While many consumers prefer privacy, they also want to do business with companies that understand them. Continue reading “Learn how personalized marketing can boost customer loyalty and improve sales”
Category: Marketing
Next best action marketing: How to leverage consumer data to offer relevant products and services
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Brands are quickly learning that next best action marketing is one of the most effective ways to leverage consumer data. Continue reading “Next best action marketing: How to leverage consumer data to offer relevant products and services”
Within reach: The ultimate guide to mobile proximity marketing for retailers
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Within reach: The ultimate guide to mobile proximity marketing for retailers
Most major retailers already use some form of proximity marketing, whether they’re offering notifications leading to rewards through beacon-based technology or the ability to interact with RFID embedded-chip displays. Regardless of the bespoke tools and desired outcome, using a combination of mobile proximity marketing strategies sets retailers up for the best results through flexibility in when they can reach at the right place and right time. It helps regardless of whether retailers want to guide consumers to specific products, better understand buying behaviors, or maximize their sales and so forth.
Types of Mobile Proximity Marketing Systems
Mobile proximity marketing is a very general term that can refer to many different strategies. The type of technology involved, messages sent, and other features can also vary. Here is a breakdown of the four types of mobile proximity marketing systems that brands may choose to leverage.
Type | Pros | Cons |
Bluetooth
The system requires a Bluetooth broadcaster, as well as a cell phone with Bluetooth enabled to transmit content, data, and images. |
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Near Field Communication
NFC uses RFID chip embedded tags to enable communications between the tag and the devices that come in very close proximity with it. NFC’s most common use is in simplifying payments for the consumer, but can work with marketing as well. |
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WiFi
WiFi-based systems are very similar to Bluetooth systems, in how messages are transmitted and received. But that information travels over general WiFi, rather than relying on low-energy Bluetooth. |
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Geofencing
This system allows messages to reach users in a specific, geographical area. |
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Retailers rarely choose one single form of mobile proximity marketing. In most cases, they leverage several, and many of these systems complement each other well.
Best Practices in Mobile Proximity Marketing
Mobile proximity marketing is powerful because it allows brands to reach consumers during crucial shopping moments. It can also reinforce brand affinity and prime consumers for sale throughout their purchase journey. When embarking on a mobile marketing campaign, retailers and brands should:
Be specific
Mobile proximity marketing is designed to drive interest in products based on their availability nearby. As such, messages should center on deals available by location or on certain items, rather than just standard marketing messages. Generic marketing messages are less impactful as they don’t encourage a consumer to take a specific action, which is a crucial part of mobile marketing. It’s also important to know how often to send messages. You don’t want to bombard consumers with too many messages—one or two, here and there, is just enough.
Gamify the program
Gamification—or the process of turning a mundane event into a fun activity—is a great method for driving engagement with products. Allowing consumers to use their phones to discover the hidden features of an advertisement or seek out products in the store can increase the likelihood that they will continue to use the app. This means brands can gain more attention for their advertising as well as a longer retention rate for the app.
Incentivize interaction
A major part of gamification is the reward for participation. There must be something that marks the consumer’s accomplishment as they participate. This is where mobile reward programs can provide an opportunity. Consumers in these programs can collect points that they can save and redeem for branded merchandise, gift cards, and more. These incentives provide the added benefit of creating a sense of product value without the need to offer a discount.
Leverage mobile video
Mobile video is the most engaging medium for shoppers. Users of mobile are three times more likely to view a video when shopping than desktop or laptop users. Brands should look to incorporate video which can be viewed seamlessly within an app, or in other words, vertical video. Video in this format allows consumers to view video content without changing their phone’s position, making it ideal while consumers are shopping or on-the-go.
Use multiple programs
As many mobile proximity marketing campaigns require user permission, it’s critical that retailers and brands take advantage of as many as possible. A mobile phone user may have their Bluetooth disabled, but are still likely to have their WiFi enabled. By using multiple proximity-based strategies, brands can gain the attention of a larger audience.
Of course, brands can only enjoy these benefits if they choose to partner with the right mobile app providers. That means reviewing a few key metrics and options of all available programs to garner the best results.
Selecting a Mobile Proximity Marketing Partner
Retailers and brands have the option to create proprietary apps. However, there are limitations to these features, one being the audience. If a consumer is already following a retailer or brand, it’s likely because they’re already loyal. While rewarding pre-existing loyalty is wise, it doesn’t serve to grow the brand or retailer’s audience. Companies must supplement their proprietary programs with third-party app providers to reach new users.
Third-party app providers help companies reach new audiences who may not have considered their products before. They also take the expense out of a mobile app program as these providers handle the development, app retention, marketing, and innovations that drive consumer use. Before partnering with a third-party app, brands should take into account the app provider’s:
Reputation:
Companies will share the reputation of any app provider with whom they partner. As a result, they must ensure the reputation of these apps is above reproach, in that they use consumer information fairly and correctly and provide strong security.
