Retailers Ride Holiday Growth Wave into 2011

Posted on by
Reply

Retail momentum continues, as consumers’ desire for discounts is fueling promotions and shopper incentives

Retailers were generally pleased with the 2010 holiday season, seeing 5.7 percent growth over 2009 and handily beating initial projections by the National Retail Federation.  In fact, the NRF further says that January marks seven straight months of retail gains, demonstrating that many consumers are ready to spend after a long and difficult economic slump. It’s a winning situation for consumers – retailers are anxious to maximize this upswing and are upping their game with continued promotions and discounts. 

Good news for shoppers who have come to expect some level of competition for their spending power. Their expectation of value is rock solid and increasing the pressure on retailers to deliver.  For retailers it is a bit trickier though, and marketing efforts must break through the barrage of promotional activity to really get the consumers’ attention as they travel the path to purchase. Shoppers have become savvier about sifting through their options – comparing prices and demanding value as they prioritize their spendable income.

In turn, marketers are layering additional tactics onto established and successful retail marketing strategies.  Capitalizing on what they already do well – such as developing incentives that demonstrate real customer understanding – marketers are raising the bar by adding underused channels such as front door marketing into the mix.  Bypassing a crowded field of messages, retail marketers are in some cases exceeding a 20 percent response rate.

Are your retail marketing initiatives generating the results you need, especially as Americans seem to be stepping out of their years-long spending slump? And if not, what are you doing to expand on your campaign strategies?

Good Marketing Always Finds a Reason to Celebrate

Posted on by
Reply

Valentine’s Day, Presidents’ Day, St. Patrick’s Day – You Name it; Retailers Have Been Using ‘Holidays’ to Drive Customer Traffic for Decades

Ah, love is in the air.  Just look around. On TV, in newspapers, magazines and online – who needs a calendar to be reminded of Valentine’s Day when the good folks at Hallmark, Teleflora and Godiva are pulling out all the stops to ‘nudge’ you into buying or doing something nice for your sweetie.

According to a recent study commissioned by the National Retail Federation, the average person will spend $116.21 on traditional Valentine’s Day merchandise this year, up 12.8 percent over last year’s $103.00. Couples this year will spend an average of $68.98 on their significant other or spouse.  And total holiday spending is expected to reach $15.7 billion.

For years marketers have been relying on this and fringier holidays to boost sales. (Presidents’ Day is the perfect time to buy a mattress, right?). No matter how silly some of the sales connected to the various holidays seem, they do represent yet another opportunity for retail marketers to connect with consumers who are more willing to spend as the economy strengthens.

By adding alternative channels to the mix, marketers can extend these ‘holiday’ sales efforts and expand their reach beyond the ordinary. The new twist on front door marketing combines the same scientific data used in traditional direct marketing channels with unique special offers to deliver the right branded message to the right door. Yet another layer to an aggressive marketing strategy designed to get customers into the store.

Are you taking advantage of all the right effective channels to drive retail traffic?

Win Big with Sport Fans

Posted on by
Reply

Score More High Value Sales

As the NFL wraps up its season this weekend, Cowboys Stadium will be filled to capacity with the seats practically selling themselves. This, my friend, is a sports marketer’s dream.  Unfortunately, this scenario is the exception and not the rule. A big event like the Super Bowl, the NBA play-offs or the World Series is sure to pack them in. But how do you get fans to the field or the court during the regular season or if you’re not the reigning champion?

It’s no easy feat but a team hits pay dirt when they pack the stands – aside from ticket sales, they can be looking at money rolling in from food, merchandise and parking fees as well. And it isn’t just professional sports, but collegiate and amateur as well. Getting fans to your venue is critical in increasing profits.

But American budgets are tight and attending sporting events is one of those ‘entertainment’ options that people are curtailing even though they might still wish they could indulge. Competition with televised games doesn’t make it any easier. But smart marketers know there’s something ‘real’ about attending a live sporting event. It’s an experience. Something that can even be shared or remembered for years to come.

In addition to using new media to reach fans, many teams have turned to front door marketing, offering special ticket prices, packages and incentives to get fans off of sofas and into their venues. By delivering a team-branded, not-to-be-missed offer to specific targets at the block group level, teams are effectively increasing ticket sales and increasing attendance. Are your direct marketing efforts scoring big with your fans?

