Wednesday, August 12, 2015

Mobile Wallet Marketing: Offers, Coupons and Loyalty at the Center

Analytics help connect the dots to deliver context

US consumers probably won’t be replacing their leather wallets or designer purses with mobile phones or smart watches any time soon, but that doesn’t mean brands—especially retail brands—can afford to ignore the burgeoning marketing opportunity mobile wallets offer. As people grow accustomed to using devices to pay at the point of sale, the mobile wallet will become an important hub that will enable marketers to provide customers with more context as well as greater convenience, according to a new eMarketer report, “The Mobile Wallet: Six Things Marketers Should Know.”
Current vs. Planned Use of Mobile Wallets Among US Smartphone Owners, 2013 & 2015 (% of respondents) 

Offers, coupons and loyalty programs are nothing new to marketers and advertisers seeking to engage with customers and drive demand. But by connecting these tactics to mobile wallets, they’re starting to provide more convenience and context to consumers while they shop, as well as providing real-time insights that marketers can harness immediately to improve performance or meet specific objectives.
“I think the first use case [for marketing on mobile wallets] is more relevant offers that are specifically targeted to a consumer in a mindset to make a purchase,” said Alistair Goodman, CEO of Placecast. He elaborated that past purchase history could be triangulated with real-time location information to deliver compelling contextual messages and offers to individuals at the perfect moment to provoke a desired action.
Julie Bernard, CMO of Verve Mobile, agreed that sale messaging, coupons and promotional offers currently dominate the conversations related to marketing on mobile wallets. “While it may
 not be terribly exciting from an advertising industry perspective, it remains enormously relevant from a consumer point of view,” she explained. When consumers take advantage of a coupon, deal or promotion, it makes them feel like a savvy shopper, Bernard said. “Delivering those coupons and offers to the consumer in a manner that makes life easy for them is a hugely advantageous opportunity for advertisers and marketers,” she noted.
More often than not, brand-specific mobile wallets are tied in with loyalty programs to incentivize and hopefully habituate usage with offers and rewards.
Context will be key to keeping consumers engaged, and better analytics from mobile wallets will be one element to help inform how to provide that context. Marketers “actually have that information available to know what [customers] bought last and how frequently they’ve been in,” said David Luther, chief business officer at Mozido. “You can create that segment, then give them a pretty valuable discount to get them to come back,” Luther noted.
Michael Puffer, director of mobile solutions and strategy for HelloWorld, explained that a main advantage of mobile wallets is the deeper level of customer data and instant feedback loop they can provide campaigns and programs. “We’re really excited about this as a way to kind of quantify [what] really wasn’t as readily available and much more difficult to implement previously,” he said.

Tuesday, August 11, 2015

How Do Shoppers Decide Between Brick-and-Mortar Retailers?

Overall in-store experience is key to winning over shoppers

Brick-and-mortar retailers can’t slack off if they want to trample the competition and get customers to convert, based on recent research.
Main Reason that US Internet Users Decide* to Purchase a Product at a Specific Store, April 2015 (% of respondents)

An April 2015 study by TimeTrade asked US internet users the main reason they decided to purchase a product at a specific store when choosing between four retailers regarding an item with the same price. Nearly two-thirds of respondents said the overall in-store experience they had was the top deciding factor. 

Quick service—often a contributor to how well the experience goes—was cited by 30%. Even when shoppers decide on a store, the checkout process may make or break their experience, based on June 2015 research by Harris Poll. Among US internet users, 50% cited checkout-related issues—slow checkout (29%) and long lines (21%)—as frustrations when shopping at a retail establishment. 

One way to avoid such irritations could be to provide self-service in-store checkout, something shoppers have voiced a desire for. Product availability, such as out-of-stock items or stores not carrying desired brands or products, was also a big problem, cited by one-quarter of respondents. June 2015 polling by Retail Systems Research queried retailers worldwide about their priorities for improving the in-store experience and found that respondents were most likely to focus on educating and empowering their employees using technology, which jumped from 37% of respondents in 2014 to 49% this year. 

Around four in 10 respondents said improving the product mix, adding self-service customer-facing technologies and providing the ability to locate and sell merchandise from anywhere in the company were priorities—all of which saw leaps of at least 10 percentage points year over year. Meanwhile, a focus on a more convenient customer experience dropped in share of respondents, from 51% to 38%, as did more personalised attention from employees and boosting staff productivity.


