Category: Retail

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/ 

Best Strategies For Customer Loyalty In Retail

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Any retailer knows that building brand loyalty is key to achieving business success: not only do you have to hold on to existing customers, you also have to attract new ones. And because it costs more to attract new buyers than to retain the ones you already have, strategy is key. Fortunately, there are endless ways to satisfy your current clientele, woo new customers, showcase your brands, and—oh yes—increase sales. 

The Shopping Experience Has Changed…

… But you already know that. The omnichannel customer experience is the new black, and you need to meet this challenge head-on. This is not your mother’s shopping experience: retailers now use multiple channels to reach both existing customers and the ones they have yet to meet. It’s all about the customer here—and most of them are highly distractible. And with such a dizzying array of choices at their fingertips, who can blame them? Here’s where a customer loyalty program is your friend. Customer loyalty incentive programs help build trust between a retailer and its customer. And in a world where 71% of Americans say it takes only one less-than-stellar experience to switch them to another brand—can you really afford not to?

The best customer loyalty marketing strategies work by creating the most convenient shopping experience possible—that’s doubly true if the customer is new. Enter a mobile app. As a tool to build brand loyalty, a mobile app is a no-brainer. As anyone who has ever ridden on a bus can attest to, people love their phones. In fact, the average American checks their phone at least 52 times a day, according to a study by Deloitte.

Building Brand Loyalty 

People don’t put their phones away just because they’re in your store. They might be checking messages, swiping left or right, or pulling up a picture of that to-die-for sweater that brought them there in the first place. If you want to reach a new customer, do it through their devices. A mobile app also lets you send personalized messages to new and existing customers alerting them of exciting offers they can take advantage of.

A popular customer loyalty program idea is the “VIP-pre-sale.” It works on the premise that the customer is valued, loyal, and just a bit better than the rest. These customer loyalty programs often offer an advance sale available exclusively to longstanding and repeat customers—and they work like a charm. Better still, existing customers instinctively forward the offer to friends who they think might be interested.

Referrals Are Retail Goals 

As an active marketing strategy, word of mouth is king. In fact, 92% of consumers say they trust friends and family’s recommendations over all other forms of advertising, even when they don’t know the person. That’s why referrals are such a powerful tool. Recommending a brand is like texting your bestie about a fabulous new restaurant they simply must try. It’s personal. And humans like the personal touch.

Referrals come in many shapes and sizes, including written testimonials, which you can easily incorporate into your marketing materials. You can also reach out to a customer still giddy from a recent purchase and ask them to recommend the brand to 3 friends. This is called the network effect and is a highly proven strategy to pull in new fans. Video testimonials are another powerful way to market your brand and outperform both text and photos. 

Listen—Really Listen—To Your Customers

Your customers need to feel supported. An integral part of customer service is addressing your customer’s issues and any negative experiences they may have had with your brand. Consider their demographics, including, age, gender, income, education, and occupation, to create on-brand messaging that resonates. You’ll also want to continually take the pulse of your customers through surveys, focus groups, communities, and forums—and of course, one-on-one connection. Promotions, giveaways, contests, and social media games are also a great way to build brand loyalty.

Automatic Incentives 

People are more likely to spread the love about your brand or post about it if there’s a little something in it for them. A customer loyalty program provides that extra bit of encouragement. You can also incentivize through bonuses like complimentary premium features or credit toward future buys.  Creating incentives via a charitable donation is another great strategy. Bonus marks if you personalize the donation. It sparks a connection between the customer and the donee and makes them feel like they’re making a difference.  

Another powerful customer loyalty rewards program strategy is geotargeting or location-based marketing. By tracking someone’s real-time location, marketers can deliver the “right message at the right time.” Push notifications are a great example of this. When a customer is in the general area of a retailer they like, they’ll receive notification of an offer they simply can’t refuse. After all, people adore convenience, and everybody loves a bargain. And you’re not just limited to your own brand. With location-based marketing, you can also direct ads at your competitors and nab their customers too.

Shopping Rewards Apps 

Shopping rewards apps like Shopkick work by creating a fun way for shoppers to get rewards in-store and even online. This could be for interacting with in-app content, engaging with products in-store, and of course, purchasing. Like a great game of Candy Crush, the best part is making it to the next level.  

In a world where every new product is seemingly better than the last and convenience reigns supreme, you have to evolve to grow your brand and thrive in today’s retail climate.  

