Marketing to the Heartland 2017 PART 3: HOW AND WHERE AMERICANS SHOP. Arrows indicate significantly higher than comparison group at 95% CI

Transcription

1 Marketing to the Heartland 2017 PART 3: HOW AND WHERE AMERICANS SHOP Marketing to the Heartland 1

2 Marketing to the Heartland Part 3: How and Where Americans Shop In the previous two installments of Fluent s Marketing to the Heartland research series, we looked at differences in core values and media consumption habits of consumers living in the Heartland* and those who reside along the coasts. We also examined differences between Americans living in urban, suburban, and rural areas. In this report, we look at the shopping behaviors of Americans living in the Heartland, and how they differ depending on where people live. *See methodology for definition. Marketing to the Heartland 2

3 1 Shopping Behaviors In the age of widespread smartphone usage and shopping on handhelds, it is imperative for brands to optimize their end-to-end customer journeys for mobile. Overall, 57% of Americans said they made an online purchase in the past 6 months and 43% made a purchase on their smartphone in the same timeframe. Consumers living in the Heartland as well as rural areas have been slower to adopt mobile commerce. Online purchasing behaviors Made purchase on computer Made purchase on smartphone 57% 43% 60% 46% 55% 41% 51% 42% 60% 49% 59% 54% Total US Coastal consumers Heartland consumers Even though online shopping has become ubiquitous, physical stores are still the preferred way of shopping for nearly half of US consumers in both Heartland and Coastal areas, compared to online commerce. This signals an opportunity for retailers to improve their online shopping experience. Do you prefer shopping online or in a physical store? Online Total US 46% Physical store No preference Marketing to the Heartland 3

4 Consumers generally prefer shopping in a physical store because they like to see or try items on in person (74% for total US). Many also find brick and mortar shopping more convenient, especially in the Heartland. Reasons for preferring shopping in physical stores Among those who prefer physical stores to online Coastal consumers Heartland consumers I like to see/try on items in person 75% 73% Convenience 41% Better selection of products 28% 28% Shopping is a social activity for me 30% 25% Better sales/deals 23% Cheaper prices 23% Stores I like don t have a website or mobile app 6% 7% Marketing to the Heartland 4

5 residents are more likely to prefer shopping in physical stores because of convenience and cheaper prices. They are also more likely to say that the stores they prefer do not have an ecommerce presence. On the other hand, urban consumers are more likely to prefer brick and mortar stores due to a belief that they offer a better selection of products. Reasons for preferring shopping in physical stores Among those who prefer physical stores Total US I like to see/try on items in person 74% 73% 75% 73% Convenience 37% 42% 32% 39% Better selection of products 28% 26% 26% Shopping is a social activity for me 27% 24% 29% 28% Better sales/deals 21% 20% 25% Cheaper prices 21% 24% 17% 23% Stores I like don t have a website or mobile app 6% 9% 5% 6% Nearly 2 in 10 Americans say they prefer shopping online, and the top 3 reasons for doing so are convenience (52%), cheaper prices (39%) and better sales/deals (). For rural and suburban consumers, convenience is the top reason for preferring to shop online. residents who prefer to shop online are also much more likely to believe that they don t have good stores near them. Reasons for preferring online shopping Among those who prefer online shopping Total US Convenience 52% 56% 62% Cheaper prices 39% 47% 36% 38% Better sales/deals 39% 34% 32% Better selection of products 34% 37% 32% 33% I have Amazon Prime 32% 30% I dislike shopping in stores 25% 23% 29% 22% I don t have good stores near me 15% 7% 13% Marketing to the Heartland 5

6 Cash and credit cards are the most widely used payment methods across all regions, with digital wallets slowly gaining share. While suburban residents are most likely to use credit or debit cards, rural and Heartland consumers are more likely to pay by check. residents have higher household incomes and therefore may have an easier time getting credit cards approved. Payment methods used to pay in a store in the past month 76% 77% 77% 75% Coastal consumers Heartland consumers 24% 16% 14% 13% Cash Physical credit or debit card Check Mobile payment platform (e.g. Apple Pay) Household Income Payment methods used to pay in a store in the past month 78% 76% 76% 79% 74% 71% 29% 15% 27% 18% 16% 12% 13% 14% 100K+ Cash Physical credit or debit card Check Mobile payment platform (e.g. Apple Pay) Marketing to the Heartland 6

7 Brands should consider making information about their products and services easily searchable online and to have clear product information and reviews easily accessible. More than half (57%) of US consumers say they research products online before making a purchase at least half of the time and 40% do so most of the time. dwellers tend to do more online research prior to purchasing a product, and rural consumers are more likely to not do any research at all. How often do you research a product online before making a purchase? All/most of the time Half of the time Sometimes Never Total US 40% 17% 25% 18% 32% 15% 27% 26% 42% 18% 26% 14% 46% 17% 22% 15% Marketing to the Heartland 7

