May 1, 2018 § Leave a comment
Gift giving is an important part of retail sales. It also represents an emotional bond made between the giver and the recipient. Retailers should recognize the dual rewards in growing their gifting business because you are touching two targeted consumers at the same time – the purchaser and the recipient. Gift giving strategy can provide exponential results for marketers if done correctly.
Unity Marketing estimates that $1 out every $10 spent in the typical retail store, (general merchandise, apparel, furnishings and others) is spent to buy a gift. Gifts represent approximately $128 billion in spending in 2017. Consumers are typically buying a gift every one to two months.
So what’s behind the science of giving? The act of gifting is typically meant to communicate feelings for and with another, fostering stronger social relationships. New research by the Wharton School looked at what type of gifts build deeper personal relationships, a material gift or an experiential gift.
Experiential gifts win over material gifts
Despite gift givers’ tendencies to give material possessions, material gifts do less to foster meaningful relationships between gift givers and gift recipients. The researchers report, “Experiential gifts, in contrast, make recipients feel closer to the person who gave them the gift, regardless of whether the experience is consumed together with the gift giver. Experiential gifts have this effect because of the emotion they evoke when consumed, particularly when the emotion is shared.”
“Our findings demonstrate that giving experiential gifts is more effective at fostering closer relationships, and therefore implies that gift givers should feel happier as a result of giving an experiential gift compared to a material gift,”
What are experiential gifts? An experience could be providing services like a meal, spa outing, horseback riding, or vacation. But don’t dismay – material gifts can offer experiential aspects – candles, music, books, toys, food and drink items and even things that are nice to the touch – a furry throw, a cashmere pillow or silk pajamas.
Even the actual event of purchasing the gift can be experiential in a story setting or online by telling a story, allowing for touch and feel, and conjuring up warm feelings.
March 14, 2018 § 2 Comments
Nielsen has a new report out on media consumption by women. And while digital continues to grow, traditional media still takes up a large portion of media time. In fact, women are now consuming 11 hours of media a day. Some of the highlights:
- Women still watch a lot of traditional live TV. Women 18+ watch an average of 4 hours a day. What about recorded TV? From 2015 to present, women have consistently spent an average of around 30+ minutes per day with time-shifted TV.
- Radio is still important among women, as they spend almost two hours a day listening.
- Digital, particularly smartphones, continues to grow. Women spent 2.35 hours in 2017, compared to 1.45 hours in 2016.
Local is still important in targeting moms. Nielsen’s Local Watch Report shows working mothers make up the majority of morning news (58%) and late night news (52%) viewing because as most are working during the daytime. Meanwhile, stay-at-home moms over index on catching up with the news at midday (61%) and early evening (57%) and spend much less time tuning into local news in the morning.
February 27, 2018 § Leave a comment
We do a good bit of research on what drives purchases in retail. Our research among female retail consumers points to the truth that convenience is today’s currency. In fact, it is so important that it might be the most powerful force shaping our lives and economy, according to a recent New York Times article called it “The Tyranny of Convenience”.
Just think about the types of convenience that exists today – mobile banking, Amazon shopping, grocery pick-up and delivery services, all kinds task apps, movie apps, on-demand movies, ride-sharing, meal services, clothing services and more.
While conventional wisdom might think that women spend more time shopping,; men spend three hours shopping, versus women spending two and a half, and men are twice as likely to visit more stores than women do.
For your business to have cultural relevance today, it is imperative to understand what convenience means to your customers. What is convenient for your business may not be convenient for the customer. To your customer, their need may be same-day pick-up, self-checkout, more convenient hours or online chat to facilitate online shopping. It may be omni-shopping with the ability to shop online and pick up at the store.
A new research study by Catalyst, a marketing agency specializing in the retail sector, found that the top five motivators for brick and mortar shoppers were convenience, efficiency, good customer service, and product quality, with value important to all.
Time Well Spent. It seems that if shoppers are going to take the time to come to your store, you need to provide them with an experience that equates to value and convenience. Think about an Apple Store with its live demo of products, workshops, informed sales representatives, and iPad checkout.
Do a convenience audit of your business. Talk to your customers about what they value in the shopping experience. Don’t be afraid to make changes.