Tapping the Potential of the Hispanic Market

Posted on by
Reply

What are you waiting for?

If there were a market segment steadily increasing in number and affluence wouldn’t you at least want to check it out? Well, there is and you can no longer afford to ignore…the U.S. Hispanic. Whether you simply haven’t recognized the value of this segment or you weren’t exactly sure how to best market to this group, it’s not too late to jump on the opportunity at hand. The Hispanic population is estimated to have hit 50 million in the U.S., with soon-to-be-issued 2010 Census results expected to confirm that figure. And this group is growing not only in number but also in earning and spending capability. With power like that you’d be a fool to continue to ignore the Hispanic audience.

A recently-published article penned by our own Barry Gilbert highlights the importance and diversity of the Hispanic market. A range of acculturation levels, language preferences, countries of origin, length of time in the U.S., etc., all contribute to the complexity of connecting with the U.S. Hispanic in his/her various forms. But many major brands are finding that this ‘hurdle’ is actually extremely useful data that can be used for pinpoint targeting. By combining this information with a tailored, well-branded and pertinent offer, brand marketers are utilizing today’s front door marketing strategies to hit the mark with their Hispanic targets.

Why are you waiting for official Census results? All the signs are there.  Shouldn’t you be diving in to reach the Hispanic audience with strategies that work before your competition does?

Renewed Focus on Shopper Marketing Looms for 2011

Posted on by
Reply

Marketers Emphasize the Art and Science of Reaching Shoppers All Along the Path to Purchase

Consumers have evolved – a not too surprising outcome of the recession and resulting lifestyle changes across the country.  Values, priorities and resources have shifted profoundly, reshaping shopping behaviors and motivations.  Marketers need to gain insight into this new mindset, finding ways to deliver value and connect with customers on the long and winding path to purchase.  According to excerpts from the Ad Age Insights Shopper Marketing Report, agencies are restructuring for enhanced shopper marketing – defining primary challenges, best practices and developing needs as an overall brand marketing priority. 

Booz & Co. states that manufacturer investment in shopper marketing has nearly doubled over the past five years, currently at $35 billion with 15 percent annual growth anticipated (based on funding reallocations from traditional media and trade promotion).  If that’s not convincing enough, the Booz data also notes that 83 percent of consumer-packaged goods companies surveyed expect to increase their shopper-marketing investment over the next three years. For 55 percent of those companies, investments in shopper marketing will exceed all other marketing spending, including internet and social media.

At the same time, consumer spending is more cautious with shoppers looking for deals, using coupons and actively focused on getting the most for their money.  Research from the Integer Group shows that 86 percent of respondents felt that coupons were at least somewhat influential in choosing a brand; as many as 70 percent used coupons to justify their brand choice.

These trends represent a significant marketing opportunity for direct response messages, going beyond the sole purpose of getting someone’s attention, and instead delivering usefulness and value.  Front door media is uniquely suited to this purpose, hand placing an impression of quality in a location where residents interact with the media and have a high percentage of response. The right message of value receives more consideration in the comfort of the home, where consumers are relaxed and more responsive.  Shopping decisions and lists are made in the home, and nearby phones and computers support the consumer’s ability to act on the message.

Are you bracing for enhanced shopper marketing? And what are your plans for reaching your best customers early on their path to purchase?

2010 Holiday Retail Sales End the Year with a Bang

Posted on by
Reply

What comes next?

It was a happy New Year, indeed, for U.S. retailers. After a stagnant 2009 holiday season, there was a great deal to celebrate. The latest report from MasterCard Advisors’ SpendingPulse™ shows a much better than expected holiday season for retailers with overall season-over-season growth of 5.5 percent.  Wonderful news for an industry that was holding its breath.

As retailers and shoppers recuperate from the frenzy, a little lull is to be expected. But savvy marketers are looking for innovative ways to get consumers back into stores. Post-Christmas clearance sales combined with gift returns and gift cards received are solid motivation for return traffic. In fact, with total holiday gift card spending estimated at $24.78 billion, there’s money burning a hole in the pockets of millions of Americans, and opportunities abound for retailers to increase sales beyond that initial gift card amount.

