Author: Kick Writers

As consumer behaviour continues to change due to the impact the global Covid-19 pandemic has had both on business and individuals – retailers are increasingly having to position themselves to provide omnichannel services that can meet these evolving digital consumer expectations.

Notably, consumer behaviour is comfortably and continuously adapting in response to factors such as fluctuating income, time availability, social distancing restrictions and overall decrease in availability of in person service provision. All this has irrevocably affected people’s priorities and values, as well as the time they spend online and how they engage with brands.

Consequently, retailers – almost by default – are having to embrace omnichannel services such as contactless payment, social commerce and virtual consultations by adding channels that help facilitate these activities.

A recent report by Accenture, titled New Era in Customer Engagement, reveals that 71% of consumers surveyed reported spending more time online during the COVID-19 crisis, with 76% expecting this behaviour to continue post-pandemic.

It is thus evident that a digital retail strategy has become the default, and the emergence of the new digital customer profile is fast becoming the mainstay for customer attraction and retention. However, these profiles will require ongoing analysis to maintain the right mix of customer sales and services channels for individual consumers.

Shift in customer interaction

In recent times, we’ve seen a huge shift in customer interaction volumes and the types of transactions over these engagement channels. Concurrently, the timeline for developing deeper relationships with consumers is significantly compressed and demonstrating empathy through digital channels has become the standard during difficult times.

Essentially, the customer experience (CX) has evolved into a partnership, with consumers no longer simply purchasing products and walking away. They now expect brands to listen to what they want, anticipate their needs in some instances and they expect to buy ‘an experience’ from every brand they engage with. However, while delivering a great experience will indeed get you a long way, consumers also expect more purposeful interactions with retailers.

Like never before, consumers can evaluate the CX, meaning that businesses have to rethink their operations, especially as most organisations are moving to digital platforms. The requirement to adapt to customer needs is therefore becoming truly essential.

Managing the customer journey and making sure that it responds to changes in customer dynamics, as well as ensuring that brand interaction becomes an experience, is key for organisations to successfully prepare for a digital future.

Dominance of personalisation

 A clear trend that is emerging in the customer journey is the dominance of personalisation. Most consumers want to feel as though brands know them and what they want. Increasingly, personalisation tactics are being employed by retailers to stand out from their competitors and to tailor the experience around the customer.

As a result, we are seeing a rise in a multi-channel customer engagement approach, as consumers expect a fully connected experience and to be reached on the channels of their choice. Offering cheaper items or faster delivery times is no longer the main differentiator for retailers. A new wave of customer demand and expectation has emerged and organisations need to manage this. Automation is therefore becoming increasingly important.

As retailers continue to pivot towards online trading, and lockdown restrictions are limiting the number of staff on the ground, we are seeing a growth in automation. Retailers are innovating with chatbots, digital shopping assistants and self-service technologies that are all taking centre stage to empower customers and reduce physical contact.

Omnichannel-based retail strategy

 An omnichannel-based retail strategy is becoming central to delivering a cross-channel organisational approach to marketing, sales and customer service that creates an integrated and cohesive customer experience. This experience must be delivered – no matter how, when or where a customer reaches out to a brand.

Adopting an omnichannel strategy allows businesses to be available on every channel, underpinned by an engagement hub that provides for the easy addition of digital channels as needed.

At the same time, many organisations struggle to create a comprehensive strategy in order to generate and promote a meaningful personalisation that will result in a lasting relationship. Many retailers face challenges in relation to skills and costs yet have no choice but to respond to customer expectations or risk losing them.

These organisations need to look for partners in the digital transformation space that can offer an all-in-one solution, simplify deployment and reduce operating costs, while delivering a simple, secure and personalised engagement solution.

It is important that organisations realise that simply investing in CX technology does not guarantee success. A proper engagement and implementation strategy will ensure early and sustainable return on investment and the successful rollout of transformation initiatives. Digital transformation is a continuous process, and the right technology partner is central to getting it right. 

