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Marketers warned to expect changing holiday shopping trends
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Only 9% of consumers reported that they plan to spend more this holiday season, with 19% beginning their shopping in October, 29% starting in November, and only 10% waiting to begin shopping until December.

That’s according to a marketing survey conducted by Gartner, which indicates another 19% of consumers reported that they have been shopping year-round, up from 16% in 2022. This is a trend that will continue to grow.

In fact, Gartner predicts 30% of consumers will shop for winter holiday gifts year round by 2026.

The survey of 302 consumers conducted in June 2023 revealed that 28% of respondents plan to spend less this holiday season than in 2022, while 63% of consumers plan to spend the same amount this year as last year.

“This is concerning given that consumer spending during the 2022 holiday season did not meet industry projections,” said Kassi Socha, director analyst in the Gartner Marketing practice. “Annual growth was attributed to higher prices on the part of retailers combating inflation, not an increase in consumer discretionary spending.”

“Retailers have continued to expand their year-round promotional calendar, and, in turn, consumers have followed their lead,” said Socha. “Branded summer sales are becoming more common, and while retailers don’t need to hang snowflakes in July to capture consumer attention, they should increasingly take holiday shopping into account beyond the fourth quarter of the year.”

Free shipping is no longer a differentiator, but a consumer expectation. Behind price, holiday shoppers noted free shipping (45%) as one of the top drivers in influencing a purchase decision. These were followed by value (35%), promotions or deals (33%), selection of gifts (24%), and ratings and reviews (17%) as the top reasons influencing a holiday gift purchase.

Though the majority of consumers plan to maintain most of their online shopping behaviors this holiday season, only 16% reported that they’ll shop more online than in-store in 2023, compared to 21% last year. Retailers with physical stores should market more than free shipping; Almost one in three consumers intend to utilize hybrid, same-day delivery or expedited shipping services for their holiday shopping needs.

“While CMOs need to ensure digital commerce success during the holiday season, brick-and-mortar store marketing should not take a backseat,” said Socha. “Marketers and advertisers have a critical opportunity to prevent further decline of store profitability and, in some cases, drive profitable growth by leaning into the competitive advantage that their stores have compared to digital commerce experiences: faster and more efficient fulfillment.”

Younger consumers are more likely to prioritize a company demonstrating social purpose. Among winter holiday shoppers, 13% of consumers selected an environmental, social and governance (ESG) factor as the most important factor when selecting a gift. For younger consumers, factors such as the gift being locally made or from a brand owned by a member of a historically underrepresented group are more important than access to expedited shipping.

“Marketing on cause is not without potential peril,” said Socha. “Retail CMOs concerned about taking a strong sociopolitcal stance and risking brand reputation in their winter holiday marketing should ensure it will be perceived positively and authentically by target consumers, and ensure preparedness if consumers react negatively.”

Image by Alexa from Pixabay

Generative AI ‘revolutionising’ retail experiences
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Generative AI’s ability to fabricate hyper-customised content is turning the tables in retail marketing and communication strategies, also extending its reach into tasks such as inventory planning.

Kiran Raj, Practice Head of Disruptive Tech at GlobalData, said: “In a retail environment where the product-to-experience shift is increasingly significant, genAI can enable the creation of immersive, personalised experiences, integrating virtual and physical retail spaces in a manner that resonates with modern consumers’ expectations. Moreover, it is no longer about a one-size-fits-all engagement; rather, it is about a tailor-made experience catering to individual needs”

Saurabh Daga, Associate Project Manager of Disruptive Tech at GlobalData, added: “By leveraging key data points from customers’ purchase history and preferences, genAI can facilitate building personalized shopping experiences and targeted marketing strategies. The technology can empower retailers to deliver superior service at reduced costs, leading to greater customer satisfaction.”

GlobalData’s latest Innovation Radar report, “Cognitive revolution: genAI meets retail,” offers a view of how the disruptive technology is being deployed across the retail value chain, from inventory management and personalised marketing to customer experience and support.

GenAI can transform retail operations such as inventory planning, product recommendations, and customer service. Promising genAI applications include creating new product designs based on defined criteria and sentiment analysis to predict customer trends.

