shopper insights

Loyalty Rewards Programs Help Retailers Retain Customers

Leave a Comment / Shopper Marketing / By Aaron Richman / August 2, 2023

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.

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Omnichannel marketing to older generations

Omnichannel Marketing and Targeting Older Generations in 2023

Leave a Comment / Shopper Marketing / By Aaron Richman / April 27, 2023

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”.

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.

Both are plausible explanations.

If you have an opinion, I would love to hear it.

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2023 Omnichannel Marketing Trends

Leave a Comment / Shopper Marketing / By Aaron Richman / February 24, 2023

Top 5 omnichannel marketing trends for 2023

Omnichannel marketing is evolving so here are my predictions on what the top 5 trends for 2023 will be within CPG that will dominate the grocery landscape.

1. Brands will increase focus on online grocery shopping

While in-store will remain the #1 channel for grocery shopping, many brands are starting to invest more dollars to build an online ecosystem to ensure they reach shoppers to drive pre-shop consideration and online sales conversion.

2. CPGs will expand emphasis on personalization to improve conversion rates

A recent research study from McKinsey & Company shows 71% of consumers expect personalization and 76% will switch brands if they don’t like their shopping experience. As a result, many brands are using customer data and insights to create targeted and personalized experiences and offers direct to consumer or in partnership with key grocery retailers.

3. Retailer Media Networks will continue to grow in popularity

In my recent blog “Omnichannel Marketing & the Growth of Retail Media Networks”, I wrote about how retailer media networks are gaining in popularity. How popular? According to a trends report from the Path to Purchase Institute (P2PI) a survey of 166 marketing executives, shows retailer media networks as the number one most important omnichannel tactic in 2022. This trend is only going top continue this year.

4. Shoppers will increasingly demand brands be more sustainable.

Sustainability is becoming a key factor in consumer purchasing decisions. Brands that demonstrate a commitment to sustainability are more likely to attract and retain loyal customers. This will include promoting sustainable production practices, reducing packaging waste, and offering eco-friendly products.

5. High grocery prices will continue driving more shoppers to buy private label products.

As Brian Ettkin at Numerator Canada stated in an article in Canadian Grocer Magazine in October 2022: “Canadian shoppers have become more reliant on private label in today’s high inflation environment and there is no sign that sales will slow”. I agree. Especially given that grocery prices will continue to rise in 2023 and the consumer perception of the quality of private label products is improving all the time.

What are your top 5 shopper marketing trends for 2023? I want to hear from other omnichannel marketers what is on your trends list.

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Omnichannel Marketer: Secrets to My Success

Leave a Comment / Shopper Marketing / By Aaron Richman / January 23, 2023

At 91.5, Eugene shared his sales and marketing experience with me

Young Marketers Should Seek Advice from Experienced Omnichannel Pros

People often ask me to share the secrets of my success over the 20 years of running JAMZ Marketing.

Lesson 1:

No matter what your age you can always be learning from someone with more experience than you. I was reminded of this fact last week when I met Eugene poolside in Florida. Eugene is 91.5 years old and retired for over 20 years. I engaged Eugene in conversation and I am sure glad I did. Eugene is the former owner of the one the largest RC Cola bottling and distribution companies in the USA northeast. The stories of his life in CPG he shared to overcome business challenges were golden. Here are few examples:

1. In the 1960’s, when he needed to increase sales he looked outside of traditional grocery and C-store channels and instead partnered with the fastest growing department store in Upstate New York — revolutionary at the time.

2. He introduced the first glass bottle return program with his new retail partner to help drive store traffic and loyalty.

3. In the mid-1970’s, when most companies were still doing accounting by hand, he bought one of the first Tandy TRS 80 computers and designed his own accounting software with no experience.

Key lessons learned from Eugene:

– Work hard.
– Take a creative approach to problem solving.
– Customer service is everything.

My lesson for younger agency personnel: don’t look past older people inside or outside of your company. Instead engage them. Ask questions. You just might learn a thing or two.

If you have any questions or just want to connect to share experiences feel free to connect or DM me.

#marketing #anniversary #business #experience #shoppermarketing #omnichannel #success

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Grocery shoppers looking for value, not price sensitive: Weston

Leave a Comment / Shopper Marketing / By Aaron Richman / May 10, 2022

Headline after headline and research study after research study suggest grocery shoppers across North America are being hard hit by skyrocketing CPG prices and are shifting their shopping behaviour to stretch their grocery budgets.

Case in point, a few headlines from my weekend reading:

“Majority of Canadians will change food buying habits amid rising prices”

“Foot traffic slows at grocery stores as inflation takes hold”

“Consumers likely to trade down to chicken as beef prices soar”

Galen Weston: Shifts in price sensitivity not that dramatic

In contrast, I read an article via Canadian Grocer Magazine titled “Consumers Still Spending Despite Food Inflation” in which Loblaw chairman and president Galen G. Weston is quoted saying “customers are definitely seeking value, but the shift isn’t as dramatic as one might expect”.

Further, Mr. Weston suggests the company is seeing “a slight swing towards price sensitivity as opposed to a dramatic left turn…an indication of the consumer having more money in their wallets still, than they would have had pre-COVID levels,”

As a frequent grocery shopper, I have more than a “slight swing” towards price sensitivity. Rather, I am continually shocked at how high prices are getting in every category of product wondering how the vast majority of Canadians can afford to eat.

