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Survey: Showroomers more loyal to retailers than nonshowroomers

BY Katherine Field Boccaccio

MINNEAPOLIS — Contradicting claims that showrooming undermines retail sales, new survey results from loyalty management company Aimia revealed that showroomers exhibit more loyal behavior than nonshowroomers, making them an ideal target for retailers.

Retail showroomers, who browse for items in-store before using their smartphones to find a lower price online, also were found to be active participants in loyalty and reward programs, according to the "Through the Looking Glass" retail brief released on Tuesday.

"Showroomers are more likely to participate in loyalty programs, are more willing to trade personal details for rewards, and are more interested in mobile commerce," Aimia VP knowledge development Rick Fergusonn said. "Retailers should take advantage of these behaviors to transform showroomers to become loyal — and paying — customers."

Research highlights include:

  • American showroomers are 67% more likely than a nonshowroomer to participate in a travel reward program membership;

  • American showroomers are 20% more likely than nonshowroomers to participate in a retail reward program membership; and

  • American showroomers are three times more likely than nonshowroomers to respond to a location-based mobile offer.

"The solution to embracing showrooming behavior lies in retailers leveraging their shopping data to get consumer insights that will help shape their marketing strategies and drive in-store purchases,” said Ferguson, who suggested that retailers can influence showroomers by leveraging the tools of loyalty management, including:

  • Using hard benefits to reward desired behavior: Offer in-the-midst showroomers to join a rewards program with a rich bonus offer on their first purchase.

  • Linking soft benefits (such as exclusive access, experiential rewards and location-based offers) to upper-tier smartphone users;

  • Offering a showrooming app through a loyalty program in order to hold on to customer insights; and

  • Deploying an aggressive partner strategy: Work with and share opt-in data with partners and suppliers to combat showrooming together.

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Kraft Foods’ North American product portfolio holds the salt

BY Allison Cerra

NORTHFIELD, Ill. — Kraft Foods is on track to complete a three-year initiative to reduce sodium by an average of 10% across its North American portfolio by the end of 2012.

Kraft Foods’ sodium reduction efforts reach across the company’s North American product portfolio, including Kraft grated parmesan cheese, Breakstone’s 2% cottage cheese and Oscar Mayer bacon. Many other Kraft Foods products, the results far exceeded this goal, including:

  • Kraft original BBQ sauce, 40%;

  • Kraft Easy Mac cups, in original and triple cheese varieties, 30%;

  • Teddy Grahams honey graham snacks, 25%. Whole grain content for Teddy Grahams was augmented to 8 g per serving;

  • Oscar Mayer Deli-Fresh smoked ham and Oscar Mayer beef bologna, 25%; and

  • Kraft Singles american slices, 18%.

In total, Kraft Foods has reduced sodium content in more than 1000 SKUs across 24 different product categories.

"Sodium plays several important roles in food, including enhancing taste and texture, as well as helping keep products fresh," Kraft Foods VP research, development and quality Russ Moroz said. "But our scientists and product developers also know that more than half of North Americans are interested in lowering their sodium intake. So, we worked hard to make meaningful reductions in sodium, without sacrificing the taste, quality or safety of some of North America’s favorite foods."

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Aisle411 expands executive team with new appointments

BY Allison Cerra

PALO ALTO, Calif. — In an effort to extend its leadership as the premier indoor map and search platform, mobile retail navigation service Aisle411 has expanded its executive management team.

The company has appointed Peter Esparrago — general partner at Cultivation Capital and former CEO of IntraISP — to serve as COO, while Norwood Keel — former director of product and partner development for Microsoft Startup Business Group’s mobile shopping platform — as VP products. In addition to Esparrago and Keel’s appointments, Michael Yang will be joining as an advisory board member. Yang is the founder and board director of Become.com and has served as its president and CEO from 2004 to 2012.

"We are committed to delivering a solution that empowers anyone with a smartphone to find products and promotions quickly and easily in retail stores," Aisle411 president and CEO Nathan Pettyjohn said. "To further this momentum, Aisle411 has created a team with powerful, tested leadership that will be critical as the company moves aggressively to build on its lead in the market to truly enhance the in-store environment."

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