Tag Archives: reaching consumers at the front door

Are QR Codes the Next Big Thing in Shopper Marketing?

Posted on by
Reply

Still in its infancy here in the States; major brands see the potential of the technology

In this week’s issue of AdAge, reporter Natalie Zmuda writes about QR Codes Gaining Prominence, with the likes of Target, Best Buy, Macy’s and Post Cereals embracing the technology.  A pretty impressive group to be sure – but just the tip of the iceberg as the technology gains greater acceptance through a concerted effort to educate the consumer.

PowerDirect's own QR code points prospects to our website.

Originally used for tracking parts in vehicle manufacturing, QR (or quick-response) codes are becoming more widely used in marketing for a broad range of brand initiatives that provide mobile access not only to special offers and discounts, but also to more informative content such as product ratings and reviews, How-To guides and product-specific videos.  These two dimensional barcodes are appearing anywhere and everywhere – on billboards, in-store displays, event ticketing and tracking, business cards, print ads,  direct mail campaigns, websites, email marketing, and couponing. Marketers are realizing that the possibilities are endless.

Front-door media is yet another ideal medium for QR code implementation – providing a way to influence shoppers early on their path to purchase, supporting shopping decisions and lists made in the home with high-value offers delivered directly to the front porch.  For example, imagine bypassing the mailbox and the other clutter of a prospect’s daily life and delivering a branded message along with a product sample or a special offer to the front doors of a targeted group of prospects.  On this marketing piece is a QR code that takes the customer to a website where they can quickly view the product in action, learn more about it and even purchase it online. Perhaps the QR code takes the customer to an added incentive meant to drive traffic to a brick and mortar retail location.  Working with other pieces of the marketing program, this delivery method adds a personal touch and incentive the consumer’s brand experience.

Have you been eager to test QR codes as part of your overall strategy? Are you looking for the ability to measure response rates with a high level of accuracy? Are you ready for a simple, inexpensive way to explore the potential of QR codes?  Front-door marketing may be just the ticket.

Today’s Media Onslaught Causes Consumers to Tune Out

Posted on by
1

Use the ‘Less is More’ Philosophy to Break through Media Overload

Howard Gossage, one of the earliest innovators in advertising, once said that people don’t read ads. They read what interests them and sometimes it’s an ad.  The point is that people don’t inherently hate ads; they just hate bad ads that don’t bring value or otherwise matter to them.  Today that phenomenon has evolved even further, as the average consumer has become highly skilled at tuning out messages that are neither of interest nor intended specifically for them.

Image source: creativecouples.net

This increasing ability to shut down messages means that marketers need to refine their efforts rather than simply expand them.  Less is more, and more of the same simply won’t do the trick. Channels, messages and targeting all must come together to effectively reach the right audience with pertinent communication.

The ability to deliver a succinct message, respecting the intelligence and value of the audience in the process, is highly prized by marketers.  An innate characteristic of front door marketing, this singular, uncluttered channel is in line with the evolution of the ‘consumer brain.’   In fact, according to a now well-cited study by Stanford University researchers, the human brain is just not well-suited to media multi-tasking and being bombarded with multiple streams of electronic information.

Are you considering the ‘how, when and where’ factors in reaching your target audience? Using the front door may help your message stand out with value and meaning, and break through on a much more personal level.

Shopper Marketing Starts at Home

Posted on by
Reply

Shopping behaviors and priorities may be far more complex than once thought, developing and evolving over time and inspired by any number of needs and wants

Shopper marketing was once thought of as a purely in-store experience, with specific outreach to consumers as they browsed aisles in an effort to close the deal.  But marketers today are recognizing that shoppers arriving in the store are not completely blank slates waiting for the right marketing message to move their purchasing decisions.  Much of their motivation to purchase starts at home and for any number of reasons – from needing to feed a picky child, planning a party, redecorating a home, or simply restocking a thinning pantry with familiar items.

