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Retail Trends

2020 Shopper Marketing: Are You Ready For This New Wave of Consumers?

Due to advances in technology and society, the way that consumers shop is radically changing. And consequently, according to Robert I. Tomei at IRI, the future is looking up for marketers.

Analysts predict to characterize the 2020 shopper by multicultural diversity, age, and technology.

Hispanic consumers, as well as Millennials, are beginning to dominate the shopping world. And the majority of them are using their smartphones or laptops to do it.

So, how can marketers and businesses prepare for the 2020 shopper?

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Use Digital Platforms to Better Meet the 2020 Shopper’s Needs

More and more 2020 shoppers turn to their smartphones first before making a purchase in order to compare prices and search for different products. However, many of them do still prefer shopping at brick and mortar stores where they can actually see and feel a product before purchasing it.

The best method for marketers is to combine these two experiences. The first step is to build a strong online platform that drives customers into the store. Then, establish a positive connection in store to keep them engaged and satisfied with their purchases, so they’ll keep coming back.

Use digital platforms as well as legacy marketing assets to appeal to the habits of the 2020 shopper. The better in sync your physical and digital marketing efforts are, the stronger your brand will be in their minds.

Meeting the customers where they are comfortable – a strong online platform – to drive them into the store to establish a positive in-store connection is a critical step for marketers to be prepared for the 2020 Shopper. 

Employ Marketing Techniques that Relate Specifically to the 2020 Shopper

As Tomei explains, “There is no such thing as a simple, one-size-fits-all marketing and sales strategy in today’s rapidly changing marketplace.”

To succeed, Tomei suggests marketers need to do three things:

  1. Understand the emerging 2020 shopper.
  2. Use their preferred digital platforms and channels to engage with them.
  3. Drive them into retail stores for experiences that convert.

The 2020 shopper is looking for a customized experience, one that’s tailored to their needs. The easier the process is for them to find and purchase what they need, the more satisfied they will be. And the more likely they will return, as a result.

The 2020 shopper is looking for a customized experience, one that’s tailored to their needs.

Remain Up to Speed with Market Changes

The 2020 shopper is shaping up to be different from the kinds of consumer groups that previously dominated the market, and therefore will respond differently to legacy marketing strategies and assets. For this reason, new tactics will need to be employed to reach them.

Marketers must remain agile to the constant changes that occur within the consumer industry and react swiftly by taking advantage of new ways to reach customers as they are made available.

The success of your brand depends on how well you can adapt and utilize these changes. A flexible supply chain and responsive marketing operations will be critical.

Marketers must remain agile to the constant changes that occur within the consumer industry.

Conclusion

The 2020 shopper is going to be more diverse, younger, and more connected to technology than previous consumers. By taking advantage of these factors, marketers can relate directly to the 2020 shopper and offer a customized, streamlined consumer experience that meets their unique demands and keeps them loyal to your brand.

By working with a partner who can help you prepare for the 2020 shopper and take advantage of new methods to reach them, your brand can compete in the ever-changing consumer market, instead of being left in the dust.

 

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Why NVISION?

NVISION® is a marketing execution company helping Fortune 1000 organizations optimize their marketing supply chain process. We provide the expertise to simplify the creation, procurement, fulfillment, distribution and ongoing account management for customers’ printed marketing materials.

With nearly 100 years of supply chain management expertise in streamlining operations, leveraging buying power and creating innovative solutions, we reduce cost and increase speed-to-market. NVISION provides dedicated experts that understand clients’ brand standards, internal processes, deadlines, and distribution needs.

We manage every step of the process to deliver marketing operations – simplified.

See how NVISION can help your business | Let’s start a conversation about your complimentary assessment!

Three CPG Market Trends to Watch Out for
in 2019 and Beyond

The consumer packaged goods market is constantly evolving. While the use of technology remains an integral part of customer outreach, it’s most effective when partnered with physical marketing tactics.

