2014 Shopper Marketing Year End-Review
2014 was an explosive year within shopper marketing from changing audience demographics, to the growth of mobile shopping, the testing and integration of beacon technology, and the expansion of omnichannel marketing.
In order to make your head stop spinning, BARD Advertising pulled together key 2014 highlights to share. Once 2015 hits, we will publish our shopper marketing predictions for the new year.
Changing Shopper Demographics
The shopper life cycle is changing rapidly and varies greatly based on age and demographics. Some of the key audiences for growth include Millenials and Hispanics.
- Millennials are expected to comprise 70% of projected consumer packaged goods growth by the year 2020.
- Hispanics are expected to be 53% of the U.S. population by the year 2020.
- Hispanics are part of the mobile first generation with many only owning a mobile phone.
- Baby Boomers are actually on the decline. Projections indicate a 16% decline in consumer packaged goods dollars within Baby Boomers by the year 2020.
Omnichannel Marketing Proliferation
Omnichannel marketing is prevalent with all major retailers, including Target, Walmart, Best Buy, Macy’s and Nordstrom. Omnichannel is about creating a seamless delivery experience across all available channels and consumer touch points.
According to the GfK Future Buy report from October 2014, some of the top categories of growth within omnichannel shopping including home improvement, auto, and beauty/personal items.
The top touch points that influence shopper behavior include previous experience with a brand or retailer. Vital information that influences shopper behavior includes shelf information, in-store displays, coupons and
word–of–mouth from friends and family.
Mobile Traffic and E-Commerce
Mobile traffic and sales continue to explode. IBM reported that mobile traffic exceeded PC internet traffic for the first time on Thanksgiving with mobile traffic at 52.1 percent and desktop 47.9 percent. On Black Friday, mobile traffic alone was 49.6 percent, and then on Cyber Monday, mobile traffic accounted for 41.2 percent of all traffic, up 30 percent from 2013.
Custora reported that smartphones and tablets generated 21.9 percent of online orders on Cyber Monday but 30.3 percent on Black Friday. Over the entire Black Friday weekend, on average, mobile devices were responsible for 26.4 percent of online orders.
Beacons and Location-Based Marketing
Many still believe the world of mobile marketing with Bluetooth low energy and beacon technology is the Wild West, but many retailers including Lord & Taylor, Macy’s, Urban Outfitters and others are fully embracing location based marketing through mobile apps and beacon technology. BARD will continue to monitor and evaluate holiday results this year. As we’ve previously blogged about grocery and manufacturers have a big opportunity for mobile marketing and location-based communication. The latest organizations to come on board with implementing beacons and location-based marketing include McDonalds, Marriot Hotels, Major League Baseball, Barclays, American Airlines, Apple, Kroger, Safeway and Giant Eagle.
Based on the initial results that retailers such as Lorde & Taylor saw with consumer response on the promotional offers, beacon technology and location-based marketing is not something to be ignored.
Sit up Straight and Pay Attention
2015 will be the year to test and learn with mobile, apps and beacon technology. To ignore this medium is irresponsible. If you are not testing apps on your own phone, try them! BARD recommends SnipSnap, which aggregates coupons in an efficient way.
Next time you’re in Office Depot, open the Shazam app and check out what they’re doing with mobile messaging. Foursquare is delivering push notifications through proximity marketing.
Consider carefully what omnichannel marketing means for your brand and how you can use it to create delightful experiences for your customer.
Happy Holiday Shopping!
Sources: IRI, AllOver Media, GfK, Marketingland.com