Our industry is ever-changing. Get insights and perspective from our experts as we share our knowledge and experience on how to successfully navigate the marketing landscape.
It’s rare to go a full day without reading a headline in your email inbox or on a news site highlighting the rapid demise of the retail industry. Many brands that have become household names are undergoing massive business restructuring or shuttering their doors altogether. Shopping malls that once served as go-to destinations for many communities are experiencing increasing vacancies. The perception largely driven by the media is that brick and mortar retail is a sinking ship, but what is the reality? Deloitte set out on a nearly year-long study to better understand the state of retail as it stands today and the driving forces behind recent changes. And what did they find? The silver lining. Despite the onslaught of negative press, retail is still growing and in many places, thriving. Backed by a stable and growing economy, consumer confidence is at an all time high. Experts predict that in the next five years, online sales will grow 11.7 percent annually, and in store sales by 1.7 percent.1 That’s healthy growth across the board. Deloitte found that a big contributor to the success of brick and mortar stores actually comes down to income. Today, shoppers in lower income brackets prefer to to buy in physical stores. As the wealth gap continues to widen, more and more Americans are losing their discretionary incomes and landing in this low earning bracket. The purchases they make will likely be in person, so brick and mortar stores stand to benefit the most from this change in the distribution of wealth. With this in mind, here are a few marketing priorities to consider: 1. Fine tune your customer acquisition strategy Yes, you know a lot about your customers, but are you investing into the right channels that will lead them (and other audiences who look like them) to make a purchase? As mentioned previously, even details like household income (HHI) play a significant role in the way people shop. Consumers with a low HHI may compare prices online before ultimately going into a nearby store to make a purchase. Your marketing dollars should be aligned with these behaviors. For many brands, it may be time to reevaluate how consumers search, and ultimately buy. Find an agency that can help you understand the unique features of your most profitable audiences, and then identify the right mix of channels to activate them. Small optimizations on the front-end can have a big impact on long-term growth. 2. Make it easy for consumers to compare prices and find inventory at nearby stores Eighty-one percent of consumers do online research before making a purchase.2 Whether shoppers are becoming more cost conscious or simply cost aware, the fact is they are more informed than ever before. Retailers should leverage local ads to motivate store visits. Solutions like Google’s Local Inventory Ads and Brand Showcase Ads allow shoppers to quickly locate information on the products they’re looking for as well as their availability in nearby stores. Google also has a feature that allows advertisers to adjust bids for individuals with a certain income range (from the top 10% to the lower 50%), who live within a certain geography. If you’re a multichannel retailer who sells discounted items, you may want to increase bids for searches that originate in an area in the lower 50% household income level. To measure the impact these ads are having on driving purchases in stores, check out Google’s Store Visits tool. Store Visits uses anonymous, aggregated data to measure the number of people who click or view ads and later visit a store. 3. Build superior storefront shopping experiences The digital and physical shopping experience shouldn’t be planned in silos, rather they should be developed as a consistent end-to-end experience. Forty-two percent of in-store shoppers search for more information while in a physical store3 and savvy retailers like Sephora are combining digital elements into their physical stores to make it easy for shoppers to explore, find and purchase the products that are right for them. Discount retailers like Marshalls are making the physical shopping experience more social by encouraging store visitors to share their unique finds with their social networks using the hashtag #marshallssurprise. 