Gift Giving Benefits Retailers Two Times

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.

 

Five Things to Know About 2014 Back-to-School Marketing

July 10, 2014 § Leave a comment

UnknownBack-to-school is in full swing now.  The traditional back-to-school season has changed and marketers need to make note.  The reason for many of these changes are year-round school schedules, just-in-time shopping, online shopping habits and budgets.  The back-to-school season has become more of a pinnacle of an ongoing activity than a confined season.

How big is back-to-school?  The average family will spend $670 on shopping this year, up 5% from 2013 according to the National Retail Federation.   However, 21% of families with children in elementary, middle school or high school reported in a NRF survey they will spend less this year.

Did you know?  Combined school and college spending was estimated at $72.5 billion, making it the second-biggest season for retailers. Winter holiday ranks first at $84 billion and Mother’s Day comes in at third at $21 billion.

Here are five things to know about this year.

1.  Back-to-school shopping starts in July.  Americans began their search as early as June last year.  Google conducted a study during the 2013 season and found that 23% of respondents began back-to-school research before July 4, with nearly two-thirds (65%) starting by the end of July. In contrast, only 35% said they made a purchase by the end of July.  174621

BTS-Content-ConsumptionThe spending is spread out over several months, with traditional spending in August and September.  The early shoppers take advantage fresh merchandise, early bird sales and comparison shopping, while the later shoppers are necessity shopping and maybe taking advantage of end-of-season sales.

One difference in the early and traditional shopper may be their form of shopping.  The early shoppers are using their desktop and tablets to shop, while the more traditional are using mobile devices and shopping in-store.

During back-to-school 2013, competitive pricing was the top use of mobile, with 66 percent of shoppers planning to use their smartphones to obtain price information and 60 percent to obtain discounts, coupons, or sale information–up 15 percentage points from 2012.  There is a whopping 78% of smartphone owners using their mobile devices for shopping.

2.  Just in time shopping.   The mall has been replaced by online and teens are constantly shopping for new ideas.  The world of disposable fashion has lead teens to take advantage of affordable retailers and wait to see what their friends are wearing.  Digital-native students are shopping constantly throughout the year, even if they’re not buying.

Just-in-time shopping also shows that as many as 50% parents only buy what is essential for back to school and then buy additional needs during the holiday season, when they expect the best deals.  It is a way of spreading out the shopping expense to make it more manageable for their budget.  And parents are saving money by buying store-brand items, shopping sales and using coupons.

3. Online is #3 destination.   eMarketer forecasts that digital sales for the back-to-school season will increase 16.0% in 2014.  One-third of all back-to-school shoppers will make an online purchase, and 45% of back-to-college shoppers will head online.  According to Deloitte, among top back-to-school shopping destinations in 2013, 36 percent of consumers shopped online, moving online shopping to the third destination behind discount and office supply/technology stores, a significant jump from the No. 8 position in 2012.

9754-1652-140701-Back_to_School-l4.  College Online Spending Big.  More than $3 of every $5 aimed at back-to-school clothes and supplies is spent on college-bound students.   A PM Digital report shows online shoppers stealing 37% of this market as the online college segment spends over $1,100 per family.  In fact, shopping expenditures are higher online – with 37.3% K-12 and 37.1% college students buying through e-commerce.

5.  Smartphone Tool for Shopping.  During back-to-school 2013, competitive pricing was the top use of mobile, with 66 percent of shoppers planning to use their smartphones to obtain price information and 60 percent to obtain discounts, coupons, or sale information–up 15 percentage points from 2012. There is a whopping 78% of smartphone owners using their mobile devices for shopping.

What should marketers do this season?

1.  Make sure your campaigns are live now and active through September.  To stand out, thing about using video and consumer stories to help tell the story.  Search should be already in place.

2.  Make sure content is available on tablet and mobile.  Don’t forget social. Hashtags like #stapleshasit and L.L.Bean’s #packmentality, which leapt from social media into display, email and print last season, will proliferate in 2014.

3.  Solicit stories from your customers to drive positive reviews.

4.  Time your sales (early-bird and end of season) to match buying periods.

5.  Differentiate between back-to-school and back-to-college.

 

 

Marketing to Working Moms: New Scarborough Study!

