Category: CPG

CPG Industry Challenges 2021

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The global pandemic has had a double-sided impact on the consumer packaged goods (CPG) industry. On the one hand, stay-at-home lockdown orders spurred incredible demand for several categories of consumer goods. According to a recent study, CPG brands experienced more absolute growth in 2020 than in the four years from 2016 to 2019. As beneficial as this surge in demand was for many companies, it also caused temporary shortages across multiple essential CPG categories (famously, toilet paper) and led to a decline in brand loyalty when necessity trumped preference. 

There have been notable recoveries in both the fight against COVID-19 and in the stabilization of consumer packaged goods. Still, the CPG industry will face significant challenges in the back half of 2021 and beyond. Increasing production and shipping costs are likely to have the most direct impact on how competitive companies will fare amid rising inflation. And with consumers becoming increasingly price-conscious, CPG brands will need to find ways to increase profits without passing these costs along to consumers. 

Production and shipping costs continue to rise

Unfortunately, the CPG industry will likely continue facing price increases remainder of 2021 and beyond. The cost of raw materials rose 4.2% between March of 2020 and March of 2021, while labor costs for CPG manufacturers followed the same pattern. 

Shipping complications added on another layer of complexity for manufacturers. Due to high product demand across several categories during the pandemic, CPG companies had to improve their supply chains to ensure products remained on shelves. 

Yet any CPG manufacturer that relies on raw materials from overseas is likely still going to struggle with shipping, both in cost and time. A shipping container shortage, among other factors, has increased international shipping rates in the double digits. Domestically, the long-term truck driver shortage persists, despite increasing wages for drivers. 

Costs are getting passed on to consumers

With the continued rise of production and shipping costs, most CPG companies have been forced to pass these costs on to consumers. All told, the upward push from inflation could cause CPG prices to rise as much as 10% this year. This is undoubtedly concerning for many and could stand to wipe out the wage gains that many consumers have received amid an unprecedented demand for employment.

CPG companies can only pass a limited amount of their costs onto consumers before something gives. The highly competitive market for consumer goods leaves very little wiggle room for pricing too far upward. National CPG brands may find themselves especially conscious of this, given wider consumer interest in lower-cost private label options sold by retailers that often undercut name brands by a considerable percentage.

Rewards programs can deliver a competitive edge

The CPG market is already highly competitive and economic pressures are hitting companies from all sides. As inflation and production costs continue to rise and the potential for supply disruptions remains present, CPG companies need to establish new strategies to drive sales without passing cost burdens along to already price-conscious consumers. 

Considering one of the main challenges that CPG brands are facing is rises in costs across the board, the worst thing a company can do is further dilute profit margins by providing a discount. One solution could be to incorporate incentive programs that provide consumers with something valuable in exchange for their purchase, rather than just a one-time discount.

Incentive programs come in many shapes and sizes. While many use coupons and discounts to influence purchase behavior, this structure dilutes profit margins and drives one-time sales, rather than long-term loyalty and affinity. Others, like Shopkick, offer rewards points in exchange for purchase at full price. This structure allows partners to drive sales in a brand-aligned way without associating their brand or product with a discount. 

Tyson, for example, discovered the value in reward programs after a successful campaign with Shopkick that drove an impressive 4:1 ROI. Using our unique rewards model, Tyson was able to drive incremental sales amongst both new and existing customers without relying on margin-diluting coupons, discounts, or cash-back incentives. In fact, 62% of those who went on to purchase at full price were new or infrequent customers.

Implementing rewards programs like Shopkick can help CPG brands and retailers weather these difficult times through establishing meaningful relationships with customers, maintaining profit margins, and incentivizing shoppers to select your brand over competitors. To learn more about how Shopkick can help you succeed in 2021 and beyond, get in touch with our team. 

 

How to Build an Effective Video Marketing Strategy

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The benefits of video marketing are best reflected in the explosive popularity of video-first social media apps like TikTok and Instagram Reels. These apps emphasize authentically created, short-form videos that allow anyone to promote brands and ideas.

Many businesses have successfully leveraged the demand for short-form video content by forming partnerships with influencers and skilled creators, following and adapting to stylistic and cultural trends, and creating value for viewers that extends beyond entertainment. Additionally, when done well, video marketing can have a much farther reach than other marketing channels when the content is focused on shareability.

 

Video marketing can help brands connect to younger consumers

Video is now among the most-consumed types of content, especially among social media users. According to Pew Research, 72% of Americans now use at least one social media channel. When you unravel those numbers by age, 84% of those aged 18–29 use social media, while 81% of those aged 30–49 use at least one service. 

Youtube has been the most popular video-focused social media service by far. An impressive 81% of all Americans use YouTube, underscoring the vast popularity of video as a format.

