The Importance of Promotions in the Current Landscape

Understanding how consumers are facing this year full of uncertainty and knowing how this affects their purchasing decisions are two of the great challenges facing the consumer goods sector.

Undoubtedly, one of the conclusions we can draw from the current physical and online market is that promotions and the personalization of campaigns will be key to making consumers choose us.

According to a study called 'Shopper expectations for 2022' with more than 1,000 users, technology and promotions will be two very relevant factors for making purchasing decisions in 2022.

A Sleeping Giant When It Comes to Promotions

What was once just a communication or information realm has now become the focus of the global economy: the internet.

It turns out that within the vast universe of the Internet, industries such as iGaming have become experts in promotions campaigns. So much so, that every day they attract thousands of players who wonder which casinos offer great welcome bonuses to encourage them to play with high sums of extra money.

In fact, much of the huge success of the iGaming industry can be associated with its use of bonuses and regular promotions. As a result, this online industry alone already has a revenue in 2022 of over $300 billion.

Use of Cell Phone Technology as the Protagonist

66% of respondents say that this year they will increase their use of technology in the physical store to make their purchases.

In fact, 81% say they use their phone or even smartwatch while shopping in the supermarket, either to consult the shopping list, view the operator's digital brochures, or redeem promotional coupons.

According to shopper marketing experts, "more than half of the people surveyed say they have scanned QR codes in the last month, which means that we are slowly integrating digital options into our shopping process. The healthcare crisis has accelerated this. For example, if you go to a bar or a restaurant, the menu will most likely be on a QR code.

The Influence of Promotions and Shopper Loyalty

The study found that 75% will go to other stores if they offer good promotions and 73% will buy more products if they are on promotion.

Even if the offer is very good, 58% of those surveyed may increase their purchases of other non-standard products.

In the age of technology, we have changed the way we interact with brands and stores. Six out of ten respondents conclude that promotions do not fit their current needs.

Personalization of campaigns will be key to choosing where to shop. Consumers want their "favorite brands" to personalize offers, reward their loyalty, and even congratulate them on their birthday.

Promotions platforms help brands to detect these changes and adapt offers to current needs whenever they want through targeted and personalized campaigns. The way we communicate with the consumer must be unique, appealing to their tastes, interests and needs in an individualized way.

Other Shopping Trends: Online Shopping, Local Shopping & Products Close to Us

In terms of shopping trends for this year, we find the big boom in online shopping for food and beverages: 43% say they will buy these products online by 2022.

64% of respondents say they will shop online because it is more convenient and easier, and 59% believe that doing it virtually avoids potential health problems.

The local aspect is gaining importance: Six out of ten will try to buy more in neighborhood stores and thus help local commerce, while 71% of the same sample will opt for items in the closest stores possible.

The importance of understanding consumer needs and buying motivations for any food chain to improve its competitiveness.

Market and shopper orientation are fundamental in the decision-making process of companies; if we add value, from product development to the activation of commercial levers such as promotion, we will be able to sell more.

Conclusion

There is no doubt that the economic landscape has changed drastically over the last decade, with the last two years being in the spotlight – after compelling a large number of businesses to close their physical doors and open their online ones.

Given the rise of these new online businesses, the use of promotions has marked brands and industries that want to separate themselves from their competition - using an aggressive and often generous strategy.

But brands can't be credited for everything, as the mindset of shoppers has changed as well. So, where we are now is really the beginning of a major shift to the virtual world. It remains to be seen if this shift will continue, or if it is a temporary thing that is dragging down the high use of promotions.