QR codes increasingly popular with CPGs to engage shoppers in store.
“SCAN ME!”
These two short words are enhancing shopping experiences with Consumer Packaged Goods (CPG) brands in grocery stores every day. The reason? There’s a growing trend among CPG brands to incorporate QR codes into their product packaging, point-of-sale materials, displays, and shelf advertising.In fact, according to the 2023 Bitly QR Code Trends Report, QR code creation in the retail and CPG industries grew by 88% year-over-year.
But why are CPG companies accelerating their use of QR codes?
CONVENIENCE: with a simple scan using a smartphone camera consumers can access a wealth of information at the point of purchase.
ENHANCED SHOPPER ENGAGEMENT: QR codes allow brands to easily distribute relevant content such as videos, recipe ideas, savings offers and contest details.
PERSONALIZATION: QR codes can be programmed to deliver personal content based on location, day of week, daypart and more, all helping to build brand loyalty.
ADAPTABILITY AND VERSATILITY: The content linked to a QR code can be updated without changing the code itself allowing CPG brands to keep content current and
DATA COLLECTION AND ANALYTICS: QR codes are a gateway to valuable first-party consumer data for CPGs. Each scan can be tracked, providing insights into consumer behavior, preferences, and the effectiveness of marketing campaigns.
QR code growth by industry (Source: Bitly)
How are your brands using QR codes? Let me know in the comments. In the meantime you can check out the full Bitly 2023 QR Code Trends Report by clicking here.
As I was completing my weekly online store check on Shelfgram this morning, the pictured IOGO yogurt aisle blade sign grabbed my attention. Initially, the blade’s design with its well-balanced blend of colours and big, bold $10,000 call-to-action attracted me to read more. The same way, I suspect, it catches the attention of a shopper in-store.
Expecting details of a receipt upload contest to follow, I was pleasantly surprised to discover the unusual approach that combined two sales promotion tactics: a gift with purchase and instant win. Specifically, if a consumer buys 2 participating IOGO products and uploads the receipt they will earn a free snack bag. The intriguing twist? One of the bags contains “golden ticket” — a hidden $10,000 prize — an innovation I do not recall seeing before.
And if the GWP / instant win are not enough to drive sales conversion, IOGO further entices shoppers with an instant redeemable coupon (IRC) offering a discount of $1.50.
To recap:
* Free gift with purchase * A chance to win $10,000 * Save $1.50 now
I like this promotion as it taps into the insight that a significant number of Canadian shoppers are actively seeking out discounts and promotions when shopping for groceries (6 in 10 according to a recent Caddle research study). While the effect of the $10,000 prize on the redemption of the free snack bag offer remains to be seen, it’s an exiting addition that could potentially increase consumer engagement. Despite traditionally low participation rates in receipt upload offers and contests, perhaps this substantial prize could be a game-changer that boosts involvement.
Shopper Digitial Media ad spend in Canada is on the rise
The digital advertising landscape in Canada is witnessing remarkable growth within Retail Media Networks (RMN). According to IAB Canada, RMNs in Canada continue to grow with projections for 2024 indicating ad spend will reach $3.15B in Canada representing 25.9% YOY growth. By 2026, it is anticipated that RMNs will command 25% of all digital ad dollars!
The surge is being led by CPG clients who capitalize on RMNs to leverage a retailer’s first-party data, enabling them to deliver targeted ads with relevant messaging to specific shoppers, thereby helping to drive higher sales conversion rates. (Of course, a handful of omnichannel marketing friends tell me they have no choice but to invest😊) In Canada, Amazon Media, Walmart Connect and Advance Powered by Loblaws lead the RMN industry.
Shopper Digital Media: Benefits of retail media networks or RMN
On the flip side, Retailer Agnostic Media Platforms (RAMP) carve out their own niche in the digital ad landscape. RAMPs empower brands to connect with a broader, more varied shopper audience, free from the constraints of a singular retail ecosystem. Plus, many RAMPs, including companies like Flipp, ShopLiftr, AdAdapted and GenesisX, provide innovative ad formats offering fresh and engaging advertising experiences.
Shopper Digital Media: Benefits of Retailer Agnostic Media Platforms
In my view, striking a balance between RMN and RAMP ad solutions is key. A dual-strategy approach offers:
1. A harmonious blend of targeted and broad reach.
2. Increased flexibility to switch between RMN and RAMP based on their performance metrics.
3. The ability to engage shoppers throughout their purchasing journey.
I’m curious about how others approach a digital media strategy for shoppers. How do you navigate the RMN and RAMP landscape? Share your insights in the comments section below!