While TV and newspaper ads are logical channels to promote post-holiday deals, consumers are simply tired of the onslaught. To reach them where they live with offers they can’t resist, front door marketing can seal the deal. The tactic has been around for awhile but has recently been elevated to a science and a viable subcategory of the direct response discipline.  Previously considered less strategic, almost “untargeted” for a broad audience, today’s front door is ripe for the same precision targeting used in other marketing methods. Data research, analysis and application have significantly increased effectiveness, dramatically shifting industry perceptions of the channel. By using high-level data, major brands are placing the most relevant offer directly with the right customer to deliver a tangible competitive advantage. This decidedly updated and strategic approach bypasses a crowded field of messages and motivates consumers to respond. 

In the aftermath of a stellar holiday shopping season, what are you doing to get shoppers back to your store?

A Great Holiday Season for Retail Sales but What Comes Next?

Posted on by
Reply

As Shopper Attention Shifts, Retailers Put Finishing Touches on Post-Holiday Deals to Entice Consumers

In the final week leading up to Christmas, retailers are still reaping the rewards of a busier-than-usual holiday season with consumers checking those last few items off their gift-buying lists. In fact, earlier this week the National Retail Federation revised its holiday forecast, now projecting a 3.3 percent increase over last year’s figures. And while sales generally slow significantly after Christmas, retailers recognize some of the very unique opportunities post-holiday promotions can bring. 

The closer it gets to Christmas the more likely it is that people are trying to steer clear of the malls. But there’s something about December 26th that makes them more than willing to venture out again. After all the fun and stress leading up to the big day, shoppers are traditionally ready to think about an entirely different set of priorities. Diet, exercise and general ‘recovery’ from holiday indulgences commonly top the list, often paired with feeling like “it’s time to treat myself.”  Perhaps that perfect gift wasn’t under the tree, but several not-so-great presents could be returned and put toward what was really on the wish list.  Retailers rely on after-Christmas sales, gift cards and gift returns to keep shoppers strolling through their doors, and need to make the most of this post-holiday shopping period.

To rise above the hustle and bustle of holiday ads and messages, retailers may choose to take a more personal approach to attract post-holiday shoppers and clear out merchandise. Campaigns using channels like front door marketing can be executed quickly and easily, driving response with a compelling offer that gets consumers to act.  With a start to finish timeframe of as little as two weeks, retailers can have their branded message delivered to the front door of some of their best and most promising customers.                                                                         

What are you doing to get shoppers back into your store after the holiday splurge?

The Path to Purchase Starts at Home, During the Holidays and Year-Round

Posted on by
Reply

The Search for Value is Not a Linear Process, with Consumers Making Shopping Decisions Every Day in Every Way

Consumers consider brands as they move through a variety of daily events such as walking through a store, or even non-events such as opening the pantry door.  With major retailers referring to the path as a circle, a pool or even a puddle, it’s dramatically clear that it is neither linear nor defined by a particular channel.  The path to purchase is a big picture opportunity for retailers, fueled by mobile, digital, social, radio, television and print media – and advantage goes to markets using multi-channel strategies to layer messaging and offer consumer value all along the path.

A recent survey by retail industry analyst E-tailing Group confirms the consumer’s focus on value, indicating that merchants must get creative as almost half of shoppers will refuse to pay full price this holiday season.  Further customer service and promotions are heavily favored, and 39 percent of shoppers plan to complete most of their holiday shopping by early December (an increase over last year’s 34 percent.) Savvy marketers have recognized these factors as advantages for offering relevant information to the shopper early in the process, meeting expectations of brand value, keeping them informed and becoming part of the research and ritual of making shopping decisions.

Further, news from IDC Retail Insights points out that ‘sequential use of multiple channels’ by consumers will shift to ‘concurrent omnichannel behavior’ – meaning that new options such as mobile price research weakens the retailer’s immediate influence on purchase decision made right at the product shelf.  Brands that answer back with “three-dimensional selling,” working to solve a customer problem rather than sell a product, are on the right track by offering high value to reinforce greater brand appreciation earlier in the shopping chain.  The consumer may not necessarily care about which entertainment provider they use, rather they are more interested in the cost, availability and convenience enabled by their various options.