January 29, 2014 § 1 Comment

Working Moms may have had a “pink collar” image in former generations, but today’s working mom is quite a different person.  They are more educated,  more affluent and more wired than ever before.  Working Moms represent 40% of moms.

Scarborough has surveyed this group and come up with some interesting statistics that marketers need to market to women, particularly working moms.  Here are just a few to whet your appetite.   For more, see the infographic below.

95% of working moms agree that spending time with their family is their top priority

27% of working moms are much more involved in their finances.  

72% of their households contributed to a charity in the past 12 months.

Working moms are spending less for name brands.  They use coupons and shop at Nordstrom Rack, Kohl’s Macy’s and TJ Maxx Home Goods.  

Working moms shop online and own smartphones, laptops, iPads and more.

Working moms are 22% more likely to attend professional sporting events and 24% more likely to have watched ESPN in the past 7 days.

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Marketing Back-to-School to Parents: What Social Media Tells Us

August 28, 2013 § Leave a comment

The Lipstick Economy is interested in Back-to-School this year and how this year might be different from other years because of trends such as year-round school calendars, just-in-time shopping, family and teen-age budgets and online versus offline.  The topic generated conversation among readers who provided some great information.

An online friend Kim Wilson of Ebro Foods shared this infographic on Back-to-School.  I was fascinated because it is based on Social Media research and it has some great take-aways:

Parents feel some worry about the school transition and like deals and sales that help them with stretched budgets. Moms are in charge – A recent survey revealed that 59% of shoppers say that mom makes the final decisions for back to school shopping.  And as the Chief Budget Officer, she is juggling.

Families still prefer to do back-to-school shopping together.  64 percent of shoppers prefer to shop with their child versus the 36 percent who would prefer to shop alone.  Don’t forget that many Moms have already done their research before they hit the stores and are comparing prices as they shop.  Some 71 percent of shoppers will use their smartphones to compare prices or download mobile coupons during their shopping trips.

Families tackle the most expensive purchases first and time them around deals and sales.  More than half (55%) of shoppers will make back-to-school purchases throughout the school year instead of purchasing everything at once.The cycles are changing and retailers need to be alert to these changes.

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Marketing to Women: Dove Self-Image Campaign Elevates Advertising

May 5, 2013 § 2 Comments

Dove’s new Real Beauty campaign exposes the fact that only 4% of women around the world consider themselves beautiful.  Their new campaign has a new tagline “You are more beautiful than you think”.  The revealing video has been viewed 42 million times! What is so provocative?  Take a look.

The video shows a forensic sketch artist drawing images of women based on their own descriptions.  After drawing the first sketch, the artist then draws a sketch of the same person from the description furnished by someone else.  The resulting sketches showed the difference in the beauty that others see in us versus our own self-image.  The truth in these spots revolves around the way women undervalue themselves and their looks.  The popularity of the sentiment is undeniable.  Tanzina Vega chronicled the popularity of the work in a recent New York Times article.

Dove has worked to communicate that real beauty is more than the waif-like models and celebrities that most beauty brands use.  Does this type of soul-searching grow business?  Evidently. Dove was a $200 million soap brand in the early 1990s that has grown into a brand that has been estimated to be nearly $4 billion dollars today.

Why do women value this approach?  The brand Dove has communicated to women that it understands and values them.  This approach is not only true to women’s emotions but it is differentiating from most beauty products that sell a more unattainable beauty.  The truth of the brand is the truth of women.  The brand speaks to emotional benefits that reward inner beauty, not just vanity.  This compelling message allows the brand to speak to all generations, to launch brand extensions, and to create meaningful programs with women and girls.  A similar approach was taken by P&G with their Olympic Mothers campaign.  It showed Mothers they were valued and important.

Brands that can speak to a higher truth that women value will win both marketing to women and the purchase war.

Marketing to Women: Women Still Dominate Retail Shopping

April 13, 2013 § 1 Comment

A new report from Nielsen confirms that women still control the spending power in the US.  Some people estimate that we control $5-15 trillion annually.  Now, I know that saying women still dominate retail shopping is like saying that it still snows at the North Pole, but there are some shifts going on that are interesting.

