App remains one of the biggest marketing opportunities for brands, powered by a clear shift in consumer shopping behavior from Desktop to Mobile to App. Mobile use is expected to continue growing with smartphone users surpassing 3 billion in 2019, and projections for 2021 reaching 3.8 billion. Customers are increasingly switching to mobile shopping due to convenience and as mobile devices continue to get better with bigger screens, better cameras and more battery power. With mobile devices comes mobile apps. A survey conducted in February 2019 found that 57% of US shoppers used a mobile retail app to find information about a product or service. This survey mirrors Global Savings Group’s numbers which shows that 63% of mobile users finalize their transaction in-app. The clear leader in app commerce, Amazon, saw 85% of its US mobile shopper activity in-app in March of 2019. Other big names like Walmart and Wayfair saw 78% and 50% respectively of mobile activity in-app, with the lowest among the big retailers being Home Depot with 38%.

The statistics speak for themselves: Mobile use is growing, and apps are the preferred platform for customers to interact with brands.

Early adopters of in-app affiliate tracking are the big winners

2020 has been the best year yet for adoption of app tracking in the affiliate industry. More and more global brands have recognized the power of the affiliate channel to acquire new app users and generate recurring high-value in-app sales. Global Savings Group has seen a 1500% growth in app sales from January to August 2020, underlying the potential for the entire industry.

Among the early adopters are some of the biggest fashion retailers in Europe, which have benefited greatly from adopting in-app tracking. One large European fashion player that enabled in-app tracking in April saw month-over-month sales increase by 87% from the channel. Another renowned global fashion brand enabled in-app tracking in Q1, and to support app adoption, they launched a special coupons campaign that gave customers 30% off on purchases in-app while mobile web users only got 25%. The campaign was extremely successful with app sales increasing 459% and thousands of new app downloads, proving the power of affiliate in-app marketing. Because apps have become such an important channel for many advertisers, enabling in-app tracking has given brands valuable insights about the affiliate channel that they would otherwise not see. During the lockdowns in March and April, affiliate publishers saw Black Friday-like traffic surges across many verticals, which was to a large extent driven by mobile users and app shoppers. The retailers with in-app tracking enabled were able to double down and leverage this increased demand to acquire app users and loyal customers.

The advantage of acquiring app users

There are many well known reasons for encouraging consumers to shop in-app. Brands can expect 4x more product views, 1.5x higher Average Order Value and 3x higher conversion rate from app users. However, the most significant advantage for retailers to invest in their commerce app is loyalty. Compared to mobile web, apps remain on a user’s phone, causing people to spend significantly more time in them compared to mobile web. The evolution of apps over time has been fascinating. Originally viewed as gimmicky in their early days, they have now become comprehensive software programs. Modern apps offer a range of features and benefits to the users like remembering product preferences, payment data, shipping address, and for some, even reward points and gamification, not to mention targeted sales and discounts. All of these features are what make the app value proposition desirable for the user plus there is no requirement to remember a login and sign in for every visit, which would typically be the case for mobile web stores.

No retailer will dispute that loyalty is the holy grail of ecommerce. In a world with increased competition online, building a loyal customer base is the key to long term success. One of the fundamentals for a loyal customer base is a sticky app, and the users that accompany it.

Getting started with affiliate in-app marketing

Taking advantage of the affiliate marketing channel to acquire app users should be a natural step for any retailer. There are reasons why giants like Walmart, Amazon and eBay have long leveraged this channel to grow their apps: efficient and affordable.

The fundamental reason behind affiliate in-app marketing is the ability to track sales generated by publishing partners in your ecommerce app. The in-app tracking allows retailers to compensate publishers for advertising their app and driving users to and sales through the app. Because the channel is performance based, the advertiser only pays when a customer finalizes a purchase.

Getting started with affiliate in-app marketing is much easier than most marketers expect. If you are reading this article there is a great likelihood that you already work with an affiliate network. Most of the bigger affiliate networks, including Impact, Partnerize, AWIN and Rakuten, have all built integrations with the most common Mobile Measurement Partners (MMPs), such as Branch, Appsflyer, Adjust, Button and Tune. Per the name MMPs measure, organise and standardise user events and data in the app. Even better, most ecommerce apps already have an MMP installed, which means that the fundamentals for getting started with affiliate in-app marketing is already in place. It is really as simple as enabling the integration of your affiliate network in your MMP platform and you are ready to begin affiliate in-app marketing.

