New Shopkick survey compares consumer behavior, concerns, and spending habits over the past 12 months
Continue reading “Most Americans Say Pandemic Has Made Them More Conscious Consumers”
Category: b2b
Super Bowl Ads Fell Short on Influencing Purchase Decisions
Shopkick survey uncovers why consumers were not swayed to spend, and which brands came out on top
Brands may have dished out upwards of $5 million each to place an ad during this year’s Super Bowl, but for most Americans, these sought-after slots didn’t drive purchases. It turns out, only eight percent of consumers actually bought a product in the days after seeing this year’s ads, and of those, 75 percent said they were already a frequent purchaser of the brand or product.
Shopkick asked nearly 20,000 Americans about the impact of this year’s Big Game ads, as well as the genres they believe are most effective in influencing them to make purchases.
Insights include:
- Purchasing Power: Of the eight percent of respondents who purchased a product after seeing this year’s Super Bowl ads, Gen Zers made up the largest segment (14 percent), compared to Millennials (9 percent), Gen Xers (7 percent) and Baby Boomers (6 percent), trending opposite of the common narrative that Gen Z can’t be reached through traditional advertising.
- Same Day Spending: Of those who made a purchase, 13 percent say they bought products on Super Bowl Sunday just after seeing the ads, followed by 27 percent who purchased the next day and 60 percent who purchased within the following week.
- Brands That Brought Home the Bacon: This year’s advertisers in food and beverage, alcohol and home products that successfully influenced consumers to make a purchase included Doritos (58 percent), M&M’s (52 percent), Cheetos (50 percent), Dawn (47 percent), Frito-Lay (39 percent), Mountain Dew (26 percent), Swiffer (24 percent), Hellmann’s Mayo (23 percent), Chobani (22 percent), Bud Light beer (20 percent), Huggies (18 percent), PepsiCo’s Rockstar Energy (11 percent) and Stella Artois (10 percent). All other ads in these brand categories influenced less than 10 percent of consumers to purchase products.
- Can’t Be Swayed: Of the 92 percent of consumers who did not purchase products, reasons varied. Besides simply not watching the Super Bowl (44 percent), respondents also said they enjoyed the ads but did not want to make a purchase (28 percent), they didn’t pay attention to the ads (15 percent), they didn’t like the ads (6 percent) or they prefer other brands and products (3 percent).
- Laughter Wins Dollars: In terms of which advertising genres consumers feel are most effective in influencing them to spend, respondents said comedy (35 percent), followed by values-based ads (34 percent), serious or emotional ads (8 percent), ads featuring scenery and nature (7 percent), and celebrity features (6 percent). Surprisingly, when compared by generation, the largest segments of Gen Z (42 percent), Millennials (40 percent) and Gen X (36 percent) said comedy ads are most effective in influencing them, while the largest segment of Boomers said values-based ads (37 percent).
The online survey was conducted between Feb. 11-15.
Secrets of the path to purchase that drive consumer behavior—and sales
How does a consumer move from complete unawareness to the recognition of need, choice of product, and decision of a particular brand? Marketers have pondered this question since the dawn of advertising. The classic sales funnel was once a useful model for understanding the process, breaking it all down to: Awareness, Interest, Decision, and Action. Each marketing activity was then created to specifically focus on moving prospects from one stage to the next in a linear fashion. Continue reading “Secrets of the path to purchase that drive consumer behavior—and sales”
Product launch best practices that capture your target market
Even with a great product and a known brand, every product launch poses uncertainties. About 10,000 new products debut every year in the CPG industry alone, and within two years, 85% of these items are categorized as failures and are scrapped.
There is no precise formula for capturing the adoration of your desired target market, but there are ways of harnessing decision science best practices to understand who your potential buyers are, what they want, and how to reach them. Studying the latest product launch best practices can provide meaningful insights into how to make your next product launch a surefire success. Let’s explore the top four practices from 2020 in more detail.
