(Expansion) – Retail is working hard to take media retail to the next level. Thanks to the 1st party data that is generated in e-commerce sites and stores, a deep understanding of customers can be obtained, which allows companies to design audiences of recurring customers and know all their consumption habits.
This occurs from the moment people start searching and researching a product on the couch at home, or when browsing any website, during their tour of stores or apps, until the moment of purchase.
It is an advertising strategy that allows retailers to monetize their store spaces and digital platforms, connecting customers and brands, with the aim of increasing the visibility and knowledge of their products and services, and, at the end of the road, increase sales. The customer receives valuable information at the time of his decision, and the brands sell more. A clear win-win strategy.
For retailers, it represents a new source of income, which ideally allows them to continue investing in improving their customers’ shopping experience; for brands, it translates into the unique opportunity to include advertising and information in the purchase journey of consumers.
The value of Retail Media can be summarized in four pillars:
1. The Data, which is the knowledge of the client;
2. the Purchase Journey, through which we accompany the shopper at each point of their path towards a purchase;
3. Measurement of results of all campaigns and
4. Conversion to sales, what matters most in a Retail Media campaign.
The purchase journey consists of a series of crucial moments, through which the connection with customers is made throughout the process of their purchase decision, to first achieve the consideration of a certain product and then its conversion to purchase.
It is about contacting the customer at different times, inside and outside the purchase context, wherever they are browsing, with relevant, personalized information and offers, based on the knowledge of their consumption habits and intentions.
Thanks to this knowledge, based on the “First Party Data” that retailers have of their customers, brands can better target specific audiences. The result in sales is usually much higher compared to other forms of advertising.
Retail Media is an evolution of the traditional market, since customers receive advertising of their interest and less intrusive, while brands are more efficient, because they target the correct users at the time of purchase.
Without a doubt, technology is a key aspect for the competitiveness of Retail Media. Developing technology-based products makes it possible to meet customer requirements and learn from their purchasing habits.
Today, the business sales strategy must be based not only on convenience, but also on ubiquity, that is, being present 24 hours a day, 365 days a year, with the right offer for the right customer, while still offering competitive prices.
Editor’s note: Beatriz Nuñez is Chief Growth Officer at Walmart de México y Centroamérica. Follow her on . The opinions published in this column correspond exclusively to the author.
