Top 6 benefits of mobile marketing in retail: Everything you need to know for 2021

Top 6 benefits of mobile marketing in retail: Everything you need to know for 2021

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There’s no doubt mobile devices have become a ubiquitous, indispensable part of the American lifestyle. It is reported that 96% of Americans own a cellphone, with 81% being smartphones. This percentage has nearly doubled in less than a decade. The average smartphone user checks their device 47 times a day and spends nearly four hours browsing mobile content. Forecasts estimate that 73% of Internet users will access the web solely by smartphone as soon as 2025.

These statistics show that mobile will remain and continue to grow as a vital link to personalized, timely, location-relevant, and rewarding information. The benefits of mobile marketing in retail cannot be overstated. If your retail establishment has been on the fence about whether to invest more heavily in 2021 or hold off, here are six compelling reasons to pursue mobile marketing strategies with the greatest possible dispatch.

Marketing Efficiency.

Text message marketing and push notifications pay off. In a study of 300 businesses, 72% found that mobile and web app push notifications offer a greater or equal return on investment (ROI) when compared to email.

A little over half of retailers spend 21% or more of their digital marketing budgets on mobile, typically as a way to acquire new customers.

Further, 82% of companies say push notifications help them meet or exceed their business goals.

In addition to the efficiencies these marketing tactics provide retailers and businesses, customers’ response to these marketing efforts far exceeds other methods.

It is reported that the average open rate for text message marketing campaigns is 98% vs. email marketing campaigns which have a 20% open rate.

Another study also found that push notifications can increase app `by up to 88% and boost app retention rates by 3-10x.

Only 14% of retailers are considered “mobile-first” retailers, but this elite group sees a number of benefits:

  • 66% say mobile increases customer satisfaction. 
  • 65% say mobile increases sales revenue.
  • 62% say mobile has made their businesses more efficient.
  • 33% say mobile has lowered the cost of providing services to customers.

Customer Satisfaction.

Mobile devices have largely become the digital media consumption vehicle of choice, with two-thirds of Americans engaging with the web on smartphones rather than desktops.

Further, smartphones are the preferred mode of managing a loyalty program, with 70% of shoppers feeling more satisfied with a mobile app over a physical card, web app, or mobile wallet.

Through a mobile rewards app like Shopkick, consumers not only have the convenience of their program, points, and personal information in the palm of their hand, but they also have access to a wealth of information that can better inform their purchasing decisions.

Aside from consumers benefiting from the information provided by mobile rewards apps, retailers benefit just as much! Mobile rewards apps can hold a myriad of data, like past searches and purchases, favorites, and wish lists.

Retailers can use this data to create a personalized shopping experience for their consumers, providing them with tailored recommendations and helpful information all along the customer journey. In other words, retailers who can see the past can better inform the present.

Timeliness.

Timely content keeps your brand top of mind. The fact that mobile devices are always on and available allows for greater timeliness than any other channel. Most SMS messages can be read at a glance, which appeals to the eight-second attention span people have today. Thankfully, the response time for SMS messages is equally quick—just 90 seconds—compared to the 90-minute response time for email.

Location-Based Relevance.

Location-Based Relevance.

Ninety percent of customers are willing to share their location as long as they receive something of value in return. This figure is up from just 20% a decade ago. Retailers can interact with locals to boost store traffic on a slow day or use contextual details to determine who is most likely to benefit from their products at the moment. For instance, a downtown basketball arena is a great place to market if you’re a sporting goods retailer or neighboring restaurant.

Instant Rewards.

Instant Rewards.

Instant gratification, like real-time rewards, is preferred by 63% of shoppers. Personalized and/or surprise rewards are also appreciated by loyalty club members who seek greater communication and connection with their favorite retailers. Almost 60% of consumers believe earning reward points is one of the most valued aspects of the shopping experience. And mobile is one of the top delivery vehicles, with 48% of loyalty program members rating SMS texts as “highly valuable.”

Lasting Impact and Increased Brand Value.

Mobile marketing helps retailers stay top of mind and drives incremental sales long after shoppers engage in smartphone-based promotions.

To successfully accomplish this, retailers partner with Shopkick, a leading mobile shopping app that drives engagement and rewards loyalty. The platform rewards shoppers with “kicks” (reward points) for completing a number of engaging activities, such as stepping into partnering retailers’ stores, locating and scanning the barcodes of promoted products, watching branded videos, browsing curated lookbooks, shopping with a linked credit card, and making retail purchases.