The report points out that men are taking a more active role in the shopping process than they have in the past. Woo-hoo!  Between 2004 and 2012, U.S. women reduced the number of trips they made across most retail channels, while men increased their visits to all outlets except grocery and drug stores.

1364480712730However women are still spending more money per trip than men in all shopping channels.  Women drive the larger stock-up or planned trips and outspend males by $14.31 per trip in supercenters and by $10.32 per trip in grocery stores.

So basically, women are still doing the majority of shopping, but the data tends to suggest that men are beginning to assume more shopping duties beyond the trip to the convenience store for beer and chips.

Talking to the female shopper is more important than ever.  So those  at Nielsen are concerned, like we are, about the emotional and rational content of marketing and advertising messages.

Women remember more and differently than men do, so talk to both her emotional and rational sides and acknowledge her attention to detail. Layering emotional decision-making opportunities with rational information will increase purchase intent and will have strong “sticking” power. According to Nielsen NeuroFocus, the female brain is programmed to maintain social harmony, so messaging should be positive and not focus on negative comparisons or associations.

In other words, women form value opinions based on both emotional and rational reasons to buy.  That’s why the Darth Vader spot for Volkswagen was a game changer.  It spoke to both men and women about the special moments of family life yet focused on a buying feature of the car.  And yes, women are the buyers of most cars too.

Marketing to Moms: Four Things to Consider Before Developing an App

April 2, 2013 § Leave a comment

iStock_000020962728XSmallConsidering an app to market to moms?  A recent study found that 97% of moms made a purchase on their tablet in the last month and they’re spending significantly more time on their tablets than laptops. There’s a huge opportunity for brands to provide value for moms on their tablets.

One way to make the most of moms on tablets is by developing an app for your brand. However, developing an app, especially for the first time, is not an easy task. It requires a big budget, skilled engineers, and dedicated marketers to build a useful, powerful app.

So before you begin, there are 4 key things to keep in mind when planning to develop a new app:

App functionality – In order to be truly effective, apps must be smart, innovative, and provide value to the customer. Know when your customers will be downloading the app and why they need it at that moment. Determine the use case scenario and keep it top of mind throughout all stages of development. Also know that you don’t have to include all potential features in the first release of the app. Prioritize the essential elements and add additional functionality in future releases.

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Operating systems – You don’t need to develop an app for all platforms to be successful. Rather, understand the devices before choosing one or a few. First, narrow down your options by knowing which device your target audience uses. For example, about 51% of moms own an iPhone, iPad, or iPod, compared to 52% of teenagers owning an Android. Second, understand the pros and cons of the various platforms. Windows is known for its flexibility and provides a great user experience. Apple has fewer models and screen sizes so testing is easier. However, a rejection from Apple’s App Store means more time and money to make improvements. With Android, though, it’s easier to get apps into the Google Play store. On the down side, there are many Android models and testing on all of them is nearly impossible. Finally, testing on various devices requires lots of Quality Assurance (QA), not only for the first release but also to maintain the app as devices update their operating systems. Don’t forget to budget for ongoing QA as you develop your plan.

Pricing model – Will the app support your core business or will it be the sole revenue stream? If your business has other revenue sources, you may offer the app for free because it builds mobile presence and authority for your brand. If this will be your main revenue source, the app itself might be free but perhaps it will generate revenue through an eCommerce engine or paid membership. While some paid apps are very successful, tablet users have been shown to prefer free apps with ads to paid apps. Paid apps accounted for only 23% of all tablet app downloads in 2012. Does your app offer something that customers will pay for or does it offer another value to your business?

Download strategies – Marketing your app and getting customers to download it provides a huge challenge. Make sure your app is searchable within the app store. You can do this by choosing the most relevant keywords. What will customers be looking for when you want them to find your app? Find out and use those keywords. Note, you are limited a specific number of characters for keywords. For Apple, keywords must be less than 100 characters. Another download strategy is through email marketing. Email your existing customers and include a direct link to the app store so they can download the app immediately. Make it easy for them to find and download. Also consider integrating a social sharing element into your app so users market the app for you.

