The new research report, Dynamic Pricing in a Smartphone World, is causing quite a stir in the news.
Check out a few of the things people are saying:
- Mobile Commerce Daily: “Consumers are showrooming across every type of retail category, including appliances, entertainment, apparel and housewares. This shows that consumers expect to find better deals online for both expensive and small items than are available in-store.”
- BizReport: “Texas-based Parago found that Amazon is where shoppers armed with smartphones head online to check if they can find an item at a better price.”
- Mobile Social Hub: “Parago’s study is another example of mobile devices leading the way in a changing economy. As applications are released to serve most any need, from instructional courses to food delivery, traditional businesses must either adapt or get left behind.”
- FOX Business: “The study shows the best chance brick-and-mortar retailers have of keeping shoppers in-store is to offer price-match rebate guarantees.”
Research released today by parago reveals that 1/3 of US shoppers now "showroom" - in other words they check out products in physical stores while comparing prices on smartphones, then ultimately purchase the products for less via their phones or elsewhere online.
Check out the full report here.
This recent article from Forbes examines several large promotions from big-name brands and what they say about consumers’ perception of value.
In line this discussion regarding what consumers consider valuable these days, parago CMO Rodney Mason shared a comment on the story to mention some new research that marketers may also find interesting. A consumer survey released in April shows that consumers will participate in just about any marketing activity for $25.
We assume consumers guard their personal info tightly and are too busy for any marketing pitches, but in fact, consumers actually want to participate in marketing activities, often for free or a very small reward. In fact, the research from parago showed that for $25: 96% would demo a product, 91% would take a smartphone survey, 78% would get a quote online, 77% would participate in a one-hour sales presentation, 74% would get an in-home quote and 54% would participate in a focus group. Additionally, it would take a $25 reward to achieve the same amount of consumer participation in an online survey requesting personal info versus a survey that did not request personal info.
View more details from our Time is Money survey here.
Today new research was released revealing how much consumers feel their time is worth. Specifically, the nationwide survey asked consumers “what is your time worth for providing feedback on products or services, listening to sales pitches and providing personal information to companies and marketers via various methods of interaction?”
Key findings from the research include:
- Personal data = $25: It would take a $25 reward to achieve the same level of consumer participation in an online survey requesting personal info versus a survey that did not request personal info
- What is 2 hours worth? 56% of women and 53% of men would participate in a two-hour focus group for $25 and 75% of women versus 70% of men would participate for $50
- $25 gets 50% participation: Half of respondents would participate in anything from a 10-minute survey to a two-hour focus group for $25 or less
- Millennials are the most willing to participate and Boomers are the least likely
- Sales pitches done in person are 35% better than by phone: More people would participate for free with an in-person sales pitch (65%) than be bothered on the phone (48%)
- Sales quotes for products or services are best done in person and out of the home: 62% don’t invite strangers in their home for anything and 44% prefer to deal with an actual person versus online interaction
A full infographic report of the research can be viewed here. We will also be sharing key graphics from the report throughout the week on this blog.
This month Parago's own Theresa Wabler contributed an article to Retail TouchPoints regarding ways retailers can alleviate the burden of "showrooming" with rebate promotions. (Showrooming is a growing trend: shoppers walk into a store, examine products, ask store employees questions about the products and then leave to search for the same products at lower prices online.)
The key to combating showrooming is finding creative approaches that serve the consumer and benefit the business, not hurt it. If all consumers care about is lower price, retailers must figure out how to deliver the milk without giving away the cow for free. Rebate strategies can respond to these low price demands while also generating loyalty and ongoing relationships with consumers. It is possible to give in to the value-seeking shopper that is here to stay while also growing value for the business.
Check out the full article here.
A high volume of retailers and manufacturers are adopting paperless rebates - which are redeemed through a simple online platform rather than the traditional mail-in process.
This can be attributed to the fact that paperless rebates are greener, they make the rebating experience simpler and more rewarding for consumers and the online redemption platforms give sponsoring businesses access to a captive audience that is more likely to opt-in to ongoing email communications or make additional purchases.
We are in an unprecedented era for discounting and promotions. The marketing tactics, designed to lift sales of a variety of mobile products, may actually erode margins if hastily designed. The lagging economy, consumer demand for deals and the rapidly accelerating promotional technology of online and mobile has led to a perfect storm that mobile retailers and manufacturers must be aware of. Enticing and dynamic promotions are now necessary to get customers in the door, but be careful not to throw out the baby with the bath water.
Check out the full article here.
The age of mobile technology has changed the way we do almost everything, including shopping. Mobile commerce has doubled in size since 2009, and now represents 2.7% of all web revenue and generates $2.4 billion annually.(Nielsen)
So which mobile apps are sure to be holiday favorites this year? What trends have emerged across the board? Below are a few to consider, which all reveal a demand for value and convenience – a trend that mirrors the country’s rapidly evolving technology paired with a still recovering economy:
- ShopSavvy: Scan barcodes with your phone and compare prices across 20,000 retailers. It also provides reviews
- Shopkick: Rewards shoppers with “kickbucks” just for walking into stores, and bonuses for scanning product barcodes with your smart phone and signing up friends
- GoRebate Mobile: Allows shoppers to browse for nearby rebates and track submitted rebates; responds to increased consumer demand for rebates
- Groupon: The game-changer in daily online deals, the Groupon app takes the savings mobile by searching for nearby Groupons using GPS
- Coupon Sherpa: Couponing has become hip again, but who has the time to cut them out of the newspaper? This app gives shoppers access to coupons exclusive to Coupon Sherpa users, and in-store coupons