Category: b2b

Consumer Trends for Back-to-School Shopping

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Back-to-school shopping is changing rapidly on the tail end of the Covid-19 pandemic. With an increase in vaccinations and normalcy in sight, more than half of Americans will be returning to school in-person full-time this upcoming fall. As more and more schools continue to announce plans for students’ return, parents are already thinking about their shopping and spending plans in the coming months.

What back-to-school products will be trending in 2021?

In 2020, because of Covid-19, the home became a multifunctional place–a home, a school, an office, and a gym. While some families may have had the technology for remote learning on hand, it was necessary to buy for those who didn’t. 

Last year, according to Statistica, on average, the back-to-school spending per household in the United States was $789.49, with electronics and computer-related equipment as the highest-spending category. In a recent survey, Shopkick found that more than half of consumers plan to spend most of their back-to-school budgets on apparel (60%), followed by basic school supplies (24%) – pushing technology to the third-smallest category (10%), next to dorm furnishings (4%) and books (3%).

Are shoppers considering physical or online retail stores?

Wanting a shift from online shopping, consumers are ready to go back to brick-and-mortar stores. About 92% of respondents plan to do their back-to-school shopping in-store (compared to 66% last year), while 57% plan to shop online.

For many consumers, online shopping will remain a habit: 45% of consumers who believe the pandemic will affect how they shop long-term plan to shop online more than they typically would for back-to-school products. In fact, this upcoming school shopping season, sales are expected to be 53% higher than the back-to-school season in 2019.

What is important for retail marketers to focus on?

During back-to-school shopping, consumers are looking for retailers that provide an easy solution for all their needs. To do this, retail marketers should consider: 

  1. Offering the best price: 70% of consumers say that shopping deals to get the best price will be their top priority this year – 44% plan to spend less on frivolous back-to-school purchases. 
  2. Bundling: offering a wide variety of products together that meet several needs at once, helps stand out from competitors. Just make sure they are available for all grade levels.
  3. An omnichannel approach: 85% of consumers say they will use their mobile devices to compare prices while shopping and to make mobile purchases. 38% also plan to take advantage of BOPIS when available.

By offering competitive prices, bundling products, and taking an omnichannel approach, retailers can stand out from the competition, increase their sales, and bring back the loyalty of their customers after a year of difficulty for many.

Shopkick is an omnichannel solution that allows brands and retailers to engage and influence shoppers throughout the entire path to purchase, in-store and online. 

To learn more about our real-time shopping data on back-to-school shopping behaviors and trends, download our e-book. 

 

LGBTQ+ Consumers Look for Genuine Brand Support That Outlasts Pride Month

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As preferences shift, many are looking for long-term action past pride month

Every Pride Month, there are conversations about how to do things the right way—avoiding mistakes and inauthentic gestures. To better understand how brands and retailers can show genuine support not only during Pride Month, but year-round, Shopkick surveyed more than 2,700 LGBTQ+ community members across the U.S. We found more than half of those surveyed said that brand names don’t matter as much to them, with 38% saying they want to spend money with a brand that aligns with their personal values. And around a quarter of respondents said they want to support brands that publicly support LGBTQ+ issues and brands that are led by LGBTQ+ founders.

“Our data continues to show us that if brands want to win, they have to align with shoppers’ core values,” said Dave Fisch, general manager of Shopkick. “Brands that truly walk the walk will win consumers’ trust and, ultimately, their loyalty.”

Check out Shopkick’s full-feature with AdWeek here to learn how members of the LGBTQ+ community would like to see support and long-term action, which brands and retailers are leading by example, and more.

Non-Essential Spending on the Rise as Americans Feel More Financially Secure

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Shopkick survey finds in-store shopping on the rise; apparel, dining out and travel top consumers’ 2021 summer budgets 

With widespread vaccination eligibility and COVID-19 restrictions lifting in many states, a return to normalcy could be on the horizon. As we head into summer, a majority of Americans (83 percent) report feeling financially secure and ready to put their budgets toward non-essential purchases. 

Shopkick, surveyed nearly 13,300 consumers across the country to gain insights into consumers’ shopping behaviors and spending plans for the summer. The online survey was conducted between April 30 – May 3, 2021. 