Creating an app may or may not be worth it for your business, but after thinking through each of these topics you should have a better idea of your approach and strategy. For more insights on the habits of moms on tablets and how to build the best app strategy for your brand, download the white paper, “Tablets 101: A Primer for Mom-Focused Brands.”

This guest post is by Katie Petrillo. She is the B2B Marketing Manager at Punchbowl, where she writes about marketing to moms for the Punchbowl Trends blog. Follow her on Twitter @PunchbowlTrends and find her on Google+.

Marketing to Moms (and Dads): The State of the American Mom 2013

March 26, 2013 § Leave a comment

FE_DA_BabyPlayTablet_071712The 2013 State of the American Mom report is out – and interestingly, they actually looked at opinions of both Moms and Dads.

Here are some of the results important for marketing to moms – and dads:

Men shop around too.  An equal amount of Moms and Dads, 78% and 76% respectively, shop at more than one grocery store weekly.  Most make the extra trip for the best sale prices.

Smartphones are the tool of choice.  Almost 60% of moms have a smartphone, compared to 44% in 2011.  It is certainly the primary organizer of life.  The report shows Moms are playing games (64%), looking up stores/locations (58%) and finding nearby restaurants (50%).

Baby wants a smartphone and a laptop too!  Of course, you know children won’t even know how to turn pages in a magazine or a book.  43% of Moms report their children start using a laptop or desktop at 3 – 6 years, and 25% of Moms say that’s when they start using a phone or tablet.

What are the trends behind these facts?

Multichannel Shopping.  Consumers are challenging retailers and brands to keep up with their multichannel shopping behaviors.  Two-thirds of all shoppers regularly use more than one channel to make purchases.  While the Mom report is talking about physical grocery stores, many are shopping online, warehouse stores, farmers markets, specialty stores and grocery stores to fill their pantries.  Some 70% still use bricks and mortar stores, but 47% are online.  And all research begins online before those “reality” shopping trips.

Life on a Smartphone.  We just feel smarter with a smartphone. Nielsen says in their 2013 Mobile Consumer Report that 61% of all adults have a smartphone and 94% have some type of mobile phone. Of course, we don’t actually talk on our phones.  We send and receive an average of 764 text messages versus 164 calls sent/received on our phones.  We use our phones for a variety of activities – email, music, shopping, location services and internet browsing.

Digital Children.  Hilary DeCesare, a cyberbullying expert and CEO of kids’ social networking site Everloop, thinks in an increasingly digital world, it’s important to expose children to different technologies early so that they are prepared to adapt and thrive in more advanced professional settings. The digital expert thinks kids as young as 2 can benefit from tablet use, as long as the parent “is monitoring what [the] child is watching.”

Marketing to Women: Breadwinner Wives

February 24, 2013 § Leave a comment

HiResOne of the lingering effects of the “new normal” is the growth in breadwinner wives.  From 2007 to 2011, women’s contribution to household income grew from 44% to 47%.  And in some 40% of marriages, the women are the highest wage earners.

“This past recession caused women’s share of earnings to rise even more significantly, with the largest single year increase,”  said Kristin Smith, a family demographer at the Carsey Institute and a research assistant professor of sociology at the University of New Hampshire.

The trend is strongest among couples where the husband has a lower level of education. Women married to men with a high school degree or less contributed 51% of total family earnings in 2011; those married to men with a college degree contributed 42%.

Men dominated jobs suffered the most in the past recession.  From December 2007 to January 2010, America lost 8.7 million jobs, with male-dominated industries, such as construction and manufacturing, suffering the most. Unemployment peaked in October 2009, at 10%, with men’s unemployment at 11.2% and women’s at 8.7%.

As the economy improves, women will tend to stay in their job roles.  Many households lost ground in savings, housing values and retirement accounts.

Other gender-related shifts that have taken place in recent years: Colleges are graduating more women than men; women under 30 earn more than their male counterparts in most of America’s largest cities; and women now comprise about half of the workforce.

An unintended cultural effect was found in a 2010 study by Western Washington University where researchers found that when a woman’s contribution to household income tops 60 percent, the couple is more likely to divorce.  However, this cultural shift may balance out as the new generation starts their households.  The vast majority of young people – about 80% of women and 70% of men across all races, classes, and family backgrounds — desire an egalitarian marriage in which both partners share breadwinning, housekeeping, and child rearing.  The data come from Kathleen Gerson‘s fabulous 2010 book, The Unfinished Revolution.