The Top 4 Product Launch Best Practices From 2020
Many of the top failures of all-time could have been prevented by following these best practices:
1. Collecting Actionable Data to Inform Marketing.
Brands need to decide exactly who their products are designed for. Effective targeting requires a robust database of omnichannel information about shopper wishlists, buying history, sharing history, in-store behaviors, preferences, life-stage, and demographics. Using A/B testing to pinpoint your precise demographic accurately can result in an 80% higher trial rate and 17% higher repeat purchase rate.
Today’s consumers are seeking a highly relevant, personalized shopping experience. Far too many campaigns fall flat due to a failure of activating local campaigns based on store-level data. Loyalty is largely connected to personalized marketing, which means timing offers based on purchase frequency, proximity, and past purchases are essential to ensuring an experience based on individual relevance.
2. Rewarding Repeat Buyers.
Offers and rewards are just as important for soliciting repeat purchases as they are for driving new product trials. Keeping tabs on buyers and retargeting with ads, texts, and offers is an effective way to maintain interest.
A third of new consumers are obtained via contests, which are effective at encouraging trial and expanding presence. Creating a sweepstake with clear expectations—like extra entries for social media shares—is a great way to make valuable connections.
Loyalty programs are typically associated with retailers rather than brands. However, eCommerce platforms offer a means of rewarding repeat customers who may have some level of loyalty fatigue, or offering prospective customers an added incentive to try your products over the competition’s. Rather than trying to reinvent the wheel, partnering with an established shopping app can improve reach and retention while achieving a significant return on investment (ROI).
3. Engaging New Customers to Encourage Loyalty.
A successful product launch consists of more than converting sales and convincing shoppers there is value in trying your product. Once a purchase is made by the customer, it shouldn’t be viewed as the end of marketing efforts, but rather the beginning. Since it takes approximately eight purchases for a trial buyer to become loyal to a brand, creating an onboarding experience is crucial.
The best product launches involve the use of email, retargeting ads, social media, text push notifications, rewards programs, and shopping apps to engage and support consumers long after the first purchase.
Does the buyer know how to get the most from the purchase? Is another offer necessary to prompt the next sale? Are there complementary products that could help buyers enjoy the new product more? Aftermarket information delivered by email, text, phone call, eCommerce app, or mail can be a key differentiator.
4. Choosing an Incremental Marketing Strategy in Pursuit of Long-Term Success.
Many marketers make the mistake of investing heavily during the first year of promotion, but between the first and second purchase, brands lose roughly half of all buyers. This process of attrition continues until stability is achieved around the eighth purchase, so marketers will need to think long-term.
An incremental marketing strategy involves breaking up a long-term marketing plan into a series of campaigns and assigning milestones to determine the effectiveness of the tactics, messages, and methods used. Successful campaigns will be built upon, and poor performers will be halted before more money is committed.
Find a Product Launch Partner to Double Your Odds of Success
Even if a failed product launch doesn’t lead to financial ruin, it can lead to a loss in reputation, mass layoffs, and damaged morale. A proactive approach that employs product launch best practices and uses the latest technology is certainly preferable to managing a rebound. Sometimes it can take years or even decades to erase the effects of a product flop.
Shopkick is a proven marketing partner for brands launching new products, helping them employ many of the aforementioned best practices.
Here’s how it works:
- Before your product launch, Shopkickers have the opportunity to discover your brand as they search for rewards offers in their area, browse through your curated lookbook, and watch your branded video ads.
- Upon entering a store where your products are sold, Shopkickers are invited to engage with your campaign by scanning the barcodes of or purchasing select items in exchange for “kicks” (rewards points).
- Accumulated kicks are redeemed for gift cards of the Shopkickers’ choice, solidifying a memorable, meaningful consumer experience without discounts or coupons that can erode your profit margins.
- With the Shopkick app, brands can collect consumer behavior data, personalize interactions, and continually reach out to new or existing shoppers.
In essence, partners can take advantage of incremental marketing strategies, piggybacking off Shopkick’s audience to expand their own market share while also surprising and delighting prospective customers with rewards as soon as they enter a store. Using beacon technology, partners can capture important data about how their target audience behaves in-store, and continue building better relationships that ensure today’s buyers are tomorrow’s buyers, too.
