Archive for February, 2021

Home / 2021 / February

What are shoppers looking for when making purchases? According to new research, they want good value and discounts, reports Retail Times.

The Promotion at the Speed of Customer Demand report revealed that 78% of customers said money off would make them more likely to buy a product.

Value as the primary driver to purchase is also evident in consumers’ desire to save on delivery costs, which was cited as the second most popular type of offer. Over half (55%) of shoppers polled for the report said that the offer of free shipping would also encourage them to buy, underlining the rise in online shopping during the course of the pandemic.

Third on the list of drivers to purchase was a price reduction when buying multiple items. Almost half (46%) of those questioned said that a cheaper price on multi-buys would motivate them to make a purchase.

As the Covid-19 pandemic continues to create financial uncertainty for consumers, immediate value is being prioritised over other purchasing motivators such as future savings or exclusive content.

According to the report, 20% of shoppers said that access to free services would sway their purchasing decisions. Fewer still would be motivated by a subscription giving future savings or exclusive content – 10% and 9% respectively.

In terms of which sectors are hitting the mark with promotions, supermarkets came out on top – not surprising as they are one of the small number of retailers allowed to stay open during lockdowns. Seven in ten (70%) respondents cited grocery retailers as offering the best promotions, compared to just 8% citing fashion retailers.

The report highlights the anxiety felt by shoppers about the impact of the coronavirus pandemic. Consumers are becoming increasingly sensitive to pricing and promotions, meaning retailers are able to rapidly adapt their promotions to meet ever-shifting consumer preferences.

Speaking about the report’s findings, Robin Coles, EMEA MD of XCCommerce said: “Retailers need to build promotions around the needs of the customer and react quickly based on customer insights and preferences, to increase retention and loyalty.”

He continued by saying that the solution is to automate the processes of managing multi-channel promotions to allow marketing teams to “implement promotions that drive customer loyalty and margin without the need for complex, lengthy and costly changes to their legacy systems.”

At Delta Group, we want to empower your imagination and help you connect to your customers. Find out how we can help you deliver impact and boost sales.

It’s an understatement to say the coronavirus pandemic has caused a shift in consumer shopping behaviour. The changes have been huge.

According to the ONS, ecommerce sales increased 46% year-on-year in 2020. Retailers must now reassess their digital strategies to ensure they are capturing and converting these new audiences.

Here, we consider five ways retailers can approach their ecommerce strategies in 2021 so they attract and retain customers online.

1. Shine a light on social and influencer marketing

With research showing consumers are spending an increasing amount of time on social media, retailers need to turn their attention to their social and influencer marketing efforts. According to RWRC’s Ecommerce 2021 report, 35% of UK consumers have bought an item after seeing it on social media, while nearly a quarter have been persuaded to make a purchase based on an influencer’s review.

Different social media platforms can be used to target different demographics – TikTok for Gen Z, Facebook for older generations, for example. With the right strategies, brands can use social media and influencer marketing to make low-cost, high-gain investments to reach target audiences.

Marketers also need to ensure they are up-to-speed with regulatory compliance on social platforms. Total transparency about a brand’s relationship with an influencer is key.

2. Use brand discovery and discovery commerce to stand out

With so much competition online, you need your brand to cut through the noise. So, how do customers discover your brand? 

Brand discoverability is all about the whole package – the product, experience, service, brand story, and values. Add to that discovery commerce (which is based on the experience of a customer browsing a physical store until they find the right product), and you can start to anticipate customer needs, matching items to customers based on their online behaviour.

Brands must understand as much as possible about their customer – it’s the only way to engage them and maximise brand discovery.

3. Greater collaboration holds the key to success

Alongside the big ecommerce hitters such as Amazon and eBay, there are a host of smaller and independent platforms driving forward consumer spending. According to the RWRC report, 73% of consumers in the UK are shopping via online marketplaces. Meanwhile, just 3.6% say they never shop on Amazon.

Brand presence on these platforms is vital, with 46% of customers saying they are less likely to shop with a retailer if their products are not available on online marketplaces. This kind of collaboration can help retailers work smarter and engage with existing audiences. Handing over profit to third parties might put some retailers off, but their scale and reach is undeniable.

4. UX should be second-to-none

One sure-fire way to retain customers is to offer them unbeatable online user experience (UX). But the UX customers expect and the UX being offered by retailers doesn’t always go hand-in-hand. 