Shoppers consider boycotting Loblaws stores as food prices rise
NEWSFLASH: Canadians are mad as hell (about high food prices) and a group of Ontarians are not going to take it anymore– at least from Loblaws! According to a story on CTV News last night, over 60,000 people have signed a petition on Reddit, Inc. to boycott all Loblaw Companies Limited banner stores in May as a way of voicing their displeasure with rising prices.
Will the boycott have any impact?
No!
Is Loblaws being unfairly targeted as prices and profits are just as high at other grocery retailers including Sobeys, Metro and Walmart Canada
Yes!
As Dr. Sylvain Charlebois eloquently explains the group is aiming its frustration at the wrong problem stating, “it is not about the consumer at the store, it’s about the supply chain bullying happening between Loblaw, Walmart and suppliers…and it needs to be fixed.”
But whether it is corporate greed or supply chain causing food prices to go up, Canadians are struggling and looking for help to save on weekly grocery shopping trips. According to a recent research study by Caddle:
· 60% ALWAYS seek out discounts and promotions when grocery shopping. · 62% have switched stores to get a discount. · 61% find out about discounts and promotions via flyers.
A majority of shoppers always seek out discounts and promotions when shopping for groceries
No matter the outcome of the boycott, the issue of high food prices persists as a significant challenge in need of a resolution.
As 2023 comes to a close, I want to share with you my top three trends that will shape omnichannel marketing in 2024:
1. Prioritize Value Offers: In the current economic landscape, for the foreseeable future, consumers are going to be budget-conscious in order to stretch their grocery budgets. As a result, Consumer Packaged Goods (CPG) companies must put together an omnichannel marketing plan to reach shoppers pre-shop and in-store with aggressive value-based offers such as price promotions, coupons (digital or IRCs), bonus loyalty points offers, contests and more to drive sales conversion.
Air Miles Receipts and Walmart Coupon Centre are two new options available to omnichannel marketers to reach shoppers with an added-value offer
2. Retailer Media: The seismic shift of advertising dollars towards retail media will undoubtedly continue in 2024. The draw of first party sales data allowing CPG brands to reach key target audiences with relevant offers while in the shopping mode is challenging to resist. Plus, with the huge financial investments being made by the likes of Walmart and Loblaws, the shopper experience is only going to improve next year.
Retail media is becoming a key component of the omnichannel marketing playbook.
3. Generative AI: The advancements in generative AI technology will allow CPGs to become more efficient when it comes to omnichannel marketing. AI will help marketers to do such things as map out new shopper journeys, introduce new product innovation, identify the most profitable target audiences and personalize offers leading an increase in ROI.
I am interested in what you see as the key trends next year in omnichannel marketing, so leave a message in the comments section.
Until next time, I wish everyone a happy and healthy holiday season.
Marketing agencies operate in a dynamic and highly competitive environment where staying ahead of the curve is essential for success. In this landscape, marketing consultants serve as invaluable assets, offering expertise, fresh perspectives, and specialized skills. This blog delves into some of the myriad benefits that marketing consultants bring to agencies, spanning from augmenting the agency’s capabilities to enhancing client satisfaction and growth.
Top 10 Benefits of Hiring a Marketing Consultant
Marketing Consultants Can Help Agencies in 10 Ways
1. Diverse Skill Sets for Holistic Solutions: Marketing consultants often possess a wide range of skills and experiences in various marketing domains. These professionals can complement an agency’s internal team by bringing specialized expertise in areas such as strategic planning, digital media, content marketing, sales promotion, branding and more. The diversification of skills allows agencies to offer holistic and integrated marketing solutions to their clients, ensuring that all facets of a marketing campaign are executed with excellence.
2. Fresh Perspectives Ignite Creativity: Marketing consultants bring a valuable outsider’s perspective that can breathe new life into an agency’s creative processes. They are not constrained by the agency’s historical methods or biases, allowing them to see opportunities that might have been overlooked. Consultants can challenge the status quo, encouraging teams to think outside the box and devise innovative strategies. This fresh perspective fosters creativity and can lead to breakthrough ideas that set the agency apart from competitors.
3. Specialized Knowledge Elevates Expertise: Some marketing consultants specialize in niche industries or specific marketing tactics. Marketing agencies can harness this specialized knowledge to better serve clients in particular sectors or target demographics. This specialized knowledge is particularly valuable when agencies seek to expand their client base into new verticals. It enables them to demonstrate a deep understanding of the client’s industry, instilling trust and confidence.
Marketing Consultants Help Agencies Grow
4. Scalability in Response to Client Demands: Client workloads often fluctuate in marketing agencies, with projects of varying sizes and complexities. Marketing consultants provide agencies with a scalable resource pool. Agencies can engage consultants on a project-by-project basis, ensuring that they can meet client demands without the commitment and overhead of hiring full-time employees.
