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How technological advances in retail are shaping the future of shopping

Posted on by shopkick

How technological advances in retail are shaping the future of shopping

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Technological advances in retail are helping to take the burden off employees while providing consumers with better customer service. Features like third-party delivery, intuitive apps, chatbots, voice searches, and image recognition offer brands a way to guide consumers to products and make purchases easier. These retail technology innovations are reshaping how consumers shop, whether they’re online or in the shopping aisle.

Third-party developers play a vital role in this retail technology, as brands often don’t have the resources to develop high-tech programs in-house. By working with outside developers, brands can bring new services to shoppers which enhance their experiences. They can offer in-the-moment advertising to drive sales while streamlining campaigns to target the right individuals. These cost-effective initiatives are changing the way customers shop while helping brands forge better connections.

Offering New Features With Third-Party Partnerships

Many traditional brick-and-mortar retailers added services like curbside pickup and delivery to their offerings in recent years. Such services were made possible via partnerships with companies like Uber, Postmates, and InstaCart. By 2021, online grocery purchases will account for $30 billion in sales, and these third-party services are the primary drivers. They allow brands to quickly roll out delivery programs with little runway or upfront investment.

Retailers are unable to implement in-house delivery programs without taking on extensive expenses. They must cover employees, insurance for those employees, and the cost of vehicles. There’s also added liability to consider, as retailers could become responsible for employees who are injured in accidents during deliveries.  
Third-party options allow retailers to pass the risk on to another company while reducing the staffing costs. The third party is responsible for connecting with contractors and vetting them, as well as maintaining the apps used for offering these experiences. Also, brands can use multiple apps and multiple partnerships to reach a wider pool of consumers and further improve services. Third-party options make delivery scalable, cost-effective, and intuitive regardless of the retailer’s size or available resources.

Creating a Welcoming Atmosphere With Virtual Greeters

Virtual greeters allow retailers and brands to welcome consumers to a location and share information about deals. These short, app-enabled messages replace the traditional door greeter while offering more thorough information than a human sales assistant could.

Virtual greetings work through beacon technology and GPS. When customers reach within a specific range, retailers can direct a message to play for anyone who uses the app. That message could include a video greeting from a spokesperson, an announcement of current events, or even rewards points for store entry. The message creates a positive experience that sets the tone for the consumer’s trip and puts them in a favorable purchase mindset.

Improving Sales With Personalized In-Store Ads

Advertising in the shopping aisle is traditionally mass market. All consumers see the same displays, end caps, and offers. In recent years, retailers have used technology to innovate many in-store advertising methods and provide personalized greetings.

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Digital end cap offers:

End caps are highly desirable sales locations in the store, and competition among brands is fierce. Digital end caps provide a more flexible solution for retailers. Kroger recently implemented a test program around this using their app and its users. The company, with the assistance of Microsoft, installed end cap cameras capable of recognizing the age and gender of individuals. It would then deliver a preloaded, targeted offer based on those specifics. The display was even capable of greeting the individual by name using their membership details.

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Shopping apps:

Shopping apps help brands connect with consumers in the shopping aisle. Shopkick, for example, offers a digital scavenger hunt that incentivizes consumers to seek out products by rewarding them for certain purchase behaviors. This technology offers brands an innovative way to help their products stand out, even when in-store shelf space is less than optimal.  

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Omnichannel events:

Many brands are tying the digital and physical experiences together to promote new products. A recent example occurred with a cross-promotion between Disney and Levi’s. Levi’s offered consumers a unique Snapchat-enabled augmented reality experience at an Orlando store. Visitors received a temporary offer along with an exclusive Snapchat filter when they visited the location, and were able to purchase a Disney branded cap using the app. The campaign was a major success because it leveraged scarcity and exclusivity. This strategy is ideal for a new product launch marketing plan as it creates a scalable event based on a specific location.

Technological advances in retail allow brands to reach consumers when they’re most likely to make a purchase. Through technology, brands can scale and target in-store advertising materials. Such strategies improve sales while increasing the marketing ROI.