This is creating new challenges for brand marketers when it comes to driving the customer in-store through an online platform and personalizing their experience through brick-and-mortar methods to improve conversion rates. The better their in-store experience, the more loyal they’ll grow to your brand.

According to Deloitte in their 2019 Consumer Products Outlook report, “The continued growth of direct-to-consumer brands, the reemergence of pop-up stores, and online retailers developing a brick-and-mortar presence are all accelerated by the deployment of disruptive technologies, creating more avenues for brands to have a dialogue with consumers.”

So, what can brand marketers do to drive sales and maximize profits in coming years?

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Open Pop-Up Stores

Pop-up stores are trending in 2019. In pop-up stores, customers can directly engage with your brand without you having to invest in the overhead costs of a conventional retail store.

The temporary nature of pop-up stores creates a fun experience that gets customers excited to shop. With every single item “available for a limited time only” by default, pop-ups evoke a sense of urgency to shoppers to make more purchases.

Pop-up stores are especially beneficial during peak sales times, such as the holidays. They present a great opportunity to utilize physical marketing materials like creative signage and POS displays to drive customers into your store and increase demand.

Pop-up stores present a great opportunity for brands to interact with customers in a fun and alternative environment without the conventional store setting.

Establish Both Online and Brick-and-Mortar Presences

In 2019, a number of exclusively online brands are developing brick-and-mortar stores. There’s no denying that the majority of customers prefer to “experience” products before making purchases, and the best way to capitalize on that is to open physical stores.

Deloitte’s report explains, “From an e-retailer’s point of view, the benefits of having a presence in physical stores can include:

  • Minimizing costs associated with product marketing, delivery, and returns.
  • Being able to access shopping data.
  • Centralizing procurement of niche/regional products and merchandising.”

Traditional stores are also important because directly engaging with customers is the most effective way to learn what they prefer in a retail shopping experience.

Then, you can personalize the experience and tailor it to them. It’s just not possible to give customers that same level of brand connection through e-commerce alone.

The majority of customers prefer to “experience” products before making purchases, and the best way to capitalize on that is to open physical stores.

Focus on Smart Brand Packaging

Modern-day shoppers are growing increasingly conscious of what’s inside the items they purchase. As a result, smart packaging is a significant new trend that is beginning to dominate the consumer packaged goods industry.

Smart packaging involves creating labels that detail the contents and related health benefits of a product. Specialty items such as those that are organic, gluten-free, and fair-trade are attractive to modern consumers. So, packaging that conveniently and clearly shows these features can drive higher sales.

This is a potential avenue to target consumers’ lifestyle preferences, which in turn creates more chances to build brand loyalty. Essentially, if the customers trust your product, the more likely they are to keep buying it.

By coupling the opening of physical retail stores with the right kind of physical marketing assets, your brand can reach new consumer audiences while simultaneously maintaining the loyalty of your current ones.

By coupling the opening of physical retail stores with the right kind of physical marketing assets, your brand can reach new consumer audiences while simultaneously maintaining the loyalty of your current ones.

Conclusion

New trends are dominating the market in 2019 and forecasted to continue driving the retail industry into the next level. Pop-up stores are providing a fun, temporary environment that drives demand generation among shoppers. Online brands are opening up physical stores to give customers the full “experience.” And the revolution of smart packaging is changing the way brands communicate product value to audiences.

By understanding these emerging market trends, brands can thrive on new opportunities by directly engaging with consumers through various touchpoints in their retail journey.

And by working with a trusted partner who can help you take advantage of these new opportunities in market trends, your brand can compete on the quality and effectiveness of delivering value to your customers.

Related blogs:

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Why NVISION?

NVISION® is a marketing execution company helping Fortune 1000 organizations optimize their marketing supply chain process. We provide the expertise to simplify the creation, procurement, fulfillment, distribution and ongoing account management for customers’ printed marketing materials.