Once enough kicks are accumulated, they can be redeemed for a gift card of the shopper’s choosing (which can potentially be a gift card with the retailer where they initially earned the kicks).

Visa Decision Sciences measured retail sales for 12 months prior to initiating a partnership with Shopkick. They wanted to determine the incrementality of Shopkick’s program, and identify how many sales, transactions, and driven customers would not have occurred without Shopkick.

VISA found that 57% of all sales driven by Shopkick were incremental. The mobile campaigns were an effective way for retailers to expand their reach to new audiences and increase sales with new customers, who accounted for 73% of sales. Shopkick became a crucial platform for sustaining engagement and driving repeat purchases.

The benefits of mobile marketing in retail continue to create prosperity for businesses in 2020, and are almost guaranteed to continue doing so going into 2021. Partnering with an existing mobile app is one of the easiest and most cost-effective ways to dive into mobile marketing campaigns. An added perk of working with an existing mobile platform is that you can access your partner’s unique user base to grow your own audience. Membership for apps like Shopkick continues to grow, year over year, so why wait until the new year to get started on your very own mobile retail marketing campaign?

Shopkick offers retailers a partnership that provides all the benefits of mobile marketing in retail. Our partners use our mobile shopping platform to drive sales, capture market share, and produce an incredible ROI. Contact us to get started on your campaign today.

Comparing customer loyalty programs: Which marketing strategy is right for your brand?

Customer loyalty does more than signify the groundwork of a fruitful, long-term relationship between brand and customer; it provides a multitude of strategic benefits that improve the health and success of a brand. Continue reading “Comparing customer loyalty programs: Which marketing strategy is right for your brand?”

Top 3 retail app trends that will drive sales in 2021

Top 3 retail app trends that will drive sales in 2021

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With the start of 2021 just around the corner, now is the perfect time to assess retail app trends. App downloads are important to retailers because consumers who spend a lot of time in-app are more likely to spend money. Furthermore, omnichannel shoppers in general spend more money than single-channel shoppers. Implementing the following best practices will help to keep up with consumer expectations, increase sales, and ensure you’re on the cutting edge of your industry.

Personalization Across Channels

Shopping across multiple channels is now common practice, with 85% of shoppers starting a purchase on one device and finishing on another. Consumers also now expect a personalized experience when shopping, with 80% more likely to buy from a retailer providing a personalized experience.

As a result, retailers must find a way to unify and personalize the customer experience across all channels. To help guide this strategy, retailers track activity across their web, mobile, and brick-and-mortar stores.

Cross-channel connection arms retailers with information about what individual shoppers are browsing, wish-listing, liking, buying, and reviewing online, whether via mobile or in-person. Retailers can then use this data to develop their strategy and create relevant messages, tailored offers, and curated content to keep shoppers engaged.

For instance, Sephora’s Beauty Insider Program saves information on hair and skin type as the basis of their tailored product recommendations. They change landing pages based on recent browsing history and send out “replenish” discounts for items shoppers purchased in the past.

Personalization can even lower acquisition costs up to 50%, lift revenues by 5–15%, and improve spending efficiency by 10–30%.

Personalizing push notifications is an extremely effective way to re-engage mobile users and increase conversions. The most successful notifications use images, animated GIFs, videos, emojis, quizzes, coupons, and fun copy to engage shoppers. Push campaigns can be based on past purchases, designed for hyperlocal sales, or centered on favorite categories. Triggers for notifications may include location, days since last login, recent purchase activity, or even shopping at a competitor’s location.

There are several ways to encourage shoppers to keep push notifications activated. You can develop a homescreen widget that appears every few weeks, reminding users of the benefits of enabling push, or you can utilize abandoned shopping cart notifications, which can increase app revenue by up to 15%.

Beacons are tools retailers can utilize in their effort to personalize the shopper experience. Beacons allow retailers to gather actionable consumer data and take personalization strategies offline and into the real world. The shopper preferences and behavioral insights collected from beacons can then be used to inspire events, products, or new services.

In-Store Mobile Experiences

In-store mobile experiences are increasingly becoming integrated into retail shopping apps to create strong and meaningful customer connections, which ultimately lead to sales.

What defines an in-store mobile experience varies, but ensuring your app addresses common pain points shoppers are faced with in-stores provides a solid foundation for building that dual-facing mobile/brick-and-mortar shopping experience.

Offline shoppers often turn to mobile in-stores to retrieve information that store displays and packaging may be lacking. Given this, successful shopping apps typically include: in-depth product information, reviews, pairing suggestions, and how-to videos. Aiding consumer research increases the likelihood of making the sale.

