Monthly Archives: April 2014

Young Consumers Think About Long Term Purchasing

Yesterday’s post showed information about the shopping habits of younger consumers age 14 to 34. Today, we’ll go deeper into their decision making process and how technology plays into the purchase cycle.

filC39.tmp● More than one in three consumers age 14 to 34 are likely to only make purchases that are truly necessary
● Over 70% will research online before making an in-store purchase
● More than 40% consider the resale aspect of an item before buying it
● 41% want to be able to collect loyalty points for in-store purchases as well as online purchases
● 38% want to receive real-time offers while shopping in a retailer’s store
● One-third want an in-store product locator and 25% want the ability to make purchases in-store via mobile devices

What This Means To You

Younger consumers want the conveniences they have come to expect from digital shopping to move into the brick and mortar locations they frequent. The negative economy that the younger consumers have grown up with has also effected how they look at making purchases. While in-store product locators may be a challenger for many SMB’s to roll out – cross platform loyalty programs and mobile point of sale functionality are becoming much more attainable. And while you may not be able to roll out an internal location based product locator – a well informed and helpful staff will fill the bill.
When putting together your merchandise schedule – think about the secondary market for these purchases, especially clothing, tools and home furnishing. Also remember the importance product reviews play with consumers. With over seven in 10 researching their potential purchases online before buying – you may want to make sure that your products are linked to positive reviews. Consumers are most likely not just researching products; they are also researching where to buy. So, paying attention to your social reputation is also important.
For more information on targeting your most likely shoppers and converting shoppers into buyers, please contact:

Al Fiala
amfiala@gmail.com

Sources: Mobile Commerce Daily; The Intelligence Group

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Shopping vs. Buying

Some people enjoy the activity of shopping – searching out the perfect item and the satisfaction of finding it. For others, it’s all about making the purchase, not the browsing.
A new report shows that younger consumers find the activity of shopping just as satisfying as buying the items they are looking for and they want the in-store experience to mimic the online experience.

paper-shopping-bags-1158373● One third of consumers age 14 to 34 say the act of browsing or shopping is more fun than purchasing items
● Half of young shoppers browse for items they have no intention of purchasing
● 40% of young consumers make purchasing wish lists
● 56% of consumers age 14 to 34 want in-store sales to match online sales
● Over 40% want online and in-store inventories to match

What This Means To You

These young consumers are the next big wave of purchasers and technology has changed the way this group of consumers makes purchases vs. generations before them.  Just as they want online content delivered to them on their terms and time frame – they want the same while shopping. Their purchases are also heavily influenced by social media and mobile activity. This may mean a change in the way you look at stocking your locations and your product merchandising strategy. It also means that you will probably need to increase the attention paid to the competition. In earlier posts we showed how consumers are not shy about “showrooming”. If younger consumers find a better deal on products – it’s likely you could lose them to both online or local brick and mortar competition. For more information on gaining a competitive advantage through digital tools, please contact:

Al Fiala
amfiala@gmail.com

Sources: Mobile Commerce Daily; The Intelligence Group

Consumers Seek Out, Use and Share Mobile Coupons

In yesterday’s post, we chronicled information on the shopping habits of mobile coupons.  Today, we’re going to show the primary and secondary impact of mobile coupons.

mobile_coupons● Mobile Coupons have a redemption rate 10X higher than newspaper coupons
● 22% of mobile coupons are shared
● Nearly one in five mobile consumers look for mobile coupons before they make a purchase
● 47% of consumers said they would like for businesses to send them mobile coupons when they are near the business

What This Means To You

A mobile coupon can be the difference between a consumer buying from you or making a purchase from the competition. The fact that mobile coupons are shared so often gives you the ability to extend the message. Location based offers also may be an opportunity for you to create sales. Social networks like Foursquare can assist you in monetizing consumers when they enter your area of influence. And because it’s a tool that many businesses are not taking advantage of, your offer could stand out even further. For more information on making more money with mobile, please contact:

Al Fiala
amfiala@gmail.com

Sources: SlickText, Mediapost

Mobile Couponers are Very Valuable

In a recent post, we looked into how many consumers are using mobile coupons. In today’s post, we’re going to look at the value of consumers who use mobile coupons. These active shoppers could be the exact type of shopper your business needs.

mobile_coupon2● Mobile coupon users annual spend 42% more of their discretionary income than those who do not use mobile coupons
● During the average shopping trip, they spend 13% more
● They make an average of 25% more shopping trips per year as well
● Millennials in particular are more likely to shop using mobile coupons – 78% of millennial have redeemed a mobile coupon – that’s 23% higher than the average shopper
● 40% of Millennials said they will likely be using more mobile coupons
in the future
● Another group that over indexes for mobile coupon use are Hispanic
shoppers – 80% indicated they had gotten a money saving offer through their mobile device

