Month: March 2022

Shopkick is Giving Away $10,000 in Kicks to Ease the Pain at the Pump 

The average price of a gallon of fuel has increased by approximately 47 percent ($1.36) since last year, and consumers are feeling the impact. According to recent data by Shopkick, a leading shopping rewards app, nearly all (99 percent) consumers have noticed an increase in gas prices, and 86 percent have been affected by the recent surge. Of those impacted, 71 percent are driving less, 59 percent have tightened their budget, 28 percent are purchasing less fuel, and 7 percent are entirely unable to buy fuel.

To fully understand how rising gas prices are affecting Americans and discover ways to help, Shopkick surveyed more than 36,000 consumers between March 17-20, 2022.

Key Findings Include:

• Consumers are Getting Less Fuel: Before the spike in gas prices, 87 percent of consumers would fill their tank all the way up, and now, only 59 percent fill it completely. Thirty-one percent of drivers are now choosing to only fill their tank halfway when getting fuel, compared to 10 percent previously.
• Cost Concerns: An overwhelming 95 percent of consumers are worried about rising gas prices, and 62 percent saying they are extremely worried. When asked how much additional money in their wallets would help consumers feel more secure while fueling up, 24 percent say between $21-$40, 23 percent say $41-$60, 12 percent say $60-$80, and 13 percent say $81-$100.
• Cutting Back on Non-Essentials: In the last month, the majority (72 percent) of consumers have altered their spending habits for non-essential purchases, with 64 percent cutting back and 31 percent skipping non-essential purchases altogether.
• Less Frequent Trips: Gas prices may be rising, but 56 percent say they are not shopping online more frequently now than they were before. However, 74 percent of consumers have cut down their frequency of trips to the store.

To help out the Americans impacted by high gas prices, Shopkick is launching a nationwide fuel sweepstakes – giving 100 users $100 (25,000 kicks each) to use at the pump. Between March 24-28, 2022, every Shopkick user who earns just one kick by Monday, March 28th will automatically be eligible and entered to win. Trying to avoid driving and save money? Shopkick makes it easy to earn kicks, even from the comfort of your home.

How to earn a kick: 

• Watch videos at home
• Shop online through the app 
• Walk into a store
• Scan items in-store
• Shop with a linked card
• Submit a receipt

“Inflation and rising gas prices are causing financial concern across the country, especially as 46 percent of consumers are required to drive to work every day,” said Brittany Billings, EVP, strategic markets & marketing at Shopkick. “Our user community is at the center of all we do at Shopkick, and we recognize the economic challenges many are facing. We decided to create this giveaway to support them through this hard time and help fill up their tanks stress-free.”

To participate in the Shopkick Fuel Sweepstakes, consumers can download the free Shopkick app on iPhone or Android devices. 

Shopkick Fuel Sweepstakes entry ends on 3/28/22 at 11:59 pm PST. One hundred winners will be selected and awarded 25,000 kicks each. Winners will be contacted and announced following the contest end date. Find the full contest rules: here

Coke or Pepsi? Visa or Mastercard? Uber or Lyft? Apple or Android? Think about the brands you are loyal to. Does that allegiance extend to the exclusion of ever buying or using rival brands? Why or why not? What is it about commodity or luxury products and services that keep you faithful – and what would tempt you to switch?

Companies are working hard to understand this and it’s not easy. Both Gen-Z and Boomers have significant purchasing power (in 2020, consumers 65+ upped their online shopping by 53%), yet these generations sit on opposite sides of the preference and behavior spectrum (and individuals in those cohorts vary just as wildly). Legacy brands have armies of nimble D2C challengers nipping at their heels. The rapid shift to a new and permanent 1:1 economy is dizzying.

How do brands drive and maintain customer loyalty in the midst of ever-changing, oftentimes unpredictable market forces and shifting consumer demographics? To better understand what’s driving loyalty today and learn more about the ways in which consumers and brands are reacting to change, I spoke with John Hendricks, founder and CEO of ERGO.