Cause and effect is at the core of shopper marketing, and this includes both in-store and out-of-store motivations.  The right channels and messages are essential, and turn shopper marketing into a science for delivering value to the right customer at the right time. This in turn has renewed a focus on the path to purchase, a circuitous route to shopping decisions. Many more opportunities exist than meeting a shopper in a grocery or retail store aisle.

copyright © 2010 sean dreilinger

For example, children may open their favorite toy at home to find a promotional pamphlet introducing a new character… ‘We know you love Thomas the Tank, so meet Emily the Engine.’  Since they watch Thomas on satellite television or Netflix, they may start to seek out Emily or even ask for her as the next toy resident in their version of Thomas’ fictional Island of Sodor. Mom or Dad puts this on their list and it becomes a priority shopping trip, largely based on events that took place in the comfort of their own home. Add to that a front-door delivered coupon from a major toy retailer or mass merchandiser with savings off of any Thomas the Train toy, and Mom or Dad is effectively incentivized to visit that retailer.

Front door media is uniquely suited to influence shoppers at this early stage on their path to purchase, supporting shopping decisions and lists made in the home with high-value offers delivered to the front door. Are you reaching your best customers at home, layering front door tactics onto your overall shopper marketing strategies?  And if not, what are you doing to reach your target audience as they are forming lifetime associations with products and behaviors?

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?

Out of the Mailbox: Alternatives to Reaching Consumers At Home

Posted on by
Reply

Direct mail is a multimillion dollar business in the US and a usual fixture in most direct marketing programs. However, according to DMNews, the changing nature of the USPS and emerging customer communications technology have forced marketers to consider new alternatives for reaching consumers at home.

Despite the Postal Regulatory Commission denying the Postal Service’s request for a rate increase, marketers are still planning for higher postal rates in the future (the USPS reported last month that it is looking to appeal Commission’s decision), the cutting of Saturday home delivery, fewer Post Office branches, and the possibility that the USPS will be out of money in 2011.

What this means for marketers is that not only will direct mail access to consumers homes be more expensive, but marketers will miss out on the chance to influence consumers at home on Saturday, one of the biggest retail shopping days.

In an effort to diversify their media mix and decrease their reliance on US mail, some marketers are moving towards an online solution, which has been propelled by recent mobile commerce innovations such as mobile payments. However, Paul Vogel, president of mailing and shipping services at the USPS, warns that inboxes and social media messages are becoming increasingly cluttered.

Making the move from out of the mailbox and into the inbox doesn’t solve for the age-old problem of increasing advertising clutter. If marketers are looking for a true alternative, front-door marketing gives consumers the touch and feel of a direct mail piece, but without the clutter of the mailbox or inbox.

Change is inevitable for the USPS, and marketers should consider how these changes will affect their future marketing plans and place renewed emphasis on finding alternative options to reaching consumers at home.

High Q2 Coupon Redemption Reflects Price-Conscious Consumer Trend

Posted on by
1

Via CPGMatters:

CPGMatters’ August 2010 issue contains coupon redemption information for the second quarter of 2010. So far, Q2 marks the seventh consecutive quarter of growing coupon redemption.

Key findings include:

  • Overall, redemption has increased 6% during the first half of 2010
  • Average coupon value hovers around $1.59 during the first half of the year
  • Marketers have offered 18 billion CPG coupons so far this year, up 11.4% from 2009
  • Among retailers, the largest increase in redemption value has been in convenience stores, warehouse clubs, and discount variety stores (as a whole, 36.6% increase)

The high coupon redemption trend echoes consumer sentiments from a July study published in Brandweek.  81 percent of the surveyed agree that “It’s fun to see how much money I can save by using coupons or my shopper loyalty card.”  And based on the chart at right, 61% are more price conscious now than they were a year ago.

“People who share such sentiments likely aren’t longing to return to freer-spending ways once an economic recovery signals that it’s safe to do so. That’s surely true of the 44 percent who agreed that “I can’t believe how wasteful I used to be when I shopped.” The chart indicates some shifts in consumers’ approach to purchasing.”

