INMAR AND SPARTANNASH TAKING LOYALTY TO THE NEXT LEVEL THROUGH DIGITAL ENGAGEMENT

Transcription

1 INMAR AND SPARTANNASH TAKING LOYALTY TO THE NEXT LEVEL THROUGH DIGITAL ENGAGEMENT John Ross Chief Marketing Officer, Inmar and President, Inmar Retailer Promotion Network Linh Peters Vice President, Marketing, SpartanNash

2 An Overview: Inmar and SpartanNash Manages more than $40 billion in payments and receivables for clients Promotion, Supply Chain and Healthcare Commerce Networks Manages more print and digital promotion content than any other company globally Largest digital coupon networks for clip to card digital loyalty, operating in 15 countries Fortune 500 Company 16,000 associates 160+ corporate retail stores 21 distribution centers covering 44 states Distribute to 174 military commissaries and more than 400 exchanges globally 2

3 The future is the past 3

4 I have to be smarter than I used to be about the products I choose, what I feed my kids, how it was produced, what ingredients are in it and how I spend my money 4

5 65% I shouldn t have to work so hard to be a smarter shopper. Evolving shopper sentiment Source: 2013 Inmar Shopper Study 5

6 Changing shopper sentiment: From effort to entitlement If I put in the effort, I can get deals on the brands I buy. If I shop a store a lot, I shouldn t have to work for deals I deserve. Source: 2013 Inmar Shopper Study 6

7 Why now? Shoppers want the convenience of digital promotions and the personalized content it can deliver. 65% 46% 65% I regularly look for online coupons for use in store. I compare online content with offers in the newspaper I want stores to me with information and offers for products that I normally buy. Source: 2013 Inmar Shopper Study 7

8 Full Source List High Influence/Low Usage Used store/retailer app Net Influence 47% Usage 15% Store website coupon download Net Influence 54% Usage 37% Newspaper coupon clipping Net Influence 54% Usage 51% Low Influence/Low Usage from brand Net Influence 25% Usage 22% Downloaded coupon to smartphone Net Influence 59% Usage 17% Store website for sales Net Influence 53% Usage 43% Average Usage Blog about coupons Net Influence 40% Usage 24% Displays Net Influence 29% Usage 40% High Influence/High Usage In-store signage Net Influence 52% Usage 70% Saw ad in circular Net Influence 52% Usage 50% Average Influence Product Package Net Influence 91% Usage 56% Low Influence/High Usage 8

9 Shopper marketing is more critical than ever 60% 50% 40% 30% 20% Saw advertisements on television Received mail at home from a brand or manufacturer Saw an ad in a newspaper or newspaper insert Searched online, used search engine Comparison shopped products online Sought information from a product brand or manufacturer website Read product reviews or endorsements online Sought information from a retailer or store website Looked at product package in the store Read brochure about the product in the store Looked at signage or display about the product in the store Tried a sample or experienced the product in a store 10% 0% -10% Stimulus Q2 Base: ZMOT When you were considering purchasing [PRODUCT], what sources of information did you seek out to help with your decision? N=5,003 9 FMOT 9

10 And, it s about much more than signage. 1:1 communication via digital channels Targeted messages based on purchase history Targeted messages based on location (in aisle, entering store) The ability to market to shoppers, not just consumers Real-time promotions Measureable and accountable 10 10

11 SpartanNash Case Study Digital program launch 11

12 Rethinking value equation for our loyalty program Shifting away from points-based program enabled us to deliver immediate, more tangible value to the shopper. Digital coupons is a key part of the value equation as it enables us to deliver relevancy, personalization and real-time benefits. 12

13 Why digital promotions now at SpartanNash? Shifting from print to a more convenient digital solution Providing shoppers with a simplified and convenient savings medium Investing in future personalization opportunities for our customers Reaching new audience while transitioning current customers Increasing relevancy for the consumer 13

