Campaign corner
Smells like…Mayo? You know those great commercials for perfumes in which a celebrity goes on the mountain, then on the ocean while explaining how great it is to be free? Well, this is not that for sure. What if we were to tell you that Hellmans is launching a Mayo-inspired fragrance? With Will Levi’s help, Hellmans created a commercial that seems to mock all perfume commercials ever made in which Levi is presenting his No 8 fragrance. Yes, it is just as weird as you can imagine.
Blunt Marketing. No, this has nothing to do with James Blunt, even though it involves another well-known singer. It seems like Snoop Dog has had a very interesting and promotional year so far and it all revolves around flames, smoke, or lack thereof. After Snoop Dog went smokeless last year for a commercial with Solo Stove, the singer is once again reunited with the brand to promote one of their products. In this new commercial, Snoop is making a few blunt statements that might convince you to go smokeless too.
What happened in retail tech?
Grocers and in-store tech. As consumers increasingly blend online and in-store shopping, grocers are enhancing their in-store technology to create a seamless omnichannel experience. Retailers like Schnuck Markets, Aldi, and Wakefern are leading this trend by integrating digital tools within their physical stores. Notable innovations include Dollar General's use of self-checkouts to reduce shrink, Instacart's investment in smart carts to drive growth, and the regular use of scan-and-go technology by one in three Sam’s Club members. These advancements are crucial in meeting the evolving expectations of tech-savvy shoppers.
AI tools for online shopping. A growing number of consumers are incorporating AI tools like ChatGPT into their shopping journeys. A recent survey revealed that 40% of consumers regularly use AI for product research, with 17% even citing AI as their primary source of purchasing information, following Google and marketplaces like Amazon. Additionally, nearly half of brands believe AI and large language models will significantly reshape their SEO strategies, with some anticipating a complete overhaul due to the personalized and trusted nature of AI-driven searches.
What experts say…
Customer loyalty. Customer loyalty programs have become a crucial strategy in the retail industry, with 2023 highlighting their effectiveness in retaining customers, even amidst competition from discount retailers. Retailers with robust loyalty programs managed to maintain stable customer bases by offering personalized promotions, cross-promotional sales, and customized vouchers. The integration of AI-driven data is enhancing these programs by allowing for more personalized and relevant customer interactions. However, challenges remain, as many retailers struggle with effectively utilizing customer data and adapting to market changes. Despite these hurdles, loyalty programs continue to appeal to consumers, particularly those seeking points, discounts, and free shipping. Here’s Clay Parnell’s view on the topic:
Customer turnoff. A new study reveals that the mention of "artificial intelligence" in marketing can negatively impact consumer perceptions, leading to decreased interest in AI-powered products. The study found that consumers are less likely to purchase products described as using AI, particularly in high-risk categories like expensive electronics or medical devices, due to concerns about trust and safety. This sentiment is echoed in a survey by Variety and HarrisX, where many consumers expressed disinterest in media content created with generative AI. Despite recognizing the utility of AI, consumers remain skeptical about its ethical implications and potential societal impact, suggesting a growing backlash against the technology. This is what Oliver Guy mentioned:
Statistic of the week
80% of U.S. consumers prefer a blend of physical and digital shopping experiences, known as 'phygital.'
A report from RetailCustomerExperience shows that consumers prefer the combination of digital and physical shopping. The "phygital" experience encompasses a range of consumer behaviors, from interacting with kiosks and mobile apps to utilizing digital payments and opting for curbside pickup, all of which are driving shifts in how consumers engage with retail.
In other news.
Boomer preferences. A new study by Sooth sheds light on the purchasing behavior of Baby Boomers, revealing that they are less influenced by brand marketing and more by personal recommendations from friends and family. Boomers are the fastest-growing demographic on TikTok, using it in a way similar to traditional TV, and prefer content curated by algorithms rather than actively following accounts. When it comes to shopping, Boomers prioritize personalized customer service and ease of use over product features or price. They are also more likely than younger generations to choose organic brands, reflecting their unique consumer values.
Consumer confidence decline. Consumer confidence experienced a slight decline from June to July, despite an increase in retail sales during the same period. According to Numerator’s Consumer Sentiment Tracker, the July Consumer Confidence Score dropped to 56.4, reflecting consumers' mixed feelings about the job market, household finances, and spending comfort. Although 39% of consumers find it easy to secure employment, only 40% feel comfortable spending on discretionary items, and nearly half rate their financial situation as good. Additionally, consumers are focusing on saving or paying down debt, with many also planning to spend on travel or home improvements.