Marketers should be alert to how women are portrayed in advertising because of this new normal.  Old stereotypes will not serve a brand well, particularly if women are the primary target.

Marketing to Women: Top 12 Posts from 2012

December 29, 2012 § Leave a comment

pinterest2012 marketing saw unanticipated events like the rise of Pinterest and Instagram – and disputed practices of Facebook and Instagram.  Facebook reached 1 billion users.  Changes to healthcare funding made marketing healthcare hugely important, and patient satisfaction rules. So here’s a quick read of what Lipstick Economy readers were interested in.

12. Marketing to Women:  Should You Focus on Facebook, Pinterest or Twitter?  Overall, almost two out of five (38%) online consumers follow retailers through one or more social networking sites.  You need to understand the demographics and how it the social networks are used by your specific channels.

11.  Marketing to Women:  Blogs Drive Purchase Intent.  Recent research from BlogHer shows that 61% of active blog users say they have made a purchase based on a recommendation from a blog.  One of the leading indicators of purchase intent is trust.  And 81% of women trust the information and advice they receive from blogs

10.  Marketing to Women:  Facebook $1 Fee to Message Non-Friends.  Facebook calls the little charge an economic signal to determine relevance. I call it “selling my inbox”.  On a blog post, they say ”This test will give a small number of people the option to pay to have a message routed to the Inbox rather than the Other folder of a recipient that they are not connected with.”

9.  Marketing to Women:  Women Rule Social Media.  LinkedIn is the only exception to the more than 50% rule by women; the male-female split is 50-50.  Back in March, Google+ was the third largest social network, yet to be usurped by Pinterest.  An interesting infographic gave us real demographics for the networks such as 54% Tweeters are on Mobile, 36% Tweet at least once a day, and average time on site is 11 minutes.  Google+ users are more likely to be single geeks looking for friends.  The average number of Facebook friends is 130.  Two million companies are on LinkedIn.

8.  Marketing to Women:  A Picture on Pinterest Is Worth A Thousand Words.  Pinterest is the third most popular social network behind Facebook and Twitter.  The beauty of Pinterest is we don’t have to read someone else’s opinion  We can make our own.  It’s a beautiful thing.

7.  Marketing to Women: Instagram or Instagrim?  New Policies Announced.  Since Facebook went public and purchased Instagram, the pressure is mounting for added advertising income.  Some new policies were announced and within a week were revoked due to customer pressure.

6.  Marketing Healthcare to Women:  What Does Patient Satisfaction Mean?  Based on new health care reform legislation, patient satisfaction surveys will factor into how much money a hospital gets paid by Medicare.  Patient ratings will compose 30% of  the consideration, and clinical quality will determine 70% of the payments.  Hospitals could lose 1% of their Medicare payments.  The only way to earn it back will be improvement of scores, and a real understanding and delivery of patient satisfaction.  Warm friendly service, appetizing food, entertainment amenities like WiFi and cable, and a pleasing atmosphere are becoming more important to patients.

5.  Marketing to Women:  The Ultimate Travel Agents.  80% of all travel decisions are made by women.  Surprised?  75% of those taking cultural, adventure  or nature trips are women.  And boomer women are major players having the money, time and interests.

4.  Marketing to Women:  Pinterest Rules!  Pinterest has been a winner in driving traffic for many retailers.  Some even more than Facebook.  Pinterest is inspiration for purchase decisions.

3.  Marketing to Moms:  Childhood Obesity Number One Health Concern. With one-third children overweight, the epidemic is of concern because 50% of overweight children become overweight adults.  It’s an important topic for all marketers.

2.  Marketing to Women:  10 Cool Ways to Use Pinterest. Since 70% of women are on Pinterest, marketers should be there to.  But 2012 was a year when marketers were trying out Pinterest, trying to ascertain how best to use Pinterest.   It’s about research, common interests, promotions and linking.

1.  Marketing Healthcare to Women: Ten Things You Need to Know.  Since 80% of all healthcare decisions are influenced by women, it is appalling that two-thirds of women feel they are misunderstood by marketers.

 

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