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.
There’s mounting evidence that wholesale remains more profitable regardless of the mass shift towards the direct-to-consumer model due to Covid.
It’s been found that wholesale provides greater control, access to data, a higher revenue per item sold, and total gross margin when compared to similar businesses that utilize a DTC model. This can be further demonstrated when comparing these businesses’ EBIT (earnings before interest and taxes).
Contributing Factors:
Increasing competition – as more businesses migrate to the virtual space, more noise is created as more businesses bid for a share of voice.
Privacy – The inception of GDPR and CCPA regulations has limited the capacity for businesses to communicate unsolicited messages to potential customers.
Ad blockers – due to the noise created by the increasing competition and bombardment of ads at various audiences, installing ad blockers have become more commonplace, making it harder for DTC brands to be seen.
Returns and free shipping: e-Commerce spent its early years highlighting widespread “30-day return policies” and “free shipping,” which is taking a toll on DTC margins.
The rising cost of ads – with more DTC competitors in-mark than ever before, the cost-per-click is skyrocketing. This can eat into the merchant’s profit margin or even exclude them entirely if their user acquisition cost is too high.
Although DTC profitability benefits from reduced rent and labor costs, other expenses add up over time. For example, fulfillment, logistics, heavier marketing, technology, and high returns.
Ultimately, both DTC and wholesale have pros and cons, so it’s up to the brand to decide which model is best for their business.
Why are brands attracted to DTC in the first place?
The COVID-19 pandemic and subsequent lockdowns have created an environment of comfort and necessity around online shopping. People worldwide have adapted to “stay at home” orders that require many purchases to be made online. Even as the world starts to reopen, some of that online shopping behavior will remain.
Additionally, DTC provides companies greater control over their brand, customer relationships, sales channels, and fulfillment.
When does DTC make sense:
While wholesale has a clear edge over DTC when comparing EBIT most of the time, there are some situations where DTC makes sense. However, this often depends on the product.
To determine whether DTC suits a brand, two questions need to be answered:
Can we accurately target the right customers?
Are these customers happy to shop online and from a single-brand source, or would they prefer to shop in-store where there’s a variety of brands available?
If both of these questions are yes, it may be worth exploring a DTC model.
However, keep in mind that, based on data, only brands who also sell their products via bricks-and-mortar stores do well in DTC.
Support for Wholesale brands:
Talk to us today if you’re looking for a powerful way to utilize hyper-local ads to drive traffic in-store and pick your products off the shelves.
As we covered in “Shopper Marketing Part 1:”, Shopper Marketing is the process of ensuring consumers are correctly engaged at every stage throughout the path to purchase, from awareness to consideration to conversion.
This article will explore what you can do to set up a shopper marketing strategy and what you can expect to achieve.
How to create a Shopper Marketing strategy:
Brands that implement a shopper marketing strategy correctly possess a competitive edge because compiling a plan requires a deeper understanding of the consumer path-to-purchase from a holistic perspective rather than individual components.
As a starting point for formulating your shopper marketing strategy, ask yourself these four essential questions:
What does your brand represent, and does that resonate with your target audience?
What is necessary for your target audience?
What are your goals beyond making sales?
What is your budget?
The answers to these questions should represent the heart and soul of your strategy, which can then wrap around each stage of your buyer’s journey:
Awareness Stage – Focus on brand recognition and storytelling to ensure you resonate with your target audience.
Consideration Stage – Deliver value and properly incentivize consumers to encourage them to purchase your products ahead of competitors’.
Conversion Stage – Delight with a positive customer experience and focus on building long-term relationships with your customers.
Retention Stage – Provide an easy way to connect and keep your customers coming back.
Now that you’ve formulated your objectives for each stage of the buyer’s journey, it’s time to think about how you should execute it. For example, what marketing activities will you implement to ensure brand recognition? How do you want to incentivize customers? What channels will you use to communicate this to your target audience?
You can use the traditional marketing principle of the “4 P’s” to map out your plan for executing the shopper marketing strategy:
Price: discounts, bundled offers, price communication, and coupon
Place: eCommerce stores, bricks and mortar stores, visual merchandising, store layout
Product: Featured products, packaging, catalogs
Promotion: promotion communications, advertising channels, communicating brand and products to consumers
What can be achieved with a Shopper Marketing Strategy?