With nearly 100 years of supply chain management expertise in streamlining operations, leveraging buying power and creating innovative solutions, we reduce cost and increase speed-to-market. NVISION provides dedicated experts that understand clients’ brand standards, internal processes, deadlines, and distribution needs.

We manage every step of the process to deliver marketing operations – simplified.

See how NVISION can help your business | Let’s start a conversation about your complimentary assessment!

Looking Ahead: What Winning Customer Experiences Will Look Like in 2020

With 2018 in the books and 2019 officially here, smart brands have already begun looking forward to 2020, and the biggest trends for the coming year. And one of the most significant areas where brands are looking to set themselves apart from the competition is with personalized customer experiences.

In fact, according to a recent report by Econsultancy:

  • 86% of customers prefer brands that offer personalized experiences, even if that brand isn’t the cheapest.
  • 73% of customers call customer experience an “important factor” in their purchasing decisions.
  • 65% of customers say that good customer experiences are more important than good advertising.

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So, how can savvy marketers and brand directors capitalize on the biggest customer experience trends of the coming year? According to Mark de Bruijn of The Future of Commerce, there are three areas CMOs and decision-makers should focus on.

Let’s take a look at them.

Hyper-Individualization of Retail Experiences

Thanks in large part to the increase in connected technology known as the “Internet of Things,” brick-and-mortar retail spaces will compete with online shopping by offering unique in-person experiences. How will such a connected retail store look in reality? De Bruijn offers the example of a shoe store.

“The moment a customer passes the store, he or she should get a personalized deal offer on their smartphone, letting them know that the newest edition of their favorite shoe is on sale for 20% off, and is available in-stock at that store, right now,” he explains. But the opportunity for personalization goes further. That customer can then enter the store, and “get measurements on their walking patterns, soles, and weight. Based on that data, they can get advice on the footwear that best suits their needs.” That is an engaging, personalized customer experience worth coming into the store for.

65% of customers say that good customer experiences are more important than good advertising.

Putting the Customer at the Center of the Product Cycle

Plenty of companies use focus groups and market research during the research and development stage of a product. It’s an excellent way to make sure you’re giving your customers what they want. But what if you could solicit customer feedback and make improvements during the product lifecycle? That’s what brands like Tesco and Burberry are doing with their customer experiences.

Fashion retailer Burberry invited customers to share the ways they personalized their famous Burberry coats, snapping pictures of clever uses and various ways to wear them. Burberry then took several of the most popular suggestions and used them in marketing materials, from print images of models showing the coats worn a certain way to in-store mannequins featuring them.

Burberry saw a 36% rise in sales of their coats during the campaign. Your products should be designed with your customers in mind. Now, you can make sure your customers know it.

Hyper-individualization enables brick-and-mortar retailers to be competitive by offering unique in-person experience, thanks to the “Internet of Things.”

Virtual Reality Blending In-Store and Online Experiences

One customer experience trend that will carry over from 2018 is the rise of virtual reality (VR) in shopping. But as de Bruijn explains, retail brands will soon be using VR to bring the in-store shopping experience online. “Consumers will not just use [VR] for gaming, but also for home shopping sessions. They can literally walk through the virtual store from the comfort of their couches,” he explains, adding that retails gain an edge, too. “Retailers will enjoy the traditional advantages of brick-and-mortar stores in an online setting: the element of surprise, the ability to steer impulse buying and strategic product placement.”

Meanwhile, de Bruijn says, brick-and-mortar gets the customization treatment from VR. “The digital setting also offers a unique feature that is not available for brick-and-mortars. The store’s layout and even the inventory are fully customizable to the preferences and habits of the individual customer.”

Retail brands will soon be using VR to bring the in-store shopping experience online.

Summary

2020 is shaping up to be a big year for retailers and marketers. Big on keeping the growing importance of personalized customer experiences in focus, brands can compete and win by delivering truly engaging, winning shopping experiences.

