marketing to the heartland 2017 - fluent, inc.€¦ · nearly 2 in 10 americans say they prefer...

12
Marketing to the Heartland 1 Arrows indicate significantly higher than comparison group at 95% CI Marketing to the Heartland 2017 PART 3: HOW AND WHERE AMERICANS SHOP

Upload: others

Post on 16-Jul-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Marketing to the Heartland 2017 - Fluent, Inc.€¦ · Nearly 2 in 10 Americans say they prefer shopping online, and the top 3 reasons for doing so are convenience (52%), cheaper

Marketing to the Heartland 1Arrows indicate significantly higher than comparison group at 95% CI

Marketing to the Heartland2017PART 3: HOW AND WHERE AMERICANS SHOP

Page 2: Marketing to the Heartland 2017 - Fluent, Inc.€¦ · Nearly 2 in 10 Americans say they prefer shopping online, and the top 3 reasons for doing so are convenience (52%), cheaper

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.

Page 3: Marketing to the Heartland 2017 - Fluent, Inc.€¦ · Nearly 2 in 10 Americans say they prefer shopping online, and the top 3 reasons for doing so are convenience (52%), cheaper

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

Page 4: Marketing to the Heartland 2017 - Fluent, Inc.€¦ · Nearly 2 in 10 Americans say they prefer shopping online, and the top 3 reasons for doing so are convenience (52%), cheaper

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%

Page 5: Marketing to the Heartland 2017 - Fluent, Inc.€¦ · Nearly 2 in 10 Americans say they prefer shopping online, and the top 3 reasons for doing so are convenience (52%), cheaper

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

Page 6: Marketing to the Heartland 2017 - Fluent, Inc.€¦ · Nearly 2 in 10 Americans say they prefer shopping online, and the top 3 reasons for doing so are convenience (52%), cheaper

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

Page 7: Marketing to the Heartland 2017 - Fluent, Inc.€¦ · Nearly 2 in 10 Americans say they prefer shopping online, and the top 3 reasons for doing so are convenience (52%), cheaper

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%

Page 8: Marketing to the Heartland 2017 - Fluent, Inc.€¦ · Nearly 2 in 10 Americans say they prefer shopping online, and the top 3 reasons for doing so are convenience (52%), cheaper

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%

Page 9: Marketing to the Heartland 2017 - Fluent, Inc.€¦ · Nearly 2 in 10 Americans say they prefer shopping online, and the top 3 reasons for doing so are convenience (52%), cheaper

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)

Page 10: Marketing to the Heartland 2017 - Fluent, Inc.€¦ · Nearly 2 in 10 Americans say they prefer shopping online, and the top 3 reasons for doing so are convenience (52%), cheaper

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%

Page 11: Marketing to the Heartland 2017 - Fluent, Inc.€¦ · Nearly 2 in 10 Americans say they prefer shopping online, and the top 3 reasons for doing so are convenience (52%), cheaper

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%

Page 12: Marketing to the Heartland 2017 - Fluent, Inc.€¦ · Nearly 2 in 10 Americans say they prefer shopping online, and the top 3 reasons for doing so are convenience (52%), cheaper

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