Omnichannel Retail, Consumer Holiday Spending, Customer Holiday Spending, Omnichannel Retail

Holiday Consumer Spending & The Omnichannel Customer Experience

rreed Customer Engagement

During the frenzied holiday shopping and increased consumer spending of Q4, delivering a positive customer experience is vital as potential customers peruse and shop online among thousands of competing products and services.

Deloitte’s annual holiday survey revealed that 83% of consumers plan to use a desktop or laptop for holiday shopping this year. And retailers have a 75% probability of converting a desktop or laptop shopper to a purchaser and a 52% probability of converting a smartphone shopper to a customer. The survey also found that holiday shoppers will spend $228 more per household this year than last year.

Nerdwallet found that 7 in 10 consumers plan their holiday shopping about two months in advance, and 47% plan to complete gift purchases between Nov. 28 and Dec. 23.

As retailers gear up for holiday spending, experts suggest focusing on the customer experience to create a lasting impression post purchase. Despite its fast pace, the holidays are an optimal time to lock in a customer experience strategy to drive repeat purchases, retention, and customer loyalty.

The National Retail Federation’s holiday survey found that customers still rely on brick and mortar locations for holiday shopping whether it’s for purchasing merchandise, interacting with the product, finding inspiration for gifts, or avoiding shipping costs. Which is why it’s important to incorporate an omnichannel strategy to optimize both in-store and digital touchpoints for a consistent customer experience. One tactic to drive impulse purchases is offering limited time offers through strategic digital promotions.  

Cyber Monday, the biggest online shopping day of the year, which falls on the Monday after Thanksgiving each year, is being transformed into Cyber Week this year, given the extra day between Thanksgiving and Christmas.

A report from Criteo found that an omnichannel strategy is best suited for this year’s spending habits, as shoppers access products from multiple channels throughout the buying process.

  • 66% of shoppers browse online then shop in store
  • 61% order online and pick up in-store
  • 38% buy online (smartphone) while in a retail store from another retailer (usually price-driven)
  • 74% buy online after seeing a product in stores
  • 39% buy online (smartphone) while in stores from the same retailer

In order to rise above the holiday clutter, experts suggest providing customers with offers unique to the retailer, personalized recommendations, or helpful information that will nurture existing customer relationships and encourage purchases.

 

Digital Promotions, Digital Promotions Important, Digital Promotions Value

Why Are Digital Promotions Important?

jkurtzman digital promotions

Digital promotions can play an important role in getting across the benefits of your product or service to your customers. Well-executed digital promotions can increase a business’ customer base and increase a business’ profitability.

Read More

Customer Engagement, Customer Experience

The Importance of Customer Engagement and The Customer Experience

rreed Customer Engagement

Outbrain defines customer engagement as encouraging your customers to interact and share in the experiences you create for them as a business and a brand. When executed well, a strong customer engagement strategy will foster brand growth and loyalty. And TechTarget defines it as the means by which a company creates a relationship with its customer base to foster brand loyalty and awareness. While fostering brand loyalty and sharing experiences are valuable outcomes of customer engagement, a vital–and often overlooked–component for businesses is customer service.

Read More

consumer loyalty, digital consumer loyalty, consumer behavior, consumer loyalty behavior

Consumer Loyalty and Behavior in the Digital Age

rreed News

Consumers today have high expectations of brands to deliver an up-to-date technological experience. The way consumers interact with brands has shifted from a one-way broadcast to a two-way conversation. Factors that contribute to brand loyalty have evolved as well; digital disruption has pushed companies into a perpetual state of transparency. Companies built on agile business models equipped with innovative listening technology and armed with comprehensive consumer data are those best poised for a successful loyalty program. Here are some changes in consumer loyalty in today’s digital age:

 

The Consumer Expectation

One survey found that the percentage of consumers who say they take advantage of discounts or coupons has steadily declined since 2012. Coupons aren’t as appealing to today’s consumer as ecommerce eclipses traditional purchase methods; free shipping is a purchase driver. According to research by Accenture Strategy, 71% of loyalty program members claim that loyalty programs do not engender loyalty, and 77% admit that they retract their loyalty more quickly than they did three years ago. This research demonstrates brands’ lack of understanding of rapidly evolving consumer behavior.