Related blogs:

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Why NVISION?

NVISION® is a marketing execution company helping Fortune 1000 organizations optimize their marketing supply chain process. We provide the expertise to simplify the creation, procurement, fulfillment, distribution and ongoing account management for customers’ printed marketing materials.

With nearly 100 years of supply chain management expertise in streamlining operations, leveraging buying power and creating innovative solutions, we reduce cost and increase speed-to-market. NVISION provides dedicated experts that understand clients’ brand standards, internal processes, deadlines, and distribution needs.

We manage every step of the process to deliver marketing operations – simplified.

See how NVISION can help your business | Let’s start a conversation about your complimentary assessment!

Preparing for Peak Holiday Shopping Season

Peak holiday shopping season presents an opportunity for retailers that is simply too important to fail to execute upon. With the surge of winter holiday shoppers promising healthy bottom lines and robust sales figures, smart companies should consider their peak season preparations a yearlong priority.

That’s according to Jacqueline Renfrow at FierceRetail, who spoke with Stefan Weitz, an industry expert in omnichannel commerce operations. Renfrow and Weitz shared several of the most common misconceptions, misunderstandings, and missteps in preparation that prevent businesses from realizing the full value of their peak shopping season.

Here is some of their most valuable advice for retailers tackling the myriad logistical complexities that surround the holiday shopping season.

The Most Common Mistake: Don’t Underestimate the Complexity

According to Weitz, the biggest and most common error retailers can make in preparing for the peak holiday shopping season is underestimating the logistical complexity of coordinating and sourcing all of their physical and in-store marketing materials.

“Many think it’s just their normal business with a little more volume,” Weitz says. But that’s not the case; the issue is that not only does the volume of business increase, but so, too, do the stakes. “The reality is that with peak season, every potential mistake is amplified tenfold,” he explains.

And it’s true: nearly every retailer counts on the peak holiday season to make its target sales numbers, but any logistical miscalculation creates a chain reaction of lost revenue and customer dissatisfaction. Any backup in the sourcing, creation and delivery of promotional products, point-of-sale materials, and in-store displays compounds down the line as your supply chain struggles to catch up. You don’t just miss your first target date, you miss the next one as you’re now behind, and the next one as each vendor is swamped by all of their customers, too. Further, the situation can grow even worse as new partners, products, and technologies you had planned to roll out are added, increasing complexity, delays, and total waste.

The sum total consequence of these consecutive holiday shortcomings is massive. Retailers will suffer reduced revenue, higher costs for rush/emergency fulfillment, greater risk of uncaught errors or mistakes, and perhaps worst of all, a severely damaging effect to their brand’s perception among customers. No company wants to be the “brand that can’t get it together,” and no customer wants to shop there, either.

Transforming the Role of Brick-and-Mortar Retail

As Weitz explains, online channels will continue to gain in market share as more and more customers opt to do their holiday shopping from the comfort of their own homes. But that doesn’t mean that brick-and-mortar retail should take a back seat. It simply means that its role must change.

Retailers should re-imagine the space, considering the infrastructure as an advantage, transforming them into…showrooms,” Weitz advises. Retailers like Apple have successfully turned their stores into brand showrooms, creating an immersive brand experience that invites and seduces customers with well-executed displays and promotional materials. Customers may still opt to make their final purchase online, but that revenue will have been generated by the experience they had in the retail space.

There is a hangup, though. As Weitz points out, “Many stores are still navigating the technology and training necessary for execution…Many retailers have successfully worked with strategic partners to make this vision a reality.”

Which is precisely why leveraging vendor help in optimizing your marketing supply chain is so critical for peak season success.

When to Start Preparing for Peak Holiday Shopping Season

Peak season is so important, preparing for it should be a yearlong strategic initiative. As soon as one peak season closes, your organization should get right to work reviewing what was successful, what wasn’t, and why.