4. Leverage partnerships to grow awareness and sales Brands and retailers often market to the same consumers, so by working together, their power is magnified. With ecommerce set to experience double-digit growth over the next five years, digital co-op investments are a great way for brands to increase their exposure online and drive sales across channels. The right agency can help you identify, manage, and measure the outcomes of these opportunities. While the Retail industry is alive and well, we are seeing a massive shift in the way multichannel retailers operate to meet the changing needs of their consumers. And let’s not count out pure-play e-tailers. Amazon is working hard to turn low income shoppers into loyal customers. Individuals who receive government assistance can qualify for a reduced $5.99 a month Prime membership, and EBT cards can now be used to pay for qualifying groceries. We expect that as brands compete more on price and free shipping becomes more universal, consumers from all income brackets will begin to make more purchases online. As Socrates once said, “the secret of change is to focus all of your energy, not on fighting the old, but on building the new.” Here’s to building the new. You can access a copy of the Deloitte study, The Great Retail Bifurcation, here. 1 IBIS World 2 GE Capital 3 Google, Ipsos
Two of my favorite things, outside of my wife and daughter (of course), are 1) beer and 2) creating content from high volume keywords. I can hear you saying, “Really, Greg?” and I would say, “Yes, really.” So, what a better blog topic that combines these two and gives some tips for creating content that people actually want to read? You might have guessed, but I’m a beer snob. I used to be ashamed to admit that because I hate being trendy, but I can’t hide the fact that 2017 is the height of craft beer mania. Check out how the term “craft beer” has trended since 2004 according to Google Trends. Craft beer may as well be Taylor Swift, pointy fake nails, Herschel bags, or one of those undercut haircuts with a tiny ponytail on top.* *For the record, I’m currently drinking a Lamplighter Stardust IPA brewed with Simcoe, Summit, and Amarillo hops. I love Lamplighter Brewing Company in Cambridge, Massachusetts (Lamplighter employees: Hit me up to coordinate my free cases). Cool chart, huh? It's free courtesy of the Googs' Trend tool. You can get a graph on anything you want there. Let’s imagine I came up with the really unoriginal idea to start a beer blog. For the sake of this blog, let’s assume I want to be a source of education for beer newbies. So, where do I start? I can hear you saying, “Greg, it must be really overwhelming to figure out what to write about, right?” And I would say, “Wrong.” With the right (mostly free tools) and a little bit of SEO know-how, you can figure out exactly what you should be writing about and how to drive traffic to your site over time. The best part is - it’s all based on real data and what people really want. I bet a lot of beer newbies see a porter and a stout as being similar. Looking at Google Keyword Planner, we can see that “porter vs stout” gets 5400 searches per month. BAM! I’ve written my first article entitled “What is the Difference Between and Porter and a Stout?” For those of you who aren’t aware, Google Keyword Planner is linked to an existing Adwords account. If an Adwords account doesn’t exist, there’s a great free keyword research tool through “The Hoth.” When should I write this article? In the chart below, it looks like search interest around the term “stout” peaks in the cool/cold weather months - not surprising since a stout is a hearty beer. It’s also not a surprise that searches peak around St. Patrick’s Day. Guinness is a stout and it’s one of the most famous Irish beers. With this knowledge, I’ll likely publish my article in the fall, and then maybe I’ll do another feature on stouts around St. Patrick’s Day. BAM! Who am I? Emeril Lagasse? Punch me… Ok, so now my mind is working. What about summer beers? I see a lot of people drinking shandy-style beers in the summer. Since I actually have no idea what a shandy is, I’m going to Google “shandy” now. Based on Google’s “Auto Complete,” many other people have the same curiosity as I do: Based on this tip, I confirm that many people are curious to know what a shandy is. After doing some keyword research, I see that 1600 people per month type in the exact query “what is a shandy?” Sweet. Check out the shandy search trends below. There’s no surprise that queries around “shandy” peak in the summer since it is a light, fruity, and refreshing beer. Search data is great and all, but what is actually resonating with the public? What have people been sharing over the past year? Using BuzzSumo (which just got acquired by Brandwatch), we can see the most shared content pieces pertaining to a given topic over a preselected period of time. I love using this tool to understand the types of content that actually resonates with the public. Check out the results below for the query “craft beer.” An article entitled “IPAs Are Giving You Man Boobs” was shared over 93K times. This list has some great inspirations for fun and lifestyle content that I can add to my blog. Most importantly, I’m currently rubbing my chest and thinking that I might need to go to the gym. TLDR: Use keyword data to discover and create awesome content. Google Trends to see popular searches Google Keyword Planner to see the volume of searches for particular keywords BuzzSumo to see what’s being shared in social