John thinks a lot about the loyalty topic as some of the world’s largest brands such as American Express, Delta, Blackrock and Ameriprise have used his company to build long-term relationships and loyalty with consumers through the power of modern email newsletters. Together, we examined some of the latest data from Prosper Insights & Analytics.

Gary Drenik: Traditionally, we think about value (price relative to quality) as the main driver of loyalty. But are dollars and cents the only way for brands to compete and build customer loyalty?

John Hendricks: Brand loyalty is completely psychological, equal parts rational and emotional. On the rational side, there’s no getting past the fact that American consumers are definitely feeling the pressure of inflation. According to data from Prosper Insights and Analytics, a large percentage of consumers have noticed price increases across multiple categories from gas and groceries to pet supplies and prescription drugs.

Add to inflation the recent holiday gift-giving season, and it’s no surprise that consumers may currently be choosing cost savings over brand loyalty. Nearly one third (27%) of consumers across generations, Gen-Z, Millennials and Gen-X said they were buying more store brand/generic items due to price increases. 25% of Adults said they were doing more comparative shopping online.

Prosper – Doing As A Result Of Price Increases
Prosper Insights & Analytics

More than half of consumers across every generation except Millennials (48%) said that choosing familiar brands when buying clothes was not important.

Prosper – Familiar Labels Are Important
Prosper Insights & Analytics

On the emotional side it’s now more important than ever to make a strong impact with a solid customer experience. Household name brands (those that normally engender loyalty) will need to deliver more than discounts, rewards, and coupons. Brands can offer experiential rewards such as exclusive or early access to events or products that go beyond transactions and help drive deeper relationships and a sense of community with other customers.

Prices go up and down in tandem with economic cycles, but brands that find creative ways to offer incentives beyond fleeting discounts or irrelevant rewards will find it easier to maintain customer loyalty during tougher times or earn regular business back when wallets loosen up again.

Drenik: So, it sounds like beyond price, customer experience is a critical factor to winning and maintaining customer loyalty?

Hendricks: Absolutely. All consumers – even those in older generations – expect digital- first experiences in what’s become a highly on-demand culture. Brands that deliver speed and seamless omnichannel experiences consistently will have a long-term advantage when it comes to customer loyalty. Brands that get personalization right will also have a leg up.

However, good CX today goes beyond just selling and focusing only on triggered marketing messages. Consumers crave tangible value beyond the sale and it’s important for brands to predict customer needs and delight them with information they didn’t already know.

Transactional messages drive sales, which are no doubt important. Brands are in business to make money. However, experiences focused on relationship building and rooted in brand values will increase total CLTV (customer lifetime value), which is important for brands especially in high churn industries like technology, CPG, and financial services.

Drenik: Let’s shift gears and address the point of brand values. Many brands have stepped up in recent years to demonstrate that they share the same social values as their customers. Should we expect this trend to continue in 2022?

Hendricks: Corporate social responsibility matters. This has come into stark relief over the past two years with various social movements that have sparked conversations around sustainability, equity, and inclusion. Prosper Insights & Analytics found that a quarter of Gen-Z and Millennials will increase spending with a brand that takes a strong stand on a social issue they support.

The numbers are even more significant when it comes to environmental issues, with nearly 30% of Adults 18+ reporting that they’ll spend more with brands that are environmentally responsible.

These current numbers aren’t as high as other industry studies and again may reflect the tight financial times many consumers are in. However, these stats underscore that even during tough times, brands that maintain, demonstrate, and communicate their values can still garner a larger share of wallet and long-term loyalty. Authenticity is also key. Consumers are very good at sniffing out fake attempts to embrace Corporate Social Responsibility (CSR) by brands and that almost always backfires.

Drenik: Any final thoughts or tips about cultivating loyalty in 2022 and beyond?

Hendricks: I can’t help but come back to the importance of getting personalization right as a driver of loyalty moving forward. Us folks in the marketing technology world know how much of a buzzword it’s become, but there’s such a strong opportunity to rethink what personalization means and how to approach it in a way that provides the best customer experiences while respecting privacy. Much of this will be driven by Artificial Intelligence and we are just at the tip of the iceberg in terms of what these loyalty-driving experiences can and will look like.