 

Key Insights Include: 

  • Summer Spending: Americans are ready to allocate their budgets toward non-essential purchases this summer. This year, 80 percent plan to spend similar amounts or more than last summer on non-essentials, a sharp increase from Shopkick’s April 2020 findings, which found only 33 percent of consumers were spending similar amounts or more on those items. Clothing and accessories (45 percent), dining out (43 percent) and travel (41 percent) top this year’s shopping lists. Other non-essential spending will include hobbies (36 percent), entertainment (25 percent), and household decor (25 percent).
  • Time to Travel: With more widespread vaccinations, 60 percent of Americans plan to resume travel within the next six months. Of those, most plan to travel by car (86 percent) rather than traveling by plane (39 percent), train, or ship (4 percent respectively). At their destination, consumers plan to stay in hotels (60 percent), with friends or relatives (50 percent), or in a vacation rental (25 percent). 
  • New Fits for Gen Z: Most Gen Zers (64 percent) plan to put the majority of their non-essential spending budgets toward new clothing and accessories, compared to Millennials (50 percent), Gen Xers (45 percent) and Baby Boomers (42 percent).
  • In-Store on the Rise: While online shopping was a major trend throughout the pandemic, 74 percent of consumers report shopping online less frequently now than a month ago. 62 percent of Americans feel more comfortable shopping in-store now compared to April 2020, which explains why more than half (61 percent) of non-essential purchases have been made in-store in the past month.
  • Pandemic Purchasing Trends: Certain COVID shopping habits are expected to remain in the coming months, with many consumers saying they will continue to use self-checkout (62 percent), curbside pickup (32 percent), and touchless payment options (32 percent). However, fewer consumers plan to continue using grocery delivery (13 percent), and BOPIS (4 percent).

“It is clear from our findings that this summer represents a great opportunity for non-essential retailers to win back shoppers who are eager to spend,” said Dave Fisch, general manager of Shopkick. “To take advantage of this moment, retailers and brands must continue to monitor consumer expectations, especially in-store, and Shopkick is committed to helping our partners do so.” 

3 Pillars of Successful Retail Marketing Strategies

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Retail strategy implies long-term initiatives that shape the company’s vision in a significant way. Volatility makes planning anything but easy. For example, the novel Coronavirus threw a wrench into the works, turning our lifestyles upside down. Brick-and-mortar retail, in particular, struggled in the face of social distancing and the severe restrictions state regulators placed on in-store shopping. It seemed like the pressure on this category was unrelenting. However, a Forbes report shows that brick-and-mortar has demonstrated exceptional resistance, reflecting some significant changes in consumer behavior post Covid-19:

  1. Despite a flood of chain store closures, brick-and-mortar is still the predominant player after weathering a concerted digital attempt to overwhelm it. 
  2. Undoubtedly, e-commerce, energized by digital marketing strategy, has gained ground since 2011. According to the Commerce Bureau, it’s gone from 9.6% of total retail sales (excluding restaurants, motor vehicles, and gasoline) to currently around 22.7%.

The power struggle will continue, but brick-and-mortar store owners who understand consumer behavior and strategy fundamentals will prevail. The three pillars outlined below provide a solid foundation for results: 

Pillar #1 – Know your touchpoints inside out

There are many stages in the customer journey all throughout the path to purchase. Retailers and brands need to have an understanding of how consumers move through the funnel and how to guide them smoothly. Successful customer journeys depend on marketers appreciating that:

  1. Any touchpoint disruption can stall or collapse the entire customer experience.
  2.  Conversely, positive touchpoints can trigger a move to the next one.

Dispel the disruptors, maximize the motivators – that’s the single-minded approach every business strategist must follow to meet customer expectations in retail. Nothing generates customer turnover more than a bad customer experience. On the other side of the coin, customer retention is the natural result of delivering engaging, emotional, and cognitive gratification. Your retail brand must communicate meaningful points of difference that resonate with the audience – a critical foundation stone of every retail strategy. Believable, compelling marketing may lead the consumer to your store, but it’s only half the job. 

Pillar #2 – The undeniable smartphone trend.

Many predicted that the smartphone would negatively affect traditional in-store shopping. However, it did unexpectedly impact the industry, creating a groundbreaking shift in strategic thinking. After facing the challenges of mobile marketing from end-to-end, sources estimate that:

  • A little shy of 50% of all consumers use mobile devices to access in-app discounts – mainly when in-store.
  • A sizable number (40%+) use their mobile devices to check up on product information. 
  • One-third use their phones to monitor competitive prices when in-store. Even so, when disadvantageous searches arise, there’s no conclusive evidence of them leaving to shop elsewhere. Many stores are ready to match proven lower competitor prices when presented with the facts. 