It cites traditional retailers like Carrefour and IKEA are using genAI to streamline operations and augment customer support. Meanwhile, e-commerce players like Amazon, Shopify, and Instacart are leveraging genAI to improve online shopping experiences and increase cart conversion rates. Big technology companies such as Google and Salesforce are offering genAI solutions to help e-commerce players as well as retailers optimize their online customer engagement.

Daga concluded: “While there are inherent challenges in implementing genAI, particularly in consumer-facing sectors like retail, the potential for substantial progress is undeniable. Challenges such as content quality and privacy must be managed through strong governance. Small and medium retailers can benefit from strategic partnerships to overcome entry barriers required to build the supporting technology, infrastructure, and personnel for genAI implementation.”

Image by Hannes Edinger from Pixabay

‘Pantry p*rn’ is the latest retail social media trend – Here’s how to make it work
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Rachael Kiss, Marketing Manager at home and catering supplier Alliance Online shares six ways in which retailers can capitalise on the ‘pantry p*rn’ trend in 2023…

In a nutshell, ‘pantry p*rn’ is a trend where people showcase their aesthetically-pleasing pantries on social media. This kind of content is proving particularly popular on TikTok, Pinterest and Instagram, and essentially depicts well-stocked and neatly organised pantries in users’ homes.”

Pantry tours are certainly not a new phenomenon, but it appears that the trend has got a second wind in 2023. Here’s how you can use the phenomenon to boost sales.”

1. Understand the trend

Getting to grips with what the pantry trend is all about, and why it is so popular at the moment, is crucial. In my opinion, this type of content is resonating with so many because it is aspirational, inspirational and ultimately aesthetically pleasing. This is something which retailers can tap into when marketing their products and creating content.

It’s also important to understand who is interested in pantry content. Recently, searches for the term ‘dream pantry’ are up 100% year on year on Pinterest. According to the social media platform, females aged 25-30 are the core demographic.

Finally, investigate the peak seasons of interest for pantry products and content. Based on Google Trends data, there is continued interest related to the topic of pantries, but it spikes in the colder months (from September to March).

2. Consider your stock 

Analyse your stock to determine which of your products may fit into the “pantry p*rn” aesthetic, and therefore will appeal to consumers interested in the trend. Products typically involved in the trend, with a high search volume on Google, include pantry shelves and pantry storage, such as baskets and jars to store food in.

Don’t be afraid to think outside the box for ways in which your products could allow someone to create their dream pantry. For example, the pantries on social media tend to have a neutral colour scheme – do you stock paint which would work for this? Labels for produce are also frequently seen within the trend, something which craft companies can use to their advantage.

3. Create a targeted page on your website 

In order to capitalise on the high search volume related to pantry content, create a page on your website designed to gain traffic and drive sales.

For example, the page could be a ‘guide to pantry p*rn’, which can include links to relevant products and calls to action throughout the copy. Format the page as a guide explaining how to aesthetically organise your pantry, and include images.

Consider taking new product photos which reflect the trend. If a customer is browsing for something to make their pantry look like their aspirations, showcasing a product in this environment will make it much more appealing.

4. Optimise your content to increase traffic

After creating content about pantries on your website, ensure that it is optimised to give it the best chance of ranking well within the Google search results.”

Conduct keyword research to uncover what people are searching for, then edit headings and copy so that they are used naturally throughout. For example, popular terms with high search volumes in the UK include:

  • Storage ideas

  • Cupboard storage ideas

  • Pantry shelving”

Including internal and external links, within the page in question, will also have SEO benefits, as well as making the content easy to read for customers.

Use social media to your advantage

#pantrygoals has more than 261 million views on TikTok and there are 259 thousand posts on Instagram containing the hashtag #pantryorganisation. Clearly, this is a trend which has taken social media by storm. So, if you’re looking to promote your products, or simply gain brand awareness by providing content related to pantries, social media is the best means.

We know that there is an active interest in pantries on these platforms, so organic content should work well to showcase your offering. You also have the option to run paid-for ads if you really want to get in front of the target consumer.

Bear in mind that platforms such as TikTok ban certain words that may be used in your content and could get your video taken down. The word “p*rn” will likely fall into this criteria, so avoid using it at all costs.