By using a shopper marketing strategy as the lens for looking at the entire buyer journey as one, businesses can expect to:
Increase brand affinity by delivering more consistent marketing messages
Drive sales by looking at the entire path to purchase instead of individual stages
Improves long-term relationships with customers
Focuses on long-term gains rather than short-term objectives, which creates more consistency
Creates opportunity for data-driven decision-making by looking at the entire lifecycle and proper data attribution
A deeper understanding of customer segments and preferences by looking at their behaviors across a broader range of activities rather than in isolation
Provide more personalized customer experiences by tracking progress through the path to purchase.
Want to implement a shopper marketing strategy for your business? Please speak to us about how Brand to Basket delivers value at every customer journey stage.
‘Shopper marketing’ can be thought of as the intersection between consumer psychology, customer experience, and experiential marketing. These three elements combine to convert shoppers into buyers and build the brand’s equity within the retail environment while fostering long-term relationships with consumers.
Their customer’s path-to-purchase will establish each retailer’s shopper marketing strategy. For example, whether the purchase is being made for themself or someone else, the purchase research process, and which channels the customer prefers to make the purchase, such as in-store or online.
Shopper marketing builds its strategy on top of the unique path-to-purchase to create synergies and consistency in the messages presented to consumers throughout their journey to purchase.
A good case study for this is how many retailers have adopted emailing receipts instead of printing them. By doing so, it opts the customer into their email funnel.
Think about this – if a customer goes into the electronics department of a store and purchases a student edition of Microsoft Office and then provides their email address for the receipt to be sent to them, the store can now attribute that email address to someone who is likely a student. Then when it comes time for the “back to school” campaigns to roll out, that person will likely receive an email with various deals and promotions for other tools or products they might need and can drive them in-store (since it knows where they’ve made previous purchases from) or online with coupon codes.
What’s new about Shopper Marketing?
Shopper marketing tactics have been popular since the 80s, but forty years ago, they only took place in brick-and-mortar stores. With eCommerce and social media, shopper marketing has evolved to include these new sales channels.
The growth of the online space has paved the way for communicating and incentivizing customers, which plays a role in shopper marketing. For example, the ability to run loyalty programs or coupon promotions at the click of a button while seamlessly measuring conversions.
On being highly measurable, data analytics and business intelligence have come a long way. Having access to these insights has given retailers greater clarity around their customer’s purchase trends and habits, which can make informed business decisions to provide the best possible shopping experience.
What does the future hold for Shopper Marketing?
One pitfall of shopper marketing that many retailers fall for is the lack of personalization in their marketing communications. This is often because they’re often purchasing data from third-party vendors and applying it to their business, which is like trying to jam a square peg into a triangular hole – it just won’t fit. The future of shopper marketing is utilizing technology to customize the shopping experience better to suit personal preferences. In a hyper-competitive retail world, the winners will be the early adopters of technologies designed to influence purchase decisions.
If you want to stay ahead of the technological curve, speak to us today about how Brand to Basket drives revenue growth through personalized customer experiences.
As supply chain issues continue to derail hopes of a smooth 2022 for retailers, the year is already off to a shaky start.
However, it’s not all doom and gloom. Experts believe there’s a silver lining in the current retail climate, with many opportunities that savvy retailers and CPG brands can tap into this year.
Continued growth for super-speed deliveries:
With more delivery services launching in various cities, retailers’ adoption of these platforms is becoming increasingly widespread. Speed of delivery is the name of the game, with consumers tending to compromise the availability of specific products in favor of the speed they can be delivered straight to their door.
The shift towards premium products:
One market segment that gained popularity during the pandemic was the premium food and beverage category, including alcohol, frozen meals, DIY meal kits, and coffee. This growth is expected to continue post-pandemic due to changes in consumer behavior. While inflation has increased in recent months, there doesn’t yet seem to be any impact on consumer demand.
Overcoming labor shortages:
Many companies are feeling the labor shortage pinch, which is why many retailers and CPG brands are turning to process automation to reduce the workload of tasks that have been human-operated in both warehouses and customer-facing areas of the business. For example, many retailers are introducing self-checkout kiosks to replace checkout staff.