Despite Vaccinations, Americans Still Expect Safety Precautions When Shopping In-store

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Shopkick survey uncovers consumer sentiment toward COVID-19 vaccines and how it will impact current shopping habits

For some, widespread vaccinations offer a glimmer of hope that life will soon return to normal. However, with many Americans (44 percent) planning not to receive the vaccine, consumers say vaccinations will hardly change their current shopping behaviors. In fact, nearly all consumers (96 percent) say they will continue to take personal safety precautions while shopping, and of those who have already received the vaccine, less than half (48 percent) report feeling more comfortable shopping in-store now. 

In its ongoing commitment to support brand and retail partners with regular insights during the COVID-19 pandemic, Shopkick surveyed more than 20,000 consumers between Jan. 20-24, 2021, to learn about current shopping behaviors and how the vaccine impacts those habits. 

National Vaccine Insights:

  • Many consumers do not plan to get the vaccine. While most consumers surveyed have either already received the vaccine (8 percent) or plan to receive it (48 percent), 44 percent say they do not plan to get vaccinated.
  • Millennials are the least confident in the vaccine. Millennials make up the largest segment of people not confident in the vaccine (35 percent) and do not plan to get vaccinated (51 percent). Comparatively, America’s youngest and oldest consumers appear the most confident in the vaccine, with 71 percent of Gen Zers and 75 percent of Boomers feeling some level of confidence.
  • Vaccinations do not mean consumers will flood back indoors. Of those who have already received the vaccine, less than half (48 percent) report feeling more comfortable shopping in-store and taking part in other indoor activities, and only 18 percent say they will do so more frequently now vaccinated. Similarly, of those who plan to get the vaccine, only 15 percent say they will shop in-store or take part in indoor activities more frequently after receiving the vaccination.
  • Personal health and safety habits are here to stay. Nearly all of those who have already been vaccinated or plan to be vaccinated say they will continue to take personal safety precautions while shopping in-store (96 percent and 97 percent, respectively). Precautions include wearing protective face coverings (93 percent), using disinfectants (87 percent), shopping at less busy times (66 percent), using debit or credit cards to avoid exchanging cash (66 percent), using self-checkout (58 percent), or wearing protective gloves (21 percent).
  • Consumers expect health and safety to remain top-of-mind for retailers. Even if a large majority of Americans are vaccinated, 79 percent of consumers expect retailers to continue enforcing health and safety restrictions, such as requiring protective face coverings for shoppers and employees (89 percent), offering disinfectants for shoppers (86 percent), enforcing 6-feet-social distancing (80 percent), keeping plexiglass barriers at checkout (74 percent), and limiting the number of shoppers allowed inside (62 percent). According to 62 percent of respondents, enforcing these guidelines will influence where they choose to shop.

Additional Insights Include:

  • More than half of consumers are using BOPIS for essential purchases. As consumers try out different options for picking up the essentials, 55 percent say they are now using BOPIS (buy online, pickup in-store) at varying degrees, including sometimes (35 percent), often (11 percent), or very often (9 percent). 
  • Stockpiling rates are down and consumers are seeing the impact on store shelves. Forty-nine percent of consumers say they are currently stocking up on essential items, a decrease from November 2020 findings, when a whopping 61 percent of shoppers were stockpiling. In turn, 41 percent say essential items that were out-of-stock or low-in-stock one month ago are now more in-stock, compared to 36 percent who say items are still out-of-stock and 23 percent who have not yet noticed a difference. 

Retail mobile app vs. responsive website: Which is better?

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How important is customer loyalty to retailers today? Consider this: While 80% of a retailer’s future revenue is dependent on 20% of its existing customers, the average American retailer loses 15% of its customer base each year. Understanding how to juggle this revolving door of customers while still maintaining your most valuable shoppers is critical to a business’ health. 

In an ideal situation, retailers would have infinite budgets to spend on their eCommerce endeavors; but for most, budgets are limited and allocation decisions must be made. Having a user-friendly website that functions properly is a necessity, but increasingly, shoppers are using mobile devices to complete their purchases and inform their shopping trips. 

Not to mention that retail mobile apps have now become a vital channel for engaging with customers and driving long-term loyalty. To help you invest your dollars wisely, we’ll compare retail mobile apps vs. responsive websites and see which channel is more valuable. 

Retail Mobile App vs. Responsive Website: Which Should You Invest in? 