Looking for more product launch best practices? Contact Shopkick to gain insights into developing a highly successful product launch campaign as a partner or read success stories for more ideas on how technology can be used to drive trial and purchase.
Despite Vaccinations, Americans Still Expect Safety Precautions When Shopping In-store
Shopkick survey uncovers consumer sentiment toward COVID-19 vaccines and how it will impact current shopping habits
For some, widespread vaccinations offer a glimmer of hope that life will soon return to normal. However, with many Americans (44 percent) planning not to receive the vaccine, consumers say vaccinations will hardly change their current shopping behaviors. In fact, nearly all consumers (96 percent) say they will continue to take personal safety precautions while shopping, and of those who have already received the vaccine, less than half (48 percent) report feeling more comfortable shopping in-store now.
In its ongoing commitment to support brand and retail partners with regular insights during the COVID-19 pandemic, Shopkick surveyed more than 20,000 consumers between Jan. 20-24, 2021, to learn about current shopping behaviors and how the vaccine impacts those habits.
National Vaccine Insights:
- Many consumers do not plan to get the vaccine. While most consumers surveyed have either already received the vaccine (8 percent) or plan to receive it (48 percent), 44 percent say they do not plan to get vaccinated.
- Millennials are the least confident in the vaccine. Millennials make up the largest segment of people not confident in the vaccine (35 percent) and do not plan to get vaccinated (51 percent). Comparatively, America’s youngest and oldest consumers appear the most confident in the vaccine, with 71 percent of Gen Zers and 75 percent of Boomers feeling some level of confidence.
- Vaccinations do not mean consumers will flood back indoors. Of those who have already received the vaccine, less than half (48 percent) report feeling more comfortable shopping in-store and taking part in other indoor activities, and only 18 percent say they will do so more frequently now vaccinated. Similarly, of those who plan to get the vaccine, only 15 percent say they will shop in-store or take part in indoor activities more frequently after receiving the vaccination.
- Personal health and safety habits are here to stay. Nearly all of those who have already been vaccinated or plan to be vaccinated say they will continue to take personal safety precautions while shopping in-store (96 percent and 97 percent, respectively). Precautions include wearing protective face coverings (93 percent), using disinfectants (87 percent), shopping at less busy times (66 percent), using debit or credit cards to avoid exchanging cash (66 percent), using self-checkout (58 percent), or wearing protective gloves (21 percent).
- Consumers expect health and safety to remain top-of-mind for retailers. Even if a large majority of Americans are vaccinated, 79 percent of consumers expect retailers to continue enforcing health and safety restrictions, such as requiring protective face coverings for shoppers and employees (89 percent), offering disinfectants for shoppers (86 percent), enforcing 6-feet-social distancing (80 percent), keeping plexiglass barriers at checkout (74 percent), and limiting the number of shoppers allowed inside (62 percent). According to 62 percent of respondents, enforcing these guidelines will influence where they choose to shop.
Additional Insights Include:
- More than half of consumers are using BOPIS for essential purchases. As consumers try out different options for picking up the essentials, 55 percent say they are now using BOPIS (buy online, pickup in-store) at varying degrees, including sometimes (35 percent), often (11 percent), or very often (9 percent).
- Stockpiling rates are down and consumers are seeing the impact on store shelves. Forty-nine percent of consumers say they are currently stocking up on essential items, a decrease from November 2020 findings, when a whopping 61 percent of shoppers were stockpiling. In turn, 41 percent say essential items that were out-of-stock or low-in-stock one month ago are now more in-stock, compared to 36 percent who say items are still out-of-stock and 23 percent who have not yet noticed a difference.
Touchdown in Lockdown: How Americans Plan to Celebrate the Super Bowl
Shopkick survey finds that for most consumers, safe viewing parties matter, brand names do not
Continue reading “Touchdown in Lockdown: How Americans Plan to Celebrate the Super Bowl”
Which customer loyalty marketing variables are most influential for repeat engagement?
