YOU Technology discusses how to build shopper loyalty through digital offers.
By Cheryl Black, CEO of YOU Technology
More than 20 years after the Internet revolution, consumers have developed strong expectations for the ease and convenience it delivers. The most successful retailers navigated the Internet’s initial disruption by balancing the needs and realities of physical stores with growing consumer interest in digital experiences.
Over time, top retailers and new competitors met the challenge of evolving technologies and turned the disruption into a huge opportunity for themselves. The companies that didn’t are no longer with us or are shadows of their former selves. We see a similar challenge and opportunity in digital offers.
Very few people imagined the world of mobile as it exists today and no one can tell the future. But one thing is clear: The online world continues to evolve in unexpected and exciting ways. And so do the expectations of retail customers.
Take brand marketing in retail. Coupons, promotions and discounts are time-honored retail tools. The basic framework hasn’t evolved much since the invention of the shopping cart – or has it? Paper coupons still abound so they must be working, right?
Not exactly. More than half of consumers use a smartphone to find a coupon when they’re in a store, and more than three-quarters spend at least $10 more with each mobile coupon. The pace of digital adoption is skyrocketing. In January 2016, we reached three billion offers downloaded on our platform. By October, we passed four billion downloads. Just a few weeks later and 300 million more offers have been downloaded as consumers speed towards digital options that far surpass the paper world.
As with most Internet-related changes in business, the value is in the information. Integrated digital offers enhance the competitive stance of retailers through the basket-level transaction history they have been building for years. Who has better insights than retailers into the regular patterns of shoppers and their families who have built their lives in the community? Retailers can apply this knowledge to reward and support their loyal customers and attract and retain new customers.
Digital technologies and expertise let retailers reach shoppers when and where it makes the most sense in their lives. That helps to make customers and retailers happy at the same time. Based on our data, here are three key insights we’ve learned over the last 10 years at our integrated digital offers company, YOU Technology:
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