When comparing retail mobile apps vs. responsive websites, consider the following:

  • Where do retail shoppers spend most of their time? You can’t build loyalty if you aren’t connecting with shoppers where they are. The number of mobile users increased by over 10% (37% to 48%) from 2019 to 2020, and more than half of all time spent online (51%) is initiated on mobile devices. In fact, 40% of people conduct all their online searches on a smartphone or tablet exclusively. Mobile commerce sales in 2021 are projected to reach $3.56 trillion and account for 73% of all eCommerce sales. Not to mention that the average smartphone user spends nearly 4 hours per day on their mobile devices, with 90% of that time spent within apps. 
  • What engages customers and makes them more likely to convert? Mobile apps have much higher rates of engagement, with 100-300% higher conversion rates on average. Even the most efficiently mobile-optimized websites can’t compete. During the holiday season, app shoppers spent 117% more time in apps than on mobile web and made 108% more orders per person in-app than on mobile web. Apps had a 14% higher conversion rate than mobile web. Plus, app users have a 4x higher return rate than mobile web or desktop users, meaning they are more likely to return to their abandoned shopping carts, add more items, and convert to purchase.
  • What makes customers more likely to stay loyal to a retailer? More than 80% of U.S. shoppers say they are more loyal to retailers and brands when they participate in dedicated rewards programs. More than 70% of shoppers say they are more likely to participate in these loyalty programs if they can easily access their membership data from their mobile phones. Apps can seamlessly replace loyalty cards with several key features and advantages that mobile-optimized websites just cannot provide. Apps can send relevant and personalized push messages when shoppers are near a retailer’s physical location or in-store looking for special offers nearby. App icons remain on the phone’s home screen as a highly visible reminder of a retailer’s presence every time the phone is checked—about 96 times per day. Plus, apps are extremely convenient, retain user data, run with minimal loading time, and allow one-click checkout. With apps, retailers can tap into unique mobile experiences using augmented reality, visual search, image recognition, and in-store navigational tools to increase loyalty using the latest technology.

While both a retail mobile app and responsive website are important to have, it’s clear that mobile app usage is on the rise and holds the potential to offer so much more to customers and their shopping experience, thereby increasing affinity and loyalty. 

Maximize Your Dollars With a Third-Party Mobile Retail App

While it’s possible to create your own in-house app, it’s quite an expensive venture that will utilize valuable time and resources. Instead, you can partner with an established third-party mobile retail app for a fraction of the cost that will provide you access to its existing user base, like Shopkick. 

Having driven over 300 million store visits in the past decade, Shopkick is widely considered one of the best mobile reward shopping apps, attracting retailers and brands looking to elevate their loyalty programs.

Here’s how it works for shoppers: Shopkickers log into the app to see which retailers and brands are offering “kicks” (reward points) in their area. They earn kicks by performing a number of engagement-related activities, like walking through a retail partner’s doors, watching branded videos, browsing curated lookbooks, engaging with products in-aisle, scanning products’ barcodes, and submitting their purchase receipts. 

Once enough kicks are accumulated, Shopkickers can redeem these rewards for a gift card of their choosing. Many shoppers end up opting for a gift card from the retailer where they earned rewards in the first place, further cementing customer loyalty and providing an incremental revenue stream. 

If you already have a loyalty program, no problem! Shopkick can complement your existing loyalty programs, allowing you to expand your reach and strengthen loyalty among both new and existing customers. 

While any comprehensive eCommerce strategy will have both a responsive website and a retail mobile app, given mobile shopping’s rise in popularity and prominence, it would be most beneficial for retailers to invest in creating a retail mobile app—or even better—partnering with an existing one. Mobile apps give retailers the chance to connect with customers where they are, and allow them to provide supplementary benefits like a convenient rewards program and an enhanced shopping experience. 

When comparing retail mobile apps vs. responsive websites, the former is the most relevant to today’s shopping trends and will provide the best opportunity to reach shoppers. Shopkick is an established mobile rewards shopping app that has a proven track record of helping retailers achieve greater awareness, foot traffic, and consumer loyalty. Read our success stories and contact us to learn how to become one of our partners.

Discover how proximity marketing benefits positively impact your strategy

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The majority of shoppers (82%) make their purchasing decisions while in-store, typically after seeing, holding, and interacting with the product. Retailers need to find a way to reach customers at this pinnacle moment when they’re weighing their options. Store associates have been one of the only effective ways for retailers to influence the decision-making process in real-time, but technology—specifically proximity marketing—is swiftly moving in as the preferred way to personalize the shopping trip and deliver information, guidance, and tips during critical moments along the path to purchase. 

The positive impact proximity marketing benefits have had on retailers has driven this marketing strategy to the forefront of the industry. Whether you use beacons or GPS technology, reaching shoppers on mobile devices with relevant, real-time messaging will be a boon to your retail business in 2021. 

