Category: Omnichannel

Supply Chain Disruptions: Holiday Shoppers Already Experiencing Product Shortages and Delays

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Rising shipping costs impacting consumers’ holiday shopping decisions

Holiday shopping is in full swing, and many Americans (40 percent) have already started checking gifts off their lists. But according to recent data by Shopkick, a leading shopping rewards app, rising COVID-19 cases and the Delta variant are proving to have an impact on consumers’ holiday shopping behavior. Nearly a third (30 percent) of shoppers are already experiencing limited product availability in-store and online, as well as higher shipping costs (58 percent), forcing the majority of consumers (68 percent) to reconsider how they will shop this holiday season.  

Shopkick surveyed over 37,000 American consumers between September 22 – 26, 2021 to gain insight on the impact that COVID-19 and the Delta variant will have on consumers this holiday season and when, where, and how they will be making their holiday purchases. 

Key insights include:

  • The Early Birds: Although the fall season just kicked off, many consumers (40 percent) have already started their holiday shopping, and a third (33 percent) are shopping earlier this year. Of those reporting they are shopping earlier, the majority (58 percent) are doing so because of concerns around product inventory, to stay organized ahead of the holidays (58 percent), and to avoid holiday crowds (53 percent).
  • COVID-19 Fallout: Surprisingly, 30 percent of those early birds are already experiencing holiday product availability issues and 23 percent are experiencing shipping delays. On top of supply chain disruption, the majority of consumers (51 percent) are adjusting their budgets due to the threat of continued inflation. 
  • The Motivations for Online: Whether shopping online or in-store, consumers’ main motivation this holiday season is scoring the best prices and deals. Online shoppers are also motivated by the convenience of shipping and ease of returns (59 percent), saving time and avoiding checkout lines (52 percent), and product availability (50 percent). It is no surprise that expected delays and high shipping costs could force 80 percent of online shoppers to reconsider how and where they buy their holiday goodies this year.
  • The Motivations for In-Store: Product availability is a top motivator for consumers shopping in-store for the holidays (44 percent), followed by immediate satisfaction of taking products home the same day (43 percent), ease of in-store price comparison (34 percent), getting inspiration from browsing aisles (33 percent), product assortment (24 percent), and in-person help from store associates (12 percent). 
  • Seasonal Safety: Rising COVID-19 cases have resulted in 40 percent of consumers planning to make fewer in-store shopping trips, a nearly 10 percent increase compared to July 2021. To ensure safety, shoppers are expecting retailers to make employees wear protective face coverings (56 percent), offer disinfectants (52 percent), require shoppers to wear face coverings (51 percent), enforce social distancing measures (48 percent) and install plexiglass barriers at check out (42 percent). 

“In many ways, supply chain shortages and shipping delays are putting in-store retailers at an advantage this holiday season,” said Dave Fisch, general manager of Shopkick. “Shoppers are headed in-store no matter what this holiday season, which means it is essential that retailers are prepared, offer a pleasant in-store experience with trained and available staff, and mandate COVID-19 safety precautions to ease shoppers discomfort and meet their expectations.” 

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. 

 

Surging Delta Variant Continues to Impact the Way Consumers Shop

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Shopkick survey finds that 47 percent of concerned shoppers are worried about shopping in-store 

Just as normalcy appeared to be on the horizon, surges of COVID-19 cases brought by the Delta variant are once again leaving many Americans in fear of what’s to come. Thirty percent of shoppers are more worried about COVID as Delta cases continue to rise, and 40 percent report feeling the same level of discomfort as they did one month ago. Of those concerned Americans, 43 percent report that the Delta variant is impacting the way they shop, and nearly half (47 percent) are more worried about shopping in-store. 

Shopkick surveyed nearly 11,500 consumers across the country to gain an understanding of how the Delta variant is impacting their shopping habits. The online survey was conducted between July 21 – 27, 2021. 