Reach out to your affiliate network and they can help you set it up.

Not too late to begin affiliate in-app marketing

Apps are the fastest growing e-commerce channel and our projection is that the growth trend will continue. Leading brands have already recognised that affiliate marketing is an efficient and affordable channel to grow and generate app sales. And despite an impressive increase in in-app tracking adoption in 2020, the majority of retailers are yet to discover the power of affiliate in-app marketing which has resulted in early adopters gaining a significant competitive lead. That being said, it is not too late to begin affiliate in-app marketing, and with the leading affiliate networks already supporting easy integration of in-app tracking, it is low effort and high reward to get started.

The post Why Retailers Need to Pay More Attention to Affiliate In-App Marketing appeared first on PerformanceIN.

As the second wave of Coronavirus infections surges across Europe, we should definitely be focusing more on what will happen this autumn and winter in retail sales. This is especially important considering that many experts have warned that the virus’ spread can be accelerated in colder, darker months, as well as when we spend more time indoors together. One particular survey highlighted that the virus can survive outside the body for up to ten times as long in colder conditions.

Of course, we now know a lot more about this virus than we did half a year ago and  this has encouraged people to implement smart measures like washing hands, social distancing and the wearing of masks in order to slow the virus’s spread. But with more and more people tiring of the restrictions and flouting basic rules, at some point the only way to really stop continued spread is another lockdown, despite most politicians’ continual denials.

Why countries are so desperate to avoid a second lockdown, and its effect on sales, the economy and the general public

Of course, no politician in power wants to tell their voting public, just as people are getting used to more freedom, that in a few months or weeks, everyone might have to return to more restrictive measures. Politicians don’t want to make people worry even more than they already are, especially since the whole economy depends on getting people to spend.  Consumers tend to spend more when they feel their lives look more rosy.

Which brings us to Black Friday which has become a major moment in the lives of shoppers over the last decade. 

How companies are preparing for this Black Friday logistically

So many things have changed since the last year. Most retailers are already looking forward and preparing for a very different Black Friday this Autumn. Regardless of how much money is spent, it appears that this year’s sales will mainly take place online.

Since the lockdown in March, there has been a real increase in online shopping traffic, with years of growth coming in only a few short weeks. This first led to a lot of logistic problems as demand for goods soon overpowered availability and distribution. This led companies like Amazon to scale back traffic acquisition, whilst they expanded their workforce to accommodate for the increased demand. Amazon has continued to employ thousands of people across the world, and now plans to hire over 100,000 workers in the US and Canada alone as they get ready for Q4 sales.

Amazon is also buying and building new logistic centres, software and hardware, and expanding their program of automation.

But Amazon isn’t alone in building up its logistics to cope with an ever increasing demand for online goods, and this has led to some interesting developments. Demand for warehouse rentals was already on the rise, but since March, prices have gone through the roof as retail and postal firms try to get whatever space is available as they prepare for a very busy future online. In fact, warehouse rentals seem to be the brightest light in a very uncertain future for rentals in general. Office spaces and inner city real estate values seem to be falling, as more of us work from home.

Another industry which was challenged in a totally different way was the aviation industry as the travel sector bottomed out. Luckily it managed to earn back some of its losses through increased demand for cargo. During the pandemic even normal planes were being filled with goods as the need for health-related items dramatically increased when governments, states and citizens scrambled to get masks, PPE and sanitary products. Of course, this demand was strongest during April and May when less planes were flying and national resources were low. But even as we have returned to a more normal life, demand for cargo is still surging due to the increase in online orders and consumers that want fast delivery. DHL is so confident of future demand that it has just ordered a new fleet of aircraft to strengthen its already vast delivery system.

How companies are preparing for this Black Friday digitally

Google Cloud is increasing its servers as it expects online sales to skyrocket during Black Friday sales, on top of this many brands and retailers have admitted that without a vaccine it’s going to be really difficult to hold a massive sales event at street level. No retailer wants to see their street stores in the news linked to a super spreader event. We all remember those classic Black Friday scenes of people crowding into stores like sardines, trying to get amazing doorbusters, and then standing neck to neck together in long queues again as they wait to pay for their bargain items. This year must look different. 

