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  4. Winning retail strategies for the digital age – introduction

From promotion to devotion

Winning retail strategies for the digital age

Granby's whitepaper consider how consumers are engaging with brands in-store and which technologies facilitate this, so budgets can be allocated most effectively.

Introduction

Stores play a vital role, despite the boom in e-commerce

53% of shoppers prefer to research in-store

70% of shoppers prefer to purchase in-store

E-commerce is snowballing. Estimates suggest that UK shoppers will spend more than £20bn just purchasing groceries online by 2021.

It’s unsurprising, then, that retail marketing budgets are being stretched to accommodate the exponential growth of e-commerce.

Despite the boom in e-commerce revenues, stores still play a vital role in the shopping landscape.

For example, as a category, grocery has the highest percentage of shoppers preferring to research in-store (53%) and purchase in-store (70%), according to PwC.

How do customers shop?

Asking ‘how do consumers want to shop?’ is a strategically important question, to which no one has a straightforward answer. Whether it’s striving to stimulate impulse purchases in-store or replicate a streamlined buying experience across many platforms, technology has changed retail significantly.

It is easy for brands to jump on the shiny tech bandwagon and assume that consumers have changed, too. But are we certain that we are delivering the sort of shopping experience that they truly crave?

If we know that consumers are still visiting bricks and mortar shops and spending while they’re there, we must consider how they are really engaging with products, promotions and packaging in-store, and which technologies will facilitate this. Ultimately, this will allow us to ensure that limited budgets are allocated most effectively.

Joanne Kimber, Managing Director at Granby & Swift Receipt

“The responses we have collected from this consumer survey have been very interesting to read. As a strong advocate of promotional and shopper marketing I have always recognised the value of promotions as part of a sales and marketing strategy, so it is encouraging to see that promotions are still considered a valid and valued marketing tactic for many brands.

“Reaching the shopper in-store has always been a challenge for marketers. Technology is now offering more intelligent ways to connect with shoppers in-store and it is clear from the many reports that have been published in recent years that the role of the retail store is changing, and technology is only going to become more critical to the shopper experience.

It is evident that the value of the promotion is still fundamentally what drives the shopper to consider switching in the aisles

“But despite the ever changing landscape and proliferation of media channels, connectivity and access to technology, it is evident that the value of the promotion is still fundamentally what drives the shopper to consider switching in the aisles.

“Today’s data savvy shopper (or consumer) knows the value of their data and are happy to participate in a data exchange providing the exchange is ‘worth it’ as after all, data is a key asset in the information age.

Today’s data savvy shopper knows the value of their data

“The research also shows that ease of participation to a promotion is a key motivator for individuals to engage with brand promotions, which makes perfect sense in our ‘always on’ society.

“We are constantly being bombarded with offers, content and messages, so the challenge now isn’t just to cut through the noise, but also ensure the redemption process is quick, easy and uses the technology we have all become familiar with.”

Our survey

We asked more than 1,000 UK consumers a series of questions about their shopping habits. Among other things, they were asked what makes a brand or product more attractive when shopping in-store, how they redeem promotions and whether promotions make them more loyal to a brand.

The results, contained in this report, provide valuable insights for brands looking to drive sales in-store, using a clever combination of shopper marketing tactics to create engagement and boost redemption rates.

High level results indicate that despite the proliferation of online shopping, there’s an opportunity for on-pack promotions, but bringing them into the digital age to meet consumers’ expectations of instant gratification is vital for accelerated success.

56% of consumers would switch products because of a promotional offer – but convenience is key

In addition, more than half of the respondents (56%) would switch products because of a promotional offer, but convenience is key to them redeeming it; just over half (51%) say that a hassle-free process will make them claim.

Combine this with the fact that offers and rewards have a big impact on consumer loyalty – 68% of people say that receiving a reward would increase their likelihood to stick with a brand – and it’s clear that there is an opportunity for brands to increase ROI if they can make it easy for shoppers to redeem offers.

Next page: Research analysis

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"We are constantly being bombarded with offers, content and messages, so the challenge now isn’t just to cut through the noise, but also ensure the redemption process is quick, easy and uses the technology we have all become familiar with" - Joanne Kimber, Managing Director, Granby & Swift Receipt.