Customer loyalty involves an ongoing, positive relationship between a customer and a brand or retailer. Loyal customers are invaluable, especially since 80% of a company’s revenue comes from 20% of their existing customer base. They also have a higher conversion rate—the probability of selling to an existing customer is 60% to 70%, while selling to a new prospect has a 5% to 20% likelihood. Plus, having a high percentage of return customers is great for employee morale, signifying that you’ve all worked hard to create a retail space that successfully engages consumers.
Repeat engagement is a significant factor in business growth, profitability, and long-term success. Loyal customers are worth about 10x their initial purchase, and just a 5% increase in loyalty can boost a business’ profits by 95%.
Loyalty is a worthwhile goal, but it’s easier said than done. You could have great individual products and best-in-class customer service, but can still fall flat in attracting repeat engagement. True loyalty can be thought of more as brand affinity, where people make a conscious decision to choose your brand consistently because they feel emotionally connected to your values and ideals, and trust that you can deliver what they need. A number of loyalty marketing variables can positively affect engagement and long-term business.
5 of the Most Impactful Customer Loyalty Marketing Variables
When deciding which customer loyalty marketing variables to focus on, you should focus on these five:
Customer Satisfaction
Customer satisfaction is one of the most important factors when creating long-lasting customer loyalty. With competition greater than ever, the experience you provide for your customers is critical. In fact, 81% of consumers are more likely to be repeat purchasers if they have a positive experience. If they have a negative experience though, 95% will stop buying from you altogether, and share their poor experience with friends and family.
Realistically, no matter how hard you and your employees try to create a perfect customer experience each and every time, there are bound to be instances where the interaction doesn’t go as planned. This doesn’t mean you lost the customer—yet. What then becomes important is how you handle the problem.
Perceived service quality carries as much weight as perceived product quality in the minds of consumers. Nearly half of customers will remain loyal after a bad experience. In fact, people who have had a bad experience that was resolved in a satisfactory manner are more loyal than customers who never had a problem. It all boils down to trust.
Trust
Trust is the belief that the business is credible, experienced, and will act in the customer’s best interest. Multiple positive engagements with a business can build trust over time. Businesses can also exude trust through their online content, media public relations, online reviews, testimonials, videos, partner associations, and years in service. It is also critical for brands to deliver on their promises and uphold their policies and offers.
Trusted brands have better relationships with their customers. One study found that three-quarters of consumers will actively recommend businesses they trust. They’ll be willing to pay premiums, try your new products first, and stick with your brand even as competitors rise in prominence and popularity.
When trust is established, the customer perceives congruent values and is more willing to engage in future dealings.
Self-Identification With Your Brand
Having strong values as a brand contributes to trust, transparency, and reputation, but it also matters to customers too. Self-congruence stands out as a preeminent factor in loyalty measurements. Customers form an emotional connection when their values mirror the brand’s values, image, and “personality.” In fact, 71% of consumers prefer to buy from brands that align with their values, and 64% of customers attribute these shared values to having a strong relationship with a brand.
Lifestyle and self-image can take a number of forms and may vary greatly across a brand’s audience. For this reason, marketers often focus on campaigns geared toward specific buyer personas.
Perceived Brand Value
Customers’ value perception is a necessary condition for developing brand loyalty, and a loyalty program is an extremely popular and effective way to increase a brand’s value. Sixty-nine percent of customers say brand/retailer choice is determined by where they can earn loyalty rewards.
With loyalty programs, value is demonstrated by: the cash value of rewards, choice of rewards, perceived likelihood of achieving rewards, and ease of use. Luxuries are valued higher than necessities in most programs, hence why boasting VIP services and free gifts can prove particularly effective. Joining a loyalty program can promote a sociable aspect and sense of community that enhances customer satisfaction.
