Mobile Wallets Face Uphill Battle for Adpotion

Shopper Tech Update March 21, 2013 - Volume 4, Issue 5

In This Issue

DIGITAL SOLUTIONS: Mobile Wallets Face Uphill Battle for Adoption

LOYALTY MARKETING: Are Independent Grocers Losing the Retail Arms Race?

SHOPPER MARKETING: Four Reasons to Outsource Strategy, Insights and Analytics

MARKET WATCH

STI Social Media Groups

Quick Links

Shopper Technology Institute website

LEAD Marketing Conference

CPGmatters Ezine

Digital Solutions

Mobile Wallets

Face Uphill Battle

For Adoption

There is a growing retail industry buzz around mobile wallet technology. So it's timely and appropriate to investigate consumer familiarity with the technology and to gauge general perceptions about it.

A mobile wallet is a digital replacement for a traditional wallet. It is connected to a customer's financial accounts through a mobile smart phone, which allows them to pay for products/services simply by using their mobile smart phone.

The majority of shoppers are not familiar with the concept of a mobile wallet (surveys only 22% say they are very/somewhat familiar with the technology). That being said, familiarity does skew more toward males and those under 35.

Because of this, it's not surprising to find that over half (52%) of consumers say they would not use a mobile wallet anytime soon given what little they currently know about it...

read entire story

Loyalty Marketing

Are Independent Grocers Losing the Retail Arms Race?

The growth in shopper marketing budgets comes as manufacturers are simultaneously reducing spending on traditional trade promotion. A 2012 trade promotion study by Kantar Retail shows manufacturer spending on trade promotion, measured as a percentage of gross sales, at the lowest level since 1999. But even this does not tell the whole story; it is the changing mix of manufacturer marketing expenditures that shows what is occurring. Trade promotion accounted for 44% of total marketing expenditures by manufacturers in 2011, lower than any other year in the past decade. This decrease is driven by a corresponding increase in Shopper Marketing expenditures.

Here is the most worrisome part of this trend: a disproportionate share of these vast marketing funds

is directed to the largest retailers...

read entire story

Shopper Marketing

Four Reasons to Outsource Strategy,

Insights and Analytics

In an increasingly competitive world, corporations are being challenged to drive improvements in both revenue growth and profitability. The outsourcing of strategy, insights and analytics is one way leading CPG companies are simultaneously driving bottom-line and top-line improvements.

Multiple studies by the Conference Board, Boston Consulting Group, and other leading consultancies have repeatedly proven that shareholder value is best created by driving not just operating margin improvement, but also top-line revenue growth. These studies have demonstrated that over a five-year period of time "profitable growth strategies" outperform "cost cutting strategies" by nearly 3 to 1 in terms of annual market capitalization growth...

read entire story

Market Watch

Winn-Dixie Debuts e-Coupons

Sambazon Energizes Trade Promotions

Latest Report on Coupon Trends, Insights and Analysis

Online Grocery Shopping Increasing

Mobile Promotions Prompt Shoppers in Stores

Redemption of Mobile Coupons Projected to Increase

JUST PUBLISHED

Shopper Technology Institute Publishes Its First Book,

The Essentials of Shopper Technology

Shopper Technology consists of tactics and applications that engage and motivate shoppers, analyze their behavior, and enable trading partners to improve their operations. Retailers and consumer packaged goods (CPG) manufacturers are embracing these new solutions as technology becomes a true agent of change. The providers of these solutions have invested mightily in the future of this industry. Their sophisticated offerings are built on a foundation of thought leadership.

This book is all about sharing that information and insight. There are chapters that outline challenges facing merchants and marketers. Some chapters present the essentials of Shopper Technology, while others offer a deeper dive into these solutions and their implications. Because of Big Data, digital innovations, and an evolving path to purchase, the job of merchants and marketers often seems daunting. So consider this book as a way to cut through the clutter as technology roars on, competition heats up, and shoppers become more demanding. Coming to grips with technological change may be challenging, but it is the key to success.

Click here to read sample chapters and reviews, and view ordering information for the hardcover, paperback, and Kindle editions.

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