Active users:
Companies may focus on apps with a high number of downloads as well as retention rates, but often, consumers will download an app never to use it again. Active user metrics allow companies to better understand how much activity that app gains from its user base.
Features:
Companies should partner with apps that offer features consumers want the most. The ability to gain rewards and enjoy exclusive content are major drivers of an app’s success. Also, features like rewarded video—where consumers receive an incentive for viewing content to the end—appeals to consumers as it allows them to gain something in exchange for a minimal time investment.
Prior campaign success:
App providers should be able to show a history of success for brands within a niche. They should offer clear figures relating to return on investment, sales lift, and market share growth as just a few examples. Metrics of prior campaigns allow brands to see the kind of results they can expect from a mobile app campaign with that provider.
User demographics:
Brands and retailers want to be able to reach household decision-makers, but they also want those decision-makers to be the prime audience for their products. Partnering with an app with a diverse mix of users allows brands to target the best possible sales prospects to create a successful campaign.
Retailers and brands should consider offering their own mobile proximity marketing programs, but also supplement those programs with third-party apps that provide additional features. This strategy allows brands to provide the widest range of services while engaging a broad audience of consumers in the shopping aisle.
How to increase brand recognition: 3 tips and tricks
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The best strategies for increasing brand recognition center on approaching consumers as individuals. Continue reading “How to increase brand recognition: 3 tips and tricks”
Machine learning in retail: How brands are leveraging this technology to personalize messages
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By leveraging machine learning in retail, brands will possess the ability to enhance every part of the sales process, from supply chain management to consumer marketing and purchasing. Continue reading “Machine learning in retail: How brands are leveraging this technology to personalize messages”
How to reach customers effectively in a crowded market
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CPG brands face many challenges in determining how to reach customers effectively. Continue reading “How to reach customers effectively in a crowded market”
3 innovative ways to communicate with customers
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Finding innovative ways to communicate with customers is essential these days, as the way consumers shop has changed so much. Continue reading “3 innovative ways to communicate with customers”
5 best practices for brand storytelling on social media
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5 best practices for brand storytelling on social media
Brand storytelling does not have to be limited to social media. Brands can leverage this strategy through both proprietary and third-party apps by creating shorter, easily digestible content. This content can speak to consumers as they’re in the shopping aisle and improve the likelihood of future sales. Whether your brand is telling its story on social media or through a mobile app the benefits are numerous, and brands can enjoy them by adhering to some standard best practices.
How Brand Storytelling on Social Media Creates Meaningful Connections
Brand storytelling isn’t just about making sales. It’s about aligning a brand with its target market. The kind of top-of-mind awareness that CPG brands need to succeed isn’t possible without establishing an emotional connection that drives consumer loyalty.
Brand storytelling is the process of turning standard marketing into an engaging narrative. CoverGirl’s tagline shift from “Easy, Breezy, Beautiful” to “I Am What I Make Up” is an example of moving away from product-focused advertising to brand storytelling.
“I Am What I Make Up,” on the other hand, is a very literal approach to brand storytelling. Rather than treating the model wearing the makeup as a prop, the brand allowed the personalities of their models to shine through. During the brand’s spots, their models—who range in age, ethnicity, and gender—discuss their personal stories, as well as why they wear makeup. The overall focus is on self-expression, rather than fitting in with a traditional definition of beauty which helps the brand’s message resonate with consumers.
The clear benefit of brand storytelling is the emotional connection it creates with consumers. These consumers are more willing to become brand ambassadors on social media, which can increase future sales and improve customer loyalty for the long term. Of course, that’s not to say that brand storytelling on social media is effortless. Brands must consider ways they can gain consumer buy-in for their message while maintaining a genuine and transparent persona. All best practices for this type of advertising should center on that.
#1: Let Consumers Drive the Message
One of the essential parts of establishing a brand storytelling campaign on social media is to listen to what is important to consumers. Brands may often find they already have brand equity behind their products which they can leverage online by doing a deep dive of available information. This was a strategy Kellogg’s used when they rolled out a new, and highly successful, campaign for Pringles.
One of the first steps Kellogg’s took in designing the campaign was performing a “digital audit” with the assistance of Google. The brand searched out mentions of their product across digital platforms and found a unique trend of consumers combining multiple flavors to create new ones. They built their campaign off this “Stackable” concept, even using it in their Super Bowl commercial.
#2: Focus on the Emotional Response
Storytelling doesn’t work without emotional investment. These narratives must include a component that intrigues consumers and encourages them to watch through to the end of an ad. Some brands advertise using humor, while others focus on nostalgia and sentimentality. As long as there is a human connection to the story, brands can keep consumers engaged.
