Category: Retail

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.

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. 

 

Non-Essential Spending on the Rise as Americans Feel More Financially Secure

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Shopkick survey finds in-store shopping on the rise; apparel, dining out and travel top consumers’ 2021 summer budgets 

With widespread vaccination eligibility and COVID-19 restrictions lifting in many states, a return to normalcy could be on the horizon. As we head into summer, a majority of Americans (83 percent) report feeling financially secure and ready to put their budgets toward non-essential purchases. 

Shopkick, surveyed nearly 13,300 consumers across the country to gain insights into consumers’ shopping behaviors and spending plans for the summer. The online survey was conducted between April 30 – May 3, 2021. 

 

Key Insights Include: 

  • Summer Spending: Americans are ready to allocate their budgets toward non-essential purchases this summer. This year, 80 percent plan to spend similar amounts or more than last summer on non-essentials, a sharp increase from Shopkick’s April 2020 findings, which found only 33 percent of consumers were spending similar amounts or more on those items. Clothing and accessories (45 percent), dining out (43 percent) and travel (41 percent) top this year’s shopping lists. Other non-essential spending will include hobbies (36 percent), entertainment (25 percent), and household decor (25 percent).
  • Time to Travel: With more widespread vaccinations, 60 percent of Americans plan to resume travel within the next six months. Of those, most plan to travel by car (86 percent) rather than traveling by plane (39 percent), train, or ship (4 percent respectively). At their destination, consumers plan to stay in hotels (60 percent), with friends or relatives (50 percent), or in a vacation rental (25 percent). 
  • New Fits for Gen Z: Most Gen Zers (64 percent) plan to put the majority of their non-essential spending budgets toward new clothing and accessories, compared to Millennials (50 percent), Gen Xers (45 percent) and Baby Boomers (42 percent).
  • In-Store on the Rise: While online shopping was a major trend throughout the pandemic, 74 percent of consumers report shopping online less frequently now than a month ago. 62 percent of Americans feel more comfortable shopping in-store now compared to April 2020, which explains why more than half (61 percent) of non-essential purchases have been made in-store in the past month.
  • Pandemic Purchasing Trends: Certain COVID shopping habits are expected to remain in the coming months, with many consumers saying they will continue to use self-checkout (62 percent), curbside pickup (32 percent), and touchless payment options (32 percent). However, fewer consumers plan to continue using grocery delivery (13 percent), and BOPIS (4 percent).

“It is clear from our findings that this summer represents a great opportunity for non-essential retailers to win back shoppers who are eager to spend,” said Dave Fisch, general manager of Shopkick. “To take advantage of this moment, retailers and brands must continue to monitor consumer expectations, especially in-store, and Shopkick is committed to helping our partners do so.” 

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. 

 

The Power of Augmented Reality in Retail

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Technology is at the forefront of one’s shopping experiences. Anyone can connect their debit or credit cards seamlessly and pay by tapping their mobile phones to payment terminals without having to carry around cash or physical credit cards. These conveniences are further enhanced with experiential shopping experiences offered by augmented reality which can create extensive engagement and long-term benefits for brands, retailers, and shoppers alike.  

Augmented reality (AR) is a form of photographic technology that overlays information onto real-world objects. Perhaps most popularized by break-out mobile games like Pokemon Go!, augmented reality has realistic benefits for brands and retailers. A 2021 study published in the Journal of Marketing found that retail companies could see a boost in sales when incorporating AR thanks to the tech’s ability to create engaging and entertaining experiences for shoppers; streamline customer’s knowledge of products available for sale; tangibly visualize what products will look like “in place” after purchase; and enhance post-purchase experiences.

Entertain customers (and keep them coming back for more) 

Pinning down the wants and needs of retail shoppers can be tricky. Most shoppers are interested in buying online, yet e-commerce still accounts for less than 20% of all retail sales. That share is growing steadily each year, but it shows consumers will continue to visit physical stores for retail purchases. 

As competition for customers remains fierce, businesses can stand out by incorporating AR shopping experiences that entertain and enhance visits to retail spaces. This falls under the emerging concept of “retailtainment”. A 2020 study presented at the International Conference on Business, Management, and Economics concluded that experiential marketing provided brands with “more powerful marketing, more engaged customers, and better return on marketing investments”. By design, augmented reality provides the framework for establishing experiences customers want as AR provides a layer of self-driven interaction.

