Social Gathering...
Social and mobile retail will explode in 2011
The birth of geo location services such as FourSquare
demonstrate that the relationship between brand and consumer is not
just in the store.
As it has been in the past year, loyalty will continue to be a
driving force behind retailer marketing strategies in 2011, but it
will be joined by social media and mobile as the key channels for
retailers to engage with their customers and build
relationships.
Consumers changed their shopping behaviours drastically in
response to the recession and became much more promiscuous.
Searching out the best deals and promotional offers became the
driving force behind shopping habits. Supermarkets and high street
retailers responded by slashing prices, but these were short-term
solutions to entice shoppers, not the basis of long-term
strategies.
In 2010, their focus turned to reward programmes and loyalty
schemes as retailers sought to rebuild those lost relationships and
engender long-term loyalty that goes above and beyond the
transaction. Since relaunching its Clubcard scheme at the tail end
of 2009, Tesco has continued to push its rewards programme,
deciding to maintain the Double Points promotion it introduced.
Tesco has also introduced its Big Clubcard Voucher Exchange which
allows shoppers to double the value of their reward vouchers.
Nectar card, the loyalty scheme endorsed by Sainsbury's and 14
other retail partners and 300 online partners, appointed
ex-Unilever marketer James Frost as its marketing director to drive
its "customer led marketing" and went on TV to promote the breadth
of its reward partners.
The scheme surpassed its rival Clubcard in terms of members,
adding new partners including Vision Express and British Gas to
boost its appeal.
This year also saw the launch of Barclaycard Freedom, the credit
card provider's reward scheme that allows its cardholders to
collect instant cash rewards for using their Barclaycard when they
shop.
Most recently, Boots added an online channel to its Advantage
Card programme, which opened the scheme up to other retailers for
the first time, and allowed shoppers to collect Advantage points
online.
Retailers such as John Lewis, Tesco and Marks & Spencer have
already moved onto mobile platforms and many, including
Sainsbury's, Morrisons and Debenhams have launched iPhone or
smartphone apps, but in 2011, retailers must keep pace with
consumers.
Retailers are no longer in control of guiding shopper behaviour,
consumers are driving change.
It's not enough to be online and dabbling in Twitter. Marketing
teams are realising that they must keep up with, and overtake, the
online, mobile and social habits of their customers if they are to
remain relevant.
The growth of social commerce sites, such as Living Social and
Groupola in the past year herald the start of how online shoppers
are combining e-commerce with social networking.
The birth of geo-location services such as FourSquare
demonstrate that the relationship between brand and consumer is not
just in the store, or online, it is constant and everywhere.
Smartphones will become more prevalent and consumers will not be
content unless retailers are using the technology to make their
lives easier.
Whether its by offering additional services, helping shopping on
the move or using QR codes to add value to their advertising
through additional content, this is where the next stage of brand
building, and engagement will play out.
Source: Marketing Week