Monday, August 10, 2015

Mobile Wallet Users Are More into the Web than You Are

Social Media Sites Used* by US Mobile Wallet Users vs. Total Internet Users, Feb 2015 (% of respondents)Social media site, search engine usage higher among mobile wallet users 

eMarketer estimates that just 12.7% of US smartphone users will make proximity mobile payments this year by using a mobile device to pay for goods or services at the point of sale. That’s a tiny slice of a group that’s already more digitally advanced than the average internet user—not to mention the average consumer.

A February survey from AudienceSCAN found that 14.2% of responding US internet users had used a mobile wallet for payment within the six months prior to polling, somewhat higher than eMarketer’s figure—though mobile wallets include more than just proximity payment methods.
And, unsurprisingly, this also-small slice of the population is more tech-savvy than average. AudienceSCAN found that US mobile wallet users were more likely than internet users as a whole to report using every social media site the company asked about—in some cases, more than twice as likely. Notably for retailers, mobile wallet users were especially likely to overindex on usage of Instagram and Pinterest, both of which are making plays to appeal more to retail advertisers. Yelp was also especially popular among mobile wallet users, and likely helping to send them to local brick-and-mortar businesses like fast-casual restaurants.
Mobile wallet users were also more likely to use every search engine AudienceSCAN asked about, favoring Google above all, at 91.4% vs. 79.3% of total internet users. Smartphone and tablet users who have graduated from simply shopping on their devices to actually using them for payment are demonstrating their internet activity is more extensive than average across many dimensions.


Sunday, August 9, 2015

Buy Online, Pick Up In-Store Delivers Savings, Speed

Likelihood/Adoption of US Digital Buyers Purchasing Digitally and Picking Up In-Store, April 2015 (% of respondents)Cash savings, shorter delivery times draw consumers to buy online, pick up in-store

Demand for buy online, pick up in-store is growing, and recent research suggests consumers are drawn to this purchasing option in order to save a few dollars or get their hands on purchases earlier.

When an April 2015 study by Blackhawk Engagement Solutions asked digital buyers about what would make them likely to try buy online, pick up in-store—also known as click and collect, particularly in the UK—86% said they would consider purchasing this way to save $10 on a $50 item. Speed was also appealing: Nearly eight in 10 respondents said they would consider buying digitally and picking up in-store if it meant they could receive an item three days earlier. In all, 45% of respondents had purchased online and picked up in-store in the past six months.
Blackhawk noted that buy online, pick up in-store offers perks for retailers, too. Not only does it reduce shipping costs—it also gets customers in-store, where they’re likely to purchase more. Similarly, in an interview with eMarketer earlier this year, Chitra Balasubramanian, head of business analytics for RetailNext, said: “Shoppers who buy online and pick up in-store end up spending a lot more once they get to the store.”
While some research points to low adoption of buy online, pick up in-store among retailers, more recent studies suggest usage is rising. When an April 2015 study by KPMG and The Consumer Goods Forum queried retailers worldwide about the shopping/delivery options they offered, buy online, pick up in-store was the most-used one, cited by 59%.
Similarly, when a March 2015 study by Forrester Consulting for ACI Worldwide asked fraud management professionals worldwide about the types of omnichannel shopping options offered by retailers, 74% cited buy online, pick up in-store/click and collect—the No. 1 response.

Saturday, August 8, 2015

Retail Marketers in India Up Social Spend

Social media most popular digital marketing channel for increased spending.

Social media marketing appears to be performing well for retailers in India, based on 2015 research conducted by the Retailers Association of India (RAI) and Octane Research among both online and offline-only retailers in the country.
Digital Marketing Channels/Formats Where Retailers in India Plan to Increase Investments in 2015 (% of respondents) 

Across the total respondent pool, 74% said they were increasing spending on social promotions and advertising this year—ahead of any other digital marketing channel. Just under half would increase email marketing spending.

Planned investment increases tracked closely with where retailers were already doing their digital marketing: 79% of respondents used social media marketing, and 62% used email. Mobile, search and display campaigns were less common.

Both groups reported customer acquisition as their main marketing goal, though it was more important for offline-only than online retailers.
According to February 2015 polling by Deloitte, 71% of digital shoppers in urban India used digital devices before making a purchase, emphasizing the importance of digital retail marketing in the country.