All rights reserved. © 2021. Bizcommunity.com Provided by SyndiGate Media Inc. (Syndigate.info).

This article was written by Jeremy Osborne from Bizcommunity.com and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to [email protected]. 

Want a more effective omnichannel retail shopping experience? Consider how Shopkick has helped its partners. If you’re ready to meet customer expectations, contact us to learn just how we can help you expand your reach and establish customer loyalty. 

Dive Brief: 

• Consumers are eager to spend and save money through deals, according to ICSC. In its Annual Holiday Shopping Intentions survey, the firm predicts that holiday sales between November and December will increase by 8.9% to $923 billion compared to last year. Per the survey of 1,005 people, 78% of respondents said they plan to spend the same or more money this year than last year, and 75% said they plan to shop earlier this year. 
• As for reasons why they’re shopping earlier, 45% said they want to make sure their desired items are available, followed by those who wanted to access early holiday deals (42%) and get their purchases on time (42%), according to the survey. Holiday shoppers are planning to spend an average of $637 on gifts and other holiday-related items.  
• Most respondents (85%) said they would shop in brick-and-mortar stores this year, but the report predicts that omnichannel options will drive a 13% increase in e-commerce sales. More than a third (37%) respondents said they want to see products in-store, followed by 34% of people who said they want to grab their goods immediately and 30% seek inspiration for gifts, per the survey. 

Dive Insights:

Though reports predict that consumers plan to spend more during the 2021 holiday season than last year, they’re still interested in finding deals. According to the ICSC survey, 80% of shoppers said deals factor into their holiday purchases, and more than a third (38%) of respondents will plan their shopping trips around specific promotional events. 

Other research noted similar findings indicating that shoppers want to stretch their money while spending more this year. Another recent survey from JLL showed that 34.4% of shoppers said saving is their primary goal. Plus, data from Klarna and Deloitte also predict an uptick in consumer spending this year. 

In preparation for a rise in sales, retailers like Amazon and Target have launched holiday deals early. 

“Strong retail spending has driven a significant economic recovery this year despite the ongoing COVID-19 pandemic, and consumers continue to return to pre-pandemic behaviors in the face of uncertainty,” Tom McGee, president and CEO of ICSC, said in a statement. “Consumers have remained resilient throughout 2021, which I am confident will continue during and after the holiday shopping season.”

This article was written by Tatiana Walk-Morris from Retail Dive and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to [email protected]. 

When it comes to the customer experience and the desire of brands to strengthen their ties to consumers, the past year turned all the rules upside down. 

During the pandemic, even the best-prepared companies were caught off-guard in their ability to be agile and responsive. Issues of simple product fulfillment rose to crisis levels as manufacturing stalled and supplies dwindled. Even so, loyalty programs flourished (with one retailer enjoying a 40% lift in cart size among its program members). There also was a renaissance in creativity around brand messaging with the ascent of new digital and social media platforms. 

At the same time, historic social movements dominated the public’s attention and became a fundamental element of how brands speak to and connect with consumers. 

The result: a next-gen customer experience that seamlessly connects the physical and digital worlds across the customer journey. This, in turn, bolsters brands’ ability to maximize revenue while building lifelong relationships with consumers by communicating what they really care about and in a voice that resonates. 

Here are three key takeaways illustrating how brands successfully navigated the singular challenges of the pandemic and how marketers can apply those strategies to future campaigns.

Customer connections transformed. 

The pandemic brought about unprecedented challenges for brands and also ushered in once-in-a-lifetime opportunities to innovate through customer connections. Consider a particular seed manufacturer that had always counted on face-to-face interactions but that, because of COVID-19 restrictions, had no choice but to engage with its customers via digital platforms and vice versa. 

Marketers who for so long have fixated on Gen Z and digital natives found they had to speak to a much broader base of customers who had become, out of necessity, more technologically savvy. Necessity is the mother of invention, and we now have more than a year of this customer-experience laboratory under our belts. 