5. Client Satisfaction and Retention: By integrating the expertise of marketing consultants into their services, agencies can significantly enhance the quality and effectiveness of their client relationships. Consultants can contribute fresh ideas and refined strategies that lead to better results, ultimately boosting client satisfaction. Satisfied clients are more likely to continue their partnerships with agencies, leading to increased client retention rates.
6. Cost Efficiency: Hiring full-time employees with specialized skills can be expensive for agencies, especially when those skills are not needed continuously. Marketing consultants offer a cost-effective alternative. Agencies can access specialized expertise without incurring the overhead expenses associated with permanent staff. This cost efficiency extends beyond salary considerations. It also includes savings related to benefits, training, and equipment allowing agencies to reallocate their budgets more strategically and maximize ROI.
7. Training and Development of Internal Teams: Marketing consultants can play a role in training and developing the agency’s internal team. They can share their knowledge, provide mentorship, and facilitate workshops or training sessions to enhance the skills of in-house staff. This knowledge transfer ensures that agency teams stay updated on the latest marketing trends, technologies, and best practices. It promotes a culture of continuous learning and improvement within the agency, enabling it to remain competitive and adaptive.
8. Adaptability to Market Changes: The marketing landscape is characterized by rapid changes, driven by evolving consumer preferences, technological advancements, and shifting market dynamics. Marketing consultants are often at the forefront of industry developments, and they are skilled at helping agencies adapt to changes and emerging trends swiftly. Whether it’s adopting new digital tools, pivoting strategies in response to market shifts, or capitalizing on emerging opportunities, marketing consultants provide agencies with the knowledge and guidance needed to stay current and competitive.
9. Deliver Faster Results: Marketing consultants possess a wealth of hands-on experience and streamlined decision-making processes allowing them to swiftly identify effective strategies, mitigate common pitfalls, and optimize campaigns, ultimately accelerating results.
10. Flexible Resource Allocation: Marketing consultants offer clients flexibility of being hired on a project basis or to provide on-going support allowing agencies to access specialized expertise when needed, optimizing costs while tailoring the consultant’s role to align with evolving agency goals.
Bottomline, marketing consultants are indispensable assets for marketing agencies seeking to excel in a fiercely competitive and ever-evolving industry. Their diverse skill sets, fresh perspectives, specialized knowledge, and adaptability provide agencies with a multifaceted toolkit to thrive in a dynamic market. Whether agencies require support in specific projects, seek to enhance client satisfaction, or aim to expand their services into niche industries, marketing consultants offer a wealth of benefits that contribute to agency growth and success.
One of the questions I get asked most often by my CPG clients is “how can we improve our sales conversion rates?” via Ecommerce sites or in-store.
Typically, I advise clients that driving higher conversion rates starts in the pre-shop phase of the shopper journey by driving consideration utilizing shopper digital media with a goal of literally getting their brand on a consumer’s shopping list. Why is this so important? Well, according to a new research study from my friends at AdAdapted from their whitepaper titled “The CPG Pre-Planning Report”, shopping lists are an important part of the path to purchase.
Here are a few top-line insights:
82.1% of shoppers use a shopping list “often” or always.
80.1% of consumers use both pen-and-paper and digital grocery shopping lists.
54.3% of survey respondents use pen-and-paper while 49.6% note using a digital grocery list “often” or “always.”
Individuals across all age demographics utilize both types of lists, but Gen Z and Millennials tend to use digital shopping lists more often.
Consumers have a range of digital options available for managing their grocery lists including basic note-keeping apps (58.8%), digital grocery list apps (41.8%) and retail eCommerce apps (40.4%).
Shopping list apps are increasing in popularity with grocery shoppers
For more insights you can download a copy of AdAdapted’s full report by clicking here.
AdAdapted ads solution helps brands get on shopping lists and into shopping carts
And if you want help getting your brand onto shopping lists and into shopping carts consider AdAdapted’s media advertising solution which focuses on a new advertising genre: shopping list marketing. It is a solution many of my clients have used to drive consideration and sales lift.
A top line overview:
AdAdapted is a mobile only ad platform using patented technology.
AdAdapted’s solution allows brands to reach an exclusive shopper audience by serving ads via digital shopping list apps across North America. In the USA, there are 130 million Americans who have a grocery shopping list app on their mobile device with 46 million active users every week. In Canada, there 6.2 million Canadians who have an app with around 750,000 active weekly users.
The solution also allows brands to also serve ads on any other app on a shopper’s phone using mobile device IDs. For example, if a shopper has a digital shopping list and The Weather Channel on their mobile device, AdAdapted can serve ads to both apps.
Using patented Add-It™ technology allows shoppers to add the featured product to their shopping list app or directly to a retailer shopping cart without leaving the app.
