Paperless, digital offers are now fixed elements in the promotion mix for a number of channels — with significant penetration in the grocery and drug channels. But, what about the potential for increased deployment of digital load-to-card (L2C) promotions in other channels? Specifically, what is the mindset of non-food CPGs when it comes to participating – with greater frequency and in greater volume – in L2C programs with mass merchandisers?
Inmar’s Analytics team spoke recently with 106 sales and marketing professionals from 19 non-food product manufacturers regarding their willingness to provide additional delivery of digital offers to retailers in the mass merchandise channel. Following are some key findings from the Inmar survey:
The overall outlook among these manufacturers regarding digital coupons is very positive.
- 69 percent believe digital promotions provide an effective opportunity to increase brand awareness.
- 67 percent perceive that digital L2C programs are important to shoppers.
- 74 percent anticipate their company will spend more on digital promotions in the next fiscal year.
There are educational deltas that must be addressed in order to engage more of these manufacturers and secure their participation in digital L2C programs.
- 17 percent consider digital load-to-card programs to be untested.
- 14 percent see their company as too small for these programs.
- 15 percent are unfamiliar with digital load-to-card program capabilities.
These manufacturers want to participate in digital coupon programs but are looking for increased support from, and collaboration with, their trading partners in order to engage.
- 74 percent want to participate in digital L2C programs with their retail partners.
- 70 percent want to participate in a comprehensive digital L2C program that could include email outreach, featured offer(s), dedicated category focus, coordinated in-store signage and/or sweepstakes opportunities.
Indicators from the survey point to real opportunities for digital offers to effectively and efficiently complement traditional methods in the mass merchandise channel. However, input from the participating manufacturers reveals the need for more proactive outreach from retailers regarding promotional opportunities; increased understanding as why to manufacturers should participate and how they can scale an opportunity up for greater reach and efficiency; and more consistent collaboration with analytics, information sharing, program testing and promotion execution.