Published by Jessica Weisman-Pitts
Posted on October 18, 2021
By Premal Patel, VP, Managing Director for Catalina UK
The pandemic has changed everything for the consumer goods industry with many behaviours that shifted during lockdown set to remain intact over the long term. We’ve witnessed triple-digit growth in the ecommerce sector and a surge in hybrid shopping combining in-store purchasing with home delivery services and digital channels which consumers have embraced in the early stages of Covid.
Whilst e-commerce is plateauing, these latest trends continue to develop at pace alongside the growth of emerging media channels connecting brands to consumers. Retailers and brands that have shown agility engaging with customers seamlessly across channels have won, whilst many other brands and retailers which have not adapted quickly enough continue to struggle.
As the dust settles and a new normal in terms of consumer behaviour begins to take shape, it’s critical that both brands and retailers optimise store performance, measurably increase personalisation, improve media efficiency, and drive incremental sales. With further disruption inevitable, real opportunities as well as continuing threats lie ahead.
To help retailers and brands win during these uncertain and disruptive times, here are five key strategies to consider in responding to the new retail reality.
1.Brand positioning to remain relevant to shifting shopper expectations. The 2021 Future Shopper Report from Wunderman Thompson highlighted how 41% of global consumers were still frightened to shop in stores while nearly two thirds said they preferred brands with both an online and offline presence. Meanwhile 73% of consumers said retailers need to get better at product and service delivery. This figure highlights both shifting behaviours and rising expectations which brands and retailers will need to address if they’re to remain relevant. It’s critical that retailers and brands listen to their customers, use data to understand how their customer behaviour is changing and engage them seamlessly across channels.
2.The importance of a relevant, value-driven content strategy. From the onset of Covid restrictions, those brands and retailers which were nimble and able to develop a content strategy based on real time insights responding to consumer purchase behaviour were the ones which rose to the top. For some brands this has involved making a transition from having a transactional to a more personalised relationship with their customers, focused more on why they are shopping and being able to deliver what their customers want and need at this moment in their life. This approach has been a game-changer which has not only enabled brands and retailers to make decisions in real time, but has also helped guide their advertising and promotion strategy. Harnessing the use of data to truly understand changing shopper desires is critical to maintaining a competitive value-driven content strategy.
3.Tailoring audiences to keep loyalists and attract new shoppers. Determining how to personalise a brand, within mass media and across digital channels, to ensure it remains relevant to existing customers while also attracting new ones is a significant challenge which typically involves investment and resources. Enhancing an existing tech team could prove an invaluable measure in achieving success. Doing this can ensure the required infrastructure will be in place to allow a brand or retailer to harness important data that will resonate with consumers inside and outside its own communication channels. With this essential data in place, onboarding a digital customer activation and creative agency is often the next important step in delivering relevant, personalised content that will reach and resonate with the appropriate audience profile.
4.Utilising first party data strategies to improve personalisation. First party data (FPD), the information you collect directly from your audience or customers, is a vital component for brands and retailers in this brave new world. An FPD strategy should identify whether there are any significant gaps with the data you hold and focus on ways of how this can be enhanced. This may involve bringing partners onboard who can help develop and extend how you collect, manage, and utilise FPD so you can use it to effectively communicate with a diverse customer base. Data governance practices are an essential aspect of this strategy which will ensure data is as enriched as possible, accurate and fully actionable.
5.Building a measurement framework that works and informs future decisions. The roll-out of IOS-14 and the accompanying reduction in the levels of cookie data stored on Apple devices makes it far more challenging to monitor the results of campaigns. Brands and retailers will therefore need to adopt a fail-fast mentality embracing extensive testing and incremental development to determine whether an idea has value. Through this process, new and effective measurement methodologies will be established to help guide decision-making on future strategy.
The world has changed, the new retail reality is challenging retailers and brands to be brave, and focus on building data capabilities and customer engagement solutions that seamlessly connect across multiple channels. Retailers must ensure they are ready for this brave new world.