Then, you should begin getting your logistical house in order for the next season, examining your marketing supply chain and exploring whether your organization could benefit from partnering with a vendor who can streamline and optimize it
for you.

As Weitz explains, the value in preparing for peak season well ahead of time is tremendous.

Peak holiday shopping season is a stressful but joyous time for retailers, when revenue should flow like eggnog. But in order to ensure that it does, your marketing supply chain must be healthy and optimized, and successful execution of the holiday season should be made a priority all year round.

According to Weitz, the biggest and most common error retailers can make in preparing for the peak holiday shopping season is underestimating the logistical complexity of coordinating and sourcing all of their physical and in-store marketing materials

The reality is that with peak season, every potential mistake is amplified tenfold.

Peak season is so important, preparing for it should be a yearlong strategic initiative.

 

In-store Displays

E-commerce and online shopping may be the hot channels getting the majority of media coverage these days, but cultivating engaging in-store experiences for customers is one of the most important keys to continuing to drive growth in brick-and-mortar revenue.

That’s according to FierceRetail’s Jacqueline Renfrow, who cites new research which suggests that in-store displays, decorations, and promotions all critically contribute to both shoppers’ preference for brick-and-mortar shopping, as well as up to 54% of in-store impulse buys.

The research, which surveyed over 11,000 consumers in the United States, Europe, Australia, and Asia, found that promotional displays and in-store visuals not only create a more pleasant shopping atmosphere for customers, but allow stores to create their own unique brand identities and help put consumers in the “mood” to shop there. In fact, 54% of U.S. shoppers reported that in-store promotions are the “biggest influence on their impulse buys,” while 37% of U.S. shoppers cited a store’s ability to make them “feel in the right mood” as their biggest impulse buy driver.

54% of U.S. shoppers reported that in-store promotions are the “biggest influence on their impulse buys.”

But it’s not just promotions that allow retailers to make their in-store experiences stand out to customers. In-store visuals, like displays, end caps, standing booths, hanging decorations, branded apparel, and print materials all contribute heavily to the atmosphere of a store, and 70% of consumers surveyed reported that those visuals help them “connect to the brand.” Further, a full 84% of consumers claimed that said visuals make the in-store shopping experience “more enjoyable.”

In fact, when a store adds marketing materials to the in-store experience like smells and visuals, 59% of U.S. shoppers surveyed are more like to revisit that store. That number leaps to 72% for shoppers ages 18-24, and those same Millennial shoppers reported being 60% more likely to shop for longer each time they visit.

As Renfrow explains, even in an omnichannel world, each specific channels has its advantages and appeals. For the brick-and-mortar channel, the appeals are ancient: instant gratification, and overall entertainment. Yes, we may have grown beyond our teenage years, loitering at the local mall, but the fact remains that in-store shopping is still a form of entertainment for most of us, and we reward those brands that invest in creating a dynamic, entertaining in-store experience with our hard-earned dollars.

“Consumers, particularly younger consumers, aren’t just buying a product when in-store; they’re buying an experience. And their expectations for a positive, emotionally engaging experience are quite high. Those businesses who deliver an elevated customer experience witness greater repeat visits, a greater number of recommendations, and longer in-store dwell times,” says Scott Moore, global vice president of marketing at Mood Media.

And while crafting these compelling in-store experiences is crucial to retail marketing success, they require a highly-optimized and efficient supply chain to ensure each promotional material arrives on-time, in-place, and on-budget. Further, companies need to have insight into which marketing materials are actually driving revenue, and which are detracting from their carefully cultivated brand image. The proper in-store marketing materials are powerful; the wrong materials are ineffective and overpriced, and the right materials delivered too late are worthless.

Brands that take their in-store promotional and visual materials seriously stand to claim a powerful advantage over their competition, and those that understand, prioritize, and optimize their marketing supply chain can realize unprecedented success.

84% of consumers claimed visuals make the in-store shopping experience “more enjoyable.”