 

Agility

Traditional business models prevent brands from making agile marketing decisions to adapt to the rapid pace of change in the digital marketing space. Businesses must make strategic changes to consumer research and marketing strategy to effectively communicate with an evolved consumer.

 

Data and Social Media

84% of marketers identified making data-driven decisions as one of the most important capabilities, yet only 10% believe they are effective at applying that data to make more effective decisions. Social media contains a wealth of insights and data on consumer behavior, preferences, and purchase decisions, yet 70% of companies are not collecting data from social channels according to DMA. Accenture’s research found that more than half of loyal customers actively recommend brands to others, and 14% express their loyalty publicly through social media.

 

Understand Consumer Behavior

Technology has allowed consumers to access information in seconds, and has created a demand for responsive communication between the brand and the customer. Cloud computing and artificial intelligence have elevated customer experience to allow for personalized information exchange, which consumers now expect with every brand interaction. A Red Dot Research study found that twice as many 18-24 year olds than 45-55 year olds have higher expectations of retail delivery performance compared to two years ago. Marketers are encouraged to study their prospect base and identify customized buyer profiles based on behavioral characteristics which are then used to develop highly targeted positioning strategies.

Make Loyalty Simple

Loyalty programs should be made simple to encourage adoption and frequent use. From the first touch point and enrollment to reward redemption, the process should be a clear, simple, and even enjoyable one for the customer. Complicated points systems can be perceived as a sneaky way to encourage mindless purchases with no real benefit to the customer. In fact, 51% of US consumers are more loyal to a brand that innovates and provides up-to-date technology to enhance the brand experience.

 

Brandmovers can design digital loyalty programs which are highly affordable, while still being extremely effective at boosting loyalty/motivation and providing you with great actionable data. Contact us today to learn about all your options!

 

 

Consumer Behavior Trends

jkurtzman brand loyalty marketing, digital rewards programs, Marketing and Advertising, News

Nowadays, customers can extensively research products or services before buying. In addition, they can purchase what they need with a single click. Because of this, how you interact with your customers online is only becoming increasingly more important.

  • Increased use of smartphones and other personal electronics
    • Consumers are more likely to purchase or review items on the go on their phones than ever before
    • Today’s customers actively engage with brands and demand customized services
    • The internet has shifted from being a primarily text-based source of information into one that is now over 70 percent video traffic.
    • By August 2017, nearly 16 million people are utilizing smartphones
    • 96% of American customers shop online 65% of their shopping budget is spent in-store
      • What makes customers avoid shopping online?
        • Shipping costs
        • Not being able to try product
        • Do not want to wait for delivery
        • Difficult return process
        • Online privacy concerns
  • Activities people are doing while online are changing
    • In past years, the most time was spent on social media channels (41%) and that is now moving over to streaming applications (23%), such as Netflix or Spotify.
    • Where customers are focusing their time and attention is imperative to how marketers properly target customers.
  • Consumers have a greater desire to feel like they are apart of a community and that the company values them as a customer.
    • For example, customers enjoy being rewarded for behavior they enjoy doing (I.e., sharing a video, liking a post, leaving a review for other customers, which makes them feel part of a community)
    • Loyalty programs are increasingly more important for this reason
    • As a bonus to companies, loyalty programs also help track your customer’s behavior and allow you to gain more insight on who they are
    • When customers are loyal to a brand, 57% spend more. While 43% spend around the same or less
“With endless options for communication, entertainment, and content consumption, it’s no surprise that consumer behavior is changing on a daily, even hourly, basis.”Hannu Verkasalo, CEO of Verto Analytics

How can you attract customers as consumer behaviors change?