Consumers are looking for intuition and convenience when shopping online. Brands can achieve these goals in a number of ways. From accurate sizing tools allowing customers to buy fashion that fits, to virtual shopping experiences, there are clear rewards for retailers who fine-tune and invest in their UX.

5. Use personalisation to build closer consumer connections

Retailers need to go deep with their personalisation efforts. Deep, data-driven personalisation can help attract and retain customers. By analysing customer purchasing behaviours, search terms and other metrics, brands can make recommendations that resonate and serve up content that speaks to target audiences.

Loyalty schemes are a popular way retailers can capture customer data. They work by bringing together in-store and online customer behavioural and transactional data, allowing brands to further engage with individual customers.

At Delta Group, we specialise in delivering dynamic multichannel marketing campaigns to clients around the world. Find out how we can help your brand connect with your customers. Get in touch with the team today.

It’s stating the obvious, but 2020 has posed some serious challenges for retailers. The ongoing uncertainty created by the coronavirus pandemic makes it hard to predict what lies ahead for the retail industry.  

While online sales have soared, many physical stores have been forced to close during lockdowns and sales in many segments have fallen.

However, the retail industry needs to be ready to meet these changing demands and technology holds a number of solutions.

An article on DevPro Journal reveals four retail industry trends we can expect in the year ahead.

Move from ‘push’ to ‘pull’ model: Subrah Iyar, CEO and co-founder of Moxtra

Rather than pushing their services onto customers, retailers will use digital solutions to do business where consumers can pull services on demand. To make this happen, says Iyar, “digital workspaces will be consolidated to act as virtual extensions of businesses”. Advantages of this model include more humanised customer engagement – where interactions between customers and brand representatives are carried out via private digital channels, allowing for more collaboration and an improved customer experience. Brands will also benefit from a managed overview of these interactions to help build stronger relationships.

Communication becomes more effective: Christine Spang, CTO of Nylas

There are a host of communication platforms available. And as Spang explains, in 2021 we will see the “communications API industry expand their footprint to accommodate this abundance of platforms to meet consumers where they are.” This uniting of communication methods will help brands seamlessly reach consumers across all channels.

Transformation of POS: Scott Agatep, executive vice president, solutions and services at ScanSource

Spurred by the impact of Covid-19 on business, 2021 will see rapid changes in POS technology. “All business functions, from payments to inventory management and payroll [need to be] easy and accessible to everyone,” says Agatep. Retail-specific developers are going to have to provide innovative software that can keep pace with constantly changing business environments and consumer demands.

The influence of millennials: Tim Harris, CEO of FuturePay

The influence and buying power of millennials will be another key theme of 2021. According to Harris: “Millennials are rejecting traditional payment solutions like credit cards in favour of options that are integrated into their favourite merchants’ ecommerce sites, such as digital revolving credit.” Research shows that 67% of millennials don’t have a credit card because they consider them a financial burden. The solution will be more flexible online payment options to meet this demand.

At the Delta Group, we are proud of our can-do attitude to the challenges ahead. Our tech allows clients to take control of their digital and print retail requirements. Get in touch to find out more.

Looking at the data relating to Covid-19, there’s a real blend of positive and negative. Making for grim reading are the numbers of deaths and hospitalisations as a result of the pandemic. But, alongside that is the number of people who have received the vaccine (more than £10 million and counting).

This mix of highs and lows can also be seen in retail data. Figures from the British Retail Consortium reveal a drop of 0.3% in annual sales growth – a result of retailers having to shut their doors during each lockdown. But just as consumers were quick to start spending after November’s lockdown, the same is expected to happen once the current restrictions are lifted. A KPMG/Ipsos study suggests sales growth of up to 3% in 2021.

Shops may be shut again, but The Drum highlights why retailers should feel confident about recovery before the year is out.

Despite huge challenges in 2020, retail has shown remarkable resilience. Predictions for sales volumes during the second lockdown did not look promising. However, despite stores having to close, sales for November 2020 stayed 2.6% higher than February’s level in the year to November.

Retailers have overcome challenges by creating more flexibility – everything from new safety measures to new ways of trading – all at short notice. Click and collect, virtual shop floors and placing sales experts in call centres have given customers the convenience they expect and encouraged them to spend.

