marketing to the heartland 2017 - fluent, inc.€¦ · nearly 2 in 10 americans say they prefer...
TRANSCRIPT
Marketing to the Heartland 1Arrows indicate significantly higher than comparison group at 95% CI
Marketing to the Heartland2017PART 3: HOW AND WHERE AMERICANS SHOP
Marketing to the Heartland 2Arrows indicate significantly higher than comparison group at 95% CI
Marketing to the Heartland
Part 3: How and Where Americans Shop
In the previous two installments of Fluent’s “Marketing to the Heartland”
research series, we looked at differences in core values and media
consumption habits of consumers living in the Heartland* and those who
reside along the coasts. We also examined differences between Americans
living in urban, suburban, and rural areas.
In this report, we look at the shopping behaviors of Americans living in the
Heartland, and how they differ depending on where people live.
*See methodology for definition.
Marketing to the Heartland 3Arrows indicate significantly higher than comparison group at 95% CI
Shopping BehaviorsIn the age of widespread smartphone usage and shopping on handhelds, it is imperative for brands to
optimize their end-to-end customer journeys for mobile. Overall, 57% of Americans said they made an online
purchase in the past 6 months and 43% made a purchase on their smartphone in the same timeframe.
Consumers living in the Heartland as well as rural areas have been slower to adopt mobile commerce.
Even though online shopping has become ubiquitous, physical stores are still the preferred way of shopping
for nearly half of US consumers in both Heartland and Coastal areas, compared to online commerce. This
signals an opportunity for retailers to improve their online shopping experience.
Online purchasing behaviors
Do you prefer shopping online or in a physical store?
1
Physical store
No preference
46%
35%
19%
Total US
Coastal consumers
SuburbanTotal US RuralHeartland consumers
Urban
57%
43%
60%
46%
55%
41%
51%
42%
60%
49%
59%54%
Made purchase on computer
Made purchase on smartphone
Online
Marketing to the Heartland 4Arrows indicate significantly higher than comparison group at 95% CI
Consumers generally prefer shopping in a physical store because they like to see or try items on in person
(74% for total US). Many also find brick and mortar shopping more convenient, especially in the Heartland.
Reasons for preferring shopping in physical stores Among those who prefer physical stores to online
I like to see/try on items in person
Convenience
Better selection of products
Shopping is a social activity for me
Better sales/deals
Cheaper prices
Stores I like don’t have a website or mobile app
Coastal consumers
Heartland consumers
75%
31%
28%
30%
23%
23%
6%
73%
41%
28%
25%
19%
19%
7%
Marketing to the Heartland 5Arrows indicate significantly higher than comparison group at 95% CI
Rural residents are more likely to prefer shopping in physical stores because of convenience and cheaper
prices. They are also more likely to say that the stores they prefer do not have an ecommerce presence. On the
other hand, urban consumers are more likely to prefer brick and mortar stores due to a belief that they offer a
better selection of products.
Nearly 2 in 10 Americans say they prefer shopping online, and the top 3 reasons for doing so are convenience
(52%), cheaper prices (39%) and better sales/deals (35%). For rural and suburban consumers, convenience
is the top reason for preferring to shop online. Rural residents who prefer to shop online are also much more
likely to believe that they don’t have good stores near them.
Reasons for preferring shopping in physical stores Among those who prefer physical stores
Reasons for preferring online shopping Among those who prefer online shopping
I like to see/try on items in person
Convenience
Better selection of products
Shopping is a social activity for me
Better sales/deals
Cheaper prices
Stores I like don’t have a website or mobile app
Convenience
Cheaper prices
Better sales/deals
Better selection of products
I have Amazon Prime
I dislike shopping in stores
I don’t have good stores near me
73%
42%
26%
24%
19%
24%
9%
56%
47%
39%
37%
32%
23%
31%
75%
32%
26%
29%
20%
17%
5%
62%
36%
34%
32%
31%
29%
7%
73%
39%
35%
28%
25%
23%
6%
31%
38%
32%
33%
30%
22%
13%
74%
37%
28%
27%
21%
21%
6%
52%
39%
35%
34%
31%
25%
15%
Total US
Total US
Rural
Rural
Suburban
Suburban
Urban
Urban
Marketing to the Heartland 6Arrows indicate significantly higher than comparison group at 95% CI
Cash and credit cards are the most widely used payment methods across all regions, with digital wallets slowly
gaining share. While suburban residents are most likely to use credit or debit cards, rural and Heartland
consumers are more likely to pay by check. Suburban residents have higher household incomes and therefore
may have an easier time getting credit cards approved.