Smartphones are a fundamental driver of brick-and-mortar foot traffic. While the theory that mobile shopping would kill malls, strip centers, and chains, retailers should instead see the trend as a valued friend, not an enemy. It’s more than impressive how the massive benefits of multichannel marketing can be used to brand and retailers’ advantage.

Pillar #3 – Proximity marketing

Consumers coming in-store to look or buy is a stage that’s realistically close to making the cash register ring. However, that’s where your strategic plan must kick into high gear with effective mobile marketing strategies (amongst other options). Believe it or not, your careful thinking can miss big time if it fails to account for in-store behavior. Proximity marketing is at the cutting edge of the brand marketing strategy.

82% of shoppers in your store will arrive at their purchasing decisions (yes, no, what brand to select) while on the premises.  Some retailers believe that store associates are the only persuaders necessary to close the deal. Without degrading the latter’s value, tech proximity marketing is heavily in the mix today and likely for the rest of the 2020s. Indeed, it’s the hottest trend in retail. Ignore it, and you’re in danger of derailing the customer journey after doing all the heavy lifting to get it this far. Here are some useful suggestions:

  1. Leverage the mobile customer experience for all it’s worth, using location technology to message shoppers with real-time, relevant messaging. It lies at the core of omnichannel marketing. 
  2. Connect potential customers passing or entering the store with complementary discounts, review reminders, and pivotal brand promotions currently on the shelf. The average click-through rate of proximity marketing messages is close to 80%.
  3. Combine mobile with engaging storefronts, good signage, impulse checkouts, in-store displays – anything that engagingly connects to shoppers’ emotions and thoughts. 

A final thought – Get professional guidance in your corner

Shopkick is an omnichannel solution that allows brands and retailers to engage and influence shoppers throughout the entire path to purchase in-store and online. Our client case studies demonstrate how effective proximity marketing successfully creates in-store awareness, engagement, and purchase consideration. To learn more about how Shopkick can help you drive incremental store visits and sales, contact our team. 

 

The Power of Augmented Reality in Retail

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Technology is at the forefront of one’s shopping experiences. Anyone can connect their debit or credit cards seamlessly and pay by tapping their mobile phones to payment terminals without having to carry around cash or physical credit cards. These conveniences are further enhanced with experiential shopping experiences offered by augmented reality which can create extensive engagement and long-term benefits for brands, retailers, and shoppers alike.  

Augmented reality (AR) is a form of photographic technology that overlays information onto real-world objects. Perhaps most popularized by break-out mobile games like Pokemon Go!, augmented reality has realistic benefits for brands and retailers. A 2021 study published in the Journal of Marketing found that retail companies could see a boost in sales when incorporating AR thanks to the tech’s ability to create engaging and entertaining experiences for shoppers; streamline customer’s knowledge of products available for sale; tangibly visualize what products will look like “in place” after purchase; and enhance post-purchase experiences.

Entertain customers (and keep them coming back for more) 

Pinning down the wants and needs of retail shoppers can be tricky. Most shoppers are interested in buying online, yet e-commerce still accounts for less than 20% of all retail sales. That share is growing steadily each year, but it shows consumers will continue to visit physical stores for retail purchases. 

As competition for customers remains fierce, businesses can stand out by incorporating AR shopping experiences that entertain and enhance visits to retail spaces. This falls under the emerging concept of “retailtainment”. A 2020 study presented at the International Conference on Business, Management, and Economics concluded that experiential marketing provided brands with “more powerful marketing, more engaged customers, and better return on marketing investments”. By design, augmented reality provides the framework for establishing experiences customers want as AR provides a layer of self-driven interaction.

Educate customers about available products

Shoppers want to know more about the products they buy before they purchase. This has led to an explosion in SEO-driven product review content with titles such as “Top 10 Lawn Chairs” or “Best Skin Care Products”. These are popular for no other reason than consumers want to know what to buy and don’t enjoy the experience of having to return products. And as any retailer will note, chargebacks are a major problem and exceptionally expensive, especially for e-commerce. 

AR can allow you to add real-time informational pop-ups to your retail products. Incorporating the technology allows consumers with mobile devices to get instant feedback in an exciting way. It’s similar to high-end vehicles with a Heads-Up Display (HUD) beamed onto the windshield. Tons of product data becomes available without consumers having to go looking for it.