Expansion into food service:
The eCommerce boom in recent years has leveled the playing field and given retailers access to a new pool of potential corporate customers. Before now, winning contracts to supply fresh produce and meals to schools, businesses, and other institutions relied on bidding wars and relationship building. Now businesses want a user-friendly online portal with transparent pricing to order autonomously.
Increased focus on customer experience:
Experts predict that in 2022, there’ll be a consumer shift towards brands that alleviate their stress and provide products and experiences which spark joy. This could correlate to the purchase experience the customer goes through when completing a transaction or the physical products offered by the retailer. For example, many on-demand delivery companies have been offering “quarantine ready” packages, including things like a big fluffy bathrobe, Playstation games, a box of donuts, and some tissues, which can be on their doorstep within 30 minutes.
Eating at home is likely to continue:
Over the past two years, consumers have opted to dine at home, either by choice or as a requirement. This trend is expected to continue. This choice has been attributed to a greater focus on health, wellness, and self-care. However, this is not limited to meals being prepared at home but also food take-out and delivery from restaurants and fast food places. As a result, there will likely be an increase in ghost kitchens, robot chefs, and limited menus to help reduce wait times and costs.
Online grocery shopping is the new norm:
Unsurprisingly, there’s been a boom in the number of consumers who regularly do their grocery shopping online. According to research, the number of US consumers who do their supermarket shopping online has doubled in the past two years. It’sIt’s expected that this behavior will persist in the long term. The pandemic forced many businesses to make their online shopping experience smoother, which automatically removed some obstacles faced by consumers previously.
As with most things in business, perspective and creativity give you a winning edge. For businesses willing to adapt to a changing market, plenty of opportunities abound.
Mobeo is committed to improving brand loyalty and sales by helping retailers and CPG brands target, convert and retain local shoppers. So whether you’re attracting new customers or working on keeping the ones you have, Mobeo has a complete, customizable, and measurable solution to fit your needs.
Talk to us today about how we can help boost your digital footprint.
ACCORDING TO EXPERTS, the COVID19 pandemic has led to a massive disruption in the global supply chain, which shows no signs of easing anytime soon.
This supply chain crisis results from factors such as changes in consumer demand, shifts to online shopping due to lockdowns, factory closures, shipping delays, raw material shortages, to name a few.
With economists predicting that the current conditions won’t improve until 2023, here are a few ways that businesses can navigate supply chain issues in the new year.
Moving Excess Stock:
Geotargeted Ads: Having the ability to target potential customers according to their proximity to local stores could be a powerful way to let nearby patrons know that their favorite products are in stock.
Mobile Wallet Coupons: This allows businesses to create various promotions or coupons and send them directly to a customer’s mobile wallet in return, giving them a nudge or encouraging them to purchase from your store next time they’re looking to make a purchase. Once the coupon has been added to the customer’s wallet, the business can share updates about it through notifications.
Dealing With Limited Stock:
Take control of stock levels: Research shows that 43% of retailers believe better stock level visibility would help serve customers and increase the overall customer experience. You can implement an effective stocktake system to keep track of stock accurately.
Digital transformation: As many countries begin to move away from lockdowns and restrictions, bricks and mortar retailers are starting to recover; however, foot traffic is still not where it used to be pre-pandemic. Many businesses are benefiting from moving online to supplement income lost due to lower than average levels of in-store shopping.
Source locally: It could be a valuable exercise to source alternative products or components and materials locally instead of relying on existing shipping routes. This will vary for different businesses and depend on where they currently hold inventory and are presently sourced or manufactured. This will help companies determine their options and perhaps uncover even better solutions.
Network: Speak to other retailers who might be experiencing similar things to your business. Not only is it essential to have a strong support network around during challenging times but keeping your finger on the pulse and staying informed will help with decision making and forecasting. These networks may also be beneficial for sourcing new products or stock.
As supply-chain disruptions persist, volatility and uncertainty remain for the foreseeable future. However, retailers can grab the opportunity by the horns and address disruptions head-on. This will help in the short term and, if executed properly, could also help build resilience against future disruptions.
Mobeo’s suite of solutions can be customized to fit your individual business needs while driving traffic locally to your product or store. In addition, we offer the ability for businesses to create scalable, personalized digital offerings that are seamlessly added to shoppers’ mobile wallets, allowing for online-to-offline conversions in-store.
Talk to us today about how we can help boost your digital footprint.
