How to improve advertising and promotions: Get digital
- The most effective advertising and marketing to attract more grocery shopping customers includes using digital communication in smart ways, according to a study from Aptaris and dunnhumby. Report data came from close to 70 food retailers representing more than 4,600 stores across 34 states.
- According to the report, digital circulars help draw shoppers online, which is helpful as more people do some of their shopping digitally. Retailers could also benefit from more strategic planning in putting together digital strategies. A bigger budget for social media means a greater social media presence and better data to determine how effective those efforts are.
- Tailoring promotions to different shoppers through segmentation is helpful — but loyalty programs can also help keep high spenders in the store. An added bonus for loyalty programs is that these shoppers find technology more important.
People are embracing digital shopping, and grocery stores that get on board are in a good place to build their market share and keep loyal customers coming back through all means possible. While the grocery industry is somewhat behind the technical innovation curve, this report makes it clear that those who make honest efforts to catch up to their retail counterparts have much to gain.
Retailers who make good use of digital marketing can easily accomplish several of these recommendations at once. Creating digital circulars expands the use of store coupons to those who are doing all or part of their shopping online. And coupons are still important to shoppers today. According to a study by RetailMeNot, 96% of all consumers use coupons, and the number of American shoppers who utilize mobile coupons is increasing every year. Valassis reported 9 out of 10 millennials use coupons regularly, and an increasing number are redeeming them through digital channels.
But a digital circular can also easily include targeted deals, which is another recommendation. When a retailer knows what a specific shopper tends to get and what his or her shopping patterns are, the store can easily tailor promotions, coupons, and information on price and selection to serve that shopper. A highly customized plan like this could pay dividends in the long run, building loyalty among customers who place more trust in the store.
As for social media, grocery retailers have a long way to go. According to a study from the Retail Feedback Group, only about 25% of shoppers are connected to their primary grocery store on social media, and just over half interact with the store through looking up information and building digital shopping lists. But social media is important, and practically any additional attention to the space is likely to pay off. Almost a quarter of consumers between the ages of 18-32 said they prefer to learn about sales and see customer reviews on social media sites. Photos on Instagram, meanwhile, show off the experience of shopping in a particular store — or where products are located.
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