But the pandemic has not just been a lab. It’s been a wake-up call. 

For example, at the onset of the global health crisis, one large retailer took the position that it would not do commerce via mobile, opting to employ the medium for engagement only. Then the whole world shut down, everybody shifted to digital transactions, and the retailer found itself without a mechanism for carrying through the customer relationship to the point of purchase. Talk about a missed opportunity. 

Pre-pandemic, around 30% of people shopped online for groceries (and even at that level, there were cracks starting in the supply chain: grocery stores that failed to track changing customer purchase patterns led to shortages or even mass food spoilage). During the pandemic, 80% shopped online. As the pandemic subsides, we anticipate the numbers will settle out a “new normal” above what we saw pre-pandemic. 

What was a temporary stress on the customer experience is now truly the new normal. This 50/50 split also highlights the need for companies to be more diligently focused on the intersection between “offline/in-store” experiences and digital ones. 

Test-then test some more. 

One advantage of the shifting rules of commerce has been that brands can be freer about experimentation, considering many possible customer experiences and then using data and analytics to inform their decisions. Testing approaches and using data science to help ensure a clear understanding of customers and what they truly care about is the very foundation of innovation and authentic customer experiences. 

The importance of testing cannot be overemphasized. Yes, innovation is about being bold and taking risks, but it’s also about being accountable and measurable. Testing and measurement offer a framework for what success looks like and, as such, are critical components, whether in developing products and services, designing a marketing strategy or perfecting the customer experience. 

The truth is, some brands throw millions of dollars at this thing called “innovation” but have no real measurement strategy for understanding the overall efficacy of their ideas. Leading companies often tackle this challenge by measuring or implementing NPI, a new product introduction. 

Having a solid measurement framework and not being afraid to experiment constantly with innovations are essential elements of success as we emerge from the pandemic and reimagine the everyday way of doing business. 

Chatter is not noise. It’s your road map. 

Another key tool is social listening before, during and after a campaign. This has become an indispensable tool to inform everything from overall brand strategy to the social movements that resonate with customers. 

Take the social issues that have come to define our times. They are at the forefront of everything, whether in the nuclear household or a multinational corporation. Our research has found that consumers will spend more money with a brand that has social good as part of its charter than they will with brands that stay on the social sidelines. 

Being socially conscious is not just altruistic for brands today; it is key to business success, with many of today’s leading marketers having entire departments focused on brand purpose. 

There are those brands that may think aligning with cultural movements is risky. As the data bears out, however, the reality is that it’s a cornerstone of building consumer affinity and enhancing the customer experience. 

Social listening enables marketers to get down to the granular level of what customers care about, leverage innovations and take brands where they need to go. That’s true whether in creating a singular marketing campaign, redesigning the in-store shopping experience or building partnerships with other companies that have a stake in the customer relationship. 

On that point, there is another enormous opportunity to maximize the customer experience by thinking beyond just your own brand. Every company must ask itself how to build relationships with complementary partners—and sharing valuable customer data among those players—can enhance its consumer relationships. 

For example, if you’re a retailer, you may want to take a sharper look at your relationships with wholesalers—which are equally as responsible for the customer experience, after all—to help ensure they are providing as high a level of customer value as you are. 

During the transition, there’s been a change in focus from the front office to the back office. The companies that performed best are the ones that understood that shift. Brands have had to get smarter about areas like data and analytics that traditionally fell to agency partners and choose the right partners with the experience and expertise to bridge your business’ front- and back-office functions. 

From taking a stand on social movements to developing the products and services consumers desire and delivering the highest-quality customer experiences, brand marketers must work continuously to understand their customers and what they are demanding after a very trying year. Considering the velocity with which technology, brand-consumer interactions and social changes are happening, they surely cannot afford to rest. 

