Retail opportunities in the New Reality
In this blog article, we discuss how the “New Reality” accelerates digitalisation needs in the marketing and sales funnels of retailers. Furthermore, we outline how agencies can offer specific new services which retailers need & how to scale offerings with a retail service map.
What you will learn from this article:
- A good understanding of the marketing & sales funnels of retailers
- Digitalisation of retail business models
- A tool to segment your customers to read retail signals in your CRM
- How retailers fight for customers and their data
- Agencies can support retailers to find the right customers at the right moment within the customer journey
- All agencies that want to be leading have to switch from a channel perspective to a funnel perspective
To explain the most important points in detail, we divided the content into the following points:
- Marketing & Sales funnels of retailers
- Digitalisation of retail business models
- How to read signals as agencies
- Digital marketing needs of resellers and consumer goods manufacturers
- How to use a service map as an agency
1. Marketing & Sales funnels of retailers
A Marketing & Sales funnel is normally based on a marketing and product strategy:
Hence, the nature of Marketing & Sales funnels varies between three different types…
A: Retail
B: Lead Generation
C: Business & Industrial Markets
With underlying branches. Please Note: In your country there might be different retail branch associations – check it out to get in touch with them!
Tip: Sit down with your team and evaluate your current customer portfolio with a quick analysis
This will help you to get more insights about your own portfolio as well as to derive future measures based on your results.
2. Digitalisation of retail business models
In retail we differentiate between a Consumer Goods Manufacturer and a Reseller.
A: Reseller: Buy several brands and re-sell them <70% of own brands
B: Consumer Goods Manufacturer: Develop several products & brands >70% of own brands
In recent years, the digital transformation has emerged 6 different position strategies among retailers:
In short – The sales channels of all four business models vary, as illustrated in the following example:
Which means that each retailer is developing its own positioning to strive for a higher profit margin in their segment. Furthermore, the strategic positioning of the diversification of the sales channel is the indicator how to set up the digital marketing strategy.
3. How to read signals as agencies
Agencies can only become smart if they first of all, understand the system of their agency. According to Leyla Acaroglu, there are 6 major tools that help you to understand systems:
In order to get an overview of how your agency really works, we recommend starting to build a retail pipeline overview in order to derive valuable insights about your own system, including your own business model and the major branches you serve.
Tip: Present your results in a form like this, to be able to discuss your conclusion with the whole team in order to derive the appropriate future measures:
4. Digital marketing needs of Resellers and Consumer Goods Manufacturers
The most important objective for any CMO is to reduce the overall Customer Acquisition Cost. In order to be able to do that, customer insights and data are getting more and more valuable. As a result, digital marketing agencies should approach three services in their service map 2021 as retailers fight for customers and to own their data.
Furthermore, the changed placement network during lockdowns forces consumer goods manufacturers to communicate more directly.
5. How to use a service map as an agency
We recommend to implement all your services into one single service map, which can be adjusted to the needs of your customers (Ecommerce, Omnichannel, Consumer Goods Manufacturer) in order to not only get an overview for yourself but also to be able to analyse up- and cross-sale potentials for your customers.
If you want to get advice on any of the mentioned topics or if you want a template for our service map, please don’t hesitate to contact us at any time.
Your Amaze Growth Team