Lowering Overhead With Cashier-Less Grocery Shopping

Retailers often look to technology to solve staffing woes. By automating certain in-store tasks, like checking out, brands streamline shopping and reduce workloads. Self-checkout kiosks set the stage for a far more high-tech future, where consumers can complete their shopping trip without the need to check out at all.

A recent example comes from startup Caper. The company developed a unique AI-powered smart cart which scans barcodes and charges consumers for goods once they put them inside the cart. Caper reports use of its carts in stores increased sales by 18%, and future innovations could drive this higher. The Caper cart is just one example of how technology is changing the shopping trip entirely.
One of the benefits of eliminating cashiers in the store is that it allows consumers to check out faster. This option speeds the path to purchase and makes consumers less likely to back out of a sale. Smart carts aren’t the only options in this realm, either. Many retailers look to scan and go technology which allows consumers to check out on the sales floor without ever having to stand in line.

Image Recognition Guides Consumers to Products and Unlocks Features

Image recognition is gaining a lot of attention for its potential in retail. Growth in AI allows developers to categorize millions of images along with their meanings. Machine learning teaches these systems to recognize critical components and match those features to existing data. There are two primary developments for retail image recognition of which brands should be aware.

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2D in label recognition:

2D image recognition turns the labels of products into their UPCs. This process is useful in both managing supply and delivering customer experiences. Consumers could, for example, scan a product’s label with their smartphone to unlock features like product information, deals, and rewards points. It also allows brands to monitor stock on the shelves and reorder products proactively.

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3D in reading consumer behavior:

The application of 3D image recognition is a bit more controversial, as it leverages technology to read a consumer’s facial expressions and make a determination about their overall satisfaction. It can also enhance rewards programs by using stored facial data to recognize consumers quickly and greet them by name.

These image recognition programs improve the customer experience by cutting out steps in the path to purchase. Consumers can simply take a picture of an item to find a place to purchase it or order it online. They can access more information and enjoy improved branded interaction. Image recognition is likely to play a more prominent role in marketing in the years to come, as retailers discover new ways to leverage the technology.

The Growing Impact of Voice in Online Shopping

The ever-increasing popularity of the smart speaker has expanded the use of voice search and by extension, voice ordering. Voice technology presents a new opportunity for CPG brands to reach consumers by leveraging their brand’s reviews and existing reputation. This opportunity lies in how voice search indexing will differ from that of its text-based counterpart.

Voice searches are different from text-based searches as keywords play a less critical role. There are a finite number of keywords to use and consumers ordering via voice tend to err on the shorter side of phrases. Competition among those short verbal phrases is high, even in the early adoption phase.
Content strategies around voice must leverage user-generated content to enhance their visibility. A consumer may issue a voice search for “bandages,” as an example, and the smart speaker will return the results with the most relevance and the highest ratings, with little regard for the brand’s own advertising. Average sales, ratings, and customer reviews will drive brands to the top of voice search, which increases their likelihood of gaining sales from these searches.

Enhancing Chatbots With AI for Delivering Top Tier Customer Service

Chatbots are certainly nothing new in customer service, but they are much smarter than they used to be. About one-quarter of all organizations will use the services of these chatbots by 2020, and it’s very likely consumers won’t even notice that they’re communicating with a computer.

Retailers already have extensive data on hand from prior customer chat interactions. Using that data, they can establish templates for an endless list of customer complaints and scenarios. Essentially, these programs create customer profiles and categorize them. They then answer the consumer’s questions using natural language which is almost indecipherable from a human customer service agent’s.
The benefit of these programs lies in their ability to triage complaints. They won’t eliminate the need for associates entirely, but these bots can handle far more of the conversation based on today’s technological advancements. In some cases, they can take the customer all the way through to resolution, which allows companies to better allocate staffing resources.

Preparing for Technological Advances in Retail

Brands that wish to leverage the newest technological advances in retail must carefully evaluate the cost. Third-party partnerships allow them to enjoy the benefits of these programs without the high upfront cost of developing features in-house. However, brands must thoroughly vet these partnerships, as working with less reputable third-parties can damage the customer relationship.