Allow customers to see products “in place” 

An important benefit offered by AR is its positive impact on product returns. When shoppers go to buy retail products such as clothes or furniture, they often have to imagine what that product will look like in their own space. This is a bit easier for brick-and-mortar retailers, as buyers can try on clothes in the store. And physical furniture stores do still have some advantages as buyers can at least see displays. 

Nevertheless, many buyers still prefer to shop online. As many have come to experience, online shopping makes the “try before you buy” process a bit more difficult. Buyers are far more likely to return a product if they didn’t have a chance to test it out first. This helps account for the fact that online products have a 20% return rate according to Shopify, compared to an 8-10 percent return rate for products purchased in-store. 

AR is an excellent solution to this. Some businesses have already begun adding AR concepts into the buying process. Zeekit, for example, allows shoppers to try on clothes virtually before making a purchase. Meanwhile, the popular Swedish furniture brand, IKEA, rolled out an AR app in 2017 that lets customers “see” what the furniture looks like in each room.

Build on-going, post-purchase experiences

Brands have long sought to engage customers after purchases are made. There are multiple ways to do this, but AR interactivity post-sale can help expand the lifecycle of existing product lines. 

Lego is an example of this with its AR-driven Hidden Side ghost game. The game offers a multiplayer gaming experience that allows several users to play a “hide and seek” style game using a Legos mobile app. An experience of this nature brings customers back to the product and gives Lego the opportunity to build its brand and attract users to new products within the same or other lines. 

Brands hoping to add post-purchase AR interactivity will need to be particularly inventive to create experiences buyers enjoy. Thankfully, the possibilities of what AR can do for product life cycles is limited mostly by the imagination of marketing teams

Shopkick is an established shopping rewards app with a proven track record of helping retailers and brands drive awareness, incremental sales, and customer loyalty throughout the full-funnel shopping journey. To learn more about our interactive mobile technology capabilities and how we help our partners improve the customer experience, contact our team.

83 Percent of Americans are Tightening Budgets Due to Threat of Continued Inflation

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54 percent of consumers are very concerned about the risk of continued inflation; 86 percent report experiencing price increases on everyday goods

As the U.S. economy picks back up, the Labor Department reported in April that inflation accelerated at its fastest pace since 2008. In turn, the Consumer Price Index rose 4.2 percent compared to this period last year. While most Americans (72 percent) say their income has not increased over the past year, 86 percent are experiencing price increases on everyday goods, causing concern for many. 

Shopkick surveyed more than 19,000 consumers across the nation to gain insight into consumer awareness and behavioral changes in light of accelerated inflation rates. The online survey was conducted between May 14-17, 2021. 

 

Key Findings Include:

  • Cause for Concern: Of the 77 percent of Americans who were aware of the accelerated inflation rates, only four percent do not feel any level of concern about the risk of continued inflation. While the Fed reported it expects these rates to be temporary, most Americans feel very concerned (54 percent), leading 42 percent to plan to tighten their overall budgets slightly, followed closely by 41 percent who plan to tighten budgets significantly. 
  • Groceries and Gas: Nearly all consumers (86 percent) are already experiencing price increases on everyday goods and services, particularly groceries (96 percent), gas (93 percent), dining out (57 percent), and clothing (42 percent). 
  • Pricier Products: Of those who have experienced price increases at the grocery store, categories reach across the board, including meat and seafood (79 percent), dairy products (76 percent), fresh produce (71 percent), paper products (66 percent), beverages (60 percent), cleaning supplies (59 percent), personal care items (45 percent), bread and bakery items (43 percent), cereal (40 percent), canned goods (37 percent), snack items (35 percent), and pasta and grains (26 percent). 
  • Checking Out Other Choices: Fifty-nine percent say these price increases have caused them to forego their typical grocery choices for less expensive options. Even further, 69 percent say brand names are not important during times like these. In comparison, 85 percent of Americans said the same at the start of the pandemic. 
  • Private Label Popularity: Sixty-three percent of consumers say they are now opting for less expensive private label brands, with 71 percent saying they will continue to purchase private label even if prices return to normal levels.

 

Shopkick Announces Nationwide Scavenger Hunt, Rewarding Consumers with Millions of ‘Kicks’

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Shopkick celebrates National Scavenger Hunt Day with a weeklong scavenger hunt for users to win hundreds of dollars in rewards

In honor of National Scavenger Hunt Day, Shopkick announces the nationwide Shopkick Scavenger Hunt Week this May 24-28. All week long, Shopkick users will have multiple ways to win major ‘kicks’ (Shopkick’s reward currency) as they interact with brand and retail partners by scanning items in-store, all while searching for one of ten hidden Golden Tickets in retailers across the country, worth 125,000 kicks ($500) each.