8 2 Attitudes Towards Shopping residents are much more likely to consider themselves spenders rather than savers. Half of them agree with this statement, higher than any other group. Agree with the following statement: I m a spender rather than a saver 34% 33% 43% Even though some might assume that suburban and rural Americans would be more likely to view shopping as a social activity, it is urban consumers who are most likely to shop as a social activity with family and friends. This can be due to several factors: urban centers have a wider variety of shopping venues available and more urban residents self-identify as spenders. Population composition is also a factor; retirees are least likely to shop as a social activity with family and friends, and urban areas have fewer retirees. Agree with the following statement: Shopping is a social activity I engage in with family and friends Agree with the following statement: Shopping is a social activity I engage in with family and friends 50% Employed Part Time 52% 37% Homemaker 45% Unemployed 43% Employed Full Time 39% Student 38% Retired 30% Marketing to the Heartland 8

9 3 Branding and Endorsements Brands should consider regional differences when designing marketing strategies. Although marketers often see positive returns on campaigns endorsed by a celebrity (research indicates that athlete product endorsements boost sales by an average of 4%)*, consumers are not always aware of the influence that celebrity endorsements have on their propensity to purchase products. Only 13% of US consumers agree that celebrity endorsements influence them to buy products, although this rate is nearly a quarter (22%) among urban consumers. Agree with the following statement: Celebrity endorsements influence me to buy products? 22% 13% 11% 10% Total There is also a profound difference in how consumers relate to the brands they purchase depending on where they live. and suburban dwellers consider brand names to be more important and are willing to pay more for brand name products. Conversely, rural residents are more price conscious and don t care about brands as much. There is an opportunity to fine-tune marketing strategies, focusing on branding attributes in urban areas and highlighting cost savings in rural areas. Will you pay more for a product from a brand you recognize, or is low price more important? Brand is always more important Brand is important for some products Price is always more important 13% 47% 40% 11% 54% 16% 56% 28% * Source: Marketwatch ( Marketing to the Heartland 9

10 4 Advertising Impact consumers are most likely to remember seeing ads on several platforms, such as TV, social media, radio and mobile notifications. In Part 2 of this Heartland series, we also found them to be more connected. residents are more likely to say they receive marketing newsletters from brands or products, as well as remember online display ads when browsing the internet. Ad exposure in the past 6 months Remember seeing an ad on TV Saw ads or promotions from brands on social media Received marketing newsletters from any brands or products 67% 72% 66% 52% 61% 59% 45% 51% 53% Heard an ad on the radio 38% 52% 47% Signed up for mobile notifications from brands or products 17% 23% 21% How often do you see online display ads promoting brands or products when you browse the Internet? Every time 18% 22% 26% Most times 24% About half of the time Sometimes Never 18% 16% 13% 18% 16% 12% 12% 24% Marketing to the Heartland 10

11 Heartland consumers are more receptive to marketing newsletters; a third said they remembered making a purchase after seeing a promotion in a newsletter. It is imperative for brands to invest in this proven marketing channel, especially when marketing to consumers living in the Heartland. Purchased products in the past 6 months after seeing an ad on each channel Among those who remember seeing an ad on each channel Purchased products after seeing a mobile notification 48% 43% Coastal consumers Purchased after seeing an ad on TV 36% 36% Heartland consumers Purchased after seeing an ad on social media Purchased product after seeing a promotion in an marketing newsletter 26% 33% Ad on the radio 28% 24% Online banner ad 16% 20% Since urban and suburban consumers are more likely to prioritize brand quality, or at least their perceptions of it, in purchasing decisions, it should come as no surprise that they are also more likely to believe that advertising has an impact on their purchasing behavior. Purchased products in the past 6 months after seeing an ad on each channel Among those who remember seeing an ad on each channel Purchased products after seeing a mobile notification 36% 47% 48% Purchased after seeing an ad on TV 30% 38% 37% Purchased after seeing an ad on social media 25% 45% Purchased product after seeing a promotion in an marketing newsletter 20% 38% Ad on the radio 26% 33% Online banner ad 13% 22% Marketing to the Heartland 11

12 Methodology *The Heartland region is comprised of 26 states in the Southwest, Midwest and parts of the Southeast (AL, AR, FL, GA, IA, IL, IN, KS, KY, LA, MI, MN, MO, MS, NC, ND, NE, OH, SC, SD, TN, TX, VA, WI, WV) and is based on a definition designed by the New Heartland Group Fluent s Marketing to the Heartland; Media Consumption Survey study was conducted online within the United States by Fluent, LLC on April 1st, 2017 among 1,670 US consumers (aged 18 and up). Respondents were randomly selected, and the findings are statistically significant at a 95% confidence level. Due to rounding, percentages may not always add up to 100%. Fluent s proprietary ad serving technology includes a real-time survey module that was used to facilitate the data collection for this study. Data was weighted to US Census 2010 population distribution and Census Bureau, American Community Survey 5-Year Estimates. ABOUT FLUENT Fluent, LLC, a cogint company (Nasdaq: COGT), is an industry leader in people-based digital marketing and customer acquisition, serving over 500 leading consumer brands and direct marketers. Leveraging a massive reservoir of proprietary audience data, as well as millions of real-time survey interactions with consumers every day, Fluent enables advertisers to more effectively target and acquire their most valuable customers, with precision, at a massive scale. The company is headquartered in New York City. For more information visit fluentco.com I sales@fluentco.com I Marketing to the Heartland 12