Rules of New Retail - Rules of New Retail

Now, into the 21st century’s third decade, it’s clear that 20th century marketing practices are either quickly fading away or they’re becoming increasingly complex. A myriad of factors, including technology, global crises and social awareness are shaping the way advertisers must approach their messaging moving forward. Davis Elen continues to look ahead, embracing today’s newest ideas and tools, while anticipating what tomorrow will bring. With that in mind, we offer a new set of rules and best practices to more effectively reach retail audiences.

What was once old is now profitable again. Anyone who has seen the inside of a Target can tell you that their $11 billion renovation to make the in-store experience more dynamic and shopper-friendly was money well spent. Whereas the big-box and specialty stores thrived throughout the 90s and first part of the century, the classic, ultra-convenient notion of offering a wide variety of products under one roof is the next wave, with digital usually in support.

It’s standard, right? You manufacture a product, get it on shelves, and market the hell out of it. Not so fast. These days, attracting a passionate audience to create buzz is the first step in the path to a new product’s success. Whether tapping into influencer marketing on social media or embracing a blog-first strategy to grow a community, brands are seeing strong sales out of the gate by eschewing the traditional game plan and first laying down a strong foundation, then launching.

SPOILER: Out-of-home offers the highest rate of online activation per dollar of any traditional media. Successful digital brands are taking advantage of cross-channel campaigns, with OOH playing a pivotal role, often tying the message into specific locations. Maybe that’s why one quarter of the top 100 OOH advertisers are major tech brands, like Apple and Google.

Recreating the brick and mortar experience online is a misuse of 0s and 1s. Digital advertising offers advantages including predictive analytics, AI-powered searching, and personalization. Social commerce also incorporates that same personalization, along with dynamic content, social engagement and user-generated content. To get the most out of digital, smart retailers take full advantage of its offerings.

Retail sites like Etsy and eBay have helped to usher in the era of peer-to-peer retail with marked success. The peer-to-peer model allows shoppers to sell directly to each other, with little additional energy put forth from the brand. In doing so, companies can attract new consumers simply by establishing a platform for individuals to do business, which can lead to increased sales and returning customers.

Accelerated by the rise of Amazon and the obstacles of 2020, we now live in a “free two-day shipping/curbside pick-up” world. Convenience truly is king and won’t likely be dethroned anytime soon. So whether entirely digital or a combination of brick and mortar and digital, retailers must innovate to offer their customers the simplest experience possible.

As the days of mining information via 3rd-party cookies disappear in the rearview mirror, smart brands are thinking beyond traditional loyalty programs designed to entice. Instead, they’re curating content (from gaming to music and everything in between) that works in tandem with loyalty programs to increase engagement on their consumers’ terms. The result is a relationship where those consumers happily pursue their favorite brands.

Social consciousness. It isn’t just for individuals anymore. As consumers place more value on social causes, they want to see the same from their brands. 80% of Gen Z, for example, refuse to do business with any company involved in societal scandals. So brands are now taking the reins and actively supporting their favorite charitable organizations. Not only is it having an impact on their causes, but consumers show their appreciation with increased sales. Win-win.

Historically, the customer experience ended at the cash register. But 21st century retailers have come to realize that type of thinking is selling their products short. Armed with customer preferences, brands can provide a greater level of personalization, which leads to offering more appealing products while using more targeted marketing. That targeted personalization also leads to programs of greater value — programs that provide benefits and life experiences beyond the brand. It’s no longer about getting your 10th sandwich free, but adding value to one’s life.

With the overwhelming shift to digital commerce, retailers need to consider new ways to get customers to make an appearance, take the time to explore the space and, in the end, find their way to the check-out line. (Not to mention repeat the process.) Beyond trying to improve the experience through superior service, businesses need to rethink and reinvent, with a thought to the question, “What’s genuinely going to excite our customers?”

When it came to rethinking new retail, it was a team effort. And some of our teammates want to tell you all about that thinking. And rethinking.

Utilizing Loyalty Programs

Greg shares his insight on how brands can utilize loyalty programs to build a relationship with their audiences.

Global Brand Positioning

Jessica offers her thoughts about how a global brand can be positioned across highly nuanced hyper-local regions for maximum success.

Engaging Multicultural Audiences

Alejandro shares his thoughts on how retailers can engage multicultural audiences more effectively and authentically.

Capitalizing on the Sharing Economy

Lynette breaks down how retailers can capitalize on the burgeoning sharing economy.