Thus, many retailers are already planning to focus on bringing traffic to their online stores. Foreseeing that this year’s Black Friday shoppers will be glued to their screens, waiting for the sales to begin, and not stuck in crowds queuing. Retailers are also indicating that the Black Friday sales period will probably be extended, so as not to cause crowds on the streets and an overwhelming surge of traffic online that will again become hard to logistically support.

How could this Black Friday turnout?

Even as so many retailers, brands and logistic firms prepare for a surge in online sales this Black Friday, there are still many uncertainties. Preparing for different possible scenarios and estimating how they could affect the sales themselves is essential. Here are three scenarios that could come true in some way or form:

Scenario one: A feel good Black Friday

As we reach the start of Black Friday sales, and the promise of a vaccine becomes more hopeful, we could also see a surge in buying as people’s spirits are lifted and the future becomes more bright. Consumers visit both offline and online stores and even start to book holidays in advance as they look forward to a better 2021.

Scenario two: Black Friday Blues

The start of the Black Friday sales coincides with increased worry, as infection numbers and unemployment continue to rise as winter approaches. There is no lockdown, but there are massively reduced numbers of shoppers on the streets as brands and retailers encourage shoppers to use their online stores and consumers try to avoid public spaces. 

Online shopping and discount sites see a surge in traffic as customers use the sales period as an opportunity for a little retail therapy and a way to afford those necessities required for an even worse winter.

Scenario three: Black Friday under lockdown

Black Friday sales take place only online as many countries go into strict lockdowns to slow the ever increasing number of infections. Lots of retailers and brands try to avoid a sudden surge in online orders and the logistic chaos thereafter by extending their normal Black Friday sales period.

However, retail traffic is very high and we see a repeat of what happened earlier in the year, as items that are either related to health, fitness and life at home jump in popularity.

Whatever the scenario, it’s becoming more obvious that this Black Friday will be very different and very digital

The three scenarios above are just the tip of the iceberg of possibilities in a year that has seen changes that no one could have fully envisioned just 12 months ago. 

Here is what we do know:

• Scientists’ predictions of the second wave of COVID-19 just as we start Autumn is coming true.
• Companies are positioning themselves to benefit from an especially digitised Black Friday and have already made preparations including:  
  • Amazon’s recent and great expansion of all its logistics from warehouses to workforce. 
  • DHL’s purchase of aircraft to empower its cargo service. 
  • Google Cloud increasing servers to ensure uninterrupted online shopping for their e-commerce partners.
• Retailers are hinting at an extended Q4 sales period and emphasis to bring more customers online where it’s safe to shop. 
• And finally, warnings from Western leaders that a second lockdown could become necessary have begun. 

So one thing that is certain amongst all the uncertainty is that there will be more online shoppers this Black Friday.

The post Can Digital Commerce Save This Year’s Black Friday? appeared first on PerformanceIN.

However, challenges foster innovation and opportunity, and one solution that has gained popularity during the pandemic is the digital reward card. Its simplified concept of loyalty has made it a great tool for brands that want to build both customer engagement and grow sales.

As the situation has evolved we have learned more about how digital reward card campaigns can be used to drive opportunities for our advertising partners.

Here are eight ways to use digital reward cards as an effective marketing tool.

Digital reward cards can help brands and retailers:

1. Capture and retain an increasing number of new online customers

One thing that’s been noticeable during this pandemic is how quickly and how many new consumers have switched to online for their purchase needs. Especially during the lockdown period when street stores were closed we saw a significant traffic increase across all domains and most verticals, among them a significant number of new customers.

A digital reward card campaign can for many retailers be a smart solution to first capture the interest of the new and somewhat reluctant online customers, then give the same customers an added reason to return later to the online store, even when street stores open up again. 

During the last months of lockdown, we have seen an increased interest from big multi-category retailers in offering reward card incentives as a method of retaining capital and driving future purchases. On average we have seen an average revenue uplift of 24%  among multi-category merchants as a result of their reward card campaigns.

2. Use a fast and simple method to retain existing customers 

We already spoke in the introduction about how the situation is changing faster than we could ever have imagined. The good news is that a digital reward card campaign can be implemented much faster than a loyalty and rewards scheme based on points and constant purchases. Plus it’s even easier for the customer to join too.

A reward card campaign offers many of the same benefits as a loyalty program but requires close to no effort from the merchant as well as the customer. Yet it still drives second purchases. Digital reward card campaigns also complement existing loyalty programs. A good example is Nike that frequently offers a Nike reward card as an incentive for purchase on their webshop.