Commitment
Commitment involves the willingness to expend maximum effort to maintain an ongoing relationship. Committed brands go out of their way to personalize communications and reach out with relevant promotions and information. They ensure that their customers will receive the same high-quality experience each time they interact with the brand. Commitment is fueled by ongoing benefits accrued through the relationship over time; the more favorable interactions a shopper has, the more the shopper feels trust, commitment, and loyalty.
Build Customer Loyalty and Drive Repeat Engagement With a Third-Party App
If you are looking to increase engagement and loyalty, partnering with a mobile app that people are already loyal to can improve your brand favorability. Shopkick is a leading mobile platform that rewards shoppers with “kicks” (rewards points) for engaging with partnering brands and retailers and completing various engagement-related activities, like: checking in at partnering stores, scanning the barcodes of select items, watching branded videos, browsing curated lookbooks, or making purchases—whether online or in-store.
Customers can then redeem accumulated kicks for gift cards of their choosing, which boosts goodwill toward brands they’ve already interacted with. Partners can effectively increase trial engagement and purchase consideration without slashing prices or eroding brand value. Associating with a well-established platform like Shopkick can increase trust and demonstrate a brand’s commitment to meeting shoppers’ wants and needs.
The key to repeat engagement is assuring shoppers they’ve gained a world of benefits by choosing your brand. Partnering with our interactive mobile shopping platform can help foster customer satisfaction, brand/customer alignment, and long-term loyalty.
Begin incorporating customer loyalty marketing variables that matter through a Shopkick partnership. Read our success stories or contact us to learn how to become a partner and start driving repeat engagement.
Retail mobile app vs. responsive website: Which is better?
How important is customer loyalty to retailers today? Consider this: While 80% of a retailer’s future revenue is dependent on 20% of its existing customers, the average American retailer loses 15% of its customer base each year. Understanding how to juggle this revolving door of customers while still maintaining your most valuable shoppers is critical to a business’ health.
In an ideal situation, retailers would have infinite budgets to spend on their eCommerce endeavors; but for most, budgets are limited and allocation decisions must be made. Having a user-friendly website that functions properly is a necessity, but increasingly, shoppers are using mobile devices to complete their purchases and inform their shopping trips.
Not to mention that retail mobile apps have now become a vital channel for engaging with customers and driving long-term loyalty. To help you invest your dollars wisely, we’ll compare retail mobile apps vs. responsive websites and see which channel is more valuable.
Retail Mobile App vs. Responsive Website: Which Should You Invest in?
When comparing retail mobile apps vs. responsive websites, consider the following:
- Where do retail shoppers spend most of their time? You can’t build loyalty if you aren’t connecting with shoppers where they are. The number of mobile users increased by over 10% (37% to 48%) from 2019 to 2020, and more than half of all time spent online (51%) is initiated on mobile devices. In fact, 40% of people conduct all their online searches on a smartphone or tablet exclusively. Mobile commerce sales in 2021 are projected to reach $3.56 trillion and account for 73% of all eCommerce sales. Not to mention that the average smartphone user spends nearly 4 hours per day on their mobile devices, with 90% of that time spent within apps.
- What engages customers and makes them more likely to convert? Mobile apps have much higher rates of engagement, with 100-300% higher conversion rates on average. Even the most efficiently mobile-optimized websites can’t compete. During the holiday season, app shoppers spent 117% more time in apps than on mobile web and made 108% more orders per person in-app than on mobile web. Apps had a 14% higher conversion rate than mobile web. Plus, app users have a 4x higher return rate than mobile web or desktop users, meaning they are more likely to return to their abandoned shopping carts, add more items, and convert to purchase.
- What makes customers more likely to stay loyal to a retailer? More than 80% of U.S. shoppers say they are more loyal to retailers and brands when they participate in dedicated rewards programs. More than 70% of shoppers say they are more likely to participate in these loyalty programs if they can easily access their membership data from their mobile phones. Apps can seamlessly replace loyalty cards with several key features and advantages that mobile-optimized websites just cannot provide. Apps can send relevant and personalized push messages when shoppers are near a retailer’s physical location or in-store looking for special offers nearby. App icons remain on the phone’s home screen as a highly visible reminder of a retailer’s presence every time the phone is checked—about 96 times per day. Plus, apps are extremely convenient, retain user data, run with minimal loading time, and allow one-click checkout. With apps, retailers can tap into unique mobile experiences using augmented reality, visual search, image recognition, and in-store navigational tools to increase loyalty using the latest technology.