It’s critical that brands carefully review data collection and storage policies of these third parties to ensure customer information stays protected. They should also seek out developers that follow industry-recognized reporting standards to reduce the risk of becoming victims of ad fraud. Third parties who are verified by TAG and have audits completed to MRC compliance standards tend to pose the least risk, as they must follow stringent reporting standards when communicating results to clients.
Technological advances in retail help brands better allocate staffing resources while providing scalable in-store marketing. They enhance the customer experience by expediting shopping trips through delivery, cashier-less shopping, and image- and voice-based search. Brands can best prepare for the future of retail by partnering with third-party developers to deliver unique, heightened customer experiences that drive brand affinity.
Shopkick partners connect with consumers at brick-and-mortar locations by leveraging our intuitive app as part of an in-store marketing strategy. For more information on becoming a partner, contact us.

How to Take a Budget Friendly Beach Vacation

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Whether it’s due to the below freezing temperatures or our ever-present wanderlust, we always find we’re ready to start planning a getaway (or two!) in January. And, today we’re dreaming of the place that allows all of us to enjoy sun, sand, and relaxation mixed with a hint (or more!) of adventure – the beach!

The beach is meant to act as a true escape, and we know one of the keys to relaxation is making sure to remain within your budget. We’re thrilled to announce for a limited time, you can book your next beach vacation with Booking.com and Hotels.com with Shopkick to earn 10 kicks per $1 spent! The best news? You can book trips now to take throughout the year – there aren’t any blackout dates! Plus, you can cash in your kicks for gift cards to use while you travel.

Now that you’re excited to plan, let’s start talking about beaches to visit. Up first? The United States!

There are miles upon miles of coastlines to explore throughout the world, and the United States has quite a number of incredible spots on its own. If you’re interested in seeing rocky coastlines mixed with classic coastal architecture in New England, Maine, Massachusetts, and Rhode Island are three beautiful spots to consider. Perhaps Southern charm is in order, in which case places like Myrtle Beach, Charleston, Hilton Head, and Savannah are all perfect spots to mix sand and history. Florida’s Panhandle has some of the most beautiful sunsets in the country, and Alabama and Texas offer plenty of relaxation. If surf culture is your thing, head west to cities spanning from Baja California to just outside of Los Angeles, jet to Hawaii, and don’t forget to consider traveling north to Oregon and Washington.

There are plenty of amazing beaches to experience outside of the United States too, which is why we would be remiss not to mention Mexico. Located just outside of Cancun, Riviera Maya stuns with its pristine stretches of sand, all-inclusive resorts, and plethora of adventure. Swim with whale sharks, snorkel, explore cenotes, or simply lounge on the beach with a great book – you will love your experience. Plus, Cancun’s international airport offers a direct destination for many airlines. Across the country, both Puerto Vallarta and Cabo San Lucas offer unparalleled experiences on Mexico’s Pacific coastline. Be prepared for rockier coastlines, incredible sunrises and sunsets, culture, and plenty of time to relax.

Lastly, the Caribbean is brimming with beaches to explore! The Bahamas are some of the closest Caribbean islands to the United States, and each island offers a different colorful flavor and feel. We have only ever heard rave reviews of Turks and Caicos, the Virgin Islands, Curacao, Grand Cayman, and Aruba. All offer dining, history, diving, snorkeling, and some of the most beautiful water to swim in.

Wherever your adventure takes you, isn’t it time to stop dreaming and start booking your complete budget friendly beach vacation? We think so too! Booking.com and Hotels.com to the rescue! But, remember to book prior to 1/27 with Shopkick in order to take advantage of the big kicks.

Let us know where your travels will take you in the comments!

Make sure to download Shopkick for free, and join us on Facebook, Twitter, and Instagram for more shopping inspiration!

How to Earn Money for Future Shopping Trips

Posted on by shopkick

Whether you’re working to keep your budget in check for all of your daily to-dos, dreaming of taking an upcoming trip, or stashing away extra cash to create more margin for fun in 2019, we’re here to help. Did you know you can earn money for future shopping trips whether you’re in stores or relaxing at home? It’s groundbreaking, if we do say so ourselves, and so easy you will wonder why you haven’t hopped on the earning train before now!

