Shopper Rewards remain effective, but need to be smart…
Promotions still influence shopping behaviour and their use continues to grow, most noticeably among previously un-engaged ABC1 families. But with 90% of shoppers actively seeking promotions/new products and shoppers increasingly dissatisfied with traditional promotion channels, engagement is now the key metric in gaining traction and mobile is the key channel in making these engagements relevant, convenient and timely:
At Shopitize, we’ve recognised the traditionally strung-out shopper marketing journey and created a platform that engages, empowers and ultimately influences the behaviour of shoppers throughout the path-to-purchase via a single, consistent and measurable channel:
- Attract – Relevant, timely, convenient
- Guide – Info, advice, brand values
- Influence – Sample, switch, reward
Simply using mobile as an alternative distribution channel for coupons is a mistake that many shopper marketers continue to make, led largely by their insistence on transferring the offline coupon models (household distribution, direct mail, press and internet) directly to the mobile channel. What this does is give you a marginal uplift in response (mobile will always beat those channels) but significantly smaller volumes as there are still relatively few mass-market mobile audiences to which these offers can be directly marketed. This continues to make mobile difficult to justify on a ROI basis, simply because the volumes tend to inhabit strictly “trial” parameters.
Whenever brands or agencies discuss “trial” with me, my first response is to ask what they are trialling…We know that shoppers respond extraordinarily well, offers and engagements are warmly received and that the technology works, so I ask “what in your minds are you trialling?” The answer of course is that they want the old results (vast responses and sales peaks) with new measurables (where, when, who, why?) which have not been available through traditional channels but which are all real-time and substantiated with a dedicated mobile channel.
It’s at this point that the true nature of “trial” can be recognised and addressed. What we actually work with brands to achieve is a targeted change of shopper behaviour through a direct-to-mobile experience. What we are delivering is old-style sales penetration of course but also the establishment of foundations for a brand-to-consumer relationship which is not wholly discount-driven, is interactive and which can recognise the stage at which that shopper is in their relationship with the brand and the product.
The outcome of such a “trial” is proving how mobile, when used properly, is uniquely able to reward the right kind of shopper and the right kind of behaviour.