3. Appeal to a broader range of generations 

Apart from gaining new customers and retaining existing customers a digital reward card campaign bridges longer-term loyalty, popular with ‘Generation X’ and ‘The Baby Boomers’ with instant digital simplicity, popular with the millennials.

A recent research on ‘The truth about customer loyalty’ by KPMG, highlights how 96% of millennials say companies should find new ways to reward loyal customers and how 69% of millennials agree that most schemes are too hard to join and/or earn rewards. It also highlights how in general loyalty is a big driver across generations with 54% millennials enrolled in one to five loyalty rewards programs compared to 57% of Generation X and  60% of Baby Boomers.

4. Drive customers across their offerings with cross-brand and cross-category promotions

Which is especially relevant in our constant state of uncertainty during this pandemic where some product categories are at new high whilst others are at new lows.

A theoretical example of this would be H&M which is most known for its fashion stores, but who also in recent years entered the homeware market with its H&M Home brand. 

Leveraging the increased demand for homeware, H&M can benefit from offering a rewards card for H&M fashion, as an incentive to its home shoppers. Knowing that once lockdown measures recede shoppers will look to update their wardrobe and H&M has successfully incentivised a cross-brand purchase. 

5. Discover the perfect way to support digital product launches

Traditionally most brands and retailers have used their street stores connected with online communication to launch new products. However this hasn’t been possible during this pandemic, so some brands have delayed or cancelled new releases, whilst others have continued with pure online launches. 

One method to help incentivize traffic and sales for any new product launch online would be to add a timed and attractive discount, but many brands avoid this option because it can be seen as cheapening the product. This is where a digital rewards card can be the ideal marketing tool, as it acts like a gift with purchase, an incentive to buy and a special reward for the first buyers creating an even deeper connection with the brand.

6. Build customer engagement by combining digital rewards cards with the right positive messaging 

A lot of brands, especially at the moment have realized that in order to retain customers they will need the perfect combination of product quality & innovation, competitive pricing and strong brand values. So as the Coronavirus spread, most brands embraced messaging which encouraged people to take care of themselves by staying at home. 

This gives brands linked to ‘Stay at Home’ the opportunity to link their digital reward card discount with a positive message, thus creating a real connection to the customer.  For instance ‘All Nike Fans Receive a 5 Euro reward card with any purchase of home exercise gear”.

7. Develop ‘under the radar’ sales advantages in markets where prices are constantly being compared and matched 

In the next months as the lockdown measures recede and the summer sales begin, we can probably expect a lot of offers on things that have gone unsold and built up in warehouses. For retailers that sell the same or very similar products, this could mean a lot of discounting as they try to highlight their most attractive prices.  As one marks down the next copies and marks down again. Crawling a competitors webshop has become the norm, which only accelerates price matching.

Digital reward cards can be the ideal way to get ahead of the competition. Firstly the reward invisibly acts as a discount and an incentive for the customer to choose the merchant. A discount that is not price matched. Secondly, the merchant has an upper hand for future purchases, as the customer will have an incentive to come back and place another order in the future.

8. Create an emotional advantage by thinking beyond the sale to what comes next in the consumer journey 

The coronavirus has hit some segments really hard. Travel in particular, which was down by 85% in the first month of the lockdown. The challenge is not just that people are not travelling, the other underlying challenge is that the sector is so competitively priced with constant price comparison, which makes it difficult for merchants to stand out from the competition. 

An opportunity to differentiate from competition could be by appealing to the consumers broader planning of the travel journey. 

The purchase of a holiday is only the first step in the customer journey. Most of us actually use a holiday as a reason to make further purchases on things we might want, need for it and experiences during it. 

Therefore a reward card that incentivizes the traveler to treat themselves to some holiday fashion, gear or an even excursion could appeal to both their rational and emotional side and seal the deal.

An example of this could be booking.com offering a £20 Amazon Gift Card as an incentive for customers to buy their holiday. It’s a small reward, but it can be the deciding factor for a price conscious customer.

Conclusion

As brands struggle to navigate this new uncertain reality the digital reward card offers a powerful marketing tool while being easy to launch. UK merchants have leveraged the power of the digital reward card for years and the UK customer has grown familiar with the offering.