There are many apps and programs that allow you to earn money. Some apps reward you for meeting your daily, weekly, and monthly fitness goals, others ask you to complete surveys in order to earn cash or points, and additional apps encourage you to clip coupons to save for your next shopping trip. But, we have three even better ways for you to earn money for your future shopping trips, and you’re likely already doing them! Take a look at our three tips below.

Explore Online Content:

Do you start or end your day by reading blogs, finding inspiration, or catching up on the news? We do too! We always experience a thrill when we read the latest post from a favorite blogger or discover a new-to-us recipe to put into our weeknight lunch or dinner rotation. Exploring content online is a complete experience, and it’s one we most often participate in during times when we’re relaxing (think: over coffee in the morning or in between commercials in the evening). Did you know you can earn money for future shopping trips by exploring content?

We tend to browse on our phones because it’s quick and easy, and one of the new concepts we’re seeing and enjoying are virtual inspiration books! They’re are exactly what they sound like – short and content-filled books complete with slides from brands we know and brands we’re happy to discover. We’ve found these books contain inspiration for hair, makeup, fashion, home décor, and even recipes. If you’re thinking inspiration books are just like the slideshows you see online you’re correct, but these have a twist. They allow you to earn money for future shopping trips because you’re viewing them through our app!

Watch Videos:

One of our other go-to ways to explore new content is by watching videos. They’re always a great way to catch up on the news, see what’s gone viral, and discover new content. And, we’re so excited they represent a way to save and earn even more for future shopping trips!

Rather than watching videos on YouTube, open your Shopkick app instead. Once the app is open, start exploring the Discover page of the app. There you will find a host of videos to watch from known brands. Expect to find inspiration for recipes, drinks you have to try, just introduced workout gear, sneak peeks of upcoming magazines, and much more. Every video is short, sweet, and to the point, plus you will be earning kicks that add up quickly for you to trade in for gift cards to the stores where you already enjoy shopping.

Why find yourself down a YouTube video rabbit hole when you can be earning kicks through Shopkick?  

Discover New Products In Stores:

Online shopping is quick and easy, but we don’t think it will ever replace the experience of shopping in stores. To us, wandering down the aisles is fun and relaxing, and it’s an activity that always results in a host of new inspiration. You can take even a simple “window shopping” night out to new heights by earning money for future shopping trips!

The products supported by the Shopkick app are available in a number of stores where you probably already go on a weekly (or daily!) basis. Plan a night to wander through the aisles of Target (a favorite pastime for many!), and scroll through the app to see which product barcodes you can scan to earn kicks, or reward points, while your browse. Not only can you scan products, but you can also purchase them, take a picture of your receipt, and submit it in the Shopkick app to earn even more kicks. A stroll through the grocery, beauty, or home aisles can result in hundreds of kicks you can redeem for gift cards to your favorite stores, like Target, Amazon, Starbucks, Disney, AMC Theaters, and many more.

Whether we’re reading articles or watching videos, we’re all constantly consuming online content. Not to mention, we all run errands to browse and shop on a weekly basis. Rather than simply viewing content or walking through the grocery store, why not turn to Shopkick to earn kicks and gift cards for future shopping trips? Think about saving gift cards for future vacations, gifting them to friends and family for their birthdays, or treating yourself for something you will enjoy! It’s as though your purchases are on us.  

Don’t forget to download Shopkick for free, and join a community of loyal Shopkickers who have already discovered the rewards of shopping with us.

If you love social media and stretching your budget as much as we do, join us on Facebook, Twitter, and Instagram for daily shopping inspiration.

Understanding the types of consumer buying behavior and ways to influence them

Posted on by shopkick

Understanding the types of consumer buying behavior and ways to influence them

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While the basic types of consumer buying behaviors haven’t changed much over the years, the way in which marketers approach consumers has. Digital avenues have expanded the information that consumers have available, as well as their connection to brands. Whether a consumer is prone to impulse buying, or starting a more complicated purchase journey, there’s a digital solution for reaching them and increasing purchase potential. Technology strengthens the bond between brands and consumers as it can be leveraged to cater to any journey on the path to purchase.

