Gil Larsen, MD in the US, talks about the future of retail marketing. You can find a summary of the article below and the full, original article in Digiday.
In short:
Marketers have long relied on the belief that retaining and upselling an existing customer is easier and more cost-efficient than a net new acquisition. However, between today’s challenging economic headwinds, dwindling data landscape and heavily saturated retail market, that adage may no longer prove entirely accurate. Brand loyalty is under greater threat than ever, and retail marketers have made filling their funnel a priority as they strive to ensure long-term growth.
Key takeaways:
- Loyality is losing some of its value
The takeaway is that traditional retail norms and long-held beliefs about reliable growth generators are under intense pressure. For marketing teams, it’s not just about driving loyalty amongst the top spenders — it’s about increasing the quality of reach. - Retailers are turning to RMNs to expand reach
RMNs are an essential part of retailers’ advertising strategies. However, successful marketers are working to ensure they have a growth partner helping them maintain scale and acquire new, relevant customers while sustaining loyalty levels. - Maximizing reach in a fragmented retail landscape
Retailers are searching for a new formula. They need to build audiences to identify customers with privacy-first data sets based on real-world and online behavior, including advertisers’ own first-party data, more efficiently than ever. Layering these data sets with lifestyle, spend and additional rich anonymized data is enabling retailers to create more accurate, granular and truly scalable target audiences. The retailers taking these steps are preparing for growth in the face of change and disruption rather than solely relying on brand loyalists to remain steadfast and continue to drive growth in volatile times.
