Location-based marketing coupons sway consumer decisions
Mobile retail marketing has evolved alongside consumer buying habits, and location-based marketing might be the latest addition to this trend. A recent study from Munich’s Maximillians University indicates that personalized mobile promotions can significantly influence consumer decisions at the point of purchase. Professor Spann and his team utilized a German smartphone app that offered tailored coupons to examine which promotions consumers were most likely to accept. They successfully delivered coupons at the right time and place, encouraging immediate store visits for purchases. They discovered that while location-based marketing coupons strongly affect consumers’ buying behavior, they are not the sole deciding factor. Other elements, such as the order of the coupon in the app, the number of terms in the offer, and the offer’s value, also matter to consumers. Even the time of day can be significant; for instance, researchers found that coffee coupons were more sought after in the afternoon. Additionally, the distance to the store negatively influenced consumers’ willingness to use a coupon.
This study suggests that popularity of location-based retail marketing is on the rise. Mobile shopping apps, like ShopKick and AisleBuyer, are already on the market, providing in-store deals for participating consumers. With the growing connectivity between mobile marketing and online shoppers, there is great potential for retailers to snag some spotlight in this mobile marketing trend, even in the last few minutes of a purchase.
Shoppers are patient
This last holiday season revealed a new trend – customers are willing to wait for great retail deals. This 2011 holiday pattern showed a high number of purchases around Black Friday and Cyber Monday, then very low records up until Christmas Eve for last-minute deals. This indicates shoppers were willing to wait – even to the last minute – for great deals. Incredibly, shoppers were not persuaded by in-store flash sales and promotional events, which many retail marketing pros pushed to increase the low in-store numbers. Most shoppers disregarded these sales, knowing they could find cheaper deals on other deal sites – the mentality being “there will be a better deal for this on Gilt tomorrow.” The bottom line: consumers are shopping online more than ever. Whether it’s this market transparency allowing consumers to compare many deals and products at once or the slow economy, shoppers are being patient in choosing what products they want and at what price.
The ‘moderate consumer’ develops new shopping & buying behavior
This retail demographic comprising a large portion of US shoppers is, as a whole, developing new purchasing habits. Typically known for their mid-range buying, they are now branching out. No longer willing to spend $30 at the Gap for a simple sweatshirt, they instead are buying basic clothes at discount outlets. Conversely, they are paying more for near-luxury brands that have moderately priced lines. This moderate consumer is branching out of their comfortable buying behavior and treating themselves while also being penny-wise. This is a trend to look out for in the coming months. No doubt, luxury brand discount sites like Gilt or Rue La La have something to do with this. We can be fashionable but frugal, too. If you are in retail marketing, the focus on mobile, online and location-based shopping is shifting the values and trends of your customers. Do your homework and find out how you can play into that as well.