Be mindful of potential backlash

There’s nothing wrong with enjoying getting a sneak peek into a well-organised and ultimately satisfying pantry. However, well-performing pantry content tends to showcase a fully stocked pantry of food, in a plethora of neatly organised jars. Be mindful to avoid promoting overspending on both food produce and containers, which could be damaging for your brand’s image – particularly in light of the cost of living crisis.

Image by CSU-Extension from Pixabay

Local language support essential for online sales success
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When it comes to buying from brands online, over four in five consumers won’t buy from a brand that doesn’t offer local language support

That’s according to a new report released by RWS, which asked 6,500 global consumers about their online habits and how they like to engage with online businesses.

RWS’s Unlocking Global Understanding research found that 62% of global consumers see the internet as very important when undertaking daily activities, with a third of people admitting they cannot live without the internet (35%) – rising to two-thirds in Japan. As a consequence, 20% of consumers spend over 10 hours a day online.

Yet when it comes to dealing with online companies, the provision of local language services can have a drastic impact on the user experience and the level of trust that consumers hold in different brands.

The vast majority of global consumers (89%) believe they should have the option of dealing with a company online in their preferred language, with half of those surveyed feeling strongly about this (49%). Despite this, 44% of consumers voiced their frustrations at the fact that the English language dominates the internet and consumer technology.

If brands want to access a global audience, 93% of consumers agree that these companies need to communicate with them in their preferred languages through all channels at all times. At a national level, 60% of Kenyans, 57% of Indians and 55% of Brazilians feel particularly strongly on this point. What’s more, although 77% trust businesses with a local presence, 58% agree that a localized online presence matches a physical presence in terms of trust.

Maria Schnell, Chief Language Officer at RWS, said: “It’s no surprise that consumers around the globe rely heavily on the internet for daily activities. Yet this dependency is being undermined by the fact that not all consumers are able to engage with companies in their preferred language. This can pose significant problems and foster feelings of alienation as consumers are forced to communicate in a foreign language. It also demonstrates a knowledge and cultural gap when it comes to marketing, advertising and customer services.

“The internet has the potential to truly empower people from local communities. However, this can only occur if companies are willing to recognize and appreciate local cultures, giving their consumers the opportunity to communicate in their own language. Doing so will open brands up to new market opportunities; if avoided, they run the real risk of alienating themselves from non-English speaking consumer markets.”

Retailer apps boom as consumers seek deals
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A global survey has indicated more consumers are turning to retailers’ mobile apps to streamline in-store shopping experiences and score personalised offers and deals.

Across 11,000 consumer respondents surveyed by Airship, 78% are using retailers’ mobile apps either more often or about the same as last year.

This preference for retail apps extends across age groups and household income levels. Generationally, 81% of millennials and 79% of Gen X report using retail apps more or about the same as last year, followed by 72% of both Gen Z and boomers.

High household incomes lead in regular use of retail apps at 82%, followed by 79% of medium and 75% of low income levels.

When asked about 10 different activities one might use their smartphone to accomplish while shopping in-store, using the retailer’s app grew the most year over year. Globally, 74% of respondents said they are likely to use the brand’s app when shopping at its physical storefronts.

For most countries and generations, the likelihood of using a retailer’s app while shopping in-store is only a few percentage points behind visiting the retailer’s website despite first having to download apps from the App Store or Google Play.

Airship says the data suggests that inflation and the current economy is driving more deal-motivated behaviors from consumers. It also demonstrates an opportunity for retailers to expand customer understanding as shoppers are more motivated to share personal information in exchange for valuable offers and convenient experiences that better meet their needs.

“Today’s consumers are increasingly turning to mobile apps from their favorite retailers to score deals, gain special access and improve their overall customer experience, particularly while shopping at brick-and-mortar stores,” said Thomas Butta, Chief Strategy and Marketing Officer, Airship. “As marketing budgets are pinched and consumers face economic pressures, retailers need greater agility to create and optimize valuable app experiences that grow customer understanding and reward them individually, making life easier and better for everyone involved.”

Marketing experts crack Christmas code and reveal how to generate last-minute festive sales 
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While eCommerce businesses should have planned in advance of the festive season, it’s never too late to implement new tactics to improve a brand’s Christmas marketing strategy to generate last-minute sales before the New Year ends. We spoke to marketing experts to gather the top trends eCommerce brands should be taking advantage of NOW before the end of 2022…

Digital PR 

For eCommerce brands with Christmas discounts and deals galore, taking advantage of shopping journalists is a good way to generate last-minute coverage and referrals to your site. Mollie Haley-Earnshaw, Account Manager at Wild PR, highlights: “The festive season is the peak period for gift guides, with journalists covering the best gift picks from a range of brands and across various budgets. For the eCommerce industry, it’s important to maximise organic efforts to support sales of hero products.