However, businesses that want to reap the benefits of video marketing and start effectively connecting with younger audiences may want to pay special attention to Snapchat and TikTok. According to the aforementioned study, 65% of adults aged 18-29 use Snapchat regularly, at nearly a 3-1 ratio, compared to the next-largest age group of users (those aged 30-49, at 24%). Meanwhile, 48% of adults aged 18-29 use TikTok regularly, compared to more than twice that of adults aged 30-49 at 22%. 

 

Well-crafted videos can increase ROI

A recent Wyzowl report found that video marketing is currently one of the most highly effective channels available to businesses:

  • 94% of marketers report that video marketing has increased consumers’ understanding of their product and/or service
  • 87% believe the format provides a good ROI
  • 86% state it’s increased their website traffic
  • 78% of video marketers say video has directly helped increase sales
  • 83% report video has decreased bounce rate

Additionally, there’s still space for enterprising businesses to take a dominant stance within short-form video marketing on emerging platforms. Many businesses have shied away from developing effective marketing strategies for emerging short-form video platforms, instead are going all-in on the dominant services, such as Facebook and YouTube.

Wyzowl found that only 20% of respondents planned to market on TikTok, for example. Creative businesses have the opportunity to carve out a lasting presence before their competitors.

 

Want to market with video? Learn the language of the space

What does “well-crafted” mean in the context of video marketing? The answer to that is “It depends”. Social media users have different expectations of what content looks like across different platforms. Every social media platform has its own culture. Brands that want to find success on any given platform will need to study the structure of what makes content on that platform successful and then strategize around that. 

A handy “cheat” for this is to partner with known personalities and influencers who have found a winning strategy. Not only will that help your brand with cultural alignment, but it may be the deciding factor for many consumers. In fact, a 5WPR study found that 64% of YouTube users aged 18-34, and nearly 50% of those aged 35-54 purchased products because of an influencer.

Another simple, yet effective way to reap the benefits of video marketing is to find a third-party mobile app with an innovative video offering. With Shopkick, consumers earn rewards for watching branded video advertisements both at home and in-store. The incentive establishes positive brand affinity as the consumer prepares to shop, keeps the brand top-of-mind throughout the shopping trip, and increases purchase likelihood at the crucial moment of purchase decision. 

Video marketing may seem old-fashioned, especially for companies that have created video advertisements for TV or the web. But the emerging short-form video trend has its own unique DNA. Learning and implementing video marketing best practices can be just what businesses need to connect to previously hard-to-reach demographics.

Shopkick helps our partners deliver informative and engaging video content to consumers at home, in-store, and on-the-go. To become a partner, and connect with our highly valuable user base, contact our team. 

 

Solutions to Mobile Marketing Challenges

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Mobile marketing is more important for today’s businesses than ever before. According to a recent survey, consumers spend 70% of their total digital media time on smartphones. For advertisers, of course, such figures haven’t gone unnoticed, as mobile ads accounted for more than two-thirds of the recent annual digital ad spend.

But while there are major opportunities for growth in the mobile marketing space, challenges also arise. How can you be sure you’re reaching the right consumers where they spend most of their time in a way that’s seamless and relevant? To answer that question, marketers must be able to measure user engagement with robust and accurate analytics. In using such data strategically, it’s crucial to coordinate consistent messaging across all channels. Read on to uncover specific solutions to these complex mobile marketing challenges.

 

Mobile Apps

Mobile traffic centers on apps. According to a recent survey, consumers spend 88% of their mobile time on apps, with the remaining time spent on mobile sites. This means that in order to reach your target audience, marketers must successfully penetrate this area through a proprietary or third-party mobile app.

 It can be tempting to focus simply on outbidding competitors on mobile platforms. Yet some note that with a limited ad budget it can be difficult to gain a foothold in a saturated mobile market. Others suggest that higher-spend apps advertise greater rewards to marketers but often underdeliver on such promises.

 Instead, customer rewards platforms that offer rewards in exchange for engagement not only capture the dominant form of mobile traffic, but also encourage brand loyalty by deepening relationships with customers. With such rewards apps, marketing spend goes further by both gaining new customers and strengthening engagement with existing ones.

 

Analytics and Metrics

Mobile marketers need to capture accurate analytics to determine the success of their campaigns. But many worry about issues regarding the transparency and integrity of mobile data analytics. Lately, this sentiment has only magnified since recent studies found that fraudulent user data has increased by 15% in the past two years.

A comprehensive mobile analytics platform provides accurate data, interprets it, and acts on it. But in addition to descriptive analytics that determine when, where, and to whom products are being sold, mobile marketers need to find a way to gather real-time information on consumer buying behaviors. Shopping apps offer a benefit that other sources of data collection don’t: the ability to travel with the consumer throughout the buyer’s journey from awareness to purchase. Through Shopkick or similar apps, brands can discover trouble spots that might be impairing the consumer’s path to purchase.  

