More is the new Retail Reality.
There is more of everything: More Stores. More Formats. More Competition. More Products. More information.
Retailers are under tremendous pressure to make retail better.
And, shoppers? Shoppers are more promiscuous than ever. Mobile phones and eCommerce sites put information within easy reach. Actually, not just information, but when you can order via voice activated tools like Amazon’s Alexa and Google Home, buying is just a sentence away. This adds even greater pressure on retail because there is a lack of shopper loyalty.
More than ever before.
A ROUGH ENVIRONMENT IN WHICH TO OPERATE
It’s a complicated and difficult environment in which retailers exist. Every day retailers need to grow traffic, enhance loyalty and build baskets. These objectives are common across all channels – brick-and-mortar and online – regardless of whether its Wal-Mart of a single person eCommerce site.
HELP WANTED to make retail better
In this rugged world, retailers need help to drive business results. Understanding retail business challenges is important. And, for suppliers who ‘get this’ and lean in to help there is great value.
Focusing on shopper needs, desires, and occasions creates common ground for retail and suppliers. Collaboration to meet Shopper needs is the order of the day. But, how do retailers really benefit from Shopper Marketing?
WHAT RETAIL WANTS FROM SHOPPER MARKETING SUPPLIERS
The first benefit is obvious.
Retail seeks broader ideas and initiatives to drive real incremental growth. Attracting shoppers and making the shopping experience better is one way to combat the spiral towards lower margins and lower pricing. Shopper Marketing helps drive new occasions and new users for brands retail.
This drives greater profit from new and existing shoppers.
Secondly, retailers want suppliers to not just bring any type of shopper marketing initiatives. They want Shopper Marketing initiatives in THEIR stores that is aligned with THEIR shoppers.
If programs are misaligned with the retailer’s core shoppers it can be a big issue – assuming the marketing initiatives ever get past the proposal stage.
Lastly, retailers want more supplier dollars in THEIR store.
This is not necessarily a bad thing, as long as greater investment leads to greater shopper experiences and greater results for the retailer and manufacturer.
Shopper Marketing CONNECTS brand and sales
Bringing together sales and brand objectives can result in winning Shopper Marketing. This delivers a wide variety of benefits when done well. Here are just a few of the key ways collaboration between retailers and manufacturers adds value:
- Engagement and branded experiences
- Grow brand users
- Convert shoppers into buyers
- Greater in-store activities
- Reduce/waive retail slotting
Understanding retail and manufacturer objectives leads to greater collaboration and better shopper experiences.
This is critically important as 100% of revenue comes from shoppers.