CPG brands need to carefully monitor how consumers choose their products to help them stand out among the competition. Approaching these consumers as they’re in the shopping aisle and prepared to make a purchase can be an ideal method. Managing the brand’s online reputation is also critical for differentiating products. With technology, brands can cater to all four types of traditional buying behaviors: impulse, habitual, dissonance reducing, and complex.

The Types of Consumer Buying Behavior and Their Impact on CPG Brands

There is a basic model of human buying behavior established by Henry Assael, professor of marketing for NYU Stern. Assael broke down the consumer buying models according to consumer knowledge of products and the difference between brands. These categories break down as follows:

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Variety-seeking:

Consumers may enjoy reading about and trying new brands and will often make decisions to try new products impulsively. There’s very little time between product discovery and purchase. The consumer isn’t switching brands due to dissatisfaction, but simply because they want to try something new. Variety seeking is a substantial area of opportunity for CPG brands as CPG goods are typically priced lower than others, posing a low risk for consumers.

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Habitual buying:

Consumers stick to brands they know as they see little difference between products. Habitual buying challenges CPG brands when that loyalty is to a competitor, as it can be very difficult to pull the consumer away from the products they trust. The brand must be able to differentiate its products from the competitors to win consumer attention.

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Dissonance reducing:

There may be very little difference between the products available across various brands, but consumers may still choose to do extensive research. This research may stem from dissatisfaction with the product itself. Alternatively, this information gathering may come as a result of increased social awareness about the impacts of manufacturing. In either case, brands must invest in products and overall reputation to connect with these shoppers.

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Complex buying:

Consumers who do extensive research before buying may have little familiarity with the brands and choices available. This buying behavior is typical when making big-ticket purchases, but that does not mean it’s not a concern for CPG brands with lower price points. Complex does not have to mean costly. It can also occur when a consumer has a concern over a product’s impact on their well-being, like in the case of health and beauty products with unfamiliar ingredients.

While not every path to purchase will fit into one of the above models, they do a sufficient job of giving an overall look at the most common methods for purchase. These behaviors have no boundaries, as consumers will follow them whether purchasing online or in the store.  Understanding these models benefits brands as they can create individual plans to cater to these specific purchase behaviors, regardless of where the consumer makes the purchase.

Using Mobile Shopping Apps to Excite Variety-Seeking Consumers

Variety-seeking consumers are promising prospects for CPG brands as they’re open to trying new products. While they may not extensively research before making a purchase, digital marketing still makes an impact. Timely promotions delivered via mobile shopping apps can provide excellent ROI for impulse buying behaviors. Such messages target these consumers based on their location and drive them to interact with products. We see an example of this through Shopkick and how consumers use the shopping app.

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Notifying:

The first step to securing a purchase is brand awareness. With Shopkick, a timely notification lets the consumer know which products in the store offer kicks (aka rewards points) and how many. The alert makes the consumer aware of the brand and encourages them to seek it out.  

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Priming:

When a consumer physically handles a product, it establishes a sense of ownership. Shopkick encourages consumers to pick up products by offering incentives for scanned UPCs. The moment a consumer touches the product, the chance of purchase increases.

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Incentivizing:

Shopkick users receive rewards points when they locate certain products in the store, and even more points when they purchase them. By rewarding purchase path behaviors both in-aisle and through checkout, brands create customer affinity and increase sales potential.

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Gamification:

The entire process works as a digital scavenger hunt with various goals and rewards. Shopkick’s design turns an everyday shopping trip into an enhanced customer experience. This gamification improves the use and retention of the app, which expands the brand’s audience.

Brands often target variety-seeking consumers with discounts and coupons, but rewards points provide the same benefit without the need to cut the product price. As variety-driven consumers make impulse purchases, these apps target them more efficiently than other marketing methods.

Cultivating Habitual Buying Through Data-Driven Personalization

Customer loyalty is entirely relationship-driven. Brands wishing to pull loyal customers from competitors, while also growing their faithful following, should look to personalization to establish these relationships. Profiles created with existing consumer data aid in this process by helping brands deliver personal messages on a mass scale.