 

Omnichannel Coordination 

How can mobile marketers coordinate consistent messaging across different channels? It’s widely known that users transition between multiple devices throughout the day. But even when confined to mobile, users have a variety of ways to access information. A successful omnichannel strategy must work seamlessly to integrate the different mobile communication paths. 

In-app messages are one of the most common ways to communicate with mobile users. These can include ads with images and a call-to-action which can strengthen user engagement with your brand. In addition to ads, mobile users can also receive push notifications. These messages, which a user must opt into, offer a sense of urgency that can lead multitasking users back to an app. Text messages have a similar urgent quality — for many today — even more immediate than a phone call — which contrasts to some extent with the medium of email.

 

Strategic Mobile Marketing

Marketers know that gaining and retaining customers is an ongoing challenge with any strategy, and mobile is no exception. Yet, by leveraging a strategic approach to apps, analytics, and omnichannel communication, marketers are rising to the challenge with smart solutions.

Shopkick is an established mobile rewards shopping app that helps brands and retailers keep their stores, brands, and products top of mind throughout the entire shopper journey, driving incremental engagement and sales. We have a proven track record of helping mobile marketing spend go further by collecting real-time, actionable first-party data for our partners. Our mobile programs are pay-for-performance against our opt-in audience, eliminating fraud concerns and wasted spend. To learn more about how Shopkick can help optimize your mobile marketing strategies, contact our team.

How Brands are Getting Customers Back to Physical Stores

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Last year, the coronavirus had a devastating effect on traditional retail. As shoppers rapidly shifted to e-commerce, foot traffic dropped in physical stores as much as 82.6% in the months following the pandemic. This year, however, in-person retail is beginning to see a light at the end of the tunnel. As more Americans receive the COVID-19 vaccine, more and more opportunities to entice customers back to brick-and-mortar shopping are beginning to pan out.

Yet, where there are post-pandemic retail opportunities, challenges also emerge. On the one hand, many customers with online shopping fatigue are eager to get back to spending money in-person. Some outlets that saw slumps are now preparing for “revenge spending,” as customers are ready to overindulge after months without shopping. On the other hand, traditional retail stores have to work against online buying habits that have become routine for many.

So, how can brands provide post-covid experiences that are more inviting, innovative, and enticing for in-person shoppers? This article looks at how brands can use face-to-face customer service, omnichannel shopping experiences, and enhancements to the traditional retail experience to drive customers back to physical stores.

 

Face-to-face Customer Service

If there’s one thing that online shopping experiences simply cannot offer, it’s face-to-face customer service. The brands that are proving to be most successful at bringing customers back to physical stores are those that use exceptional customer service to make each shopper feel special and like their needs are being met.

Powerful customer service begins with listening. Consider a customer shopping for a high-quality home stereo setup. Rather than pushing a large set of high-end speakers, a patient salesperson listens and learns that the customer lives in a small apartment. In response, the salesperson suggests an ergonomic audio setup that fits the environment without sacrificing quality. 

 

Omnichannel Shopping Experience

Today, more than 65% of consumers use multiple platforms before making a purchase. Omnichannel retailing uses various data sources to let retailers and brands meet customers where they are, regardless of the device. Making this as seamless as possible, regardless of the platform, is key. In-store shopping should integrate with online use by offering a consistent and engaging customer experience. 

An omnichannel strategy takes multiple channels into account when messaging customers. This includes, for instance, sending contextually specific information based on location data or previous behavior. The luxury retail chain Barney’s, for example, created a mobile app that allows them to send promotions based on customers’ proximity to the physical store, and recommendations based on their in-store behavior and selections. Brands that leverage such tech alongside loyalty and rewards apps are likely to be at the forefront of the return to brick-and-mortar.

 

Enhanced Shopping

Retail outlets are also feeling increased pressure to provide a sense of novelty and newness for the in-person shopping experience. This kind of “retailtainment” or experiential retail can take many forms. Think of in-store play centers, celebrity appearances, virtual reality demos, collaborative cooking—these are just some of the ideas retailers are experimenting with to drive foot traffic back to stores.

At the same time, of course, retailers will need to balance such exciting in-person experiences with customers’ need for safety in a post-covid environment. Forbes suggests that various forms of built-in physical distancing, along with calming colors designed to soothe anxious customers, are here to stay.

 

Optimistic for In-Person Retail 

Brick-and-mortar retail was significantly impacted by the coronavirus, but many are optimistic about the consumer demand for in-store shopping. Expanding face-to-face customer service, omnichannel communication, and enhanced shopping experiences are some of the ways brands are meeting this demand while driving even more customers back to physical stores.

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. 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 about how Shopkick can help you drive awareness, incremental sales, and customer loyalty throughout the full-funnel shopping journey, contact our team. 

 

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.

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. 

 

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.

 

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

Read more from TechCrunch

Best Strategies For Customer Loyalty In Retail

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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.  

Super Bowl Ads Fell Short on Influencing Purchase Decisions

Posted on by shopkick

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.