Educate customers about available products

Shoppers want to know more about the products they buy before they purchase. This has led to an explosion in SEO-driven product review content with titles such as “Top 10 Lawn Chairs” or “Best Skin Care Products”. These are popular for no other reason than consumers want to know what to buy and don’t enjoy the experience of having to return products. And as any retailer will note, chargebacks are a major problem and exceptionally expensive, especially for e-commerce. 

AR can allow you to add real-time informational pop-ups to your retail products. Incorporating the technology allows consumers with mobile devices to get instant feedback in an exciting way. It’s similar to high-end vehicles with a Heads-Up Display (HUD) beamed onto the windshield. Tons of product data becomes available without consumers having to go looking for it.

Allow customers to see products “in place” 

An important benefit offered by AR is its positive impact on product returns. When shoppers go to buy retail products such as clothes or furniture, they often have to imagine what that product will look like in their own space. This is a bit easier for brick-and-mortar retailers, as buyers can try on clothes in the store. And physical furniture stores do still have some advantages as buyers can at least see displays. 

Nevertheless, many buyers still prefer to shop online. As many have come to experience, online shopping makes the “try before you buy” process a bit more difficult. Buyers are far more likely to return a product if they didn’t have a chance to test it out first. This helps account for the fact that online products have a 20% return rate according to Shopify, compared to an 8-10 percent return rate for products purchased in-store. 

AR is an excellent solution to this. Some businesses have already begun adding AR concepts into the buying process. Zeekit, for example, allows shoppers to try on clothes virtually before making a purchase. Meanwhile, the popular Swedish furniture brand, IKEA, rolled out an AR app in 2017 that lets customers “see” what the furniture looks like in each room.

Build on-going, post-purchase experiences

Brands have long sought to engage customers after purchases are made. There are multiple ways to do this, but AR interactivity post-sale can help expand the lifecycle of existing product lines. 

Lego is an example of this with its AR-driven Hidden Side ghost game. The game offers a multiplayer gaming experience that allows several users to play a “hide and seek” style game using a Legos mobile app. An experience of this nature brings customers back to the product and gives Lego the opportunity to build its brand and attract users to new products within the same or other lines. 

Brands hoping to add post-purchase AR interactivity will need to be particularly inventive to create experiences buyers enjoy. Thankfully, the possibilities of what AR can do for product life cycles is limited mostly by the imagination of marketing teams

Shopkick is an established shopping rewards app with a proven track record of helping retailers and brands drive awareness, incremental sales, and customer loyalty throughout the full-funnel shopping journey. To learn more about our interactive mobile technology capabilities and how we help our partners improve the customer experience, 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.

 

Move Over Millennials – When It Comes To Brand Loyalty It’s All About Gen Z

Posted on by shopkick

Gen Zers have been accused of many things: short attention spans, an inability to maintain eye contact, and an unhealthy relationship with their AirPods. But, according to a recent Bank of America study, the generation born between 1996 and 2016 is set to usher in a new wave of disruption across industries and economies. Not only is Gen Z more technologically savvy than their millennial counterparts, but sustainability and activism also factor more heavily into their agendas than any generation before. And the kicker? Gen Z is set to crush millennials’ earning ability by 2031.

They may be young, but Gen Z has an estimated spending power of over $143 billion. And with more and more of this generation reaching adulthood, brands are naturally lining up outside their doors.

 

Gen Z Shopping Habits 

Gen Z mainly scopes out brands across preferred online channels, but while the assumption might be that the world’s first completely-digital natives prefer to buy online, they don’t conduct their entire customer journey solely through the internet. Gen Z are the ultimate omnichannel shoppers, expecting brands to offer a top-notch experience through online channels and in-store.

Gen Z consumers like to do their product discovery through social media channels, primarily through Instagram. A recent report showed that 60% of Gen Z shoppers use Instagram to discover new brands and products ahead of Snapchat, Youtube and Facebook. Additionally, TikTok has become a go-to tool for discovering new brands and products, staying on top of trends, and watching reviews. This indicates an appreciation for the ability to interact with and learn as much as possible about the brand before deciding whether to purchase.