Views expressed in this presentation are those of the author and do not necessarily represent the views of Ernst & Young LLP or other members of the global EY organization.

This article was written by Josiah Johnson from Ad Age and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to [email protected].

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. 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. 

Dive Brief:

•  While the pandemic is widely seen as boosting e-commerce sales, it may be more accurate to say that consumers have become more “digitally savvy,” according to a new report from Forrester.  
•  Forrester found that more than half of U.S. e-commerce shoppers “enjoy trying new brands,” for example. And 63% say they spend time comparing products before they buy.   
•  Still, stores remain the biggest pull for shoppers, and Forrester estimates that 72% of retail sales in the U.S. will take place there into 2024. The top reasons for shopping in store, Forrester found, are to test products (47%) and being able to walk away with an item after purchasing (38%).  

Dive Insights:

Free and available vaccines in the U.S. have tamped down the worst consequences of the pandemic in many areas, but there remains an asterisk next to these improvements, as variants of the virus, including the delta strain, have introduced new levels of uncertainty. 

That includes retail and traffic to stores and malls. Still, these days more stores are opening than closing, and the pace of footfall is up. In July, shopping mall traffic exceeded pre-pandemic levels (up 1% compared to July 2019 at indoor malls and up 1.8% at outdoor malls), according to a recent report from Placer.ai. 

Those visits have fallen again since then. In August traffic compared to two years ago fell 2.5% at indoor malls and 4.7% at outdoor malls, which Placer attributed to rising COVID cases, the timing of Labor Day and the return to school. The firm blamed the pandemic’s surges for further declines in September — 6.5% at indoor malls and 5.2% at outdoor malls — compared to 2019. 

While October isn’t looking much better, the approaching holidays could send more people back to physical locations, however, especially if COVID cases once again begin to slide, the firm said. 

Stores have turned out to be an important source for marketing and customer acquisition, as many pure-play e-commerce companies have found. But according to Forrester, retailers also must ensure that their stores are worth the effort. 

“The goal of these stores should be to deliver experiences and support operations that remove customer pains that impact behavior and provide diverse capabilities for catering to different consumer preferences,” Forrester said by email.  

Consumers have come to expect more fulfillment options when shopping online, with 45% of Forrester’s respondents saying they prefer many options. Thirty-eight percent of consumers said they’re using BOPIS services more than they used to, while 32% of respondents said they plan to continue using curbside pickup after the pandemic is over, the report found. Nearly a third of consumers who used curbside pickup services did so to save time finding the products in store on their own. 

And when it comes to returns, a physical presence may be an asset to retailers, the report found. Forty-one percent of consumers said online returns are difficult and over a third of consumers said this has discouraged them from purchasing online in the first place. Over half of respondents said they prefer in-store returns.

This article was written by Caroline Jansen and Daphne Howland from Retail Dive and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to [email protected]. 

Shopkick is an omnichannel marketing solution that can help you seamlessly bridge the gap between digital and physical shopping channels. Read more success stories and contact Shopkick to learn how to become one of our partners.

Rising shipping costs impacting consumers’ holiday shopping decisions

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

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

Key insights include:

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

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

Driving incremental sales is a crucial goal for modern businesses. For brands and retailers, a major indicator of success can be found in an increased number of leads, customers, or sales, that wouldn’t have occurred without a specific marketing campaign. In this post, we’ll discuss what it means to drive incremental sales and which strategies you can implement to get started.

What are Incremental Sales and Where Do You Start?

Simply put, incremental sales are a way to gauge the success of a marketing campaign. Specifically, the concept refers to measurable results — the increase in the number of units sold — of a marketing activity or promotion. In order to measure the incrementality of a marketing campaign, you’ll first need to identify baseline sales figures and establish key performance indicators (KPIs). 

Baseline sales figures are foundational. In order to know exactly how well your marketing campaign performs, you’ll need to know how your business performs without it. This requires research into historical sales data to find a rare period that was not supported by a marketing promotion. Once your campaign has completed, and you have both baseline sales and total sales, you can determine incrementality by calculating the difference between the two.

