Marketing in retail has been undergoing a significant transformation with several advances in technology and consumer adoption of technology leading the change. Gone are the days when marketers were primarily seen as cost centers and could potentially retain loyal customers. This is the age of adaptive marketing.
There are several buzzwords in the industry such as omnichannel marketing, predictive marketing, etc. At the end of the day, the retailer is trying to market a product/service at the right place, time and price and to the right person.
Marketing techniques so far:
Most techniques in practice today are what we at CASA call reactive marketing. It is based on the principle of the customer doing A and the retailer responding to an offer B. This manifests itself in several ways:
- The Customer browses online for a new suede colored jacket (customer does part of A) and then walks into a store (customer does last part of A). The retailer then responds with appropriate offers or targeted marketing content. This leads to a You do, I do behavior that focuses primarily on the marketing message rather than on what the customer is really telling us
- Sensory technologies such as beacons have allowed retailers to track the place where the customer is at their brick and mortar store (much like tracking where the customer has been on a retailer’s E-Commerce site) and allows the retailer to better understand the customer and the location in which they are shopping as well as in identifying who the customer is. Again the customer does something, and the retailer searches for a pattern and then responds to that pattern.
- Predictive analytics is typically applied on top of the existing customer purchasing behavior to identify several factors such as what is the next best product to market to him/her, which promotions make sense, which price point is the customer most likely to buy while being profitable etc. This is then utilized to make more informed decisions on what to market. But the initiator of the marketing message is still what the customer is doing.
Another evolution seen in the last few years is the ability of retailers to create customer behavior changes through pull marketing or adaptive marketing rather than push marketing. What this means is that now, customers react to retailers instead of the other way around.
We believe we are just coming to the age of adaptive marketing. We at CASA define adaptive marketing as:
- Techniques, tools and marketing operations to really understand the customer- their sphere of needs and activities, behavioral characteristics, shopping context, past history, etc. There is a plethora of data available to help retailers understand customer needs. You just need to look for a solution to make sense of the data.
- A method to determine user responses, behavior and patterns that cause customers to entertain, accept, glorify and reject specific marketing campaigns. Typically retailers face a large challenge in this area due to the plethora of data that is generated and the lack of appropriate resources to make sense of the data. Technology advancements are at a stage where they can help retailers to continuously tune their marketing towards a customer’s changing needs and behavioral patterns. For instance, a customer from Gen X that has traditionally used a computer/laptop to shop online could have undergone a large behavioral shift to utilize their smartphone for a longer period of time than a laptop. They may or may not have adopted mobile commerce based on security and privacy concerns. Most retailers would have launched mobile apps and tried to market to this customer (though she uses smartphones heavily) without greater conversion rates
- Recommendations to marketing on types of offers that a specific customer/set of customers would want to be based on behavioral, contextual, location, operational and other parameters.
Traditionally retailers have stopped at the need/want stage and have proceeded to market their products through some channels. A combination of the above-mentioned parameters can yield better results when coupled with systems that continuously learn about consumer preferences to help fine-tune marketing efforts. You can use social media to proactively reach out to potential customers and identify their likes and dislikes. Armed with this, you can send them personalized offers that are hard to refuse. The bottom line is that market trends keep changing year after year, and it’s up to you to keep up and adapt to the changes.
But how can you adapt to the recent trends in the market? This is where CASA comes to the rescue. CASA – an omnichannel marketing platform specializes in social media ads helps you understand your customers and choose the appropriate marketing technique for your business. Would you like to know how it works?. Check out CASA for more information or just fill in the form below and we’ll get in touch with you in a flash.