Payment methods used to pay in a store in the past month Coastal consumers
Heartland consumers
Physical credit or debit card
Physical credit or debit card
Mobile payment platform
(e.g. Apple Pay)
Mobile payment platform
(e.g. Apple Pay)
Cash
Cash
Check
Check
Payment methods used to pay in a store in the past month
Rural
Suburban
Urban
76%
78% 74%
27%
12%
77%
16% 14%
77%
76% 79%
18%13%
76%71%
16% 14%
75%
24%13%
Household Income
100K+
19%
29%
15%
Rural
Suburban
Urban
Marketing to the Heartland 7Arrows indicate significantly higher than comparison group at 95% CI
Brands should consider making information about their products and services easily searchable online and to
have clear product information and reviews easily accessible. More than half (57%) of US consumers say they
research products online before making a purchase at least half of the time and 40% do so most of the time.
Urban dwellers tend to do more online research prior to purchasing a product, and rural consumers are more
likely to not do any research at all.
How often do you research a product online before making a purchase?
All/most of the time
Half of the time
Sometimes
Never
Total US
Rural
Suburban
Urban
40% 17% 25% 18%
32% 15% 27% 26%
42% 18% 26% 14%
46% 17% 22% 15%
Marketing to the Heartland 8Arrows indicate significantly higher than comparison group at 95% CI
Attitudes Towards ShoppingUrban residents are much more likely to consider themselves spenders rather than savers. Half of them agree
with this statement, higher than any other group.
Even though some might assume that suburban and rural Americans would be more likely to view shopping
as a social activity, it is urban consumers who are most likely to shop as a social activity with family and friends.
This can be due to several factors: urban centers have a wider variety of shopping venues available and more
urban residents self-identify as spenders. Population composition is also a factor; retirees are least likely to
shop as a social activity with family and friends, and urban areas have fewer retirees.
Agree with the following statement:
I’m a spender rather than a saver
Agree with the following statement:
Shopping is a social activity I engage in with family and friends
Agree with the following statement:
Shopping is a social activity I engage in with family and friends
2
Rural Suburban Urban
Rural Suburban Urban
Employed Part Time
Homemaker
Unemployed
Employed Full Time
Student
Retired
34%
37%
52%
45%
43%
39%
38%
30%
33%
35%
43%
50%
Marketing to the Heartland 9Arrows indicate significantly higher than comparison group at 95% CI
Branding and EndorsementsBrands should consider regional differences when designing marketing strategies. Although marketers
often see positive returns on campaigns endorsed by a celebrity (research indicates that athlete product
endorsements boost sales by an average of 4%)*, consumers are not always aware of the influence that
celebrity endorsements have on their propensity to purchase products. Only 13% of US consumers agree that
celebrity endorsements influence them to buy products, although this rate is nearly a quarter (22%) among
urban consumers.
There is also a profound difference in how consumers relate to the brands they purchase depending on where
they live. Urban and suburban dwellers consider brand names to be more important and are willing to pay
more for brand name products. Conversely, rural residents are more price conscious and don’t care about
brands as much. There is an opportunity to fine-tune marketing strategies, focusing on branding attributes in
urban areas and highlighting cost savings in rural areas.
3
Agree with the following statement:
Celebrity endorsements influence me to buy products?
Will you pay more for a product from a brand you recognize, or is low price more important?
RuralTotal Suburban Urban
Rural
Suburban
Urban
Brand is always more important
Brand is important for some products
Price is always more important
11%13%
10%
22%
40%
35%
28%
47%
54%
56%
13%
11%
16%
* Source: Marketwatch (http://www.marketwatch.com/story/do-celebrity-endorsements-work-1300481444531)
Marketing to the Heartland 10Arrows indicate significantly higher than comparison group at 95% CI
Ad exposure in the past 6 months
How often do you see online display ads promoting brands or products when you browse the Internet?