“Following a difficult year for many of our users, we wanted to create an experience that would be fun and rewarding, both of which are core to our mission,” said Dave Fisch, general manager of Shopkick. “Shopkick Scavenger Hunt Week provides consumers with new and exciting ways to engage with our brand and retail partners, all while offering opportunities to win millions of kicks. We are excited to see all of the great ways our users enjoy this week-long event!” 

How to Participate in the Shopkick Scavenger Hunt:

  1. Starting May 24, Shopkick users will be able to open the “Scan Mission” section within the app where they will find a list of five featured products to scan in-store.
  2. Once all five products are scanned, users will automatically be rewarded with 100 bonus kicks. While crossing items off their list, users can also share a picture or video through the Shopkick app for a chance to win an additional 35,000 kicks.
  3. Throughout the scavenger hunt, users will also be searching for one of ten Golden Tickets hidden within store shelves alongside the listed items. Those who find a Golden Ticket must follow the redemption instructions to win the grand prize of 125,000 kicks.
  4. Finally, users can redeem their kicks for free gift cards to their favorite brands and retailers in the Shopkick Rewards Mall.

To join in the scavenger hunt fun this May 24-28, simply download the free Shopkick app on your iPhone or Android device. 

For more information on how Shopkick helps our brand and retail partners reach consumers in fun and engaging ways, contact our team. 

The Shopkick Scavenger Hunt is open to all U.S. residents age 18 and up.

Move Over Millennials – When It Comes To Brand Loyalty It’s All About Gen Z

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Gen Zers have been accused of many things: short attention spans, an inability to maintain eye contact, and an unhealthy relationship with their AirPods. But, according to a recent Bank of America study, the generation born between 1996 and 2016 is set to usher in a new wave of disruption across industries and economies. Not only is Gen Z more technologically savvy than their millennial counterparts, but sustainability and activism also factor more heavily into their agendas than any generation before. And the kicker? Gen Z is set to crush millennials’ earning ability by 2031.

They may be young, but Gen Z has an estimated spending power of over $143 billion. And with more and more of this generation reaching adulthood, brands are naturally lining up outside their doors.

 

Gen Z Shopping Habits 

Gen Z mainly scopes out brands across preferred online channels, but while the assumption might be that the world’s first completely-digital natives prefer to buy online, they don’t conduct their entire customer journey solely through the internet. Gen Z are the ultimate omnichannel shoppers, expecting brands to offer a top-notch experience through online channels and in-store.

Gen Z consumers like to do their product discovery through social media channels, primarily through Instagram. A recent report showed that 60% of Gen Z shoppers use Instagram to discover new brands and products ahead of Snapchat, Youtube and Facebook. Additionally, TikTok has become a go-to tool for discovering new brands and products, staying on top of trends, and watching reviews. This indicates an appreciation for the ability to interact with and learn as much as possible about the brand before deciding whether to purchase.

Gen Z loves to make purchase decisions by tapping into insights from influencers who share key product details—the good, the bad and the ugly. They rely on voices they’ve trusted to fully research a brand: not just what it’s like to use their product, but what the shopping experience, customer experience and brand values are (and whether a brand lives up to its promises).

 

They Want Their Products—And They Want Them Now 

While some members of Gen Z still prefer the brick-and-mortar shopping experience, a majority of the generation has a need for speed around pretty much everything—especially when it comes to e-commerce. Speed, convenience, and an intuitive online experience can mean the difference between attracting and retaining this generation’s loyalty, and being left in the dust. 

E-commerce adds speed and convenience to the shopping experience. An American teen can see a cute top on their favorite Instagram influencer in a shoppable video or image and order it with the simple click of a button. But if the influencer lives in Australia—along with the top—cue disgruntlement. It’s in your best interest to reconfigure your shipping strategy to reflect the reality of a global market. More importantly, your shipping strategy can set you apart as a brand and boost sales simultaneously: can you say win-win?

While Gen Zers love the ease of a well-crafted online shopping experience, they chafe at longer wait times and shipping costs. This inconvenience eclipses the frustration of not being able to try on clothes in-store. In fact, only 18.4% of Gen Zers are bothered by the latter, compared to 26.16 % of millennials. That’s why investing in an efficient shipping strategy is such an effective way to add value to the purchasing experience and retain brand loyalty. Ensuring that your products are delivered in a timely fashion and at a decent shipping price goes a long way with Gen Z shoppers.