Although the difference between new and baseline sales is the key incremental sales KPI, there are other related KPIs you may want to track as well. For instance, you may want to know your new customer percentage to determine how much value to place in a specific strategy or partner. Perhaps it would be helpful to calculate participated revenue, the amount of revenue generated by an affiliate partner who came into contact with the customer at some point during the sales process. Or, you can track sales completed in less than five minutes with the quick conversion rate formula.

Once you’ve calculated baseline sales and determined your KPIs, you can now explore different strategies and tactics to actually drive incremental revenue including:

• Utilizing contextually relevant offers and incentives 
• Building trust and brand affinity to influence more frequent purchasing 
• Expanding your target audience to reach new customers

Strategies to Drive Incremental Sales

Utilizing contextually relevant offers and incentives

Contextually relevant point-of-purchase offers can drive unplanned impulse buys by influencing consumer behavior in the crucial moment of purchase decision. For example, a personal care brand is looking to drive incremental sales across its full product portfolio. When a shopper makes their way to the shaving aisle with the intention to buy a pack of razors, a contextually relevant promotional offer at the point of sale may incentivize the shopper to not only purchase razors, but also shaving cream and aftershave lotion, resulting in a larger basket size and an unplanned, incremental sale. Aside from product bundling, consider the use of rewards at the point of purchase to avoid the use of margin-diluting coupons, discounts, or cash-back incentives.

Build trust, affinity, and loyalty

Building trust and brand affinity can drive incremental sales by influencing consumers to purchase your brand more frequently, and over competitors. One study found that 81% of customers feel the need to trust a brand before making a purchase, and while a good reputation may get consumers to try a product, 87% said they’ll soon stop buying it unless they come to trust the company behind the product. 

So, how do you generate trust? There are several avenues to consider. Today’s consumers want to support brands that align with their values, and that are authentic. Finding a way to tell your brand story and connect with consumers in a meaningful way is a key to building trust. Consumers also value consistency and respond well to seamless messaging and experiences across all channels. 

While driving incremental sales is the end goal, brands can’t lose sight of what’s important —  the customer. When today’s consumers have a negative experience, it’s crucial that brands not only listen but act on their feedback. Building this genuine level of trust and affinity will in turn lead to more frequent purchasing, increased basket size, and incremental sales.

Expanding your target audience

Another way to drive incremental sales is simply by expanding your target audience to reach a larger customer base. A third-party rewards app with a large existing user base is a great way to reach new customers. Apps like Shopkick not only help brands and retailers tap into a unique audience, but can also help them increase loyalty and incremental sales amongst existing customers. In fact, 50% of all spend driven by Shopkick is incremental, with 63% coming from new customers and 37% coming from increased loyalty of existing customers by influencing them to spend more or purchase more often.

Measure, Test, and Tweak

Once you’ve planned and executed your incremental sales campaign, you’ll need to measure and analyze the results in order to determine its effectiveness. Whether your campaign was a success or didn’t perform as you’d hoped, experiment with different variations of your campaign, and optimize your strategy based on learnings from historical successes or failures. You may decide to increase or decrease your pricing structure, test out different advertising channels or platforms, or make changes to your messaging. 

Drive Incremental Sales with Shopkick

Understanding how to drive incremental sales is fundamental for marketers, as an increase in sales represents true success in marketing efforts. By leveraging contextually relevant offers, building trust and affinity, and expanding your target audience with a third-party app like Shopkick, you can boost incremental sales while also keeping customers engaged, earning their trust, and rewarding them for their loyalty. When Kraft partnered with Shopkick to drive sales across multiple brands in the holiday season, Shopkick’s unique rewards model drove an impressive 7.6:1 ROI, and 55% of purchases were incremental.

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. To learn more about how Shopkick can help your marketing strategy and build brand affinity, contact our team.