With consumers making an increasing number of purchases on tablets and smartphones, while continuing to shop in stores or from their desktop computers, retailers face a tougher task than ever to capture – and keep – the attention of their target audience across multiple touchpoints.
But how do they achieve that? A number of possible answers were debated at the UK’s first Digital Shopper’s Day summit, which was hosted by marketing services specialist HighCo MRM and brought together over 100 marketing and retail leaders from major brands and agencies.
According to a survey of digital shopping habits by Ipsos MORI, which was specially commissioned for the event by HighCo MRM, three in ten UK consumers have access to a tablet device, with more than half of them using the device frequently to purchase goods. Despite being relative newcomers, tablets are already being used more frequently than smartphones for online shopping, according to the survey.
With overall online sales set to double over the next five years, these figures are likely to grow, with both smartphones and tablets integral part of the shopping experience for many consumers.
Presenting the survey results, Stephen Yap, Ipsos Head of Market Understanding and Measurement, envisioned a ‘phygital’ future in which physical and digital shopping are converged, and sometimes occur at the same time. Showrooming – the trend for using a mobile device to go online while visiting a store – is on the rise, with 40% of British consumers aged under 35 doing exactly that. Another example of this convergence is click-and-collect. Only 16% of British consumers use this service at present but 50% expressed an interest in doing so.
This convergence was one of five key trends identified by Yap, along with technology-enhanced experiences such as in-store touchscreens; gamification; sharing of shopping experiences via social media; and smartphone-powered loyalty.
In that last category, the survey showed a growing appetite for digital coupons that can be downloaded to smartphones to provide offers.
Although only 17% of UK shoppers have already downloaded a discount coupon to their smartphone, according to the survey, 87% would consider doing so, with a majority saying such coupons could influence their choice of brand and encourage them to try products they would not normally buy.
One of the conclusions of the speaking panel was that these devices enabled retailers and brands to engage in a different dialogue with their customers, with more opportunities to engage during the path to purchase and to be more responsive to these opportunities in real time.
However, there are a number of important factors to consider in order to exploit the full potential of digital coupons. Key considerations highlighted by the panel include:
Context
Taking full advantage of the immediacy of the platform, such coupons should be relevant and timely. For example, one of the panelists at the event, Coca-Cola EU Shopper Marketing Director Magz Fallon, cited a promotion which delivered a free Diet Coke voucher to the mobiles of shoppers passing a Boots store at 11am.
Integration
It is important to avoid creating silos across marketing disciplines, focusing on the strategic imperative rather than the latest and most exciting technology.
Sienne Veit, former head of mobile at Morrisons and previously digital lead at Marks & Spencer, said: “There’s been a tendency for brands to focus on communicating and for retailers to focus on selling, but we need to stop making those distinctions. There are a number of solutions and a number of strategies but the customer should always be in charge.”
Data
Using data to help manage digital coupon campaigns is crucial. Merric Mercer, Director of Hive Online, said: “The core imperative is for brands to collect data. That’s the starting point for a direct relationship with all those consumers. You can also be smarter in the way you run campaigns.” He added that the younger demographic is much more willing to trade data in return for offers because they understand the advantage.
Risk
The management of risk is crucial to a successful digital coupon campaign, with close attention to real-time data enabling marketers to monitor over-redemptions and under-redemptions. Mobile platforms make it easier to adjust campaigns while they are underway to optimise results.
Joining up
There should be clear agreement between brands and retailers about which organisation is in control of the coupon campaign. The emergence of new coupon mechanisms could make it possible for brands to take greater control, but it’s also important to engage with partners to ensure a consistent roll-out.
By Peter Kerr, Managing Director of HighCo MRM.
PrivSec Conferences will bring together leading speakers and experts from privacy and security to deliver compelling content via solo presentations, panel discussions, debates, roundtables and workshops.
For more information on upcoming events, visit the website.
comments powered by Disqus