The combination of the changing social attitudes, digital technologies and socio-economic change has created new rules for retailers.
“It is a world in which the needs of shoppers remain, in many ways, largely unchanged—but their expectations of how businesses will fulfill those needs are being transformed. It is an old challenge in a new world” – The Future Shopper
This is one conclusion of a report from The Future’s Company in collaboration with Kantar Retail. Rapid changes in technology have altered the meaning of ecommerce, which has moved from meaning ‘electronic commerce’ to ‘everywhere commerce.’ The economic turmoil of 2008-2009 has altered the economic landscape, as incomes have been squeezed and net wealth has deteriorated. In the process, shopper’s perceptions of price and value as well as overall consumption has been inexorably changed. Trust of institutions is another change, particularly in more developing countries.
How to create a Marketing Analytics Framework that provide key insights to CMOs to make successful marketing decisions.
In a recent Forbes interview, Tim Suther, the Chief Marketing and Strategy Officer for Acxiom, said,
“Big data is challenging everything we know about marketing. The “big idea,” as romanticized in television’s Mad Men, is no longer enough. A new marketing discipline, rooted in science and the big data goldmine, is vital. Mad Men meet Math Men.“
Retail marketing has become more data-driven than any other aspect of retailing. But there is so much data available and so many options on what to collect and how to analyze it that retail marketers don’t have a clue where to start.
Leveraging the consumer preference around a given retail location adds sales while building loyalty!
For years the phrase – ‘think global, act local’has stood as a unique rallying cry for brands with multiple touchpoints/locations. The idea was to market your brand essence by:
Featuring distinct local differences within the brand structure
Building upon varying consumer tastes and habits unique to a given country, region or city
Provide product inventory differences and preferences by country, region or city
Now – with digital targeting these unique local offerings can be even precisely target much needed traffic.
The shift of advertising dollars to local marketing has accelerated as new digital tools with location data and real time delivery features are introduced and validated. With online search heavily weighted toward local business (75% of search is local), the increased spend is good news to retailers.
In a recent AdAge Insight Trends Report, marketing dollars spent in all media locally is expected to reach $151 billion. And local digital will benefit the most by 26% to $39 billion in 2016.
Spending marketing dollars locally is NOT a new practice. Nor is it an unknown marketing advantage. Auto dealer associations, fast food chains, medical services and virtually most categories with local/national budgets have not only implemented that practice, many have adopted contractual obligations to spend at a defined specific level. While arriving at the percentage amount can be contentcious at times, the results are unmistakely evident and beneficial.
On the Ball – focuses on profitable retail observations and insights observed from my personal experience on both the agency as well as client side of the business.
It has been said that virtually all selling and marketing is ‘retail’ – when measurable results are the imperative.
My tenure as CMO as well as agency principal centered around measurable results at the cash register…. the ultimate measure of any CMO’s job life expectancy.