Utilizing first-party data AdAdapted can hyper-target ads, for example, to category users, competitive brand buyersand within proximity of key retail stores.
If you want to know more about AdAdapted’s shopping list ad solution feel free to contact me at aaron@jamzmarketing.com or check out their website by clicking here.
Canadian grocery shoppers love loyalty rewards programs! This according to a recent research study from Caddle that shows practically all Canadians use at least one type of loyalty reward program led by the PC Optimum card with 91% penetration. And with the cost of groceries continuing to rise, rewards programs will maintain their popularity with consumers who are seeking out value-based offers in order to stretch their weekly shopping budget.
Sobeys Scene card loyalty rewards program POS in-store.
For grocery retailers, the benefits of loyalty rewards programs are plentiful and include:
* Customer acquisition – According to the Caddle research study, loyalty programs rank second behind price on things Canadians consider when deciding where to shop. Moreover, 51% of shoppers state loyalty programs play a key role in choosing where to shop.
*Customer retention: Loyalty programs are highly beneficial to grocery retailers, bringing them repeat customers, larger basket sizes and higher customer lifetime value. In fact, if a retailer stopped their loyalty rewards program, 74% of shoppers would change their shopping habits by shopping at the store less frequently.
*Zero-party Data: Loyalty programs allow grocery retailers to capture historical purchase data that can be utilized to improve marketing strategy, to develop seamless online and in-store shopping experiences and to personalize messaging and offers to individual shoppers.
Finally, despite high consumer usage and satisfaction, retailers face two key challenges moving forward to ensure their loyalty rewards programs. First, shoppers want more personalized offers with 44% of Canadians stating more relevant offers would motivate them to use their loyalty rewards program. And second, shoppers want the ability to redeem loyalty points in more places than just the retailer stores.
It will be interesting to see how loyalty rewards programs evolve over the next 12-18 months. If you have a comment, please leave one. Until next time, thanks for reading.
Check out the full Caddle report on The Shifting Landscape of Consumer Loyalty by clicking here.
Retail media networks expanding by moving in-store to reach shoppers
With predictions that sales will reach $85 Billion by 2026 (source: Forrester), retail media networks are rapidly assuming a pivotal role in the grocery industry, with an increasing number of food retailers either entering the space or adding to existing digital offerings via E-commerce sites or mobile loyalty apps with a goal of driving pre-shop consideration and online sales.
In the digitally enabled grocery store, retailers will be able to improve shopper experiences while pushing valuable, personalized product offers to shoppers as they move up and down aisles driving impulse purchases and shopping cart size.
Bottomline – retail media networks are fast becoming an integral part of the digital media mix, especially, as more CPGs are demanding a ROI (eg. sales conversion) for digital advertising spends from their media and shopper marketing agencies. For me there are two things to watch:
1. Will CPGs increase overall digital media spend or start shifting above-the-line advertising budgets to retail media networks?
2. A key challenge for retailers will need to ensure they do not bombard grocery shoppers with too many ads to the point where they start to detract from the shopping experience.
Until next time, thanks for reading.
To learn more about JAMZ Marketing visit the author bio here.
FACT: 95% of the consumer package goods (CPG) omnichannel marketing briefs I read have brands wanting to target Gen Z and/or Millennial audiences. But, isn’t it time for CPG brands to start shifting some advertising dollars to reach older Gen X and Baby Boomer audiences?
Consider this. By 2028, the older 60+ age group will account for more than 1/3 of overall growth in grocery spending!
ONE-THIRD!
According to a recent article by Mercatus Technologies, demographic shifts and the expansion of households in the USA are contributing factors.
For example, in the USA, over the next 5 years: No age demographic will expand faster in terms of population than age 60+. Also, household composition is changing with birthrates in decline leading to a significant increase in single person households. Plus, today the majority of wealth in the USA is held by age 55+ today (70% of the $111.04 trillion of U.S. net worth!).
So older/richer and smaller = sales growth in the age 60+ group.
Yet CPGs continue to spend omnichannel marketing budgets to target, for the most part, younger generations.
Why?
Is there a bias against targeting older demographics with advertising (besides life insurance, pharmaceuticals and adult diapers)?
In a recent article written for The Message, advertising consultant @Eric Blais surmised: “ageism can also be reflected in the advertisements themselves, with many campaigns featuring only young and attractive models or actors. This can send a negative message to older individuals, making them feel invisible or irrelevant”.
OR
Is it because the younger audiences offer brands an opportunity to build long term loyalty with a group of consumers whose buying power will increase. Plus, with Ecommerce booming, Gen Z and Millennials are digital natives making them easier to reach through online advertising, social media, and mobile apps.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
