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The Alert Shopper II

CONSUMER RECEPTIVITY TO LOCATION-BASED MARKETING

Harris Poll Online Survey


July 2010

© 1020 Inc., Proprietary and Confidential, 2009


Objectives
Gauge consumer’s preference levels in opt-in mobile marketing from brick-and-
mortar businesses

Understand consumer receptivity for services and messaging types including


location-based mobile marketing

Uncover interest levels for messaging from different types of establishments

Determine what impact these types of messages might have on purchase


behavior across channels

Highlight differences in interest and response across age, gender, income,


professional status, presence of children

This survey forms part of a larger body of research work entitled “The Alert
Shopper” which is focused on understanding consumer attitudes towards mobile
marketing messages. The first survey was fielded in July of 2009.
Follow the Alert Shopper research on http://blog.placecast.net/

© 1020 Inc., Proprietary and Confidential, 2009


Harris Interactive Methodology
This survey was conducted by Harris Interactive on behalf of 1020
Placecast.
All data collection was done online within the United States between
May 17 and 19, 2010 among 2046 adults ages 18 and older, of whom
1,719 own a cell phone.
Results were weighted as needed to reflect the composition of the
U.S. adult population ages 18+ using targets for region, age within
gender, education, household income, and race/ethnicity.
Respondents for this survey were selected from among the Harris
Poll Online (HPOL) database, which includes several million people
who have agreed to participate in Harris Interactive surveys.

© 1020 Inc., Proprietary and Confidential, 2009


Emerging Insights
Consumers are interested in receiving opt-in marketing messages:
− Interest levels are highest among younger audiences – consistent with first survey
− Men and women now show nearly equal interest – interest among women has risen from survey
1 and in some demo groups exceeds that of men

Groceries, restaurants and entertainment top the list of interested categories for receiving
alerts but men and women vary dramatically in the types of alerts they would prefer to
receive:
• Women, reflective of their role as primary household shoppers, are both the most promotionally
sensitive and most interested in grocery, beauty and apparel marketing alerts
• Men are most interested in electronics and sporting goods
• Interest is similar for categories like restaurants and entertainment

The alerts are most likely to impact web and store visitation among those receiving them,
and also impact purchase:
There is strong interest in location-based marketing:
• Location basis considered potentially useful, innovative and more likely to be relevant by
significant percentage of respondents

© 1020 Inc., Proprietary and Confidential, 2009


More than ¼ of all adults are interested and most
do not receive these types of promotions
Comparison to first survey: 26% at least somewhat, 5% extremely/very
Assuming you gave permission, how interested, if at all, would you be in receiving text alerts
about new products, sales and/or promotions from your favorite merchants, restaurants, or
stores on your cell phone/Smartphone?

98%

+2 points from
Survey I

28% +3 points from


Survey I
8%

Do Not Already Get These Types At Least Somewhat Interested Extremely/Very Interested
n=1710 Of Alerts (Net) (Sub-Net) (Sub-Sub-Net)
Source: Placecast The Alert Shopper IIN=1719

© 1020 Inc., Proprietary and Confidential, 2009


42% of consumers 18 – 34 interested in text alerts from
marketers; female interest equal to and surpassing male for
some demos
Consistent with Survey I: Highest interest among youngest groups
Change from Survey I: 2 point growth in overall interest; 6 point growth among
women 18 - 34
At least Somewhat Interested
Base: Cell Phone/Smartphone Owners
+2 points
50% Total
45% 42% 44% 40% Men
40% +6 points
35%
Women
30% 29% 30%
30% 26%
25% 21% 20%
20% 16% 17%
14%
15%
10%
5%
0%
18-34 35-44 45-54 55+
n=1719
Assuming you gave permission, how interested, if at all, would you be
in receiving text alerts about new products, sales and/or promotions from your
favorite merchants, restaurants, or stores on your cell phone/Smartphone?

© 1020 Inc., Proprietary and Confidential, 2009


Grocery coupons have highest interest level
followed by restaurant and entertainment
0% 10% 20% 30% 40% 50% 60% 70% 80%

Grocery coupons and promotions 68%

National restaurant chain promotions and offers… 64%

Entertainment products and availability (e.g., movie tickets, concert dates,… 58%

Fast food menu items and promotions 50%

Electronics product offers and promotions… 42%

Coffee and beverage promotions 37%

Travel services, special rates and amenities… 35%

Beauty and fashion (e.g., shoes and accessories) 33%

Health-related offers including gym services and/or nutritional products 24%

Sporting goods and equipment 22%

Bar or nightclub offers and promotions 21%

Convenience store products 21%

Home furnishings 16%

Infant and child-related products/services/events 15%

Other 5%

N=476 None 3%

Source: Placecast The Alert Shopper IIN=1719

© 1020 Inc., Proprietary and Confidential, 2009


Strongest interest in groceries, restaurants, and entertainment
Women more interested in grocery, beauty, apparel; men more interested in electronics, sporting
goods. Similar interest levels in restaurants.

What types of products, sales and/or promotions, if any, would you be interested in receiving alerts about? Please select all
that apply.
(Base: At Least Somewhat Interested In Receiving Text Alerts)
90%
80% Male
80%
70% 67%
61% 62% Female
60% 56% 54% 51% 51% 49%
48%
50%
40%
40% 33% 35% 36%
35%
30%
30% 25%
24% 23% 24%
19% 20% 18% 17% 16%
20% 14% 12% 13%
10% 5%4%
3%4%
0%

N=476
Source: Placecast The Alert Shopper IIN=1719

© 1020 Inc., Proprietary and Confidential, 2009


Men are from Mars (if it has sporting goods, alcohol &
electronics) women are from Venus (if it sells shoes & groceries)
DIfference in Percent of Men and Women
Base: At Least Somewhat Interested In Receiving Text Alerts

40% 30% 20% 10% 0% 10% 20% 30% 40%

Grocery coupons and promotions 24%


National restaurant chain promotions and offers (e.g.,… 6%
Entertainment products and availability (e.g., movie tickets,… 8%
Fast food menu items and promotions 3%
Beauty and fashion (e.g., shoes and accessories) 37%
Coffee and beverage promotions 7%

Women
Men
Electronics product offers and promotions (e.g., camera, TV, cell… 14%
Travel services, special rates and amenities (e.g., hotels, flights,… 1%
Health-related offers including gym services and/or nutritional… 1%
Convenience store products 4%
Home furnishings 8%
Infant and child-related products/services/events 5%
Bar or nightclub offers and promotions 7%
Sporting goods and equipment 14%
Other 1%
Source: Placecast: The Alert Shopper II; n=476 None 1%

© 1020 Inc., Proprietary and Confidential, 2009


Even more marked difference between what
men 18-34 and young women are interested in
Over 85% of young women interested in grocery coupons; 75% in
entertainment
What types of products, sales and/or promotions, if any, would you be interested in receiving alerts about?
Please select all that apply.
(Base: At Least Somewhat Interested In Receiving Text Alerts)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Grocery coupons and promotions


National restaurant chain promotions and offers (e.g.,…
Entertainment products and availability (e.g., movie tickets, concert…
Fast food menu items and promotions
Beauty and fashion (e.g., shoes and accessories)
Coffee and beverage promotions
Electronics product offers and promotions (e.g., camera, TV, cell…
Travel services, special rates and amenities (e.g., hotels, flights,…
Health-related offers including gym services and/or nutritional…
Convenience store products
Home furnishings
Infant and child-related products/services/events Male 18-34
Bar or nightclub offers and promotions
Sporting goods and equipment Female 18-34
Other
n=476 None

Source: Placecast The Alert Shopper IIN=1719

© 1020 Inc., Proprietary and Confidential, 2009


Consumers express great promotional sensitivity: Use of
promotions equally likely online as offline
Have you done each of the following more, less, or about the same amount so far this year as you did last year?
(More)
0% 5% 10% 15% 20% 25% 30% 35%

Looked for promotion codes/discounts when shopping online 30%

Clipped and redeemed coupons from an insert in a newspaper 28%

Clipped and redeemed coupons that arrived at my home (via


28%
postal mail or fliers)

Redeemed promotional/discount offers received via email from


24%
a retailer

Subscribed to receive promotional/discount offers via email


23%
from a retailer

Signed up to receive coupons online (i.e., from Groupon,


21%
DealOn)

Signed up to receive text alerts from retailers/merchants 8%

N=1719
Source: Placecast The Alert Shopper II ;
© 1020 Inc., Proprietary and Confidential, 2009
Women tended to be more promotionally active than men
in the past year
Have you done each of the following more, less, or about the same amount so far this year as
you did last year?

Signed up to receive text alerts


from retailers/merchants

Signed up to receive coupons online


(i.e., from Groupon, DealOn)

Subscribed to receive promotional/discount offers


via email from a retailer

Redeemed promotional/discount offers received


via email from a retailer

Clipped and redeemed coupons that arrived at my home


(via postal mail or fliers)

Clipped and redeemed coupons


from an insert in a newspaper

Looked for promotion codes/discounts


when shopping online

0% 5% 10% 15% 20% 25% 30% 35%

Total (More) Women Total Men Total

N=1719
Source: Placecast The Alert Shopper II ;
© 1020 Inc., Proprietary and Confidential, 2009
Text messaging most highly valued activity on
phones

How important, if at all, is it for you to be able to do each of the following activities on your cell
phone/Smartphone?
Base: Extremely/Very important
45%
40% 39%
42% Total
40%
Male
35%
30%
Female
30%
25%
25%
20%
20% 18%
14% 15% 14%
15% 12%
10% 11%
10% 9% 9% 9%
7% 7%
5% 5%
5% 3%

0%
Text message Access the Internet Search for a retail Access local Access social Make a purchase Location-based social
location information/activities networks (e.g., networking (e.g.,
n=1719 via an application Twitter, Facebook, checking in on
(''app'') MySpace) Foursquare)

Source: Placecast The Alert Shopper II ;


© 1020 Inc., Proprietary and Confidential, 2009
For those who have signed up for text alerts, the
messages are most likely to impact website and
store visitation
...you have signed up to receive text alerts from retailers/merchants. How has the information you received
impacted your decision to do each of the following?
(Summary of more likely)
40%

35%
34% 33% Total
30% 28% 27%
25% 23%

20% 18%

15%

10%

5%

0%
Visit the company's Visit the store Visit the company's Purchase the product Recommend the store Purchase another
website for more website to purchase promoted in the store to others product from that
information the product promoted store (different from
or a different product the product being
from that company promoted)

N=591
Base: Respondents Who Signed Up To Receive Text Alerts From Retailers/Merchants

Source: Placecast The Alert Shopper II ;


© 1020 Inc., Proprietary and Confidential, 2009
More than 1/3 who have received text alerts think
location based messaging could be useful
Marketers need to pay attention to offer relevance and frequency

Which of the following, if any, describe what you think about receiving location-based
(i.e., using your phone's GPS) text messages containing discounts/coupons/offers

0% 5% 10% 15% 20% 25% 30% 35% 40%

I think it could be useful. 37%

My opinion would depend on the offer. 35%

I think it could be interesting. 29%

I do not like the idea of marketing messages being sent to me based


27%
on where I am.
I would not want to receive them that often (e.g., not more than
24%
once per week).
I think these types of text messages could be more relevant if
24%
received on location.

I think this type of technology could be innovative. 24%

I think it could be cool. 21%

None of these 13%

N=591
Base: Respondents Who Signed Up To Receive Text Alerts From Retailers/Merchants

Source: Placecast The Alert Shopper II ;


© 1020 Inc., Proprietary and Confidential, 2009
Women are slightly more interested in
location-based messages than men
Which of the following, if any, describe what you think about receiving location-based (i.e.,
using your phone's GPS) text messages containing discounts/coupons/offers

0% 5% 10% 15% 20% 25% 30% 35% 40%

I think it could be useful.

My opinion would depend on the offer.

I think it could be interesting.

I do not like the idea of marketing messages being sent to…


Men Total
I would not want to receive them that often (e.g., not more… Women Total
I think these types of text messages could be more relevant…

I think this type of technology could be innovative.

I think it could be cool.

None of these
N=591
Base: Respondents Who Signed Up To Receive Text Alerts From Retailers/Merchants

Source: Placecast The Alert Shopper II ;


© 1020 Inc., Proprietary and Confidential, 2009

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