Gen Z loves to make purchase decisions by tapping into insights from influencers who share key product details—the good, the bad and the ugly. They rely on voices they’ve trusted to fully research a brand: not just what it’s like to use their product, but what the shopping experience, customer experience and brand values are (and whether a brand lives up to its promises).

 

They Want Their Products—And They Want Them Now 

While some members of Gen Z still prefer the brick-and-mortar shopping experience, a majority of the generation has a need for speed around pretty much everything—especially when it comes to e-commerce. Speed, convenience, and an intuitive online experience can mean the difference between attracting and retaining this generation’s loyalty, and being left in the dust. 

E-commerce adds speed and convenience to the shopping experience. An American teen can see a cute top on their favorite Instagram influencer in a shoppable video or image and order it with the simple click of a button. But if the influencer lives in Australia—along with the top—cue disgruntlement. It’s in your best interest to reconfigure your shipping strategy to reflect the reality of a global market. More importantly, your shipping strategy can set you apart as a brand and boost sales simultaneously: can you say win-win?

While Gen Zers love the ease of a well-crafted online shopping experience, they chafe at longer wait times and shipping costs. This inconvenience eclipses the frustration of not being able to try on clothes in-store. In fact, only 18.4% of Gen Zers are bothered by the latter, compared to 26.16 % of millennials. That’s why investing in an efficient shipping strategy is such an effective way to add value to the purchasing experience and retain brand loyalty. Ensuring that your products are delivered in a timely fashion and at a decent shipping price goes a long way with Gen Z shoppers.

 

They Want Their Purchases To Reflect Their Values 

According to a recent Facebook study, Gen Z increasingly makes purchase decisions based on what brands are doing for the world. 

They demand that the brands and retailers they support align with their core values, especially those centered around environmental sustainability, social justice, healthcare, and the socio-economic and personal implications of the COVID-19 pandemic. They see what they buy as a reflection of their own personal values and beliefs, and this translates into the brands they engage with.

On top of that, they’re willing to spend more to get behind a brand that’s actively making a difference. And considering this group accounts for 30% of the world’s population (almost 2 billion people), retailers need to sit up and take notice. Tapping into this social conscience gives retailers the perfect opportunity to attract and grow brand loyalty with a group that, quite simply, is the future. To resonate with this idealistic group, brands should actively showcase their values and demonstrate how they are serving the needs of the community.

 

They Want A Personalized Brand Experience

This generation has vast social media circles and thinks nothing of nurturing hundreds of online relationships simultaneously. So when it comes to choosing which brand to attach their loyalty to, the bar is pretty high. They want a personalized, on-site experience that acknowledges their uniqueness. They’re savvy shoppers, highly attuned to insincere messaging. If they sniff out rote communication, they’ll scroll past so quickly it’ll leave you breathless. That means retailers must find meaningful ways to engage, and put the time into crafting compelling messaging that’s on-brand and connects with this demographic.

While Gen Z is still big on social commerce, with more time spent shopping on social media than any other generation, brands still have to have strong touchpoints both online and in-store in order to get this generation to buy. In-store and online experiences are both important parts of the consumer journey for Gen Z,  and cannot be ignored. When companies over-invest in tech and online marketing tactics to attract these shoppers and neglect the in-person shopping experience, they’re missing a crucial point in the customer journey. These consumers expect brands to be consistent with the level of service they provide at both live and digital touchpoints.

 

They Want To Be Part Of The Conversation 

The best way to get to know Gen Z customers is by engaging with them. Social media platforms like Instagram Live (which allows multiple accounts to participate in a live stream discussion) let your brand create a safe space for customers to engage, share stories, and talk about important issues. But it can’t be hollow — let your brand create a safe and authentic space for customers. A successful example of this is Headspace. The meditation app connects with its community via Instagram, where users can ask questions, offer feedback and discuss meditation techniques. This is just the display of community that Gen Z wants to get behind and support.

Gen Zers, the socially conscious, digitally-native consumers have paved the way for a new era in the customer experience. An innovative brand will recognize these shoppers as omnipresent and invest in engaging them at each brand touchpoint, from discovery to purchase, and even onto advocacy. 

Shopkick is an omnichannel solution that allows brands and retailers to engage shoppers and influence their behavior throughout the full path to purchase—whether they’re shopping in-store or 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, contact our team. 

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

Posted on by shopkick

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

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