Advertising ImpactSuburban consumers are most likely to remember seeing ads on several platforms, such as TV, social media, radio
and mobile notifications. In Part 2 of this Heartland series, we also found them to be more connected. Urban
residents are more likely to say they receive marketing newsletters from brands or products, as well as remember
online display ads when browsing the internet.
4
Rural
Suburban
Urban
Rural
Suburban
Urban
Remember seeing an ad on TV
Saw ads or promotions from brands on social media
Received email marketing newsletters from any brands or products
Heard an ad on the radio
Signed up for mobile notifications from brands or products
Every time
Most times
About half of the time
Sometimes
Never
67%
52%
45%
38%
17%
72%
61%
51%
52%
23%
66%
59%
53%
47%
21%
18%
24%
18%
24%
16%
22%
31%
16%
19%
12%
26%
31%
13%
18%
12%
Marketing to the Heartland 11Arrows indicate significantly higher than comparison group at 95% CI
Purchased products in the past 6 months after seeing an ad on each channel Among those who remember seeing an ad on each channel
Purchased products in the past 6 months after seeing an ad on each channel Among those who remember seeing an ad on each channel
Heartland consumers are more receptive to email marketing newsletters; a third said they remembered making
a purchase after seeing a promotion in a newsletter. It is imperative for brands to invest in this proven marketing
channel, especially when marketing to consumers living in the Heartland.
Since urban and suburban consumers are more likely to prioritize brand quality, or at least their perceptions of it, in
purchasing decisions, it should come as no surprise that they are also more likely to believe that advertising has an
impact on their purchasing behavior.
Rural
Suburban
Urban
Purchased products after seeing a mobile notification
Purchased after seeing an ad on TV
Purchased after seeing an ad on social media
Purchased product after seeing a promotion in an
email marketing newsletter
Ad on the radio
Online banner ad
Purchased products after seeing a mobile notification
Purchased after seeing an ad on TV
Purchased after seeing an ad on social media
Purchased product after seeing a promotion in an
email marketing newsletter
Ad on the radio
Online banner ad
Coastal consumers
Heartland consumers
36%
48%
36%
35%
26%
28%
16%
30%
25%
20%
19%
13%
47%
43%
36%
35%
33%
24%
20%
38%
35%
31%
26%
19%
48%
37%
45%
38%
33%
22%
Marketing to the Heartland 12Arrows indicate significantly higher than comparison group at 95% CI
Methodology*The Heartland region is comprised of 26 states in the Southwest, Midwest and parts of the Southeast (AL,
AR, FL, GA, IA, IL, IN, KS, KY, LA, MI, MN, MO, MS, NC, ND, NE, OH, SC, SD, TN, TX, VA, WI, WV) and is based
on a definition designed by the New Heartland Group
Fluent’s “Marketing to the Heartland; Media Consumption Survey” study was conducted online within the
United States by Fluent, LLC on April 1st, 2017 among 1,670 US consumers (aged 18 and up). Respondents
were randomly selected, and the findings are statistically significant at a 95% confidence level. Due to
rounding, percentages may not always add up to 100%. Fluent’s proprietary ad serving technology includes
a real-time survey module that was used to facilitate the data collection for this study.
Data was weighted to US Census 2010 population distribution and Census Bureau, 2011-2015 American
Community Survey 5-Year Estimates.
https://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml
ABOUT FLUENTFluent, LLC, a cogint company (Nasdaq: COGT), is an industry leader in people-based digital marketing and customer acquisition, serving over 500 leading consumer brands and direct marketers. Leveraging a massive reservoir of proprietary audience data, as well as millions of real-time survey interactions with consumers every day, Fluent enables advertisers to more effectively target and acquire their most valuable customers, with precision, at a massive scale. The company is headquartered in New York City. For more information visit www.fluentco.com.
fluentco.com I [email protected] I 646.647.2966