Key Insights Include: 

  • Proceeding with (Pre)Caution: The majority of shoppers (61 percent) are taking extra precautions when shopping in-store due to the rise of Delta. Of those cautious consumers, most are once again masking up while shopping (82 percent), using disinfectants on hands and carts (79 percent), shopping at less busy times (66 percent), using debit/credit cards to avoid exchanging cash (63 percent), and utilizing self-checkout (59 percent).
  • Concerning Counterparts: Of the consumers worried about shopping in-store, 85 percent are worried that other shoppers are not taking the proper safety precautions. To feel safer, the majority of shoppers (70 percent) expect retailers to enforce safety precautions. However, 59 percent of worried shoppers fear retailers will fall short of this expectation. Consumers hope to see retailers disinfecting carts (83 percent), enforcing social distancing (65 percent), mandating masks (65 percent), limiting store capacity (42 percent), and putting a cap on the number of essential products each shopper can purchase (38 percent). 
  • In-Store Stays on Top: Despite consumer fears, shoppers are still headed in-store. In fact, most shoppers (67 percent) report taking the same amount of trips to the store per week as they did last month, and 10 percent have found themselves going more often.
  • Changed Consumers: Fifty-five percent of consumers report that the pandemic has changed the way they will shop forever. Post-pandemic, shoppers expect to continue to stock up on essentials (57 percent), shop online more (56 percent), and make fewer, but bigger, shopping trips (53 percent). However, after the pandemic, fewer shoppers plan to prioritize availability over brand preference (37 percent) and utilize convenience options like BOPIS (14 percent). 

“Even with a surge in COVID cases and consumers wary of in-person shopping, they are still heading in-store,” said Dave Fisch, general manager of Shopkick. “Retailers need to prioritize making the experience as enjoyable as possible, while doubling down their focus on safety. Shoppers will expect nothing less than stocked shelves, a demonstrable commitment to safety in your store, and a trained staff setting the example.” 

Retail Remix Podcast: The Story Behind Shopkick’s Consumer Research

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Throughout the pandemic, Shopkick has kept a pulse on rapidly changing consumer behaviors, expectations, and concerns through continuous data analysis and first-party user surveys. Jaysen Gillespie, EVP, Head of Analytics and Data Science at Shopkick, joins Retail Touchpoints to dive into today’s nimble, data-filled, ever-changing retail landscape.

During this podcast,  Jaysen dives into Shopkick’s latest first-party consumer data to uncover the universal truths that are impacting retailers now and for the foreseeable future. “Data is [woven] into everything we do. Every story we have is infused with data, informed by data, contextualized by data, because data is [the] core of communication now”.

In this conversation, he reveals:

  • How vaccine trust has impacted physical retail behaviors and preferences;  
  • New and unchanging safety expectations for brick-and-mortar retailers;  
  • Why supply chain disruption has influenced shoppers’ channel preferences; and  
  • Demographic nuances that will drive back-to-school and holiday results.

Listen to the story behind the research, as well as the key takeaways here.

Ho, Ho, Holiday Already?

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Shopkick survey finds nearly a quarter of consumers plan to do their holiday shopping earlier this year

Believe it or not, there are only 142 days until Christmas. As the holiday season inches closer, Americans are already starting to think about how they will approach the merriest of times, especially after many of last season’s traditions and celebrations were put on hold. According to recent data by Shopkick, a leading shopping rewards app, nearly a quarter (22 percent) of consumers plan to shop earlier this year, with 25 percent expecting to do most of their shopping before Thanksgiving and 10 percent before Halloween. While the majority of shoppers (52 percent) report that the threat of continued inflation will impact their holiday budgets, most plan to spend the same amount as last year (64 percent) and 15 percent are increasing their budgets.

Shopkick surveyed over 23,000 American consumers between July 5 – July 12, 2021 to gain insight on when, where, and how they will be shopping this holiday season and the impact the current economy will have on their behavior.

Key findings include:

  • Big Spenders: Overall, 15 percent of shoppers plan to spend more this holiday season compared to last year, and 26 percent of Gen Z consumers have larger budgets. Half of Gen Zers (50 percent) say the increase in spending is because they have more people to shop for, and 45 percent say they are more financially secure.
  • Stealing Deals: Consumers will continue to take advantage of deal days, with 61 percent reporting that they are planning to shop on Black Friday and 67 percent on Cyber Monday. The majority (78 percent) of those planning to take advantage of Black Friday will do so online, followed by in-store (64 percent) and on mobile (36 percent). Shoppers clicking into Cyber Monday will do so on their laptop or desktop (71 percent), followed by their smartphone or tablet (67 percent). Younger generations are more likely than their older counterparts to steal deals, with 76 percent of Gen Z and 66 percent of Millennials planning to shop on Black Friday compared to 61 percent of Gen X, 53 percent of Baby Boomers, and 43 percent of the Silent Generation.
  • Thankful for Thanksgiving: While 70 percent of respondents positively support retailers closing their doors on Thanksgiving Day, 23 percent still plan to shop on the day, and 60 percent of those will shop in-store. 
  • IRLR (In Real Life Retail): Although online shopping increased during the pandemic, 43 percent of consumers expect to make the majority of their holiday purchases in a physical store — a nine percent increase compared to last year. The majority (68 percent) will visit big box stores like Target and Walmart. When it comes to the in-store experience, the ability to try on, touch, and see physical products (70 percent) and in-person interactions with sales associates (41 percent) were ranked as most important, followed by product sampling (20 percent), complimentary gift wrapping (15 percent), and holiday activations like on-site Santas (13 percent).
  • Amazing Amazon: Fifty-seven percent of consumers expect to make the majority of their holiday purchases online, and Amazon reigns supreme with 73 percent reporting it will be their primary shopping destination. Outside of Amazon, younger generations (65 percent of Gen Z and 60 percent of Millennials) gravitate towards Etsy, while 57 percent of the Silent Generation will frequent eBay.
  • Seasonal Safety: Consumers will also expect in-store safety measures to continue throughout the holiday season, requesting that retailers offer disinfecting spray (48 percent), enforce social distancing measures (36 percent), install plexiglass barriers at checkout (34 percent), and require employees to wear face coverings (32 percent). Consumers will also be prioritizing shopping on less busy days at less busy times (45 percent) and shopping at one-stop shops to knock a variety of things out in one trip (42 percent).
  • Planning for Perks: Of all the online perks, free shipping and returns remain the top priorities for online shoppers. Almost all consumers (94 percent) say free shipping is the most crucial incentive for online seasonal shopping, followed by fast shipping (60 percent). Flexible and long return policies (31 percent), “buy now, pay later” and BOPIS (19 percent each) are much less of a priority.

“Consumers are eager to get their holiday shopping done this year, and they are ready to spend,” said Dave Fisch, general manager of Shopkick. “As retailers prepare for their biggest season, it will be imperative that they get an earlier start, improve their omnichannel and e-commerce capabilities, and offer the best deals on the traditional days consumers have come to love.”  

Shopkick conducted this survey of 23,588 American consumers between July 5 – July 12, 2021

 

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.

Shopkick and Moburst Win Award for Most Effective Video Campaign

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We’re excited to share that Shopkick’s TikTok campaign with Moburst, an award-winning mobile success agency, took the win for “Most Effective Video Campaign” at this year’s Mobile Marketing Magazine Awards!

The Mobile Marketing Magazine Awards celebrate the accomplishments of digital marketing teams across the world that are making an impact through the power of mobile. 

During the pandemic, Moburst and Shopkick worked together to accelerate Shopkick’s mission to make everyday shopping fun, rewarding, and meaningful. When the launch of our first TikTok awareness campaign didn’t resonate the way we’d hoped, the team quickly pivoted to create more authentic and informative content, rather than traditional ads that mobile users often scroll past. This new strategy was a major success and helped us share just how fun and easy Shopkicking can be with consumers across the country!

Thank you and congrats to our partners at Moburst – we look forward to exploring new opportunities together and creating awesome content for Shopkickers everywhere!

Shopkick and Moburst Win Award for Most Effective Video Campaign

Posted on by shopkick

We’re excited to share that Shopkick’s TikTok campaign with Moburst, an award-winning mobile success agency, took the win for “Most Effective Video Campaign” at this year’s Mobile Marketing Magazine Awards.

The Mobile Marketing Magazine Awards celebrate the accomplishments of digital marketing teams across the world that are making an impact through the power of mobile. Winners are selected by independent, global, and North American juries of renowned senior mobile marketers.

During the pandemic, Moburst and Shopkick worked together to push for mobile growth and accelerate Shopkick’s mission to drive meaningful digital engagement. When the launch of our first TikTok user acquisition campaign didn’t resonate the way we’d hoped, the team quickly pivoted to create more authentic content, rather than traditional ads that often oversaturate the mobile space. This new strategy successfully boosted engagement and retention while also unlocking a highly-coveted new generation of users.

Thank you and congrats to our partners at Moburst – it’s an exciting time in the digital world and we look forward to exploring new mobile opportunities together!

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. 

 

Consumer Trends for Back-to-School Shopping

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

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

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

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

Are shoppers considering physical or online retail stores?

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

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

What is important for retail marketers to focus on?

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

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

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

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

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

 

Retail Refined Podcast: Strengthening Customer Loyalty with Data

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

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

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

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

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