14 How yes Rewards digital promotion program works Awareness & Acquisition In-store signage drives digital awareness Digital coupon availability consistently highlighted in weekly circular Digital Offers Presented s highlight individual offers and available savings Shopper Loads Offer to Account Drive In Store Traffic Shopper portal Inmar Cloud Services Simple registration/navigation Single URL for all corporate stores Content is key ~ 200 offers on website at any given time Consistently featuring trade funded and private-label offers In-Store Clearing & Settlement Automated settlement process Faster turnaround on receivables 14

15 Benefits of yes Rewards Program Reaching those historically un-responsive to promotions A digital coupon user s lifetime value is 2.75x 2.75x that of a non-digital coupon user Direct-to-card (DTC) users shop 2x as often and spend 51% more per basket 15 Source: *Advance Analytics NC State University Study 15

16 Direct-to-card (DTC) user profile: Distinct from traditional coupon users High percentage of male users 35 percent 40 percent+ Male Higher income ~30% earn 100k+ Smaller households 45 percent 70 percent don t have children Younger 25 percent+ under 34 Source: comscore 16

17 Shoppers are thoughtful about their decision to sign up The average yes Rewards shopper 4.46 sources used of information to learn about the digital coupon program before enrolling 17 Source: Inmar s Shopper Study for SpartanNash, May

18 How yes Rewards shoppers learned about program Visited the store website Usage and net influence 50% 67% Usage NET Influence Saw an ad in the weekly store circular 57% 74% Received mail at home from the store 53% 57% Received an from the store 59% 72% Saw a coupon in the weekly store circular 67% 78% Source: Inmar s Shopper Study for SpartanNash, May

19 Initiatives supporting consumer launch It s not enough just to build it. In-store Dedicated circular placement In-store launch: Manned tables Danglers, banners, stanchions Shelf talkers Checkout/POS screens Brochures Employee training: Manager/cashier videos, cashier talking point sheet, FAQ sheet Sweepstakes and digitization of offline promotions Member communications Targeted Smart series of engagement s blast (existing roster/nondigital users) Radio TV Homepage Mobile Press and media Press release, Inmar communications plan (prospecting , newsletter mention) Sales and trade Trade event participation Vendor days at retailer Category manager training Online 19

20 Marketing strategy for consumer launch 20

21 Marketing strategy for consumer launch 21

22 What success looks like: Brands are engaging Manufacturers are taking advantage of new ways to reach shoppers through SpartanNash s yes Rewards program 22

23 What success looks like: Current participants 72% of yes Rewards shoppers are enrolled in digital coupon program Source: Inmar s Shopper Study for SpartanNash, May

24 What success looks like: Completely digital, real-time promotion program averages Offer pool labels: 200 digital coupons on website at any given time National Trade Private Marketing media includes: Digital sweepstakes Circular Shelf-talkers 24

25 What success looks like: yes Rewards most loyal / budget-conscience shoppers tend to use digital coupons 73% of active redeemers are our most committed shoppers 29% are budget sensitive 25

26 Attitudes about the yes Rewards digital program Digital coupons save me money Moving towards relevancy 84% I sometimes forget to buy the product after clipping the digital coupon 73% Digital coupons are easy to use 60% The digital coupons are relevant 47% Digital coupons save time I clip digital coupons before every trip to the store The mobile app is easy to use I use my mobile device to clip digital coupons in-store 14% 11% 37% 36% 20% of smartphone users Source: Inmar shopper study for Spartan Nash, May

27 Shoppers evangelizing about the digital program 72% of participants are sharing their experience 62% are sharing digitally 43% 43% are sharing through WOM 27 Source: Inmar shopper study for Spartan Nash, May

28 What the future holds Personalization of communication 1:1 offers matched to shopper behavior Offer recommendation engine Integration of price elasticity, purchase cycle Connectivity among digital coupons, weekly ad and shopping list Continued expansion of omni-channel initiatives 28

29 Linh Peters here John Ross

30 Click the survey button found on the session page.

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