“Gathering the best discounts and products and forming a press release which covers off key details, such as product information, creating a bespoke media list and sharing this content with relevant journalists looking to pull together gift guides is a sure-fire way to place yourself in the festive online conversations before it’s too late.”

Being reactive to the news agenda is another tactic eCommerce brands should consider ahead of the New Year. Communication experts at Wild PR recommend paying attention to the news cycle during the lead-up to Christmas, considering how you could comment on topics relevant to your eCommerce business.

Twitter is also your best friend during this period. Monitor the #journorequest hashtag, and you can guarantee you will find an opportunity to get your business featured in the media.

For example, an eCommerce brand that sells ethical products should consider commenting on how to be sustainable during the Christmas period, when the plastic and packaging waste produced is considerably higher.

PPC 

Integrated marketing agency, Fishtank, comments on the last-minute PPC tactics brands can take advantage of before the year ends. Fishtank highlight that the time between Christmas and January is called Q5 and is statistically the cheapest time to go big on social adverts whilst achieving outstanding results.

Fishtank adds: “High-quality visuals, including images, gifs and videos, are key to success during the holiday season. With so much competition, make sure your brand stands out from the crowd.”

Another PPC tactic to consider before year-end is reviewing past data. If eCommerce brands can analyse past performance and understand what worked best last year and what didn’t, this will help narrow down your focus and help optimise your budgets better.

Fishtank also recommends creating bespoke ad copy and implementing A/B testing for various Christmas-themed messaging, ensuring that target keywords are mentioned in the headline and description to increase the relevance of the ad copy.

Creating scarcity is another way to tap into last-minute shopping stress. In the PPC ad, an eCommerce brand should aim to emphasise fast shopping options paired with a product deal. Additionally, adding a timer to a display ad with a countdown to Christmas will help create a sense of urgency among consumers, encouraging them to buy.

Commercial Director at Circus PPC, Ahmed Chopdat, expressed how important Q4 is for eCommerce brands. The paid media specialist commented: Push PPC as a key marketing channel as this is where you can get instant results. The one channel you can rely on to be able to manipulate to help make up for lost sales in other channels is PPC, so it’s essential that not only you have it switched on during the Advent period, but that it is appropriately optimised.”

Content 

Usually, when customers are browsing your site in December, they’re taking part in some last minute shopping. For some, this could be considered stressful. To make the user experience stress free, eCommerce brands should drum up content that provides concise information on the products they’re interested in.

Examples include taking gift guide press releases and turning them into blogs, utilising user-generated content to drive campaigns to make them relatable, and making content shoppable; particularly on social media.

When drafting gift guides and blogs for a site, eCommerce brands should ensure that they’re keyword-rich to boost organic traffic. Engaging in on-page SEO will help search engines understand the content of pages so they can provide shoppers with the appropriate results. User intent should also be considered when drafting copy.

For example, if an eCommerce business knows its customers will be looking for inexpensive gifts or shopping last minute, then drafting gift guides with headings such as ‘gifts under £20’, ‘last minute Christmas gifts’ or ‘gifts with next day delivery’ would be catering to the users intent.

Search Engine Optimisation (SEO) is a powerful tactic to get your online store in the spotlight. Many might believe that SEO only works when a strategy has been in place months ahead of the festive season, however, there are SEO techniques that can support last minute exposure.

Keywords are key players in SEO, and are pivotal in bolstering eCommerce sales. Ideally, brands will begin to work on their Christmas SEO in the summer. However, while updating your online store with last minute  festive content, optimising landing pages, product pages, and blogs with seasonal keywords will assist in getting your eStore in the search results.

Creative 

Landing on a website during the festive season and seeing pages come to life with Christmas-infused branding is a great way to engage potential customers. Fishtank suggests: “Add interactive seasonal elements to your website e.g. a Christmas gift hunt or falling snow across your website, adding a Christmas hat to your logo, adding festive website banners that feature holiday exclusive discount codes.

