The Shift from Mass Media and the Need for Relevance
By Moty Bank, CEO, and Asaf Efrima, VP Operations and Research, Sagarmatha
The movement from mass media to 1:1 personalized marketing is accelerating…dramatically. While this has been going on for some time, technologies such as ours have evolved to the point where many of our clients have expressed the desire to completely do away with printed circulars. The bottom line is that targeted, relevant electronic communications are driving business.
The rise in personalized emails, website landing pages, and retailer app adoption confirm this. Our retail clients are measuring the impact both in terms of sales, margin and loyalty of every dollar spent via personalized marketing, something they simply cannot do in traditional mass media. The high ROI they are achieving via this data-driven approach is helping them allocate marketing spend more efficiently.
The spread of digital communication channels coincides with the increased marketing power of millennials, raising the chances that they influence the shopper at a critical point on the path to purchase.
Sorting and targeting your shoppers’ most recent purchasing behaviors requires highly sophisticated algorithms that learn from each interaction with the customer. While this concept has been around in e-commerce for some time, brick-and-mortar grocery and drug retailers are now on board, upping their investments in automated targeting that enables them to be relevant to every shopper, all the time.
Having tens of millions of shoppers, with thousands of potential offers, and a multitude of in- and out-of-store communication channels demands a data-driven approach to ensure every communication is personalized. You have no choice – if you want to talk to shoppers via relatively intimate channels such as email, mobile app and social networks, you have to make sure you are giving them relevant content or you run the risk of annoying them and possibly having them unsubscribe or even defect to another chain.
Finding the shopper, onsite
In-store beacons have not yet made much of an impact, but as the overall TCO decreases and retailers become more comfortable with the technology, we expect to see many more of them in supermarkets and drugstores during the course of 2016. Given that beacons have the ability to identify individual shoppers, the goal of providing them an ideal, real-time personalized offer is finally a reality.
Data-driven marketing is here. The more innovative retailers are early adapters and will harness technology quickly to help win share of wallet. The laggards will wonder what happened…