Shoppers also turn to mobile when they can’t find what they need on the shelves. Walmart’s mobile app comes with a barcode scanner for price and inventory checks. It can also be used to save items to order online later. Mobile coupons can help prevent showrooming—which is the practice of browsing items in-store, only to buy online or with a competitor.

Of course, there are many FUN ways to engage mobile in-store shoppers using gamification strategies, which create a more immersive shopping experience. Shopkick is a popular mobile shopping rewards app that specializes in enhancing the shopping experience through unique engagement tactics. One such way is through in-store “treasure hunts” that drive consumers through the purchase funnel. This gamification strategy influences purchase behavior in three main steps: product awareness, at-shelf engagement, and rewards.

Product Awareness Binoculars Icon

Product Awareness

To drive consideration and trial, Shopkick sends users on an in-store treasure hunt for promoted products to find when they enter the store.

This helps cut through the clutter of the immense competition partnering brands and retailers are facing in-store, and also encourages shoppers to physically engage with the product now that it’s directly in front of them.

Cell phone used for scanning qr code

At-Shelf Engagement

Once Shopkickers find each promotional item, they scan its barcode to earn “kicks” (reward points).

Bonus kicks are received if they purchase the product and upload their receipt.

Scanning items’ barcodes provides shoppers with additional product information, trigger informative videos, and more.

Rewards hands holding a star

Rewards

Once they’ve accumulated enough kicks, Shopkickers can redeem them for gift cards of their choosing.

Often, Shopkickers choose the retailer where they earned their kicks from as their preferred gift card, providing an incremental revenue stream for retail partners.

Regardless of where Shopkickers choose to redeem their kicks, you will have created a memorable experience that will foster a positive customer relationship and create long-term loyalty.

To see this concept in-action, you can look to Kraft’s campaign with Shopkick. Kraft wanted to drive trial, consideration, and sales across multiple brands during the holiday baking season. We first built pre-shop consideration by sharing in-app recipe content that used three of the main products Kraft wanted to promote. Once in-store, Shopkickers were sent to find these products in-aisle and were encouraged to physically engage with the products via barcode scans in exchange for kicks. Extra kicks were offered if all three products were bought, increasing the likelihood of purchase. Over 9 million Shopkickers physically engaged with the products at-shelf, with 27% converting to purchase for a 7.6x return on investment (ROI).

Advanced mCommerce Capabilities

Most apps now allow users to shop directly through them. Ideally, a mobile app should automatically sync with the user’s digital website login credentials, that way activity on one channel can easily and quickly be picked up on another.

Modern retail apps are also offering more convenient ways for consumers to pay for their items, enabling payment methods like Apple Pay, Google Wallet, and Venmo, as well as the ability to store a credit card. This flexibility can reduce cart abandonment by 8%.

To create the best mobile app experience possible, it’s important for retailers to perform incremental A/B testing in order to optimize their current strategy. Retailers will gather actionable insights, allowing them to create more helpful and engaging visual prompts to increase the number of completed transactions. For instance, many retailers use progress bars and guest checkout options to ease impatience.

Ensure You’re Incorporating 2021 Retail App Trends With the Help of Shopkick

Shopkick incorporates the latest and greatest in retail app trends, successfully boosting brand awareness, shopper engagement, and revenue. Mobile shoppers can interact with the Shopkick app from home, on-the-go, or in-store, enabling partnering retailers and brands to engage with shoppers wherever they are. Consumers can make purchases with their favorite retailers online through the Shopkick app, or at their brick-and-mortar store, increasing the chances of capturing a sale.

By focusing on rewards instead of discounts, there’s no profit margin dilution. And while no purchase is necessary to earn rewards, our strategic method of rewarding shoppers for their engagement builds brand affinity and loyalty, often leading many Shopkickers to purchase (with the added bonus of extra kicks awarded!).

Want to start the new year off on the right foot? Ensure you’re incorporating the latest retail app trends through a lucrative partnership with Shopkick. Our partners have found great success, and we’re sure you can too! Learn more about becoming a Shopkick partner or contact us directly.

Wishing you a happy & healthy Thanksgiving

2020 has changed life as we know it, and has undoubtedly been a challenging year for brands, retailers, and consumers alike. While some businesses have stayed afloat or even thrived amid the chaos, others have been forced into triage mode. And what was once a quick trip to the store has now become a matter of safety vs. necessity for many Americans.  Continue reading “Wishing you a happy & healthy Thanksgiving”