“An eCommerce brand could also add a holiday landing page that can feature exclusive holiday discounts and products for that season.”

Social media

Lastly, ramping up social activity is a foolproof tactic to undergo to generate those extra Christmas conversions. In December, potential customers love to engage with Christmas-themed content, such as advent giveaways and competitions and Christmas countdowns. To drive traffic to the site, it’s important to include a clear call to action (CTAs) with delivery deadlines, so it initiates a sense of urgency within the customer.

Running paid ads across social media platforms should be another consideration for eCommerce brands. During December, shoppers will be looking for the best deals and information on the products, and by setting up social advertising, an eCommerce store will expand reach and target people at the right place in the buying process.

Other festive social ideas include creating engaging visuals, utilising reels and video, incentivising UGC, and collaborating with influencers.

Wild PR also highlights that engaging in off-page SEO with social media is an effective way to generate leads, yield brand exposure, and engage audiences. Using social media will support the reach of your new festive content and will encourage more clicks to the online shop.

Ahmed adds: “Some channels, such as SEO, take longer to get desired results, so the earlier you have an idea of the messaging you’ll be using, the better!”

Katrina Cliffe, managing director of Wild PR commented: “Online exposure doesn’t happen overnight, which is why businesses need to crack the Christmas code early and ramp up their festive marketing campaigns before it’s too late. Ideally, this would be done during the summer months in the first instance, but sometimes it doesn’t work that way. Ultimately, these tips are the fundamentals to leveraging that extra bit of festive exposure while you still can.”

“If your Christmas strategy is already well underway, but you’ve forgotten about prepping for 2023, it’s time to get started. Before the end of the year, we really encourage eCommerce brands to tackle their large dev tasks, delving into technical SEO, optimising content and nailing your PR, social, and PPC strategies with the aim of getting ahead of competitors to kick off the New year.

“Another quick win to take you into 2023 is offering first-time buyers of your eCommerce store a unique discount that only activates in the New Year. This is a great way to generate repeat customers.”

PlayStation-VR

Building an Omnichannel Shopping Experience: AR/VR and the Metaverse
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By Bach Nguyen Luu, Deputy Director of Integrated Commerce Solutions/ Head of Digital Commerce & Experience, FPT Software

Omnichannel is no new concept in retail, especially after the COVID-19 outbreak. Brands can no longer rely solely on the brick-and-mortar in-store experience as consumers flock to the internet to shop. Today’s shoppers expect a unified, customised experience, with 76 percent of consumers more likely to buy from brands that personalise customer interactions across touchpoints. This means building a true omnichannel shopping experience is no longer a nice-to-have – it has turned into a strategic priority.

Offline and online co-exist

When e-commerce came to life and forever changed the retail landscape, there were questions over whether online shopping would mean the end of brick-and-mortar stores. However, the past few years have shown that it is not a question of online or offline; instead, both worlds co-exist and complement each other.

Online shopping has boomed in recent years, accelerated by the pandemic. According to UNCTAD, the average share of global internet users that purchase online went from 53 percent in 2019 to 60 percent in 2021. Some countries even experienced a sharper increase, such as the United Arab Emirates, doubling from 27 percent to 63 percent.

Despite this trend, brick-and-mortar stores remain a strategic distribution channel for retailers. Indeed, nearly half of American consumers prefer in-store over online shopping, attributed to factors such as the ability to see and feel products before they buy. What is more, the retail sector is now experiencing a reversal of what happened during the pandemic. In-store sales are growing at a higher rate than online channels. But consumers no longer want offline-only or online-only shopping; they expect a smooth, seamless and highly integrated experience of both.

Given the shift in consumer behaviour, retailers that invest in a solid omnichannel strategy enjoy a competitive advantage over pure online/offline players. On one hand, they can achieve higher revenue as omnichannel consumers shop more frequently. According to McKinsey & Company, in the apparel category, omnichannel customers shopped 70 percent more often and spent 34 percent more than pure offline shoppers.

On the other hand, retailers with a brick-and-mortar presence typically attract more customers organically than online-only players. This translates to lower investment in paid marketing and a better bottom line.