What This Means To You

On average, consumers look at their smart phone 150 times per day, but it increasingly the first place they look to save money. These consumers don’t just spend more each they shop, they tend to shop more often. Mobile coupons don’t just have the ability to bring in more customers, they can also develop loyal customers. When you create you mobile coupon strategy, don’t let it be a one shot deal. Offer them the ability to sign up to receive mobile coupons on a regular basis. Also, ask them just a few questions about what they mainly are looking to purchase from your store or they types of deals they are looking for. Phrase these questions in a way that tells them you want save them time, effort and screen space by only offering them deals & products they will use. But then follow through on it. Customize the offers to meter their needs. When you tailor offer to your customer’s wants and needs, you’re not sending them advertising, you are becoming a reliable source of savings. For more information on how to deepen your relationship with existing customer’s, please contact:

Al Fiala
amfiala@gmail.com

Sources: MediaPost; Puca

Coupons Moving to Mobile

Couponing still alive and thriving but the delivery method is rapidly changing. For decades, people would get their scissors and the Sunday paper and look for the things that were on the weekly shopping list. Coupons are still the number one reason why consumers buy newspapers, but the digital age moved coupon users from clipping to clicking and now mobile devices have them tapping for discounts.

mobile coupon 3● This year, it’s estimated that 10 billion mobile coupons will be redeemed and over 50 million people download a mobile coupon
● 75% of smart phone users have used a mobile coupon
● 8 in 10 smart phone users they have an improved perception of businesses that offer mobile coupons
● 65% of consumers will add things to their shopping list because of a mobile coupon

What This Means To You

We’ve shown lots of information on how mobile is altering the way consumers discover, research, select and purchase the products they use every day. Those changes should also trigger changes in the way you reach, engage and draw traffic to your business.
Mobile coupons can be delivered through numerous channels – email, SMS, apps, group deal sites, QR codes and location based services are just a few. If you are currently using coupons as a marketing tool – do some a / b testing to see what delivery methods are most effective. You should also be prepared to pivot to a new mobile delivery method because of rapid pace at which consumer trends evolve. If you are still only using traditional methods to get coupons to your customers, think about mobile coupons. Look around your store – how many shoppers have their mobile devices with them. Mobile coupons can mean the difference between a sale and someone “showrooming”. For more information on how to monetize mobile functions, please contact:

Al Fiala
amfiala@gmail.com

Sources: KeyRing; Juniper Research

Consumers Open To SMS Offers

Mobile technology has opened up many new avenues of customer messaging, one of the most effective maybe SMS texting. New research has come out that shows SMS is very capable  and consumers are to receiving SMS texts from business.

9c4A96ncE● 98% of SMS messages are read, the average response time to an SMS message is 90 seconds
● SMS is the preferred way of receiving ads on mobile devices. 75% of consumers said they would rather get them via SMS
● 49% of all smartphone owners said they are open to receiving ads via SMS
● The groups most interested in getting SMS advertising are Generation X (Age 30 to 43) at 55% and Generation Y (Age 18-29) at 52%

What This Means To You
While consumers are open to receiving SMS commercial messages, you need to follow guidelines similar to email marketing.
Only deliver SMS messages to consumers who have specifically signed up to get them.
Make sure that the offers you are delivering are targeted and have value.
Don’t over message.
You need to remember that it’s possible that the end user is paying to receive your message by individual text. Build in immediacy to increase the impact of your message. The more targeted you can make your message the better. For more information on how to maximize your mobile efforts, please contact:

Al Fiala
amfiala@gmail.com

Sources: SlickMessage; Local Search Association; Thrive Analytics

In-Store Mobile Use is Affecting Path to Purchase

In yesterday’s post we saw that the top two reasons consumers use mobile devices in store was to save money either through comparison shopping or searching for offers. But what happens after they use their decive?

Mobile-shopping-525x600● 65% of Generation Y shoppers (Age 18-29) and just over 62% of Generation X shoppers (Age 30-43) will stop moving forward with a purchase because of new information they find using their mobile device
● Older consumers are a little less likely to stop their search. 45% of Younger Boomers (Age 44-55) and just under 40% of Older Boomers /Seniors (Age 54+) will stop
their search
● The most popular action after learning new information was purchasing the item online. Nearly half of consumers under age 43 decided to make the purchase online (47% of Gen Y s and 46% of Gen X shoppers)
● Just over 40% of consumers age 44+ decided to buy the same item online (41% of Younger Boomers, Older Boomers & Seniors)
● The next most popular action was to buy the same item from a nearby competitor

What This Means To You

A consumer’s willingness to make the purchase online or buying it from another brick and mortar company is probably based on the difference in price and the immediate need of the item. While shoppers are more than willing to save 20% by purchasing a big ticket item online or driving to a another location, “Showrooming” of less expensive items or things they need right away
is not as common.

Does your business have a “Showrooming” strategy?

A few ways to combat “Showrooming” are:
● Online price matching
● Free delivery on items of a certain price point
● Hauling away of old items
● Complimentary set up or assembly
● Free of charge product training
● No hassle return policies

Offering and then promoting these services will remind customers the advantages of buying from you vs. buying from an online retailer or a
cross-town competitor.
Very often, consumers time and effort can trump a discount offered on
certain items
Speaking to the immediacy of the obtaining the item, hidden costs associated with shipping and the convenience you can provide can help you overcome the lure of “Showrooming”. For more information on how to take advantage of mobile shopping, please contact:

Al Fiala
amfiala@gmail.com

Sources: Local Search Association; Thrive Analytics