 

They Want Their Purchases To Reflect Their Values 

According to a recent Facebook study, Gen Z increasingly makes purchase decisions based on what brands are doing for the world. 

They demand that the brands and retailers they support align with their core values, especially those centered around environmental sustainability, social justice, healthcare, and the socio-economic and personal implications of the COVID-19 pandemic. They see what they buy as a reflection of their own personal values and beliefs, and this translates into the brands they engage with.

On top of that, they’re willing to spend more to get behind a brand that’s actively making a difference. And considering this group accounts for 30% of the world’s population (almost 2 billion people), retailers need to sit up and take notice. Tapping into this social conscience gives retailers the perfect opportunity to attract and grow brand loyalty with a group that, quite simply, is the future. To resonate with this idealistic group, brands should actively showcase their values and demonstrate how they are serving the needs of the community.

 

They Want A Personalized Brand Experience

This generation has vast social media circles and thinks nothing of nurturing hundreds of online relationships simultaneously. So when it comes to choosing which brand to attach their loyalty to, the bar is pretty high. They want a personalized, on-site experience that acknowledges their uniqueness. They’re savvy shoppers, highly attuned to insincere messaging. If they sniff out rote communication, they’ll scroll past so quickly it’ll leave you breathless. That means retailers must find meaningful ways to engage, and put the time into crafting compelling messaging that’s on-brand and connects with this demographic.

While Gen Z is still big on social commerce, with more time spent shopping on social media than any other generation, brands still have to have strong touchpoints both online and in-store in order to get this generation to buy. In-store and online experiences are both important parts of the consumer journey for Gen Z,  and cannot be ignored. When companies over-invest in tech and online marketing tactics to attract these shoppers and neglect the in-person shopping experience, they’re missing a crucial point in the customer journey. These consumers expect brands to be consistent with the level of service they provide at both live and digital touchpoints.

 

They Want To Be Part Of The Conversation 

The best way to get to know Gen Z customers is by engaging with them. Social media platforms like Instagram Live (which allows multiple accounts to participate in a live stream discussion) let your brand create a safe space for customers to engage, share stories, and talk about important issues. But it can’t be hollow — let your brand create a safe and authentic space for customers. A successful example of this is Headspace. The meditation app connects with its community via Instagram, where users can ask questions, offer feedback and discuss meditation techniques. This is just the display of community that Gen Z wants to get behind and support.

Gen Zers, the socially conscious, digitally-native consumers have paved the way for a new era in the customer experience. An innovative brand will recognize these shoppers as omnipresent and invest in engaging them at each brand touchpoint, from discovery to purchase, and even onto advocacy. 

Shopkick is an omnichannel solution that allows brands and retailers to engage shoppers and influence their behavior throughout the full path to purchase—whether they’re shopping in-store or online. We share key intel on ever-changing consumer shopping behaviors and trends, and provide our partners with real-time shopping data, helping them fill gaps in the customer shopping journey and invest marketing dollars wisely. To learn more, contact our team. 

After More Than a Year of Zoom Holidays, Americans Will Gather to Celebrate Mother’s Day

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Shopkick survey finds most Americans plan to celebrate Mom in person and shop in-store for gifts this year

This Mother’s Day, the majority of Americans are ready to celebrate Mom in person after a year of virtual gatherings due to COVID-19.  According to a new survey from Shopkick, more Americans plan to physically gather with family this year (61 percent) compared to 2020 (52 percent), and most plan to purchase Mother’s Day gifts in-store (79 percent), a significant uptick compared to last year (38 percent). 

The shopping rewards app surveyed more than 22,000 consumers across the nation between April 7 – 12, 2021 to gain insight into this year’s Mother’s Day plans, preparations and spending habits.