As an omnichannel marketing consultant I am wondering if Mr. Weston is either out of touch with the challenges average food shoppers are facing today (I like to think not) or just playing to his shareholders. After all, his quotes are coming on the day Loblaw’s announced its first-quarter results.

grocery shoppers surprised at grocery prices — Rising grocery prices leaving shoppers surprised

Grocery Shopping Behaviour is Shifting

But just in case Mr. Weston needs a reminder, here is some data from a research study in January from Dalhousie University Agri-Food Analytics Lab in partnership with Caddle, in field long before inflation hit 6.7%, the Russia-Ukraine war which has put additional stress on global supply chains and “shrinkflation” became a thing:

63% per cent of respondents said they intended to change their food buying habits in 2022.

51.7% per cent of Canadians saying they intend to avoid restaurants in 2022.

45.5% said they plan to consult flyers more often before shopping for food in order to find savings offers

30.3% said they will buy in bulk more in 2022

26.8% per cent said they will buy discounted food about to expire.

How are higher grocery prices impacting your household?

Shopper Marketing Consultant: 5 Secrets of My Success

Leave a Comment / Shopper Marketing / By Aaron Richman / April 17, 2022

Five Key Attributes of a Shopper Marketing Consultant

Recently, several connections looking to make a career pivot asked me to share the secrets of my success as a Marketing Consultant. For me it comes down to 5 key things:

Experience: I have expertise and a track record of success in developing B2B and B2C marketing strategies for a multitude of product categories (eg. CPG, technology) for some of the world’s largest brands. Plus, I have adapted, consciously becoming proficient in pre-shop shopper media and Ecommerce over the last 6 years as digital became a key component to reaching shoppers along the path-to-purchase.

Analytics: I believe analyzing data to gain insights is the foundation of any strategy. I tend to use a mix of first-party and third-party data from around the globe which provides a unique perspective on shopper behaviour while helping build robust marketing plans.

Creativity: I like to bring a fresh perspective to solving marketing challenges, so I ensure I am knowledgeable about all the latest trends and solutions in the omnichannel space. To achieve this I subscribe to dozens of E-newsletters, connect regularly with other marketing consultants and build relationships with key vendors and partners who help keep me “in the know”.

“You Before Me” Attitude: I am a partner who always puts my client’s needs first knowing if they are successful everybody will benefit. I accomplish this by always being available, adding value on a frequent basis and complementing internal resources with my knowledge base.

Passion & Enthusiasm: I love what I do, and nothing makes me happier than helping my clients drive product consideration and sales conversion.

Are you looking at becoming a Marketing Consultant?

Let’s talk. I am happy to share my experiences.

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Shopper Marketing Minute: Back-to-School Displays

Leave a Comment / Shopper Marketing / By Aaron Richman / September 25, 2021

Yellow school buses are quintessentially connected to back-to-school, but is it time for brands to look at different iconography?

Watch the Shopper Marketing Minute to find out.

Love to hear your thoughts so leave a comment.

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SHOPPER MARKETING MINUTE: QR CODES ARE MAKING A COMEBACK

Leave a Comment / Shopper Marketing, Technology / By Aaron Richman / June 23, 2021

QR codes are making a big comeback.

How big?

A recent survey in the US by MobileIron, shows 72% of people scanned a QR code in the past month.

Nowhere is the use of QR codes more noticeable than at your local grocery store where brands are looking to enhance a shopper’s experience.

So I went on a virtual store check with Shelfgram.com to see how some CPGs are using QR codes, After reviewing pictures from stores across Canada, I have observed the top 3 ways brand are QR codes are

Share Recipes
Share product information
Share details on a promotional offers

Are you using QR codes in your marketing campaigns? Are they working?

Leave me a comment and let me know.

Until next time, thanks for visiting.

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COVID HAS IMPROVED THE CAR BUYING EXPERIENCE!

Leave a Comment / Shopper Marketing / By Aaron Richman / February 15, 2021

For me, the car buying experience is an unpleasant one. Overbearing sales reps and managers using their sales 101/Herb Tarlick playbook to get me to sign a deal despite protestations of “I am not buying a car today”. However, COVID has changed everything forcing local dealerships to change their sales approach making the shopping experience less pressurized. Here is how:

*Online Tools: car companies have made it easy to research vehicles with increased use of virtual showrooms, video, and other shopping tools.

*Live Sales Video Chats: plug in my postal code and within minutes I am speaking to a sales rep at my local dealer from the comfort of my own home.

*At-Home Test Drives: some dealers are making it easy by bringing the vehicle to my home to test drive

*Appointment Only Dealer Meetings: Want to feel safe? Go to a car dealership. Very few people, safety protocols in place and cars ready to test drive before you arrive leading to appointments times of 45 minutes or less.

*Dealer Incentives: Automotive sales are down and prices are rising in Canada, so dealers are getting aggressive with incentives to motivate you to buy.

Hopefully, car dealerships take the learning from COVID to make the car buying experience even better in the future.

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Shopper Marketing Minute – Product Innovation and COVID

Leave a Comment / Shopper Marketing / By Aaron Richman / June 19, 2020

In this episode of Shopper Marketing Minute, I discuss whether or not the timing is right for CPGs to be introducing new product innovations into the marketplace during COVID19. For full transcript see below:

I’m interested in this topic because recently, I have read two articles with differing points-of-view. The first article indicates many CPGs are cutting back on product innovation, choosing instead to focus on streamlining the number of products they manufacture to increase the speed to market of core brands to meet the demands of shoppers. The other article was based on a survey that shows two-thirds of CPGs are actively working on product innovation today and they plan on bringing them to market as soon as possible.

My opinion — it is important for CPGs to deliver new products shoppers want based on changing food trends and to develop new revenue streams. However, the two biggest unanswered questions for CPGs are: