Before the holidays, Ibotta surveyed 2,500 consumers and 400 industry professionals to help you strategize how to get the best vacation this holiday season.
Looking for new customers? 42% of shoppers said their first encounter with a brand was as a result of a digital offer.
Looking for a test? 76% of shoppers say they prefer their favorite brands. 75% are willing to try a new brand if it offers a lower price (assuming the same quality).
According to Ibotta's own research, an overwhelming majority of shoppers say saving is important to them right now (87%). Not surprisingly, the top reasons are due to rising food prices and inflation, "balancing rising prices" (40%), "feeling financially secure" (38%) and just being "affordable" (38%). the reasons are from the list.
With 59% of marketers saying "customer considerations" are their top priority, it's important to strategize how best to engage their customers (and prospects) with digital offerings that significantly influence consumer behavior. This is especially true as they direct their dollars towards digital promotion, spending 43% more on digital promotion today than they did three years ago.
With the holiday season in mind, brands can gain insight and expertise at scale with the Ibotta Performance Network (IPN). While earning loyalty and capturing share of wallet is more challenging than ever, brands are relying on Ibotta and IPN to connect seasonal programs with key goals and drive growth in the fourth quarter of 2023.
US Buyer Reviews
economic pressure from consumers
As mentioned earlier, 87% of surveyed shoppers consider saving money important.
That's despite 76% of shoppers claiming the economy has "directly impacted" their grocery spending habits. How are buyers feeling about the economy?
58 percent describe "general economic conditions in the United States" as neither satisfactory nor satisfactory ("poor" or "fair"), and only 9 percent consider them "excellent."
Economic pressure on the advertiser
Advertisers seem less pessimistic than buyers. 47% consider the general economic conditions to be "bad" or "satisfactory". While most advertisers rated it "Average" (32% vs. 22%, respectively), only 3% of advertisers rated it "Excellent."
In terms of budget allocation, marketers' priority is to increase consumer interest as mentioned earlier (59%).
More than any other marketing tactic, paper coupons will be less of a priority than 3 years ago (27%). Conversely, 89% believe that digital promotions can help increase sales (compared to 69% of print ads).
Key activation areas
It is numerically dominant
With 68% of shoppers using digital devices to shop in-store, it's no surprise that 70% prefer digital offers over paper. 62% of shoppers have downloaded a cashback app or store app or searched for digital coupons for savings offers. Only 28% of receipts with paper clips.
Additionally, digital offers on the Ibotta Network (IPN) have an average recovery rate of 24%, compared to 0.28% for offline subscriptions (FSI), as reported at the end of FSI .
The majority of those using a digital device to assist with shopping (44% before travel, 35% during travel and 38% at checkout) were specifically looking for digital offers.
An important opportunity for brands is that digital marketing strategies can further influence consumer behavior.
Increase in purchases of new brands
Brands that take advantage of digital offerings are well-positioned for price reductions that shoppers can expect. In 42% of cases, the buyer gets to know the brand for the first time as a result of a digital offer.
While 76% of shoppers say they prefer brands they like, 75% would try a new brand if offered at a lower price (of the same quality).
Whether a brand is looking to improve an experience or attract new buyers for an existing product, these results open up huge opportunities for execution through digital promotions.
Committed leadership and advocacy
62% of shoppers said they would be more likely to continue buying from a brand if they were rewarded in some way for being brand shoppers. This sentiment was most common among digital users, with 68% saying digital offers made them "feel like a valued customer." This is an important finding given that nearly half (49%) of shoppers make brand choices based on their value as customers.
These digital offers not only increase loyalty but also promote promotion. 59% of consumer survey shoppers are likely to recommend a brand to others because they are exposed to a digital screen.
Get things moving
There is no denying that digital offers have a huge impact on consumer behavior, encouraging new purchases, increasing brand loyalty and inviting customers to visit. Digital offerings give brands an effective way to connect with today's shoppers.
The Ibotta Performance Network is a one-stop shop for advanced data analytics measuring impulse and organic purchases in the US grocery industry, as well as exclusive access to more than 120 million US shoppers across a broad real estate ecosystem, including retail. Walmart, Dollar General, etc.
Advertisers with average IPNs.
- 7x Return on Ad Spend (ROAS)
- Additional units are sold at a 50% discount
- 42% of conversions are due to renaming
- 70% shorter purchase cycle
Seasonal holiday trends by category
It's worth noting that in each category in the charts below, you'll see a "Holiday Promotion" in addition to a "Thanksgiving Promotion."
Brands are encouraged to get ahead of this fourth quarter growth and invest in thought leadership initiatives such as coordinated promotions to stay focused for months.
Use the charts below to identify the categories that drive holiday shopping volume and pay offers for direct sales to combat price sensitivity and reduce shoppers while maintaining your market share.
Brands, retailers and advertisers who join IPN can access deep insights and proprietary data to open up new opportunities for effective advertising strategies. Ask here to learn more .
