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3 Characteristics That Define Retail Marketing Leaders
Through creativity , speed , and control of technology , the best firms have adapted to Covid-19 and outpaced the competition .
By Gino Dizon , Derek Keswakaroon and Francine Gierak
Gino Dizon is a Partner in Bain & Company based in Manila . Derek Keswakaroon is a Partner based in Bangkok and Francine Gierak is a Partner based in San Francisco .
At a Glance
Our survey of almost 400 marketers uncovered what separates the leaders from the laggards .
Retail leaders balance data-driven marketing with creativity and brand building , embedding speed and responsiveness into their processes .
Leaders also take active control of their data and technology rather than outsourcing much of it .
The Covid-19 pandemic has accelerated both the pace and type of change coming at retail marketers . Yet marketing leaders — those whose growth outpaces the competition — have managed to adapt and gain distance over the rest of the pack in retail .
What specifically sets the best marketers apart ? To find out , Bain & Company surveyed 378 respondents in retailing . We examined about a dozen marketing capabilities and asked respondents how their markets have changed and how they are adapting . We then compared the results between the top 10 % of companies and the bottom 15 %, based on two-year revenue growth and market share gain , to understand the statistically significant traits that set leaders apart from laggards .
Three distinct characteristics stand out that allow marketers to grow faster , work better ,
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and scale up more effectively .
The math and the magic
First , leaders balance the math and the magic , ensuring that data-driven , usually digital marketing does not overshadow creativity and brand building .
To that end , leaders are : 2.9 times more likely than laggards to align brand and performance campaigns ; 3.9 times more likely to customize the majority of their data-driven creative content ; and 1.5 times more likely to use predictive analytics to customize messages .
For years , we ’ ve heard that the voice of creatives is being drowned out by data-driven marketers . Now , the best marketers are putting them back together , in what one CMO described as “ the revenge of the creatives .”
Luxury goods retailer Prada , for example , blends high-tech and high-touch initiatives to reach the right customers with the right product and content at the right time . Live artificial intelligence – generated recommendations allow Prada sales staff to personalize client product proposals . Contact notifications enable staff to engage clients at ideal moments . And a digital app harnesses multiple data sources to paint a comprehensive view of each customer . These initiatives have helped spur nearly 70 % growth in sales driven by clienteling ( actions by sales associates to establish personalized engagement with the client ) over the past two years .
Traveling at the speed of consumers
Because leaders know that marketing will continue to change rapidly , they embed speed and responsiveness in their processes . They are :
25.2 times more likely than laggards to fully adopt Agile methods ; 1.8 times more likely to design fast decision making into their team structures ; and 4.3 times more likely to embed or even “ own ” their agencies in the marketing team . This allows them not only to deliver more marketing quickly , but also to keep pace with their consumers . One leading global retailer has tracked what is important to consumers for over 20 years . Several years ago , “ speed ” appeared among the top 10 things consumers cited in response to the question “ What does great service mean to you ?” It is now No . 1 .
Owning your destiny
Retail marketing leaders take active control of their data and the tools and technology they use . Many other retail marketers outsource too much of their digital technology . Our survey found that leaders are : 2.1 times more likely than laggards to have a fully integrated view of customer data ; 5.0 times more likely to integrate technology platforms end to end within marketing ; and 6.1 times more likely to manage their marketing technology stack themselves .
Of course , even leaders face challenges . For instance , the pace of change in marketing puts stress on budgets , and about 63 % of leaders and 87 % of laggards do not adjust budgets in real time . Most retailers still determine budgets annually , or even on a three- or five-year horizon . Another challenge persists in the form of organizational silos . Only 18 % of both leaders and laggards have integrated their traditional and digital marketing teams .
Retailers that figure out how to address these budget and silo problems soon will make further progress in the perpetual competition for the hearts and wallets of today ’ s demanding consumers .