Global retail giants are already participating in the omnichannel game. Previously online-only brand Amazon has joined the brick-and-mortal playing field with Amazon Go and Amazon Fresh. Equipped with technology such as Artificial Intelligence (AI), multi-sensors and state-of-the-art CCTV cameras, these stores allow customers to shop without the hassle of checking out. In return, the company can keep track of consumers’ habits, send corresponding offers and discounts, and offer a customised shopping experience.

Augmented Reality shopping

Consumers should be the focus of any omnichannel approach, and Augmented and Virtual Reality (AR/VR) is the vehicle for brands to become more consumer centric. According to Eclipse, 71 percent of consumers say they would shop more often if they could use AR.

AR/VR bridges the gap between in-store and online shopping. With the help of AI and machine learning, brands can now engage with consumers in a way never seen before. The pandemic has fostered a new demand in retail – the ability to see and feel a product on a digital platform. With stores closed down, the live, in-store experience had to become virtual, and AR/ VR is the perfect solution to fulfil this new demand.

Global brands are beginning to leverage the technology. Ikea is already incorporating AR/VR into its strategy. With its mobile app, the company allows customers to scan their rooms and digitally place furniture in their houses with real-time customisation, browsing through 2,000 catalogue items from the comfort of their own homes.

Metaverse for retail? 

Metaverse – a current buzzword – refers to an “integrated network of 3D virtual worlds” accessible through a VR headset. It is a fast-emerging space where people can shop, be entertained, and it blurs the lines between physical and digital life. Given its potential, the metaverse is expected to empower the next evolution in omnichannel retail, with AR/ VR being the key vehicle for that journey.

Big brands such as Ralph Lauren and Gucci are already on their path of exploring a new business model called “Direct-to-Avatar” (D2A), where they will be selling products directly to avatars – the consumer’s digital personas on the metaverse. Their products are no longer made of atoms, but of bits and pixels.

Even the runway has made its debut on the metaverse. The first ever Metaverse Fashion week was held in March, featuring luxury brands and household names. It is now possible for consumers to sit next to the runway, try and buy any outfit they like in a matter of seconds – all in the virtual world. Companies will not only be selling products on the metaverse but also offer new worlds of virtual experiences to their customers.

With the incredible success that AR/VR games like Minecraft, Fortnite and Roblox have had, the next generation of consumers will be familiar and comfortable with virtual worlds. It is only a matter of time until they will want to see their favourite brands on the metaverse. Major tech players have already invested billions of dollars into making the metaverse an indispensable part of e-commerce. Hence, a good starting point for companies looking to engage with consumers on the metaverse is to build up their resource pool involving AR/VR,5G internet, blockchain, crypto and non-fungible tokens (NFT).

It is only a matter of time until the metaverse becomes the new playground for retailers. Those brands that have planned ahead will take the lead.

Retail sector sees 8% increase in revenue across affiliate network
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The retail landscape has seen an 8% increase in revenue year on year (YoY) throughout Q2 of 2022, according to new data from global affiliate marketing platform, Awin.

Despite challenging market conditions, sales were up 4% YoY between April and June, with over £1.2billion in revenue being tracked on the network across 40 different sub-sectors.

Browsing behaviour was an up by 45%, while average order value (AOV) hit £101.27, a £6.52 increase from H1 of 2021. Yet, this increase in spend is likely to be as a result of brands passing extra costs to customers rather than out of choice or to access a better product or service.

Best performing sectors YoY include erotic (+350%), childrenswear (+118%), pharmaceuticals (+37%), pet (+45%), jewellery (+33%) and DIY (+17%).

Retail and travel client partner at Awin, Joelle Hillman, commented: “Many of the sectors that saw growth over the last 24 months and were cited as ‘lockdown trends’, from getting prescriptions online during high street closures to taking on more DIY projects during lockdown.

However, the continued growth in these sectors is a clear indicator that purchase behaviour has moved online, and specifically into the channel, for good.

“We are also seeing the continuation of ‘the lipstick effect’, despite a rise in prices, and decline in disposable income the UK are still keen to treat themselves to life’s little luxuries, with health and beauty up 21% and jewellery up 33%.”

One ‘lockdown trend’ that hasn’t remained however is online alcohol purchases, which are down 39% YoY, as we’re able to enjoy bars and restaurants again, and more recently pub gardens. Computer sales are also down on last year (-22%) as well as office supplies (-23%) now many remote workers are likely to have their home offices fully equipped.

