RETAIL MARKETING
The Future Of Retail Marketing
By Jonathan Phillip Kyetume
The pandemic is still wreaking havoc on the global economy , and its consequences have had a significant impact on businesses at all levels . Lockdowns , curfews , and business restrictions in the East African region have resulted in fewer people visiting malls and shopping complexes , which has a direct impact on retail sales revenue . Matching digital and physical in-store experiences for optimal consumer experience and satisfaction is also becoming more difficult . From a strategic marketers ’ perspective , this translates into adopting strategies that ensure higher Return on Investment ( ROI ).
According to the latest consumer insights research report by PwC , the consulting firms ’ Global Consumer Insights Pulse June 2021 survey confirms that the pandemic might have changed consumer behavior forever as more and more consumers are ordering goods online . The prediction is that customer shift to digital channels will remain even after the pandemic . Furthermore , the findings suggest that customer loyalty has been impacted as a result of increasing competitor strength and digital disruption with buyers switching brands at unprecedented rates . Another significant finding of the PwC report is that the use of smartphones for shopping has doubled since 2018 , indicating growing acceptance and convenience with online shopping .
Retailers are faced with imminent challenges of growing digital disruption , growing online shopping platforms , unplanned digital transformation , increasing operation costs , declining customer loyalty , and retention . Retail businesses must therefore translate disruption signals and refine or modify the customer journey to factor in consumer behavior trends to remain profitable .
To differentiate themselves from the competition , retail enterprises should consider enhancing their digital strategy by adopting and using Customer Relationship Management ( CRM ) tools . Customer experience , satisfaction , and loyalty will all improve as a result of CRM adoption , as will revenue . CRM software enables businesses to analyze data and provide actionable insights to improve the customer experience . CRM systems enable personalized marketing communication , which fosters client retention and satisfaction .
Customer retention is critical for retailers not just because it facilitates upselling and cross-selling but also because it provides essential post-purchase or product performance data that may help retailers optimize targeting and provide a more personalized experience .
CRM tools improve marketing efficiency by enabling consumer segmentation and streamlining marketing communications through email marketing , newsletters and text messaging , achieving brand or product awareness , and influencing the purchase decision . CRM software is sustainable , affordable , and also ensures a significant return on investment ensuring profit maximization .
Retail enterprises can also enhance their digital strategy through programmatic advertising through Demand Side Platforms ( DSPs ). Programmatic advertising involves the acquisition of digital media through automated direct inventory access . Programmatic advertising can run rich media ad formats to ensure engagement and these are effective for multi-channel and device campaigns .
To ensure lead conversion across the purchase funnel , programmatic advertising enhances consumer targeting and retargeting . Through the analysis of critical consumer data points such as search history , interests , age group , demographics & psychographics , programmatic allows for a more accurate and precise customer targeting .
Additionally , programmatic advertising is unique because it can provide a smart solution to link digital gains to retail location through geofencing optimizing in-store opportunities while creating location awareness and new revenue opportunities . Retail businesses can use virtual in-store tours as an innovative method to increase geofencing interaction while simultaneously increasing online digital exposure and brand awareness . Virtual tours not only enhance website traffic but also encourage customers to visit and experience the actual retail store .
All the above recommendations can further be supplemented and reinforced with the digital marketing gold standard ; SMS marketing . SMS marketing is a smart and affordable solution to foster retention , repeat purchases and , customer loyalty .
On the East African perspective , according to Statista , as of December 2020 , Kenya had the highest internet penetration of approximately 85.2 %, Rwanda 45.1 %, Uganda 39.3 %, Tanzania 37.6 %, Burundi 13.1 % and South Sudan 7.9 %, translating to increasing internet usage mainly through smartphones . Retailers need to continuously advocate for a favorable business environment and policies from regulators , respective governments , or the East African Community ( EAC ) to expedite communications infrastructure development and inclusive policy frameworks to ensure accessible and affordable internet to exploit the vast digital opportunities .
The internet usage transition is the right direction for East Africa and an opportunity that can be exploited by retail enterprises to execute a planned digital transformation to establish competitive advantage , ensure business survival , sustainability and viability during and after the pandemic .
Jonathan Phillip Kyetume is a Marketing and Communications Specialist . You can commune with him on this and related issues via email at : Jonathankyetume @ gmail . com
80 MAL43 / 21 ISSUE