With the increasing global uncertainty, it is more important than ever for brands to get the most value for their marketing dollars and the digital reward card perfectly combines customer incentive with brand loyalty and second purchase. All with ease. 

The post Eight Advantages of Offering Digital Reward Cards During Uncertainty appeared first on PerformanceIN.

Short term / the spread of the Coronavirus: 

The world of online sales, especially in the field of mobile traffic is going up and down every day in this time of the Coronavirus crisis. Some clients are having record high levels of sales whilst others see numbers go down. According to Rakuten Intelligence, e-commerce spending in the US is seeing an overall boom, but consumers’ purchase behaviour has shifted. A Mckinsey study shows that 75% of apparel and fashion stores could face challenges, while “in-door” categories that focus on comfort and self-care are more relevant to consumers. 

Nothing is as before, the level of discount needed to incentivise purchase can increase or decrease due to the daily situation. Where do brands and retailers get some certainty in these highly uncertain times? One answer is in-app tracking. To start with, in order to help make sure that the discount you’re offering is enough but not too much every day, you are going to need accurate in-app tracking. In addition, it also gives you valuable information on which channel is driving sales the best. The mobile app channel has never been more important for brands and retailers. In Q1 2020 app downloads increased by 20% (5% in Google play and 15% in IOS app store). Therefore, it is essential to get reliable data for this channel. 

In-app tracking also benefits your users, both old and new. New clients, especially those that aren’t always digitally native, are likely to be put off if the app is too complicated or doesn’t offer a seamless user journey. All they need is simplicity, simplicity, simplicity. In-app tracking gives users this smooth journey from looking for discounts to one-tap download, saving new clients effort and trouble to become your loyal app users. 

This seamless customer journey also benefits your existing app users. Without in-app tracking, after finding a discount, your app users will only be redirected to your mobile webpage, where they might lose basket history and get confused. With in-app tracking, your users will be redirected to your app while they click on the coupons.

Midterm / what will happen in the next stage of life, as the coronavirus infections recede and the financial effects increase: 

We cannot be exactly sure what happens next as a new chapter and another month of our battle with this invisible enemy begins. For instance, when we all start to leave our homes more and more as lock down measures recede, how will people’s purchases change: 

– Will everyone suddenly want to buy things to enjoy the outdoors more? 

– Will people look to their own neighbourhoods for more local based experiences? 

– Will people still spend so much time virtually connected? 

– Will commuters avoid crowded public transport, turning to cars, bikes and scooters? 

– Will students and workers carry on with home learning and home office? 

– Will everyone care more about their health and staying fit? 

The fact is, we cannot answer these questions with certainty. Looking at China that is ahead in reopening their economy, we still see cautious consumer behaviour.

Therefore, the continuous uncertainty in the midterm will still have an effect on how much incentive you must promise and how your coupon strategy is working. Again, in-app tracking can provide this much-needed certainty. 

Long term / The speed and dynamics of the mobile purchase journey: 

Mobile traffic accounts for approximately half of traffic on the web and the use of mobile apps is growing. Because of the growing popularity of mobile, things that once took days and weeks can be done in seconds and minutes. On top of this, our mobile devices make everywhere a point of purchase, bringing many opportunities. 

Here again in-app tracking can provide you with even more assurance that your incentive and offers are effective, well placed and well timed , especially as more and more desktop customers switch to mobile apps for everything from inspiration to evaluation to purchase. 

ONE CERTAINTY IS THAT CONSUMERS REALLY NEED HELP 

There is an opportunity in challenging and changing times to increase sales and build brand connection: 

Through all this uncertainty there are still opportunities for brands to increase their sales and consumer engagement through useful commerce content, smart product selection and of course discounts. 

In fact, discounts when presented in the right way can not only increase sales they can actually help build connection with customers, helping people afford the life they live. You just need to find out what level of incentive they need to make that purchase – which is where in-app tracking helps as real opportunities need real time data. 

SUMMARY – IN APP TRACKING

– gives you data, results and certainty even in the most uncertain times – like right now! 

– allows you to be fast and flexible with offers in changing times – giving you the edge over those who don’t have it! 

– can simplify your customers journey to download your App – maximising the number of new customers! 

– can be turned on with minimum effort and maximum effect. 

The post Certainty in Uncertain Times with In-App Tracking appeared first on PerformanceIN.