The more confident consumers are about the future, the more likely they are to part with their cash. But it’s hard to feel confident when faced with a pandemic and our mental – as well as physical – health has suffered as a result. Luckily, positives such as the furlough scheme and now the vaccine have helped boost consumer confidence.

According to a KPMG/Ipsos think tank, during the second half of 2021 consumers will have more savings and more confidence (once vaccinated). As a result, demand will rise as we emerge from the third lockdown. Of course, different categories will see different levels of performance, but the overall picture is looking positive.

Of the brands that have done well, omnichannel strategies have been key to their success. Dunelm and Dixons Carphone Warehouse are looking at impressive pre-tax profits thanks to a strong online presence and investment.

Demand for the physical retail experience shouldn’t be underestimated either. When shops have reopened, customers have hit the high streets. At the end of the second lockdown, footfall increased by 20% – and that was before anyone had been vaccinated. In truth, customers are missing the retail experience and are keen to rediscover it again.

Shopping with purpose is another trend to emerge from the pandemic. Consumers go out to buy, and don’t come home empty-handed. As customers return to physical stores, we can expect profits to rise – especially when it comes to large electronic items that consumers would rather buy in store.

It can be hard to stay positive when faced with such a huge crisis. But with consumer confidence rising, retailers can use key strategies to entice consumers back through their doors. The positive signs for retail are there – as long as you know where to look.

At The Delta Group, we help retail businesses find solutions to whatever challenges they face and give consumers what they want. Get in touch with the team today.

Last year saw a huge surge in ecommerce as consumers sought Covid-safe ways to shop, with total online retail sales increasing 36% compared to 2019.

This figure signals the highest online sales growth in 13 years, reports Retail Gazette – an encouraging takeaway from a year beset by lockdowns and consumer restrictions.

The data, taken from the IMRG Capgemini Retail Index, also revealed that online retail sales in December rose by 37% year on year.

Considering predictions made earlier in the year put online retail growth at 7.8% and forecast a dismal Christmas trading period, many retailers found reasons to celebrate.

With Christmas sales starting early, online shopping managed to hold onto some of the momentum it had gained during Q4, and sales rose by nearly 38% between October and December.

Looking at the online sales data for December in more depth, electricals (up 116% year on year) and gardening items (165% increase) were particularly strong.

IMRG data also highlighted that multichannel retailers performed “significantly better” than their online-only counterparts. In December 2020, this spending trend was seen in growth figures of 57% (multichannel retailers) and 9.1% (pure plays).

Speaking about these findings, Lucy Gibbs, managing consultant for retail insight at Capgemini said: “Retail in 2020 has been fundamentally shaped by the pandemic, which caused disruption to consumer demand norms and a shift in focus to digital channels.”

But the more responsive retailers are, the greater the rewards. As Gibbs continued: “Smaller retailers outperform[ed] the larger ones, perhaps due to the ability to be more agile in response to the changes.”

As we move further into 2021, retailers need to remain nimble and react quickly to the constantly evolving retail landscape. Opportunities will present themselves, says Gibbs, but successful retailers will be those who can switch between in-store and online offerings and are ready to “take on opportunities as they come in 2021.”

Making predictions amid such uncertainty is not easy. As IMRG insight director Andy Mulcahy explained: “At the start of each year we usually provide a forecast for online sales growth for the coming year. In 2020 things changed rapidly, and it makes predicting 2021 extremely difficult.”

However, he continued, in 2021 we might “have to adjust our understanding of what good looks like.”

At The Delta Group we help businesses get ready to take on new opportunities. To see how we help clients navigate these complex times, get in touch with the team today.

The Covid-19 crisis has created a new era of change for businesses. From transformation that’s been a long time coming to the acceleration of pre-existing trends, organisations are being forced to rethink their businesses to meet the new retail norm.

This ‘great acceleration’ has intensified trends that were already underway. Notably, it’s led to consumers being happy buying big ticket items online – something they’d never dream of doing 18 months ago. And that has left retailers wondering exactly what it is they need to do to adapt for the future.

There is no simple fix. The solution is complex and retailers need to tread carefully as they navigate these tricky times. But one thing is clear: the future of retail has to be ‘more’ – more experiential, more customised, more proficient, and more collaborative.

That’s a lot to ask, but retailers are up for the challenge. 