Here are some core proximity marketing benefits you can expect to see if you decide to implement the strategy: 

1. Influence Customers On-the-Go. 

Proximity marketing falls under the omnichannel strategy of retail marketing, which aims to reach and influence consumers through the various channels in which they shop. Omnichannel retail eCommerce in 2020 has had a significant impact on in-store purchases. Whether you think of it as delivering a consistent experience across channels or establishing a presence where people are buying, omnichannel is not so much a “trend” as it is the most effective way to conduct business. 

Mobile has become one of the most important components of omnichannel shopping. People spend nearly 4 hours per day on mobile devices, and 82% of shoppers consult their smartphones before making an in-store purchase. 

Proximity marketing messages can be delivered through a complimentary app, or can simply target shoppers passing by the store (so long as they have Bluetooth enabled). The average click-through rate of proximity marketing messages can reach 80%, which is significantly higher than the 0.119% click-through rate of Facebook ad CTRs and 1-3% email open rate. 

2. Access Touchpoint Opportunities. 

A touchpoint refers to any given time a customer comes into contact with your brand. Storefronts, showrooms, employees, checkouts, email communications, TV ads, billboards, in-store displays, online ads, coupons, mobile texts, and app interactions can all be considered touchpoints. 

The average sale requires about eight touchpoints, though it could be more or less depending on your niche. Every opportunity you have to leave a favorable impression helps bring a shopper one step closer to a purchase, whether it’s the first or it’s been a while since the last.

With proximity marketing, beacon technology can send relevant messaging to customers at the most opportune times, creating multiple touchpoints in one consumer journey. For instance, a shopper may be greeted upon entering a retail store with personalized recommendations. Later on, they may receive notice of a nearby deal on a wish-listed item, and then be offered a reward for interacting with or purchasing the product. 

Together, these messages can positively influence the consumers’ path to purchase, encouraging them to select your product over the competition. 

3. Increase Engagement.

Sustaining engagement is necessary to keep customers loyal. Since it’s 5x to 25x cheaper to retain an existing customer than it is to solicit a new one, investing in engagement is critical. 

Engagement-related activities keep shoppers informed of new arrivals, promotions, and product recommendations while providing retailers with valuable feedback. Engagement is necessary to improve marketing campaign return on investment (ROI), keep customers happy, and grow referrals. 

Proximity marketing is one of the most effective ways to increase engagement. In 2020, 48% of retailers said they would use location data to engage customers. Proximity marketing provides a means to target customers in real-time at the point of purchase. Beacons can drive relevant promotions, answer questions, and provide additional incentives to “buy now.” 

4. Drive Immediate Conversions.

Today’s shoppers seek a “hyper-relevant” experience, which is when a retailer knows who the customer is and what the customer is trying to achieve in a real-time shopping context. Targeted promotions, in-store analytics, and proximity marketing solutions help deliver hyper-relevance to consumers. 

These tactics will improve a brand’s or retailer’s perceived value, and will also prompt an uptick in sales conversions. Hyper-relevant location-based notifications increase sales by an average of 24% when delivered directly near the products or services promoted. 

To see proximity marketing in action, you can look to Purina’s holiday campaign with Shopkick.  When Purina partnered with the mobile shopping rewards app, their goals were to increase awareness and use in-store messaging to drive trial and consideration of their products at Target during the busy holiday season. 

Shopkick first promoted in-app content to shoppers at-home to drive awareness and interest. Shopkick then leveraged proximity messaging to drive shoppers in-store and greet them once they entered the store, keeping Purina top-of-mind. Finally, to drive product engagement and incremental conversion, Shopkick used reward incentives to encourage shoppers to seek out the product at-shelf. 

Of all sales driven, 85% were incremental, and 36% of shoppers were previously unfamiliar with the product before introduction through the Shopkick app. Forty-seven percent of shoppers also reported future purchase intent. 

Are You Ready to Reap Proximity Marketing’s Benefits?

Proximity marketing’s prominence is growing among retailers who are looking to impress consumers with an elevated level of personalization and timeliness. With competition increasing by the minute, it is imperative for retailers to find ways to differentiate themselves in order to gain market share. Proximity marketing is retailers’ key to differentiation in 2021. 

Want to learn more about how proximity marketing benefits retailers? Read our success stories and contact Shopkick to learn how to become a partner and integrate proximity marketing into your 2021 strategy.

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

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

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

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

Marketing Efficiency.

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

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

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

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

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

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

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

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

Customer Satisfaction.

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

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

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

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

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

Timeliness.

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

Location-Based Relevance.

Location-Based Relevance.

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

Instant Rewards.

Instant Rewards.

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

Lasting Impact and Increased Brand Value.

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

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

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

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

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

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

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