As a manufacturer or retailer, you will invest heavily in marketing activities at the point of sale (POS). But do you, like so many in your sector, lack confidence in your investment decisions? Do you struggle to know to what extent you are achieving a healthy return on your spend? Well, let’s get to grips with what’s actually driving the bottom line.
From our research with brands across the world and multiple sectors, we know that retail promotions are having an impact on consumers. When we asked shoppers what influences their buying decisions, retail promotions ranked as a key factor. 44% of shoppers cited information at the shelf as influencing their shopping decisions, slightly ahead of in-store displays and product samples and demonstrations, both at 41%.
We also know that today’s Connected Consumers are increasingly price sensitive. As a result, promotional activity is intensifying in a bid to woo bargain hunters with ever better deals. More than half of all shoppers (58%) compare prices between stores, an unmistakable sign that price is a key influencer of purchase. The message is clear: consumers pay attention to promotions and so you need to as well.
You know that well-timed and executed marketing activities can close sales. But with so many possible activities to choose from, the difficultly lies in understanding which investments will deliver the greatest return on investment (ROI).
If your life wasn’t complicated enough, the challenges you face around price, promotion and distribution are further exacerbated by the fast-paced omnichannel environment.
In order to succeed in these highly competitive conditions you need to have a sophisticated understanding of which activities are actually driving your bottom line. You need insight into all elements of your and your competitors’ pricing, discounting, assortment and promotional activities both online and offline. And you need to understand how shoppers experience your product in context.
Armed with such intelligence, you will be empowered to prioritize your budgets and select those retail executions that will drive sales and achieve real ROI. Furthermore, by integrating this information with real sales data, you can close the feedback loop and create winning strategies that will benefit you and your customers.
Share your thoughts by emailing email@example.com.
Download Angelo Pierro’s presentation for brand examples of what winning tomorrow in this market can look like.
Bradley Taylor investigates “Insurance incentives and rewards in South Africa”.
What can you learn from the way rewards are used here to drive loyalty and business in this competitive market?
What’s the future of insurance in this lucrative market, asks Ronald Leung? He discusses the effects of technology on personalization and asks why insurance providers are being left behind.
Are you maximizing this audience?
Martin Grimwood looks to a future where human financial advisers are replaced by “Robo-advice”, algorithms that provide portfolio management.
With traction in the US, is it about to take-off in the UK? Are you ready?
This first of four presentations examines fintech’s impact on financial services. Tom Neri examines the partnerships that are re-imagining customer engagement on smartphones.
Can you engage your customers on the small screen?
This year’s dmexco was attended by more than 50,000 visitors. The breadth of the program at the event highlighted the rapid speed of change in the digital market. From the internet of things to virtual and augmented reality, to data and marketing automation, there was much to debate. Here’s our take on two key discussions.
This may not be a new topic, but the discussion has moved on from the role of data, to how organizations use the information they own to be most effective. There was much debate about how companies use their data and combine and enrich it with other sources. The resulting information can help optimize marketing and sales, customer insight and experience, and design new products and services. We’ve been doing this for many years with our clients, augmenting and maximizing their data with our own proprietary primary research such as point-of-sale figures and media measurement. The result can be competitive advantage and market leading positioning.
Pokémon Go has brought augmented reality to a broad group of consumers and it was the example of many sessions. Following this example, we expect to see more brands embracing AR and VR in their advertising campaigns and even in their products. In the not too distant future it will be normal to select a holiday destination having “been there” through VR. The key to success with this new technology is to understand what audiences it appeals to, and to use it meet the needs of the target group. As the Pokémon Go example showed, just having the technology isn’t enough – it must appeal to consumers. We’ll be watching this space, and helping our clients develop meaningful applications of this new technology.
What is clear from dmexco is technology is driving markets at a speed we have never experienced before. It is hard for businesses of all kinds to know where to focus their energy. New ideas take time to come to life as products and services in businesses, and so ideas we discussed at dmexco 2014 and 2015 are only now materializing. It may feel like business needs to run to stand still, but the key to success is still to understand your target audience and make sure to focus on their needs so you are in control of the future.
Discover the top tech trends of 2016
Shoppers have a strong desire to receive goods when and where they want them, quickly and cheaply. Retailers are therefore harnessing the power of increasingly intelligent technology in order to fulfil this need.