By Premal Patel, VP, Managing Director for Catalina UK
The pandemic has changed everything for the consumer goods industry with many behaviours that shifted during lockdown set to remain intact over the long term. We’ve witnessed triple-digit growth in the ecommerce sector and a surge in hybrid shopping combining in-store purchasing with home delivery services and digital channels which consumers have embraced in the early stages of Covid.
Whilst e-commerce is plateauing, these latest trends continue to develop at pace alongside the growth of emerging media channels connecting brands to consumers. Retailers and brands that have shown agility engaging with customers seamlessly across channels have won, whilst many other brands and retailers which have not adapted quickly enough continue to struggle.
As the dust settles and a new normal in terms of consumer behaviour begins to take shape, it’s critical that both brands and retailers optimise store performance, measurably increase personalisation, improve media efficiency, and drive incremental sales. With further disruption inevitable, real opportunities as well as continuing threats lie ahead.
To help retailers and brands win during these uncertain and disruptive times, here are five key strategies to consider in responding to the new retail reality.
1.Brand positioning to remain relevant to shifting shopper expectations. The 2021 Future Shopper Report from Wunderman Thompson highlighted how 41% of global consumers were still frightened to shop in stores while nearly two thirds said they preferred brands with both an online and offline presence. Meanwhile 73% of consumers said retailers need to get better at product and service delivery. This figure highlights both shifting behaviours and rising expectations which brands and retailers will need to address if they’re to remain relevant. It’s critical that retailers and brands listen to their customers, use data to understand how their customer behaviour is changing and engage them seamlessly across channels.
2.The importance of a relevant, value-driven content strategy. From the onset of Covid restrictions, those brands and retailers which were nimble and able to develop a content strategy based on real time insights responding to consumer purchase behaviour were the ones which rose to the top. For some brands this has involved making a transition from having a transactional to a more personalised relationship with their customers, focused more on why they are shopping and being able to deliver what their customers want and need at this moment in their life. This approach has been a game-changer which has not only enabled brands and retailers to make decisions in real time, but has also helped guide their advertising and promotion strategy. Harnessing the use of data to truly understand changing shopper desires is critical to maintaining a competitive value-driven content strategy.
3.Tailoring audiences to keep loyalists and attract new shoppers. Determining how to personalise a brand, within mass media and across digital channels, to ensure it remains relevant to existing customers while also attracting new ones is a significant challenge which typically involves investment and resources. Enhancing an existing tech team could prove an invaluable measure in achieving success. Doing this can ensure the required infrastructure will be in place to allow a brand or retailer to harness important data that will resonate with consumers inside and outside its own communication channels. With this essential data in place, onboarding a digital customer activation and creative agency is often the next important step in delivering relevant, personalised content that will reach and resonate with the appropriate audience profile.
4.Utilising first party data strategies to improve personalisation. First party data (FPD), the information you collect directly from your audience or customers, is a vital component for brands and retailers in this brave new world. An FPD strategy should identify whether there are any significant gaps with the data you hold and focus on ways of how this can be enhanced. This may involve bringing partners onboard who can help develop and extend how you collect, manage, and utilise FPD so you can use it to effectively communicate with a diverse customer base. Data governance practices are an essential aspect of this strategy which will ensure data is as enriched as possible, accurate and fully actionable.
5.Building a measurement framework that works and informs future decisions. The roll-out of IOS-14 and the accompanying reduction in the levels of cookie data stored on Apple devices makes it far more challenging to monitor the results of campaigns. Brands and retailers will therefore need to adopt a fail-fast mentality embracing extensive testing and incremental development to determine whether an idea has value. Through this process, new and effective measurement methodologies will be established to help guide decision-making on future strategy.
The world has changed, the new retail reality is challenging retailers and brands to be brave, and focus on building data capabilities and customer engagement solutions that seamlessly connect across multiple channels. Retailers must ensure they are ready for this brave new world.
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