Let’s take a look at those changes in more detail and how retailers can put them into practice.

1 Retail space – big vs small

The flagship store has been a mainstay for retail brands for years. But with high rents and consumers more confident buying online, retailers will move away from these large brick-and-mortar premises and towards smaller retail spaces. To stay relevant, these physical stores will need to focus on customer convenience (operating in an omnichannel capacity) and feature geo-characteristics of the brand (providing different brand offerings depending on the store’s location).

That’s not to say all flagship stores will be consigned to the history books. Those that stay will be fewer in number, but will become destination stores, writes Forbes. They will be more consumer attractions than retail stores, where entertainment, experiences and shows are the main event. Shopping and making a purchase will almost be an after-thought.

2 Greater personalisation

The customer at the centre: it’s the modern retail mantra. Customers want convenience and a smooth route to the right products at the right time. Now, more than ever, physical stores need to harness the power of technology to meet customer needs. 

A personalised in-store shopping experience is largely linked with our local high streets. But with technology, brands can recreate that personalised, localised experience once only found in the village store. Knowing customers by name, understanding their likes and dislikes, and making suggestions based on their preferences is the way forward, but is only an option with the right tech.

3 People – skilled, experienced staff

One way retailers can entice customers back into their stores is through the people they employ. Staff need to be experienced, skilled and able to meet consumer needs to the tee. In 2021 and beyond, working the shop floor needs to be seen as a career (not just a part-time role) – and paid accordingly. 

Focusing less on the number of sales and more on reducing the number of returns, personnel will be able to answer consumer questions and create a memorable retail experience, specific to that shop’s location. After all, the more empathy retailers show staff, the more empathy staff will show customers.

4 Collaborative opportunities

Another way retailers can succeed post-pandemic is by operating more collaboratively. Sharing retail space is not only a smart move financially, it’s one that keeps consumer interest piqued. We’ll see more big-brand collaborations as a way to make the best use of large stores, but this will apply to smaller brands too. Think gyms combined with restaurants, fashion being sold alongside groceries, and more pop-up local market spaces with smaller retailers working together to give consumers a more rounded retail experience.

In 2021, retailers need to give consumers something that’s unique and a break from the norm. Stores that offer something different, surprising and inspiring will get consumers off their sofas and through the doors. That’s going to take some creativity, but the retailers that get it right will find plenty of consumers eager to get back in stores and enjoy the experience that brings.

If you’re looking for new ways to deliver engaging, immersive customer experiences in store and beyond, The Delta Group can help. Get in touch to find out more about our services and solutions.

Where there was once the 3P’s of marketing: promotion, price and place, today we have the 1D. More specifically, data.

This is the view put forward in Produce Business, which explains that the huge volumes of data generated, collected and analysed by the food retail sector have just one aim: to maximise profit.

Data is essential in driving key decisions. Within the food retail sector, every single item that is bought, along with the painstaking detail about the sale, is stored in huge databases, along with data collected by the retailers’ loyalty schemes. Added to that you also have data relating to weather, demographics and more. With so much information, it becomes possible to predict when and where a particular customer will next be buying a particular item of food.

Thanks to artificial intelligence (AI), retailers are busy gathering endless product- and price-matching information from competitors’ websites to be stored on a database. They are also using AI to keep check on their own levels of stock and incoming deliveries.

Meanwhile, machine-learning algorithms are able to predict customer demands pinpointed on a more local level. At speeds us humans can only dream of, these programs are able to forecast how many units of a specific product are required and the price they need to be sold at to achieve the greatest profit and the least waste.

Data is also used to decide where a product will get the best traction with the consumer. This data is more focused on A/B experiments that take place in store and by comparisons of consumer buying behaviour.

Suffice to say, when it comes to ordering stock, promotions and pricing, making choices based on instinct is out and AI-driven decisions are in. Which leaves the question: are all food retailers ready to take on the challenge of becoming data-driven organisations?

Not quite. But for every retailer that is hesitant, there is another willing to bet their bottom (line) dollar on data science and AI.

Looking specifically at the fresh produce market, time is of the essence. Crops need to be planted, harvested and on the shelves as soon as possible to guarantee quality and freshness. And that means being able to predict what stock each store needs to maximise sales, at the right price.