These new behaviors are determining what will be the new “normal” in consumer purchasing.  With the end of the back-to-school shopping season drawing near, and the winter and holiday shopping season approaching, are your marketing campaigns addressing the shift in consumer purchasing behavior?

Growing Population of Baby Boomers Dominate Generation Y

Posted on by
Reply

Via AdAge.com:

Nielsen is out to disprove one of the industry’s oldest beliefs: that consumers over 50 aren’t worth targeting.

Its research indicate that the 78 million baby boomers are a more attractive segment for marketers than the often touted Generation Y (also known as “Millenials”). Nielsen’s research suggests that the trend towards fewer children will result in smaller households and thus fewer younger consumers, and the recovering economy will lead to young families spending less and lower salaries for the younger generation.

Doug Anderson, Nielsen’s senior VP-research and thought leadership, states that America is likely to be a nation of a large older population and slower-growing younger one.

In 2010 so far, baby boomers account for almost 39% of all dollars spent on consumer packaged goods, 40% of total wireless services customers, and 41% of paying customers for Apple personal computers. And changing technology has unleashed new devices and gadgets that are new to all consumers, allowing brands to market to the often forgotten age 50+ consumer. Yes, contrary to popular belief, baby boomers don’t just need life insurance and dentures; they want cell phones and iPads just like the rest of us.

At PowerDirect, we’ve developed thousands of targeting plans for clients, but I’ve rarely seen marketing plans directed at baby boomers. If Nielsen’s study proves true, new front-door marketing opportunities may be available for brands to reposition themselves with one of the largest US demographic segments, especially since this is a medium they’re familiar with.

Marketing Opportunities in Hispanic & Latin American Segments

Posted on by
Reply

Via Portada Online

A recent Portada survey of media executives in the Hispanic and Latin American sectors indicate that there are optimistic feelings of opportunities in these sectors.

More interesting than the survey results are the opportunities and challenges that the executives outline in their answers. Answers range from online marketing to event-specific promotions (i.e. the World Cup, etc.). And don’t miss the answer given by PowerDirect’s CEO, William Borneman:

“Opportunities: The most opportunities for our business for the remainder of the year likely will be with our retailer clients, as there has been a noted upturn in retail consumer spending. The recession has turned the corner and there is greater consumer confidence. As a result, consumers (including Hispanic ones) are expected to spend more discretionary income on various retail purchases including consumer electronics (think “IPad”). This will create an opportunity for us as our retail clients may spend more money on advertising in general and (hopefully) in our media in particular, since we are very targeted and can reach customers around their stores’ immediate trading areas.”

“Challenges: “The most challenging part of our business during the rest of the year (and beyond) will be to roll out our new brand positioning. “The Science of Front-Door Marketing”. We define this as “Tightly integrated blend of proven direct-response methodologies, leading edge monitoring and campaign metrics.” …Our challenge is to communicate our industry’s benefits to marketing and advertising clients and raise the overall Front-Door Marketing & Media industry’s profile.”

Read the rest of the responses here.

Issue 3.1 of The CheckOut: Coupons & Shopper Marketing Trends

Posted on by
Reply

Last month, the Integer Group released Issue 3.1 of The Checkout, a monthly national survey of shopper-marketing trends. The issue focused primarily on the role of coupons and how coupons are affecting shoppers and their decisions.

Some interesting facts and implications from the report:

  • Shoppers are using coupons to drive their brand decisions before entering a store
  • Women look for coupons in traditional media, while men become more involved when using technology (brand websites, mobile marketing, etc.)
  • Coupons are perceived by shoppers as an incentive to try new brands and as a loyalty reward
  • Shoppers want coupons that are easy to use and simple to find
  • 75% of shoppers favor instant discount coupons
  • Check out the list of top brands and retailers who are deemed as having the “best” coupons

Read the rest of the report here.