  • Put your focus into social media marketing.
    • Be sure to engage with customers online. Having a two-way street of communication helps customers feel connected to brands.
    • Ensure that your social media profiles have a personality behind them, it makes it easier for consumers to connect with your brand. Avoid only sharing press releases and marketing offers
      • Post special offers that are just for customers that follow you such as a discount code. This will help them feel as if they are special and will make them want to continue to be a follower.

 

Data Mining Receipt Scanning, Receipt Processing, Data Mining Receipt Processing

Harnessing the Data-Mining Potential in Receipt Processing

rreed News

Harnessing the Data-Mining Potential in Receipt Processing

Every day, millions of businesses give away an absolute goldmine in customer data without even realizing it – one tiny paper strip at a time.  Customer receipts are abundant, frequently ignored, and often discarded before the customer has even left the store.  Yet with the right receipt processing system, you can take advantage of this data to get deep insights into customer purchase habits involving your brand.

If you haven’t looked into the potential for collecting customer data via receipt processing and making use of the information collected, you might be surprised at just how much actionable intelligence is on those little white slips.

All the Data You Can Pull Off a Receipt

Receipts may vary somewhat depending on the retailer, but generally, all this and more can be collected:

  • Specific retail location information
  • Dates and times
  • Quantities purchased
  • Minimum and maximum spends
  • Product purchase counts
  • Repeat purchases (by geography, quantity, or spend)
  • Brand specific purchase patterns

That’s a lot of raw data!  Of course, that’s just the tip of the iceberg when it comes to drawing more data out through analysis.  From there, you can easily derive even more hard data, such as:

  • Most common dates and times for shopping
  • Products commonly purchased together  
  • Mean and median spends
  • Per-store sales tracking
  • Most popular vs most profitable retail outlets
  • Broad geographic purchasing data
  • Your share of their cart vs other brands

In turn, this can be translated into pure actionable intelligence, allowing you to improve your marketing, outreach, and retailer-specific policies.  For example, you could:

  • Push cross-promotion for frequently-paired purchases.  (I.e., “Ice cream tastes best with Acme chocolate syrup!”)
  • Create better-targeted regional promotions, based on local buying habits.
  • Arrange retailer-specific deals or support.
  • Better understand your competitive landscape and strategize accordingly.
  • Create timed offers centered around most popular purchase times.
  • Target product R&D based on derived customer preferences.

Best of all, a receipt processing program can often be paired with customer loyalty programs.  You get more data, while increasing customer loyalty and brand awareness as well.  It’s a win-win scenario.  

Brandmovers Brings You the Data You Need

We are one of the industry’s top choices for customer loyalty programs and data capturing systems, allowing you to quickly and easily amass massive amounts of hard data on your customers’ behavior.  Contact us today to learn more about what Brandmovers can do for you!

 

What is customer loyalty?

jkurtzman News

What is customer loyalty?

  • Customer loyalty reflects a customer’s willingness to interact with an organization or brand again and again.
  • Loyalty is the result of a positive customer experience, customer satisfaction, and the value of the products or services.
  • Loyal customers interact with and spend with brands they like more often, they spend more, and they utilize word of mouth to share their positive experience.
  • Just because a customer continues to buy from you, does not necessarily mean they are loyal. Being truly loyal means standing by a brand even when a problem arises, and they do not seek out competitors.

Did you know it costs a business about 5-25 times more to acquire a new customer than it does to sell to an existing one?

  • Existing customers spend 67% more than new customers.
  • Customer loyalty programs truly pay for themselves, as they keep customers coming back again and again.
  • In the U.S., 40% of online shopping revenue comes from repeat customers.
  • 69% of consumers said their choice of retailer was influenced by the business having a loyalty program

How can you measure customer loyalty?