Drenik: Thanks for your time and expertise, John. It will be interesting to see how things continue to unfold in the coming year.

This article was written by Gary Drenik from Forbes and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to [email protected].

82 percent of consumers have noticed price increases on everyday essentials; 81 percent say it has affected the way they shop.

Over the past year, consumers have been faced with significant supply chain issues and massive inflation, directly impacting the way they shop. In fact, 81 percent of consumers are now more likely to wait on making a purchase until there is a sale or coupon due to price increases and 79 percent would purchase the next best option if their favorite brands are sold out or low-in-stock, highlighting their wavering loyalty to brands.

Shopkick, a leading shopping rewards app, surveyed more than 20,000 consumers across the country from February 17-24, 2022 to uncover how consumer behaviors have evolved since 2021.

Key Insights Include:

• In-Store Shopping Behavior Shift: The majority of consumers (88 percent) are still shopping for their household essentials in-store, however more than half (62 percent) say their in-store shopping habits have changed over the past year. When consumers were asked how in-store habits have shifted, 69 percent say the time of day and frequency during the week, 56 percent say their safety practices, and 44 percent say the retailers they shop at and brands they buy from.
• Consumer Changes: For those in-store shoppers whose time of day and frequency has changed, 52 percent say they now go to the store at less busy times, 23 percent say they go to the store fewer times a week and 17 percent say they are going to the store at less busy times AND fewer times a week. The majority of consumers who say they have changed where they shop (59 percent) are now shopping at big box retailers like Target and Walmart more frequently, as well as doing more research online before making purchases in-store (43 percent) and shopping more at local, independently-owned retailers (27 percent).
• Out of Stock Items: Out-of-stock issues are nothing new for shoppers but 80 percent have noticed that more shelves are out-of-stock or low-in-stock at their usual retailers and grocery stores than they were 12 months ago. Items they have noticed that are unavailable include meat products (53 percent), dairy products (52 percent), boxed goods (50 percent), canned goods (48 percent), toiletries (50 percent), fresh produce (30 percent), bottled water (29 percent) animal supplies (28 percent), and medicine (23 percent).
• Limited Loyalty: Brand loyalty is wavering as the majority of consumers (65 percent) say they would buy the next best option if their go-to brands are sold out or low-in-stock, and 59 percent say they are very willing to try a new brand and do so regularly. When it comes to what influences consumers’ loyalty to brands, the majority (75 percent) say the taste, flavor or quality of the product is most important.
• In-Store Experiences: When asked what in-store experiences are most important to consumers, the majority (62 percent) say the ability to try on, touch and see products in-person. Other important experiences include better deals and lower prices (62 percent), the ability to confirm the quality of the product (61 percent), convenience (49 percent), in-person interactions or support from store associates (23 percent), and product sampling (14 percent).
• Online Shopping Behavior Shift: It is not just in-store shopping that has shifted, 51 percent of consumers say their online shopping habits have changed too. Of those, 76 percent say they are making more online purchases, 26 percent have signed up for more online memberships to take advantage of shopping rewards and promotions and 20 percent have tried new brands due to their go-to brands rising in price or being out of stock.
• Purchasing Perks: There are many perks of online shopping but 85 percent of consumers say the most important is free shipping and returns. Other important advantages include fast shipping (56 percent), avoiding crowds and contact with others (43 percent), high quality products or brands (38 percent), buy online pick up in-store options (34 percent), flexible return policy (21 percent), and buy now, pay later options (14 percent).

“This survey data has revealed that consumer habits and priorities have transformed over the past year as a result of ongoing supply chain issues and inflation,” said Brittany Billings, EVP of strategic markets and marketing at Shopkick. “In order for brands and retailers to retain customers’ share of wallet, heart and mind, it is more important than ever to deliver a frictionless – and connected – online and in-store experience to ensure a positive interaction each and every time.”