The path literally encompasses all aspects of shopping, from considering needs, evaluating brands, comparing prices, researching options and listening to recommendations from trusted friends.  For marketers, influencing customer choices involves strengthening the connection that comes to mind in each of these instances.   Reaching consumers early on the path maximizes the opportunities for shopper connections – whether it’s planning dinner, making a shopping list or just realizing the kids need new shoes.

Does your marketing strategy recognize the limitations of a linear view of the path to purchase? And are you doing enough to reach your customer early in the cycle, offering value and resonant messages that can linger for extended consideration and response?

Retailers are Getting Their Piece of the Holiday Pie with Deep Discounts

Posted on by
1

Black Friday Encourages Retailers to Keep Those Deals Coming

Disappointing retail results for the past several holiday seasons have led to sales and specials that go well beyond the hype that is ‘Black Friday.’ The lines have definitely been blurred with prices slashed throughout the months leading up to Christmas.  This aggressive effort seems to be paying off this year with retail traffic up significantly. 

In fact, recent survey results from the National Retail Federation show that 212 million shoppers visited stores and websites over the four day-long Black Friday weekend, up from 195 million last year. In addition, people spent more, with the average shopper shelling out $365.34, up from last year’s $343.31. And total weekend spending reached an estimated $45.0 billion.  These figures don’t even take into account the 37.2 percent of Americans who planned to begin holiday shopping before Halloween.

To get the attention of today’s consumer, retailers are taking advantage of the myriad channels available to them.  Print, online, television, direct mail – ads are coming at us from every direction.  It’s all good but it can get confusing and many times it’s in one ear, out the other. One under-utilized marketing channel is rising above the noise though, demonstrating significant success for major brands across the country.  These retailers have committed to reaching the right customers with ‘too good to miss’ offers delivered right to the front door. 

The front door is an ideal meeting place – uncluttered, highly visible and primed for action. And today’s front door marketing brings value to a precisely defined audience, with measurable results enabled by technology-based processes.  Certainly, the right message combined with a compelling offer receives more consideration in the comfort of the home where consumers are relaxed, more responsive and making their shopping plans.  It’s a channel that’s working for major retailers around the country. Are you doing all you can to reach your customers to drive holiday traffic with special discounts meant just for them?

Customers Seek Value Now More Than Ever, and Brands Must Get on Board

Posted on by
Reply

Consumer behavior has changed dramatically and smart marketers are paying attention.  Seeking value as a priority, paying cash for necessities, foregoing credit cards, searching for discounts and putting money in the bank have become the norm thanks to the recent recession. Spending is more cautious, with consumers looking for deals, using coupons and actively focused on getting the most for their money.  And while the recession may officially be over, some economists say many of these changes in spending habits, initially seen as temporary, have taken hold for the long haul.  The 2010 Nielsen Economic Current states “value remains the mantra and the new normal is characterized by restraint.” The report also indicates that shoppers across the U.S. and Canada are cutting back on trips to the store, seeking value and balancing their purchases with a mix of branded and store brand items. This economic trend represents a significant opportunity for marketers, going beyond the sole purpose of grabbing someone’s attention, and instead delivering usefulness and value. 

Further, internet research firm Burst Media recently surveyed more than 4,500 women, age 18 and older, concluding that coupon use, in both the online and offline world, is growing.  In fact, nearly one-third (32.4%) of respondents consider themselves ‘frequent’ coupon users and one-third (34.0%) are using coupons more frequently today than they were six months ago.

High value offers characteristic of front door marketing strategies may fill a gap here – demonstrating a brand’s understanding of customer needs, while meeting a customer’s expectations of value. If it’s all about the getting the right offer on the right door, today’s creative front door media can make a high value offer stand out.  Gift cards, sweepstakes, tear-off offers, and sensory marketing with sound, scent or taste are available media options and represent a dramatically personal approach suited for major brands seeking to offer special treatment to their best customers.

If customers have high expectations of value from their favorite brands, what are you doing to deliver VIP treatment to their front door? Is your offer high value enough to walk through your customer’s front door as a welcome visitor?