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  4. Winning retail strategies for the digital age – research analysis
From promotion to devotion

Shoppers care about marketing promotions

Research analysis

Part two of our whitepaper entitled 'Winning retail strategies for the digital age'

Although cutting edge gadgets, gizmos, chatbots and AR apps might hold a novelty appeal, shoppers still care about offers and promotions.

In fact, in a digitally focused era, brands can use marketing partnerships and associations alongside social media activity to elevate promotions and grab the shopper’s attention.

So, while the fundamental creative principles of promotional marketing remain the same, brands now have a proliferation of data, technology and multiple channels that can be maximised to make strategies more effective.

Add to this the fact that social media has had a significant impact on consumers, meaning they are always on the lookout for the next experience to share, and it’s easy to see why brands should be partnering with others – where affinity and possibility exists – to deliver successful promotional campaigns.

Who’s keen?

Our research found that two thirds (66%) of people think rewards and promotions make a brand more attractive. Having a family makes consumers likelier to find a brand with promotions more enticing, and those shoppers with younger children find them the most appealing. Some 74% of parents of under-18s living at home agreed.

Age and gender

However, the older you are, the less likely you are to be drawn in by brand promotions and rewards. Those aged 25 to 34 find brands with promotions most attractive (77%), but this falls to 51% for people aged 55 and over.

When you look at gender differences, almost three quarters of women (74%) say rewards and promotions make a brand more attractive whilst shopping compared to 58% of men.

“66% Consumers think promotions make a brand more attractive “

These demographic insights should be considered when planning on-pack promotions, particularly in the grocery battleground. More than a quarter of respondents (26%) are most likely to claim offers when buying groceries. Meanwhile, one in 10 cite fashion, and a similar proportion beauty, as the category where they are most likely to claim a promotion.

Prizes and giveaways

High value prizes and cash giveaways are still the top way to capture a shopper’s attention in the aisle; some 43% of respondents agree.

Yet in an age when consumers are excited for instant gratification, a lower-value instant reward that can be claimed online before leaving the store is equally appealing.

An additional demographic shift to be aware of is the fact that consumers are becoming more conscious and socially aware of the brands that they buy. According to Unilever, a third of consumers are now choosing to buy from brands they believe are doing social or environmental good, something that is being driven by millennials.

43% of shoppers say prizes and cash giveaways gets their attention

If a promotion carries a charitable or sustainable element, then shoppers get a feel-good glow without having to part with additional funds.

This will undoubtedly appeal to various demographics, especially budget-conscious millennials who are more risk averse and less likely to spend unnecessarily, but want to support causes that matter to them as an individual.

What this means for brands…

While FMCG marketers may be best placed to capitalise on promotions, this doesn’t mean that brands in other categories should scrap the tactic.

The key to success lies in ensuring that the promotion is both relevant and clever. In FMCG, this means maximising promotions that encourage the shopper to switch from one product to another. Then, to encourage repeat purchase, manufacturers should use promotions to build loyalty across their brands or categories, not just a single product.

As with any demographic segmentation, these insights are useful for brands when used in harmony with their own retail data. Cross examining the findings will allow them to find trends and synergies that can help shape campaigns for future success.

Brands can improve redemption rates by capitalising on customers’ need for a great experience and ensuring rewards are relevant.

Next page: The loyalty problem

Get in touch to find out how we can support your business

"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.