If there is any brand that knows how to manage emotions in advertising, it’s Purina. The brand is excellent at using their target market’s connection to pets to get them invested in their brand storytelling on social media. The company leveraged this in a recent charitable contribution drive, Service Dog Salute, to help raise money for Tony La Russa’s Animal Rescue Foundation (ARF).
#3: Stay True to the Product
When trying to create a branded story, brands may focus a bit too much on the narrative and forget to highlight the product. Such marketing may not connect with consumers in a way that makes sense for the brand. Even the best brands can make missteps when storytelling doesn’t fit the product.
#4: Monitor Key Metrics and Update As Needed
Brands must monitor metrics during their campaigns to ensure they’re able to change direction if it’s not performing. Sales lift isn’t the only metric worth focusing on. Here are a few metrics brands need to consider when using brand storytelling on social media.
Click-through rate (CTR):
The CTR offers base engagement rates, as these are the individuals who choose to view the ad on a given platform. It can also show how traffic filters into a website, which provides the marketer with an understanding of their most important channels.
View-through rate (VTR):
The VTR takes the CTR a bit deeper, by showing the individuals who viewed content all the way through. VTRs for advertisements are typically higher when the video is shorter as consumers often have the option to skip longer ads.
Engagement rates:
Likes, comments, and hashtag mentions are a valuable resource for seeing exactly how an ad is coming across to viewers. More than a few brands have been able to pivot their campaigns thanks to early information obtained through social media engagement.
User activity:
User activity is less about content and more about strict numbers. It can help brands discover when they can get the most engagement from ads. It can also help them track down issues with ad fraud. For example, a brand noticing a high number of clickthroughs during times when their audience wouldn’t likely be active, like after midnight on a weeknight, can be a clear indication of useless bot traffic used to inflate CTRs.
Incremental sales lift:
Sales explicitly related to the marketing message compared to standard base sales are much easier to gauge now than they used to be. Before the internet, brands had to compare prior period sales to current sales to determine which were attributed to marketing. However, mobile apps and websites offer brands the ability to watch how marketing converts to sales in real time, as the user is trackable from the moment they view the promotion until they make the purchase.
#5: Leverage Multiple Platforms and Mediums to Spread the Message
Brand storytelling shouldn’t just be limited to social platforms. Brands can take the message even further, gain valuable data, and better understand audience responses by working with third-party app providers to share small snippets of campaigns.
There are many opportunities to be leveraged in brand storytelling on social media, provided brands create content that establishes an emotional bond with consumers. These campaigns build brand affinity rather than only offering immediate sales. By adhering to some best practices for providing genuine and engaging content, brands can increase loyalty, and over time, their market share.
How to create an immersive retail experience
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A shopping mall is a place where people can visit even to window shop and still end up enjoying the experience. Continue reading “How to create an immersive retail experience”
How AI is reshaping customer engagement
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Artificial intelligence is being used by marketers in new ways and strengthening customer engagement is one of them. Continue reading “How AI is reshaping customer engagement”
Why CPG brands should explore creative ways to attract customers
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When it comes to creative ways to attract customers, CPG brands should consider how mobile apps can improve their business models. Continue reading “Why CPG brands should explore creative ways to attract customers”
A marketer’s guide to programmatic advertising
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A marketer’s guide to programmatic advertising
By 2020, marketers will spend $69 billion in programmatic ad buys, which will account for almost 90% of total online digital display advertising in the US. As so much money is invested in this type of advertising, it’s imperative that marketers making ad buying decisions understand the options, as well as the technical details of how programmatic advertising works. Through this, they can make informed decisions that drive sales.
The Technical Details of How Programmatic Advertising Works
Programmatic advertising is a form of data-driven marketing which allows users to leverage platforms to automatically buy ad space based on pre-set criteria. Primarily, it involves three separate components:
Demand Side Platforms:
DSPs are where marketers buy ad inventory. They facilitate the process by allowing marketers to purchase ads in a variety of spaces. An example of this includes the Google Ad Manager, which enables brands to display advertisements when specific, targeted keywords are searched, as well as show their ads on certain websites, among other options.
Supply Side Platforms:
The SSP is the publisher side of the platform, where sites can offer unsold ad space to the general public or a select group of brands. The publisher can connect with multiple DSPs to sell their free space and monetize websites.
Data Management Platforms:
DMPs allow brands to target their advertising by using data to better understand their audience. Such platforms collect details from website cookies to understand user buying behavior, and create groups marketers can target to ensure their best chance of sales conversion.
Targeting Options in Programmatic Advertising
Often, programmatic advertising is mistaken for “real-time bidding,” a common type of programmatic advertising where brands can target users based on the keywords they search. However, this is not the only option for targeting users. Brands can get much more detailed, as DMPs give them access to a wide range of information, including:
Individual online behavior:
The pages individuals check and sites they frequent can provide indications on their future purchase behaviors. The followers of a famous makeup artist on YouTube, for example, would also be strong targets for a makeup brand selling their wares on Facebook.
Purchasing affinity:
Purchase affinity goes a bit deeper than simple browsing preference as it creates context. An individual who leaves a positive review of a brand’s product on a popular site will be more likely to make future purchases, as they have an existing positive brand affinity.
Purchasing history:
Many individuals are surprised to learn that their actual purchases are trackable when using credit cards or other digital funding methods. While details like credit card information aren’t available, information like what consumers purchased and when is often visible to brands that wish to pay for the privilege of seeing it.
Net worth/income:
Information individuals post on an online resume site or through their credit report can often be used to estimate their annual household income, net worth, and other financial factors.
Inferred lifestyle choices:
This is a general category that isn’t always accurate but can become so with more data. For example, an individual with a high net worth, who purchases high-end makeup regularly, could also be assumed to have an interest in luxury fashion, making them an ideal candidate for targeted marketing. The more data the brand has available, the more likely their predictions are to be accurate.
The Benefits of Programmatic Advertising
Brands can enjoy increased efficiency, better tracking, and a stronger ROI through programmatic ad buys. Here are just a few of the ways programmatic advertising offers brands improved marketing.
Increased reach:
The most apparent benefit of programmatic marketing is the ability to reach millions of buyers at once through the click of a few buttons. Google alone gets an estimated 40,000 searches per second, meaning that brands will always have a broad audience to reach when advertising on or through the search engine.
Ease of use:
Programmatic advertising is relatively easy to learn, and providers focus on the user experience to ensure ease of use. It’s far more straightforward than the old process of requests for proposals, negotiations, and manual insertion orders that took time, effort, and a lot more know-how.
Simplified ROI tracking:
Understanding the ROI on a programmatic ad buy is relatively simple, as the tracking from ad display to conversion is typically automatic. This process simplifies budgeting and helps companies determine precisely how much they should spend on this venue for the best results.
Enhanced data and insights:
Brands can learn a lot about their target market by looking at the results and conversion of their programs. They can discover niche communities with loyal followers and further enhance their marketing to improve their ROI.
Personalization:
The final benefit for programmatic advertising comes on the consumer’s end. When a consumer sees an ad which is more relevant to them, it creates a personalized connection which can spur positive brand affinity.
The Challenges of Programmatic Advertising
Programmatic advertising isn’t a magic bullet for marketers, especially for those new to online optimization. While the platforms themselves are easy to use, a lot is going on behind the scenes which creates limited effectiveness. Here are just a few of the challenges marketers face with programmatic marketing.
Location limitations:
While marketers can certainly use location as a basis in their search, there are some limitations to this—especially when consumers are in the shopping aisle. When advertising at a brand level, the ability to reach consumers as they make a purchase is crucial. However, tracking real-time GPS data is not a possibility in these types of ad buys as it would be considered an invasion of the consumer’s privacy. Brands can only connect with consumers who permit GPS tracking through a retail, shopping, or branded app.
Ad fraud risk:
Not all providers of advertising space are equal. Brands must contend with malicious traffic created by bots, which could inflate effectiveness and limit the overall ROI. Carefully vetting ad providers can ensure brands reach an audience that will provide genuine sales.
Cost:
Programmatic advertising can be expensive, especially when dealing with competitive keywords or high-value platforms. It’s impossible to target every platform, so it can be challenging to pinpoint the most profitable avenues without investing in less effective ones.
Market saturation:
The programmatic market is valuable, which is why so many brands are already on board. The more individuals participate, the more expensive it will get. Consumers may go “ad blind” by seeing too many sidebars and headline ads, choose to skip them, or install ad blocking software to eliminate them, making programmatic less effective.
Alternatives to Programmatic Advertising
Brands can seek out new methods to reach consumers on an automatic basis without the need for programmatic advertising. This is an opportunity found through third-party apps. Third-party apps work based on user permission, so it’s possible to reach consumers based on their location and as they travel. They also provide a less competitive space, as brands can pick and choose the companies they work with for the best results.
Third-party apps can help bridge the gaps in programmatic advertising by allowing brands to reach traveling consumers, especially as they’re about to make a purchase. They can drive consumers to products in the shopping aisle, which enhances any overall digital marketing program and increases sales.
The Future of Programmatic Advertising
Programmatic advertising is expected to reach platforms outside of regular websites and even mobile apps in the years to come. Smart speakers serve as a prime example. While voice ordering is still a relatively new option, programmatic advertising could enter this realm and allow brands to gain audio air space when consumers interact with their smart devices.