Did you know that 90 percent of customers say they prefer to receive personal recommendations over general content? Did you know that 92 percent of shoppers are influenced by online reviews when making a buying decision?
Are you aware that shopping is evolving from transactional and one-time to an experience and loyalty-driven model? These are just some of the insights retailers have about today’s digital consumers.
In this article, we explore the ways in which modern retail marketing is reinventing itself. And what that means for your business. From algorithms to omnichannel, from local bricks and mortar to e-commerce— here’s what’s working in retail digital marketing today, and what will be next.
What’s Working in Retail Digital Marketing Today?
Retailers are re-imagining and repositioning their digital strategies to better engage digital customers, achieve stronger ROI, and generate new revenue streams. One major trend impacting this digital transformation is omnichannel: from physical to digital.
Omnichannel allows retailers to engage customers across all channels—including store, eCommerce, mobile, and digital experiences—to build a complete relationship with them. As a result, retailers are gaining a better understanding of their customers. Therefore better matching products and marketing to specific needs, and increasing revenue.
Traditional retailers can now realise new opportunities through hybrid digital-physical experiences. During 2021’s peak season, 9 in 10 retail dollars spent offline in Australia were influenced by digital.
Omnichannel: From Physical to Digital
What if you could replace your stores, inventory, and employees with just the right digital experience? And what if you could seamlessly connect, track, and measure that experience to drive higher revenue and improve customer satisfaction?
Omnichannel, or the transition from traditional marketing to digital as a complete experience, is the future of retail marketing. This transition includes leveraging technology to streamline processes, deliver more personalised experiences, and create a seamless experience between all channels.
For example, retailers like Sephora and Target are leveraging omni-channel experiences to improve their in-store experience. They do this through technology and personalised content, while simultaneously driving more online sales through eCommerce experiences.
As a result of these omnichannel strategies, another marketing trend impacting this transformation is data-driven marketing. With the ability to track digital interactions across multiple channels, retailers can analyse and use data to inform their digital strategies. This allows them to optimise their offers, and create new revenue streams.
This shift from a reactive to a proactive approach to digital marketing allows for a more targeted approach to advertising and a better understanding of customers. For example, Target used data to target potential customers in their local market by creating custom ads for products and stores in their city.
This strategy allowed Target to better understand its customers and create customised experiences, like a customised in-store experience, that ultimately increased revenue.
The Publicis Sapient Digital Life Index 2021, revealed that 62% of Australians searched for new products or services online. This was the highest in the world, compared with the global average of 55 percent. (Source)
Artificial Intelligence and Smart Marketing
Another major trend impacting retail digital marketing is the growing use of artificial intelligence (AI). AI provides retailers with the ability to automate marketing activities, optimise digital strategies with data, and reach customers across all channels.
For example, AI can be used to help retailers create and optimise marketing campaigns, track customer experiences, and maximise brand recognition. AI can also be used to help retailers optimise their online advertising. This maximises the return on investment of their marketing dollars, and identify new marketing channels and models.
For example AI can be used to analyse digital interactions to determine which marketing channels are performing best. This helps retailers automate and track which campaigns are driving the best results.
The Future of Retail Digital Marketing
Not only are retailers transforming their digital strategies to engage digital customers across all channels, but they’re also rethinking the role of brick-and-mortar stores. Many retailers are transitioning to an experience and loyalty-driven model. They are creating stores with high-quality services and products, offering a unique shopping experience.
These high-touch stores are becoming increasingly popular, and they’re drawing more customers and generating more revenue. These hybrid stores blend the best of online and in-person experiences. Offering stores with a curated assortment of products that can be easily accessed, ordered, and shipped.
The future of retail digital marketing looks even brighter as technology continues to evolve and transform. From improved automation and data-driven strategies to artificial intelligence and seamless omnichannel experiences. Retailers are re-imagining and repositioning their digital strategies to better engage digital customers, achieve stronger ROI, and generate new revenue streams.