Most consumers (90%) who took part in our 2016 FutureBuy study have had goods delivered to their home, while almost half (48%) have used click and collect services. And these delivery methods are set to grow, with 76% of shoppers indicating that they will use home delivery more, and 38% saying they will increase their use of click and collect. Additionally, more than a quarter (28%) of shoppers claim they will use parcel lockers with greater frequency in the future.
Indeed, being able to buy conveniently and speedily is the number one trend identified by our Retail Trend Monitor. But this is a challenge for retailers. Having the supply chain ready is a complex process. Furthermore, businesses have less control of the final part of the shopping process because deliveries are often outsourced.
Being able to get a package to someone’s home fast, efficiently and cheaply is a competitive advantage. While retailers call the delivery process the “last mile”, shoppers often see it as the most important part of the process. Waiting for a parcel at home can be frustrating. For this reason, retailers have to develop ever more innovative ways for customers to receive deliveries on their own terms.
Click and collect services have been popular in the UK for several years now, and there are several emerging solutions to the delivery challenge.
Doddle will open 300 outlets across the UK in the next three years that shoppers can use to collect deliveries from. Located in and around train stations, and open seven days a week, Doddle uses a website as well as text and email alerts to notify shoppers when they have a delivery for collection. £24 million has been invested in the business, which also allows shoppers to return products via its outlets, taking the pain out of returning items.
Newcomer Parcelly, which recently partnered with Costcutter Supermarkets Group, lets people pick up deliveries from its 2,500 UK locations, including its KwikSave, Mace and Simply Fresh stores. This is a win-win for the retail chain because shops earn commission on each parcel collected, and attract more customers into their stores. For consumers, it means collecting goods at a time and place that’s convenient for them.
Amazon Prime is offering two-hour delivery slots to people in Berlin who subscribe to its annual service, and it is doing the same in some places in and around London. Also in the UK, AmazonFresh’s customers are now benefiting from one-hour delivery slots between 7am and 11pm. Since AmazonFresh launched this service, Tesco and Sainsbury’s have introduced same-day delivery. Tesco also offers a three-hour click and collect service. This type of competition has been called the start of the groceries “time war” by some commentators.
Meanwhile, DHL plans to make deliveries to people’s Smart cars in Stuttgart by accessing their vehicles using a single-use code. DHL plans to expand this service to Bonn, Berlin and Cologne.
Not only are retailers having to offer goods at lower prices than rivals, they are also having to make deliveries (and returns) more efficient and flexible. However, the innovations won’t stop there, with retailers and entrepreneurs pushing the boundaries all the time.
Amazon, for example, is experimenting with “anticipatory shipping”. Based on big data, it will predict what shoppers are going to buy before they make a purchase. It will then proactively ship out that product. Amazon is anticipated to have more luck with doing this for some categories than others. For example, it is expected that it will be easier to do this for consumables that follow more predictable purchasing patterns like diapers or baby food.
Similarly, crowd-sourced deliveries such as Nimber and MyWays are changing the retail environment as well as the expectations of consumers. Both offer people ways to earn money. Nimber (in beta at the moment) pays people to drop off parcels to someone at an address near where they are travelling to anyway. DHL-owned MyWays is an app that lets people (‘MyWayers’) pick up parcels for others from a DHL service point for a set fee.
With this new raft of ways for people to receive deliveries, the onus is on retailers to make sure they keep ahead of the game. That means matching consumers’ expectations, and fast.
For more information, please contact Alejandro Mondragon: Alejandro.Mondragon@gfk.com.
Download our report
Watch the interview with Molemo Moahloli, Managing Director of GfK South Africa and General Manager for Audience Measurement & Insights for Sub-Saharan Africa, conducted with “The Red Zone”, where he answers key questions about the Connected Consumers and what they are expecting from brands.
In this paper, we're going to outline some of the different approaches to RAM, the new technologies, and their advantages and disadvantages.
With the massive proliferation of mobile devices, the demand for online diaries in mobile formats - or m-diaries - is no surprise. But have you determined how m-diaries impact response rates?
Our clients tell us that the biggest challenge facing them in fashion and non-food retailing today is conversion. Do you understand your shoppers’ path to purchase?