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It’s no secret that brands are increasingly spending their marketing dollars on digital, but did you know that digital advertising in the U.S. is now a $30 billion larger market than TV advertising? Moreover, the trends of shifting marketing dollars to digital channels will continue into the foreseeable future, with a projected increase from 44 percent of marketing budgets now to 54 percent by 2024.
CPG companies around the globe have been betting that investing in digital will attract shoppers to their brands, and for good reason. An estimated 56 percent of in-store sales are influenced by a digital interaction, and the numbers only get more impressive when a specific offer becomes involved.
of shoppers currently participate in a digital coupon program vs. 76% in 2017
of shoppers would use coupons more if they were available online
Source: 2017 & 2018 Shopper Behavior Studies
So how do you, as an IGA retailer, take advantage of the advertising dollars pouring into digital marketing to increase sales in your store? IGA Shopper Rewards is the key.
Said simply, IGA’s Shopper Rewards program brings the power of advanced loyalty to bear on in-store technology such as the POS system, print receipt, and email, making it possible for the first time for IGA retailers to benefit from the national digital advertising dollars.
Like CVS, Dollar General, and other retailers, IGA’s new digital solution uses digital coupons and on-receipt offers, inspiring increased loyalty, repeat purchases, and larger baskets among shoppers. But perhaps the best feature of all is the automation of the National Digital Ad. IGA Shopper Rewards technology will handle the complete setup and reimbursement of the National Digital Ad offers for your store, meaning if you haven’t taken advantage of this selling support, you will no longer miss out on these free sales-building dollars.
Enabling IGA's new program to work across the entire IGA system of stores is a very simple, nimble piece of software that lays on top of the POS system in your store. Instead of converting every store to the same POS system—which IGA CEO John Ross says could take decades—IGA Shopper Rewards uses the cloud. "We embed a little tiny bit of code in the POS system and it pops that data up into the cloud," says Ross. "Once it's in the cloud, we can begin to do cool stuff with it." Cool stuff like:
So how does IGA’s new Shopper Reward program ultimately help IGA retailers better compete with chains? It all comes down to using the data to show manufacturers that we’re a powerful brand, says Ross.
“It’s the data that is enabling us to get unique, national offers from our manufacturing partners, and it’s clear to see it’s working,” Ross says. “This time last year we were getting about 12 national offers a year. Now we are getting more than that a month.”
And while those offers presented through the National Digital Ad are already showing great results—garnering over 15 million impressions since it launched last October, and seeing an average sales lift that is up 14 percent compared to last year—Ross maintains getting all IGA retailers on the Shopper Rewards program will not only make the program easier to execute going forward, it will also lead to better offers.
“Brands are quickly learning that IGA can now support their national campaigns,” Ross says. “Where before we were impossible to work with at a national level, they are now seeing us as a reliable partner in the launch of new items, supporting their national advertising and marketing. That means we are moving from ‘too hard to work with’ to ‘best practice partner.’ The more connected we are, the better our offers become, and the more our sales increase.”
It’s clear that Shopper Rewards has the potential to increase sales, but what about the cost for the program?
Turns out, cost reduction is another key benefit that comes from scaling one digital marketing resource across the entire Alliance of stores. While a single IGA retailer could spend thousands of dollars a month to bring together the various marketing programs needed to connect with today’s shoppers, IGA Shopper Rewards uses economies of scale to deliver a single program that costs only $99 a month. Together, IGA retailers make the platform effective and affordable, and enable IGA to add more features over time.
Right now a little over a third of IGA stores are already signed on to IGA Shopper Rewards, but IGA’s goal is to have IGA Shopper Rewards installed in 90 percent of IGA stores by the end of 2019.
Interested in seeing what IGA Shopper Rewards can do for you? To get started, schedule your one-on-one consultation with IGA Digital Marketing Manager Sarah Rivers to discuss the POS system you’re using. After that, IGA will coordinate with Inmar, our technology partner for shopper rewards, to set up the installation.
"Every day that you don't have this system is a harder day for you than it needs to be," Ross stresses. "And it's another day that you’re missing out of the digital advertising dollars you need to draw in new and existing shoppers and increase sales.”