Key Findings:

  • Moment for Mom: The majority of consumers (80 percent) plan to celebrate Mother’s Day this year, with 61 percent planning to do so in person. Meanwhile, only 11 percent plan to celebrate virtually, a significant decrease compared to last year’s 27 percent who celebrated via video calls. 
  • Group Gatherings: For those celebrating in person, most plan to make a meal at home (55 percent), followed by those who will celebrate at an outdoor get-together (21 percent), head to a restaurant (20 percent), or take part in a different group setting (4 percent). Of those in person celebrations, Gen Z is most likely to go to a restaurant this year, with 29 percent planning to do so, compared to Millennials (20 percent), Gen Xers (20 percent) and Boomers (18 percent).
  • Getting Gifts In-Store: Seventy-nine percent of consumers said they plan to purchase their gifts for Mom in-store this year, compared to only 38 percent who did so last year. The most popular purchases include flowers (59 percent), gift cards (49 percent), clothing or accessories (30 percent), food items (29 percent), beauty and wellness products (19 percent) and fragrance or perfume (18 percent). 
  • Deals, Please: This year, nearly half (48 percent) of consumers say cost remains the most important factor in making a gift decision, trailed by style (19 percent), convenience (17 percent) and whether the brand aligns with personal values (16 percent). 
  • Big Spenders: When it comes to purchasing gifts this year, 15 percent plan to spend more than last year. Of those, 37 percent said it is because they want to make up for not being able to fully celebrate last year. Consumers also said they want to spend more after a year of being restricted by the pandemic (27 percent), want to spoil the women in their life with pricier gifts (24 percent) or plan to purchase a vacation as a gift (4 percent). Across demographics, more Gen Zers (27 percent) plan to have bigger budgets for Mother’s Day gifts this year, compared to Millennials (18 percent), Gen Xers (14 percent) and Boomers (12 percent). 
  • Less is More: Similarly, 15 percent said they plan to spend less on gifts this year, with the majority (58 percent) stating it is because their finances have been impacted and they need to budget. Other reasons include choosing quality time over gifts (26 percent), the women in their lives not wanting gifts (7 percent), or planning to save money for a trip later this year (6 percent). 

“For over a year, many of us have been separated from the people we love most. Luckily, it feels like we have reached a turning point,” said David Fisch, general manager of Shopkick. “Americans are celebrating Mother’s Day in person, and they are heading to physical retailers to get their shopping done. That’s why it is essential for retailers to prepare for an influx of in-store shoppers, keep shelves stocked with popular Mother’s Day gifts and maintain a clean environment to create the most positive experience possible for consumers.” 

Shopkick’s parent company, Trax, secures $640M in series E funding from visionary investors

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Today, we’re excited to share that our parent company, Trax, has secured $640 million in a Series E financing round led by SoftBank Vision Fund 2 and technology-focused funds managed by Trax’s existing investor BlackRock, Inc. 

 

Trax acquired Shopkick in 2019 to accelerate its mission to drive the future of retail, where the physical and digital combine to enable the best shopping experiences. Since then, the team has made major strides in enabling brands and retailers to better navigate the new frontier of retail: delighting shoppers and providing actionable insights right at the shelf.

This financing round accelerates Shopkick’s mission to expand our footprint to new audiences and destinations, enabling our partners to reach consumers all throughout their digital and physical day, beyond our core shopping endemic environments. These new opportunities to earn rewards will attract new and diverse audiences, elevate our omnichannel offering and deepen our first-party consumer insights. In the coming years, we’ll continue to focus on growth through new partnerships, new audiences, and expansion into new markets. 

It’s an exciting time in retail, and we are thrilled to continue to chart the future as part of the Trax family. 

Best,

Dave Fisch

CEO, Shopkick

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Retail Refined Podcast: Strengthening Customer Loyalty with Data

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When supply chain issues and panic buying left grocery shelves empty for weeks, shoppers had to consider alternative options when their go-to brands weren’t available. In fact, in the height of the pandemic, 85% of consumers said brand names no longer mattered, and 69% said they would purchase a different brand if their preferred brand wasn’t in-stock. 

There’s no doubt that the past year has had a major impact on consumer purchase behaviors, and many brands and retailers are reevaluating their current strategies and considering new avenues for building, and maintaining, customer loyalty. Enter: loyalty programs and rewards apps. 

“There’s a misconception that if you build a rewards program, customers will love it… but every marketer knows that’s not true. If people don’t feel like they’re getting a benefit, if it’s too limited, if it’s hard to get rewards, if it’s confusing, they can tend to fall flat. And it does impact buying behavior, customers consider the quality of loyalty programs in buying,” says Jaysen Gillespie, SVP of Data and Analytics at Shopkick. 

There’s a ton that brands and retailers can learn about loyalty from the last 12 months, room for improvement, and an abundance of data to inform decisions moving forward. In Market Scale’s Retail Refined Podcast, Gillespie joins host Melissa Gonzalez to discuss trends in consumer engagement and app usage, how the quality of reward programs determine adoption, how to use consumer buying data to cultivate stronger loyalty, and more.