Consider a brand trying to cultivate a following for a new ultra-moisturizing lipstick. That brand could use existing social media data to locate a general group of consumers who have an overall interest in makeup. That data can be used to target a specific age range, location, or consumer need. The brand might consider targeting users in hot, arid climates with a message about how this lipstick prevents chapped lips. As the message is designed to solve a problem that is unique to them, the consumer feels a deeper connection to the brand.

Any time a brand uses data, consumer privacy must be a concern. If a consumer feels their personal information is unsafe, there’s a risk of alienating them. However, consumers are receptive to data use for personalization, and consider value the number one driver of trust. As long as their data is used to provide them with a heightened experience, consumers are willing to share it.

The key component of any data-driven campaign is how it improves the customer shopping experience. Brands must consider if the information the consumer will receive is more valuable than the data used. It also helps to have a clear data collection policy which explains how consumer information is used, and provides an opportunity to opt out. Through transparency, brands can use data to cater to consumers without invading their privacy.

Attracting Dissonance-Reducing Buyers With Online Reputation Management

Dissonance-reducing consumers are researchers who are well-informed about products. Differentiative marketing is critical as this buying often occurs in the CPG market, where branded products are similar to those of their competitors. Brands may not be able to rely on their product but instead must focus on their overall reputation to stand out.

Campbell’s creates an excellent example of a brand leveraging their reputation to gain attention in the competitive canned food segment. The brand works hard to cater to consumers’ desires when it comes to social responsibility. They created several features to offer greater transparency to consumers, including their “What’s in My Food” database. They also spearheaded several corporate initiatives by increasing their focus on sustainable sourcing and providing aid to people in impoverished regions. These initiatives helped boost Campbell’s to the top of the USRepTrak 100 list, which ranks companies based on consumer trust perception.
By using their reputation as a differentiator, Campbell’s stands out in a crowded category often filled with lower cost competitors. A consumer may find themselves drawn to Campbell’s products due to the positive brand affinity their social efforts created. Brands can use social channels like Facebook, YouTube, and Instagram to help share news regarding the causes in which they invest, and invite consumers to participate as well. This strategy aligns their goals with those of the consumer, which creates a loyal relationship.

How Video Marketing Supports Complex Buying

When consumers make complex buying decisions, they’re often at a disadvantage. They know they need to do significant research but may not be familiar with the product. A typical example of complex buying is car purchasing. Consumers may not understand the differences between several different options and will turn to the digital space to learn more about them. However, CPG brands need to stay on top of this buying behavior as well, because it can impact lower-cost, mass-produced items.

Consider a broad category like whitening toothpaste, which encompasses thousands of diverse products and active ingredients. Some focus solely on whitening, while others combine whitening with other treatments like enamel protection or cavity prevention. Consumers may seek out information not just on efficacy, but on safety.

Catering to complex buyers requires a simplified approach. Explainer videos are ideal as they allow a brand to share information about a product while making those details easy to digest for the consumer. In some cases, they can drive the success of a debut product.

Dollar Shave Club discovered the power of explainer videos in 2016 when they rolled out their introduction. The funny ad garnered enough views to create significant clout for the brand which later led to its acquisition by Unilever. Through a short video clip, the brand created a connection with individuals on a complex purchase path. Dollar Shave Club provided the information that consumers needed in an easy to digest format. It also solved a common concern—the high expense and inconvenience of buying replacement razors. By making the process easy to understand, the brand built consumer trust and reached a broader market. The company went from a simple niche service to an industry disruptor that gained the attention of larger, established CPG brands all through the power of video.
It’s possible to cater to the types of consumer buying behavior by taking advantage of new technology. Mobile marketing can help brands connect with impulse buyers, while video helps guide those making complex buying decisions. Brands can differentiate themselves through reputation, rather than products. Alternatively, they can pull market share from competitors with personalization created through data. All of these methods help brands connect with consumers even when their path to purchase is less predictable than it was in the past.
Shopkick partners connect with consumers in the shopping aisle with our intuitive app that incentivizes product interaction. To leverage it to guide consumers to your products in the store, contact us.