  • Likelihood to recommend your products and services to others
  • Likelihood to continue purchasing your products and/or services
  • Likelihood of purchasing other products and services you offer
    • 83% of consumers said loyalty programs make them more likely to continue doing business with a particular company
  • Believing your products and services are preferable to others offered within in the marketplace
  • Not actively seeking out competitors to replace you
  • Providing your company with opportunities to correct problems and not using these as a basis for compromising the relationship
  • Did the consumer change their behavior because of a loyalty program?
    • 49% of consumers agreed they spent more at a business after joining their loyalty program

Why do customers join loyalty programs?

How to customer loyalty programs add value?

  • Use a point system
    • Ensure it is easy for the customer to understand the relationship between points and tangible items
  • Surprise gifts
    • 67% of customers surveyed said surprise gifts are a very important part of loyalty programs
  • 76% of consumers believe that loyalty programs are a form of a relationship they have with a brand

Is it time for your business to set up a loyalty program? Without a program in place, your organization could be missing out a large piece in what drives 83% of consumers buying decisions.

Prize Fulfillment, Customer Incentive Programs, Customer Incentive Prize Fulfillment

The Importance of End-to-End Prize Fulfillment in Customer Loyalty Programs

rreed Customer Incentive Program

Typically, bearing the burden of prize fulfillment presents a challenge for brands looking to boost customer retention with customer loyalty programs. Customer loyalty programs, with the correct planning, implementation, and promotion can not only boost customer retention, but also attract and retain potential customers.

Run a simple search for “prize fulfillment services” and you’ll be greeted with lots of agencies specializing in prize fulfillment for marketing programs. Employing a fulfillment-specific agency for a customer loyalty program can create a fragmented initiative, putting more pressure on marketers who should be focused on program communication and analysis.

Brandmovers has the size, scope, and industry connections to easily handle prize procurement and fulfillment in your customer incentive programs as just one element of its customer loyalty services. We take the burden off you, so you can focus on reaping your own rewards from your customer reward offerings. Our end-to-end prize fulfillment services include:

  • Full fulfillment center capabilities: From sourcing, to warehousing, to shipment, we can handle all the logistics involved in sending physical rewards out to your customers.
  • Extensive prizing partners: Thanks to our extensive list of existing clients and contacts, we can offer you partnerships with major name brands to offer prizes with true appeal, not just generic knock-offs.
  • Coupon fulfillment: We can work with you to create physical or digital coupons that integrate into your own systems seamlessly. This includes envelope-sized mailers and related packaging.
  • Digital rewards: Looking to offer movies, music, games, or other electronic rewards? We can design delivery systems that protect your content from piracy/copying while remaining easy for customers to utilize.
  • Turnkey travel planning: Are you going high-end with your rewards? That’s no problem. If you want to send a customer halfway around the world, we can make sure they get there and back again safely.
  • Communication systems: No matter how you or your customers wish to communicate it, we can facilitate it. There’s no more need for “wait six weeks for response” messages. This also includes promotions that mix communication outlets, such as Facebook- or Pinterest-based promotions.

 

No other provider of customer incentive programs can offer the same range of features, services, and extensive industry integration as Brandmovers. That’s why we’re a leading choice for brands around the world looking for a consumer loyalty program partner who can offer simple, robust, customer-pleasing solutions.

Contact us today for a full consultation on your next customer loyalty project.

Millennials and Loyalty

jkurtzman News

By the year 2020, the millennial generation will make up 30% of total retail sales in the United States, and they currently collectively spend about $600 billion per year. This fact means this age group has, and will increasingly have, a large economic impact. The question business are asking, is how does this generation differ in terms of loyalty to brands?

Read More

Digital Rewards Programs

Implement Digital Rewards Programs to Build Loyalty More Effectively and For Less Investment

Brandmovers Marketing and Advertising

For years, buyer rewards programs really boiled down to two basic implementations: Either discounts such as coupons, or real-world physical gifts. While even in this form, loyalty programs were highly effective and virtually always showed superior ROI, the field has evolved significantly with the development of digital rewards programs.Read More