Clothing has also seen strong growth YoY, with menswear sales up by 33%, womenswear up 25%, and childrenswear up 118%.

50% of consumers won’t shop with brands that greenwash
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As consumer demand for environmentally friendly and green products grows, retailers could be risking lost long-term loyalty if their sustainability efforts aren’t genuine.

That’s according to research from Retail Technology Show, which surveyed over 2,000 UK shoppers in its latest ‘Retail Revolution’ report, with results showing that almost half (47%) already actively buy more from brands they perceive to be sustainable, rising to 65% of Gen Z demographics.

And demand for ‘green’ retailing among shoppers is growing; six in ten (60%) of those polled said retailers’ commitment to sustainability would become more of an important factor in their buying decisions over the next five years, rising to 67% of 18-25 year olds.  Meanwhile, a further 65% of 18-24 year-olds say they would shop more with brands who are sustainable in the future, and another 63% would be more loyal to those retailers with green values.

However, despite the growing appetite for green retail – with the green pound estimated to reached over £122bn – two thirds (62%) of consumers in another poll by Retail Insight were untrusting of retailers’ and brands’ eco pledges, believing they merely pay lip-service to sustainability initiatives.  This growing concern around ‘greenwashing’ prompted the CMA’s recent crackdown on brands, who will face fines if they don’t deliver on the environmental claims they market against.

And this consumer distrust on the sincerity of retailers’ sustainable commitments doesn’t just risk possible fines and reputational damage, according to Retail Technology Show’s research, it risks future sales and lost loyalty too.  Half (50%) of UK consumers in its poll said they would stop shopping altogether with brands they perceive to be greenwashing, rising to almost two thirds (63%) of Gen Z audiences and 59% of Millennials.

“Put simply, greenwashing just won’t wash with shoppers”, said Matt Bradley, Event Director for the Retail Technology Show.  “Consumers now expect retailers’ sustainability efforts to be deeply and genuinely rooted in the brands’ psyche, rather than it being any short-termist play.  And that means retail businesses need to carefully consider both how they can evolve their businesses operationally to be greener, and also how this is effectively communicated to shoppers in a genuine, transparent and engaging manner.”

Using less packaging was the top way UK consumers felt retailers could make their operations greener (78%), while a further 71% identified the supply chain as a focus for improvements, followed by 69% who said making bricks-and-mortar stores more eco would help retailers improve sustainability.  Almost half (48%) wanted retailers to pay an online delivery ‘green tax’ so the environmental impact of their ecommerce fulfilment operations could be offset, rising to 61% of 18-24 year-olds.

To find out more about the top trends impacting retail in 2022 and beyond, download the full Retail Revolution report for free: https://bit.ly/RTS_Retail_Revolution_Report

Mi Rewards loyalty programme approaches £1million milestone
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A next generation town and city loyalty programme has introduced a new website and tools for businesses ahead of a key milestone for the scheme.

Mi Rewards, the town and city loyalty programme from Scottish fintech Miconex and loyalty platform Stampfeet, is approaching £1million in sales, with over 47,000 transactions.

The loyalty programme expanded across the UK in 2020 with launches in Enniskillen, Stoke-on-Trent City Centre, Guildford, Gloucester and Fleet. New schemes will launch in Barnsley and Kirkcaldy in 2021.

Originating in Perth in 2018, Mi Rewards is a payment card linked loyalty scheme with customers receiving rewards when they use linked debit or credit cards in participating local businesses in their town or city. Once cards are linked, the technology runs in the background and users don’t have to show a separate loyalty card.

A revamped website was introduced in May 2021 to provide support for new and existing Mi Rewards locations as businesses reopen following the latest lockdown. The new website features a greater focus on participating businesses, including a promotions page for the business to improve visibility and traction with potential customers.

In Kirkcaldy, Mi Rewards will also work alongside their Kirkcaldy Gift Card. Customers can link their Kirkcaldy Gift Card and get points when they spend it in participating retailers. Hazel Cross, is the Town Centre Development Officer at Fife Council:

“We launched Mi Rewards Kirkcaldy not only to encourage customers to the town centre but to reward their loyalty as they continue to love and support local businesses.   It’s a great, no hassle, rewards programme. Every pound spent at participating businesses turns into a digital reward point and with every 10 Kirkcaldy points collected over the month, you’re entered into a monthly town centre prize draw. 

