Blog
How physical retail provides opportunities for consumer outreach
Marci Weisler, chief commercial officer, Vengo, takes a look at how the customer journey has changed, the role retail plays in the journey and what 2020 holds for innovative brands and retailers alike.
February 11, 2020 by Marci Weisler — Chief Commercial Officer, Vengo
As we come off another holiday season, it's worth taking a look at how the customer journey has changed, the role retail plays in the journey and what 2020 holds for innovative brands and retailers alike.
Only a small minority of consumers these days are brand loyal according to a recent McKinsey report. Most consumers prefer to be in "shopping around" mode instead. Add to that the waning influence of TV advertising. Against this backdrop, it's clear that brand and retail marketers are challenged and need to change up their game. In a world in which TV advertising has lost much of its power, innovative retailers and brands have an opportunity to command consumers' attention through integrated marketing initiatives that include digital experiences and product sampling.
In particular, marketers are creating digital experiences that make a trip to the store noteworthy and are updating sampling to be a two-way exchange. Today, consumers can voluntarily engage on digital platforms in-store and receive physical product samples, helping brands and retailers attain the analytics they need, build customer trust and loyalty while also establishing long-lasting relationships with consumers.
Engaging customers
Consumers are always on the hunt for something novel. According to scientists, novelty evokes interest. Thus the appeal of digital experiences in store. For most, a “digital experience” might sound a bit exotic and perhaps even a bit intimidating. But what if marketers bring in something familiar to the process. For example, what if they offer ice cream?
That's what Unilever's Magnum ice cream brand did recently at Saks Fifth Avenue's flagship store in Manhattan. In addition to enabling consumers to create their own Magnum ice cream bar, the brand used an interactive digital kiosk to ask pertinent questions, capture consumer data and extend another touch point by providing a coupon that could be used on the next purchase of Magnum at the grocery store. The brand was able to engage ice cream lovers and develop a relationship with those who opted in to receive more information from the brand.
Since few customers enter Saks expecting ice cream, the program was attention grabbing and well-received. Since the program combined both a physical experience — reaching consumers right where they were at with a digital experience — it was able to engage consumers immediately, give them a reward and establish a longer-term relationship through its digital component.
Changing role
One can argue that with Amazon, pretty much all retail is superfluous and yet, many of us are comforted by retail's presence and view shopping and a trip to the store as a destination and opportunity for engagement. Today's consumers are turning to brick-and-mortar stores to offer exciting and entertaining experiences. Retailers are working to enhance the in-store experience to ensure engagement and make the visit worth the trip.
Brands and retailers who can deliver on both of these elements through product sampling have a huge opportunity to attract and retain customers and build shopper loyalty.
By combining digital experiences with physical product sampling it is even possible to see who converts from a "trial-er" to a buyer. Unlike handing out free samples to random consumers who then walk away anonymously, with today's digital experiences and built-in analytic capabilities, it's finally feasible to know who receives the sample and then follow the data to directly connect physical exposure to sales.
Some retailers, like The Vitamin Shoppe and Earth Fare, have already caught on to this factor and have launched data-driven in-store sampling via interactive kiosks that reward customers for answering surveys and "opting in" to be kept to date on future communications.
Such interactivity is a wide canvas for marketers. For instance, L'Oreal recently enabled consumers to virtually sample products from its Garnier brand in store using augmented reality. Consumers can visualize how they would look with different hair color.
Outside of stores, location relevance also makes a huge difference for marketers, finding consumers where they are at, and at a point in their day where a specific product might make an impact. For instance, it may be tough for a deodorant brand to get consumers to think about its product in a supermarket, but a gym is a natural environment to attract attention and extends a natural opportunity for sampling, while affording an occasion to engage and gather information that a consumer is proactively willing to share.
Overall, the combination of physical sampling and digital experiences represents a new way to command people's attention and to give marketers a new understanding of their needs. The onus is on retailers to use such data effectively to create great consumer experiences and brand engagement by paying close attention to what people want.
Marci Weisler is chief commercial officer at Vengo.
