be trendy with consumers, but many brands will find themselves disappointed by the ROI and long-term impact of such campaigns. They can be quite costly and, when your goal is to gain greater market share, they lack longevity. Most of these mobile couponers will only stay with your brand until the offer is redeemed. For a longer tail option that keeps consumers coming back, mobile shopping apps that offer rewards may be the best alternative.

Using Mobile Shopping Apps as an Alternative to Coupon Programs

Coupons are limited in their long-term impact for your brand because they are only used once. As an alternative, shopping apps that offer points that build into valuable rewards are used repeatedly by the consumers who download them, automatically giving this strategy an edge over coupons.

They work by connecting brands with consumers as they’re ready to make a purchase. About 60% of shoppers use their phones to find products before they buy. Therefore, partnering your brand with mobile shopping apps can significantly increase the likelihood of your products being discovered as the users of these apps tend to be very actively engaged.

Another unique benefit of these platforms is in the way they allow your brand to track and influence consumer behavior. With coupon-based programs, the only individual habits you can track are from those consumers who actually redeem your coupon. With a shopping app, however, you’re better able to pinpoint what’s trending in the consumer’s space with real-time data. This allows a much more diverse market sample that can be highly valuable if your brand’s primary selling point isn’t its price but its quality.

Finally, as mentioned, some shopping apps – like Shopkick – offer rewards, not discounts. These apps work by creating brand awareness through strategically timed notifications that increase the likelihood of purchase, much like a coupon does, but without the need to offer a discount.

When you consider the relatively short shelf life of mobile coupon-based strategies, as well as the surprisingly high cost, you may find that the ROI simply cannot justify a coupon campaign for your company. Coupon-based programs often don’t target the right consumers and they can cost your brand not only its limited marketing dollars but also its reputation by lowering its perceived value. Mobile shopping apps, however, can follow your consumer throughout their purchase pathway, helping you create timely opportunities for brand interaction. That interaction breeds growth, ultimately resulting in a greater share of the market for your brand.

At Shopkick, we offer our partners the ability to connect with their target audience without implementing costly coupon campaigns. If you’re interested in partnering with our solution to increase your company’s market share, brand awareness, and customer engagement, contact our team today.

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