“Kirkcaldy town centre has a great mix of independent businesses with everything from dinner to diamonds, carpets to coffee and spa days to sport, alongside a fantastic waterfront and weekly artisan market.  Everyone is encouraged to continue to support and love Kirkcaldy and Kirkcaldy will continue to reward you, not only with fantastic goods, services, experiences but now with Kirkcaldy reward points too.”

Barnsley is introducing Mi Rewards as part of its coronavirus recovery work. Chris Savage, project manager in the markets and town centre services team at Barnsley Council, said:

“Alongside the Barnsley Gift Card, Mi Rewards is part of Barnsley Council’s work to support businesses to recover from the Covid-19 pandemic. The programme is a great way to support the local economy in Barnsley, rewarding shoppers for spending with local businesses. We’re at the early stage of engaging with businesses to get them on board and will soon be announcing details of the monthly prizes. If you’re a business in Barnsley reading this, please contact us on towncentre@barnsley.gov.uk to find out how you can get involved.”

Gloucester is relaunching its Mi Rewards scheme following the latest lockdown. BID Manager Emily Gibbon from Gloucester BID said the initiative is vital to the re-opening of the high street:

“We have around 60 businesses on board across all sectors including retail, and food and drink. It’s useful for businesses because they can see who their customers are, who is shopping with them and where they are from, they can also reach out and gain new customers. Mi Rewards has a role in the re-opening of the high street, particularly as we approach step 3 in the road map.

“It’s important that businesses realise that they are not alone. They’ve probably tried various loyalty schemes in the past but this is next generation loyalty. We’re helping businesses to see the potential for Mi Rewards as a customer engagement platform, enabling cross pollination and businesses supporting businesses from one side of the city to the other and aligning with our motto- together we can achieve more.

“Anything new requires a change in behaviour and that takes time but customers are starting to realise the benefits of being a part of Mi Rewards, like exclusive offers and discounts. They get 1 entry into our prize draw for every £10 spent; the April prize was a £100 Gloucester Gift Card and the May prize is two £50 Gloucester Gift Cards, but we’re also looking into hampers, bundles and more.”

The Mi Rewards scheme moved to a points based rewards process in 2020 giving even low volume users the opportunity to win a prize, with chances to win increasing alongside usage. Colin Munro is the managing director of Miconex, which also operates over 60 Town and City Gift Card programmes in the UK and Ireland, including in Enniskillen, Kirkcaldy, Barnsley and Gloucester.

“The vision with Mi Rewards was for a more efficient solution to the loyalty problem that businesses face. Traditional loyalty schemes have tried and failed. Mi Rewards is a next generation loyalty solution that approaches loyalty at a place level, bringing businesses together in a coalition, in a way that is beneficial to the business, the customer and the town or city.

“Places and businesses can use the data they receive to better understand their customers, measuring and identifying what works and what doesn’t, and rewarding local spend. Mi Rewards offers zero friction, positive user experience and huge potential for solving the conundrum of high street loyalty.”

Asaf Rozin is the CEO of London and Maryland based loyalty platform Stampfeet, and said one of the main benefits of Mi Rewards is the removal of issues with traditional loyalty programmes:

“With a traditional loyalty card programme, there is the constant struggle to get the data coming in. You can only get the data when customers present their loyalty card. With Mi Rewards, there is a one-off action on the customer’s behalf to link their payment cards. There is no need to train staff, and the business receives data as long as the payment card keeps being used; the customer can link as many cards as they like.

“Mi Rewards works on a token system. A customer links a card, say a Visa, and we receive a token. Every time there is a transaction, the Visa ID is matched to the token and the customer is rewarded. We don’t hold or store a customer’s card details. Both Apple Pay and Google Pay work in the same way.

“It is anticipated that Mi Rewards functionality will develop over time to allow businesses to offer their own prizes, keeping their own nature as a small business but within a platform of users in their area who are their potential customers. This will enhance business profitability and efficiency. Coalition loyalty has huge potential, particularly around mutual and partner offers, for example with a free coffee after you’ve had your haircut. Through coalition loyalty, we can drive spend in local high streets.”