While both a retail mobile app and responsive website are important to have, it’s clear that mobile app usage is on the rise and holds the potential to offer so much more to customers and their shopping experience, thereby increasing affinity and loyalty.
Maximize Your Dollars With a Third-Party Mobile Retail App
While it’s possible to create your own in-house app, it’s quite an expensive venture that will utilize valuable time and resources. Instead, you can partner with an established third-party mobile retail app for a fraction of the cost that will provide you access to its existing user base, like Shopkick.
Having driven over 300 million store visits in the past decade, Shopkick is widely considered one of the best mobile reward shopping apps, attracting retailers and brands looking to elevate their loyalty programs.
Here’s how it works for shoppers: Shopkickers log into the app to see which retailers and brands are offering “kicks” (reward points) in their area. They earn kicks by performing a number of engagement-related activities, like walking through a retail partner’s doors, watching branded videos, browsing curated lookbooks, engaging with products in-aisle, scanning products’ barcodes, and submitting their purchase receipts.
Once enough kicks are accumulated, Shopkickers can redeem these rewards for a gift card of their choosing. Many shoppers end up opting for a gift card from the retailer where they earned rewards in the first place, further cementing customer loyalty and providing an incremental revenue stream.
If you already have a loyalty program, no problem! Shopkick can complement your existing loyalty programs, allowing you to expand your reach and strengthen loyalty among both new and existing customers.
While any comprehensive eCommerce strategy will have both a responsive website and a retail mobile app, given mobile shopping’s rise in popularity and prominence, it would be most beneficial for retailers to invest in creating a retail mobile app—or even better—partnering with an existing one. Mobile apps give retailers the chance to connect with customers where they are, and allow them to provide supplementary benefits like a convenient rewards program and an enhanced shopping experience.
When comparing retail mobile apps vs. responsive websites, the former is the most relevant to today’s shopping trends and will provide the best opportunity to reach shoppers. Shopkick is an established mobile rewards shopping app that has a proven track record of helping retailers achieve greater awareness, foot traffic, and consumer loyalty. Read our success stories and contact us to learn how to become one of our partners.
Discover how proximity marketing benefits positively impact your strategy
The majority of shoppers (82%) make their purchasing decisions while in-store, typically after seeing, holding, and interacting with the product. Retailers need to find a way to reach customers at this pinnacle moment when they’re weighing their options. Store associates have been one of the only effective ways for retailers to influence the decision-making process in real-time, but technology—specifically proximity marketing—is swiftly moving in as the preferred way to personalize the shopping trip and deliver information, guidance, and tips during critical moments along the path to purchase.
The positive impact proximity marketing benefits have had on retailers has driven this marketing strategy to the forefront of the industry. Whether you use beacons or GPS technology, reaching shoppers on mobile devices with relevant, real-time messaging will be a boon to your retail business in 2021.
Here are some core proximity marketing benefits you can expect to see if you decide to implement the strategy:
1. Influence Customers On-the-Go.
Proximity marketing falls under the omnichannel strategy of retail marketing, which aims to reach and influence consumers through the various channels in which they shop. Omnichannel retail eCommerce in 2020 has had a significant impact on in-store purchases. Whether you think of it as delivering a consistent experience across channels or establishing a presence where people are buying, omnichannel is not so much a “trend” as it is the most effective way to conduct business.
Mobile has become one of the most important components of omnichannel shopping. People spend nearly 4 hours per day on mobile devices, and 82% of shoppers consult their smartphones before making an in-store purchase.