Listen here: https://marketscale.com/industries/retail/strengthening-customer-loyalty-with-data/ 

Best Strategies For Customer Loyalty In Retail

Posted on by shopkick
Any retailer knows that building brand loyalty is key to achieving business success: not only do you have to hold on to existing customers, you also have to attract new ones. And because it costs more to attract new buyers than to retain the ones you already have, strategy is key. Fortunately, there are endless ways to satisfy your current clientele, woo new customers, showcase your brands, and—oh yes—increase sales. 

The Shopping Experience Has Changed…

… But you already know that. The omnichannel customer experience is the new black, and you need to meet this challenge head-on. This is not your mother’s shopping experience: retailers now use multiple channels to reach both existing customers and the ones they have yet to meet. It’s all about the customer here—and most of them are highly distractible. And with such a dizzying array of choices at their fingertips, who can blame them? Here’s where a customer loyalty program is your friend. Customer loyalty incentive programs help build trust between a retailer and its customer. And in a world where 71% of Americans say it takes only one less-than-stellar experience to switch them to another brand—can you really afford not to?

The best customer loyalty marketing strategies work by creating the most convenient shopping experience possible—that’s doubly true if the customer is new. Enter a mobile app. As a tool to build brand loyalty, a mobile app is a no-brainer. As anyone who has ever ridden on a bus can attest to, people love their phones. In fact, the average American checks their phone at least 52 times a day, according to a study by Deloitte.

Building Brand Loyalty 

People don’t put their phones away just because they’re in your store. They might be checking messages, swiping left or right, or pulling up a picture of that to-die-for sweater that brought them there in the first place. If you want to reach a new customer, do it through their devices. A mobile app also lets you send personalized messages to new and existing customers alerting them of exciting offers they can take advantage of.

A popular customer loyalty program idea is the “VIP-pre-sale.” It works on the premise that the customer is valued, loyal, and just a bit better than the rest. These customer loyalty programs often offer an advance sale available exclusively to longstanding and repeat customers—and they work like a charm. Better still, existing customers instinctively forward the offer to friends who they think might be interested.

Referrals Are Retail Goals 

As an active marketing strategy, word of mouth is king. In fact, 92% of consumers say they trust friends and family’s recommendations over all other forms of advertising, even when they don’t know the person. That’s why referrals are such a powerful tool. Recommending a brand is like texting your bestie about a fabulous new restaurant they simply must try. It’s personal. And humans like the personal touch.

Referrals come in many shapes and sizes, including written testimonials, which you can easily incorporate into your marketing materials. You can also reach out to a customer still giddy from a recent purchase and ask them to recommend the brand to 3 friends. This is called the network effect and is a highly proven strategy to pull in new fans. Video testimonials are another powerful way to market your brand and outperform both text and photos. 

Listen—Really Listen—To Your Customers

Your customers need to feel supported. An integral part of customer service is addressing your customer’s issues and any negative experiences they may have had with your brand. Consider their demographics, including, age, gender, income, education, and occupation, to create on-brand messaging that resonates. You’ll also want to continually take the pulse of your customers through surveys, focus groups, communities, and forums—and of course, one-on-one connection. Promotions, giveaways, contests, and social media games are also a great way to build brand loyalty.

Automatic Incentives 

People are more likely to spread the love about your brand or post about it if there’s a little something in it for them. A customer loyalty program provides that extra bit of encouragement. You can also incentivize through bonuses like complimentary premium features or credit toward future buys.  Creating incentives via a charitable donation is another great strategy. Bonus marks if you personalize the donation. It sparks a connection between the customer and the donee and makes them feel like they’re making a difference.  

Another powerful customer loyalty rewards program strategy is geotargeting or location-based marketing. By tracking someone’s real-time location, marketers can deliver the “right message at the right time.” Push notifications are a great example of this. When a customer is in the general area of a retailer they like, they’ll receive notification of an offer they simply can’t refuse. After all, people adore convenience, and everybody loves a bargain. And you’re not just limited to your own brand. With location-based marketing, you can also direct ads at your competitors and nab their customers too.

Shopping Rewards Apps 

Shopping rewards apps like Shopkick work by creating a fun way for shoppers to get rewards in-store and even online. This could be for interacting with in-app content, engaging with products in-store, and of course, purchasing. Like a great game of Candy Crush, the best part is making it to the next level.  

In a world where every new product is seemingly better than the last and convenience reigns supreme, you have to evolve to grow your brand and thrive in today’s retail climate.