The retail landscape has become increasingly competitive as e-commerce grows, and brands are looking for ways to stay ahead. One proven strategy is for consumer brand suppliers to partner with retailers to boost sell-through and velocity. This blog post will explore the importance of such partnerships and how they can lead to mutually beneficial outcomes for both parties involved.
Building Strong Relationships
A strong relationship between consumer brand suppliers and retailers is vital for mutual success. Working together, they can identify growth opportunities, streamline processes, and enhance performance. In addition, this collaboration can lead to increased sales, improved product placement, and better inventory management.
Win-Win Strategies
When consumer brand suppliers and retailers collaborate, they can develop strategies that benefit both parties. These can include:
Promotional Planning: By working together, suppliers and retailers can identify the most effective promotional activities to drive sales. This may include in-store promotions, online marketing campaigns, or joint events. Combining their efforts and resources can create powerful promotional strategies that drive customer interest and sales.
Inventory Management: Efficient inventory management is crucial for maintaining optimal stock levels and minimizing waste. Collaboration lets suppliers and retailers share data and insights on customer preferences, seasonal trends, and inventory levels. This enables better forecasting and decision-making, ensuring the right products are in stock at the right time.
Product Innovation: Retailers can provide valuable insights into customer preferences and market trends, which can help suppliers develop new products that cater to the evolving demands of consumers. Suppliers and retailers can better meet customer expectations and drive sales by aligning product offerings.
Data Sharing: Data-driven decision-making is essential for business success. By sharing sales data, customer feedback, and other relevant information, suppliers, and retailers can make informed decisions that will drive sales and improve customer satisfaction.
Benefits of Increased Sell-Through and Velocity
Partnering with retailers offers a range of benefits for consumer brand suppliers. These include:
Improved Sales Performance: Collaborative efforts can lead to increased sell-through rates, as well-orchestrated promotions, effective product placement, and better inventory management help ensure products are visible and available to customers.
Enhanced Brand Visibility: Working together with retailers can help suppliers increase brand awareness and visibility in the marketplace. This can result in increased customer loyalty and repeat purchases.
Increased Market Share: Suppliers can effectively increase their market share by collaborating with retailers and implementing strategies that cater to the market’s needs.
Reduced Costs: Streamlined processes, efficient inventory management, and optimized marketing efforts can save suppliers, and retailers cost.
Conclusion
In an increasingly competitive retail landscape, the collaboration between consumer brand suppliers and retailers is essential for boosting sell-through and velocity. By building strong partnerships and working together to develop win-win strategies, both parties can enjoy increased sales, improved customer satisfaction, and overall business growth.
Contact us to find out how we can grow revenue for your brand through increased sell-through and sales velocity.
As the name suggests, online to offline (O2O) marketing is the process of running online marketing campaigns designed to drive in-store foot traffic and offline sales.
The outcome is more targeted marketing and greater brand affinity by humanizing the sale at the point of purchase.
How does O2O marketing work?
There are four stages of the O2O process:
Online discovery: 81% of shoppers do their product research and discovery online, so O2O marketing focuses on gaining exposure across top-searched channels to gather user data. These channels include:
SEO and content creation – driving SEO for keywords with high search volume within the target audience by creating high-quality content.
Email marketing – Inviting potential customers to subscribe for new products or sales alerts.
Location and preferred store data – As part of the email opt-in process, collect consumer zip codes, which can be correlated with their nearest store to be segmented and targeted accurately.
Offline purchase: You can start driving them in-store for product launches, trials, or special promotions now that you’ve got an audience.
Post-purchase feedback: Collecting customer feedback after they’ve made a purchase will help strengthen relationships, grow product launch sales and gather better insights about customer preferences. This feedback can be from product reviews or purchase drivers/intent. Feedback can be collected via an email campaign to consumers within a specific timeframe from the sale event, QR codes on packaging, or purchase receipts sent via email.
Amplification and advocacy: This stage is about building community and encouraging word-of-mouth. This can be achieved through marketing activities like brand ambassador programs or influencer campaigns, and social media campaigns asking people to tag friends that might be interested in the product. However, the most crucial factor for generating word-of-mouth and customer advocacy is building a product that your audience loves.
Why should CPG brands take O2O marketing seriously?
It’s hard to deny that O2O marketing provides an edge to CPG brands over eCommerce-only competitors. It offers the consumer the benefit of enabling their usual online research and discovery habits without disruption but adds “service with a smile” and injects a human element into the otherwise sterile eCommerce experience.
Research has shown that delivering an in-store experience helps to address customers’ emotional needs and reinforces brand affinity.
While measuring the post-COVID retail environment, there’s a noticeable shift from “O2O” to an “O+O” philosophy. CPG brands that integrate this school of thought into their marketing efforts will reap the rewards. Online marketing and eCommerce have been ingrained into every shopper journey, which means there’s renewed focus on delivering a better in-store experience.”
A brand’s online and offline marketing activities must work perfectly to deliver a seamless, consistent customer experience to make the in-store visit positive.
If you’re ready to explore innovative ways of delivering a seamless purchase experience to your customers, contact Brand to Basket today.