Proximity marketing messages can be delivered through a complimentary app, or can simply target shoppers passing by the store (so long as they have Bluetooth enabled). The average click-through rate of proximity marketing messages can reach 80%, which is significantly higher than the 0.119% click-through rate of Facebook ad CTRs and 1-3% email open rate.
2. Access Touchpoint Opportunities.
A touchpoint refers to any given time a customer comes into contact with your brand. Storefronts, showrooms, employees, checkouts, email communications, TV ads, billboards, in-store displays, online ads, coupons, mobile texts, and app interactions can all be considered touchpoints.
The average sale requires about eight touchpoints, though it could be more or less depending on your niche. Every opportunity you have to leave a favorable impression helps bring a shopper one step closer to a purchase, whether it’s the first or it’s been a while since the last.
With proximity marketing, beacon technology can send relevant messaging to customers at the most opportune times, creating multiple touchpoints in one consumer journey. For instance, a shopper may be greeted upon entering a retail store with personalized recommendations. Later on, they may receive notice of a nearby deal on a wish-listed item, and then be offered a reward for interacting with or purchasing the product.
Together, these messages can positively influence the consumers’ path to purchase, encouraging them to select your product over the competition.
3. Increase Engagement.
Sustaining engagement is necessary to keep customers loyal. Since it’s 5x to 25x cheaper to retain an existing customer than it is to solicit a new one, investing in engagement is critical.
Engagement-related activities keep shoppers informed of new arrivals, promotions, and product recommendations while providing retailers with valuable feedback. Engagement is necessary to improve marketing campaign return on investment (ROI), keep customers happy, and grow referrals.
Proximity marketing is one of the most effective ways to increase engagement. In 2020, 48% of retailers said they would use location data to engage customers. Proximity marketing provides a means to target customers in real-time at the point of purchase. Beacons can drive relevant promotions, answer questions, and provide additional incentives to “buy now.”
4. Drive Immediate Conversions.
Today’s shoppers seek a “hyper-relevant” experience, which is when a retailer knows who the customer is and what the customer is trying to achieve in a real-time shopping context. Targeted promotions, in-store analytics, and proximity marketing solutions help deliver hyper-relevance to consumers.
These tactics will improve a brand’s or retailer’s perceived value, and will also prompt an uptick in sales conversions. Hyper-relevant location-based notifications increase sales by an average of 24% when delivered directly near the products or services promoted.
To see proximity marketing in action, you can look to Purina’s holiday campaign with Shopkick. When Purina partnered with the mobile shopping rewards app, their goals were to increase awareness and use in-store messaging to drive trial and consideration of their products at Target during the busy holiday season.
Shopkick first promoted in-app content to shoppers at-home to drive awareness and interest. Shopkick then leveraged proximity messaging to drive shoppers in-store and greet them once they entered the store, keeping Purina top-of-mind. Finally, to drive product engagement and incremental conversion, Shopkick used reward incentives to encourage shoppers to seek out the product at-shelf.
Of all sales driven, 85% were incremental, and 36% of shoppers were previously unfamiliar with the product before introduction through the Shopkick app. Forty-seven percent of shoppers also reported future purchase intent.
Are You Ready to Reap Proximity Marketing’s Benefits?
Proximity marketing’s prominence is growing among retailers who are looking to impress consumers with an elevated level of personalization and timeliness. With competition increasing by the minute, it is imperative for retailers to find ways to differentiate themselves in order to gain market share. Proximity marketing is retailers’ key to differentiation in 2021.
Want to learn more about how proximity marketing benefits retailers? Read our success stories and contact Shopkick to learn how to become a partner and integrate proximity marketing into your 2021 strategy.
Customer Loyalty Marketing: An Ultimate Guide for Brands in 2021
Ultimate guide to setting up a customer rewards program for retailers
Loyalty rewards programs are more prominent and popular than ever. Continue reading “Ultimate guide to setting up a customer rewards program for retailers”
How proximity-sensing advertising drives brand engagement
For many marketers, it’s not so much a question of if they should focus on brand engagement, but rather how they should best go about doing so. Continue reading “How proximity-sensing advertising drives brand engagement”