In short, data tools allow a company to make smarter decisions and predictions, enjoy a smoother, more efficient process, and see more revenue coming their way.

It’s time fresh produce retailers make the most of these unbiased, analytical insights to gain a crucial edge over the competition.

Find out how your business can benefit from retail insights. Get in touch with the team at the Delta Group today.

Marketing loves a hot trend and ‘retail media’ has become exactly that in 2021, reports The Drum.

With online shopping via websites and apps rising by 80% as consumers look for safer retail opportunities during the coronavirus pandemic, the amount of money being spent by brands to advertise on those sites and apps has also increased.

Even once we move beyond lockdowns and restrictions, there is little doubt that the boom in online shopping (and by association retail media) will continue. It’s now a matter of turning that data into insights and working out how retail media will develop in 2021.

In conversation with The Drum, Michael Greene, VP of Global Product Solutions, Retail Media at Criteo pointed out that while digital has become the primary channel for selling products, the operating costs cannot be underestimated. By selling advertising, ecommerce retailers are able to recoup some of those costs.

Of course, you need to look further back than Covid-19 to trace the roots of this trend. The Amazon effect has had a huge impact on the way retailers do business. Advertisers have always wanted their brands to be seen by consumers at the point of purchase – Amazon showed them how it could be done. And when they get it right, they can better influence consumers at just the right time – and measure the effectiveness of their advertising spend.

Greene explained that retail media is driven by two key factors. Firstly, the ad spend that would have usually gone towards in-store promotions, signage and physical advertising and secondly, the move away from broadcast spend after the cancellation of so many events. The result has been advertisers’ moving their focus towards more measurable media – at least, until physical stores are able to reopen once again.

This growth in online retail is happening across the board – from expensive electricals (previously sold in stores only) to small grocery spends (previously bought on the way home from work). 

To meet these shifts in consumer habits, retailers are offering next-day delivery and introducing more click and collect options. This move towards a more hybrid version of ecommerce can also be seen in an improved app experience in-store to help consumers find what they’re looking for and streamline their purchases.

In short, retail media is at the heart of how we shop now, and in the future. It may not be a new trend, but it’s going to be a big one in 2021.We want to help your business find solutions to the complex and ever-changing challenges you face. See how multi-channel marketing can empower your brand. Get in touch with the team today.

Shoppers want to see brands make a greater commitment to sustainability, according to Fashion Revolution’s latest consumer survey report.

As Drapers Online explains, three quarters of consumers believe that brands should be taking a more vested interest in the lives of the women making their clothing. 

Last year, Fashion Revolution’s consumer report surveyed 5,000 consumers between the ages of 16 and 75 from five European countries (Germany, France, Italy, Spain and the UK). The survey is part of the European Commission-funded Trade Fair, Live Fair project.

The annual survey, which was first published in 2018, has consistently found that consumers are growing increasingly concerned about social and environmental issues within the fashion industry.

According to the 2020 report’s findings, 69% of those questioned were keen to find out more about how their clothes were made. That is a 10% increase compared to 2018’s findings. The research shows that consumers are keen for greater brand transparency so they can make more informed decisions about the clothing they buy.

But it’s not just up to the brands themselves – governments also have a role to play. Seven in ten respondents said they believed it was the responsibility of governments to ensure greater sustainability in the manufacture of clothing. Meanwhile, 71% agreed that governments should make it easier for consumers to buy sustainably-made clothing.

Almost half (45%) said that it was vital that the clothing they bought was not produced using child labour. Additionally, one third (33%) of those questioned said it was important to buy clothing made by people who are paid a fair living wage. Among respondents from the UK, that figure rose to 43%.

Most of those surveyed felt it is important that fashion brands have ethical and sustainability certifications – 72% and 80% respectively. Consumers are also keen to see information about an item’s environmental impact (78%) and the wages and working conditions for people along the supply chain (70%).

At The Delta Group, we are committed to making a positive contribution to the environment and society. As well as constantly working to improve our own sustainability credentials, we advise our clients on how to embed sustainable practices into their own communications.

To find out more about how we can help your business take a more sustainable approach to communications and make positive changes to help protect the world around us, get in touch with the team at The Delta Group. Drop us a line at hello@thedeltagroup.com, We’d love to hear from you.

There’s no denying that 2020 was a difficult year for retail. But for a sector that has faced a huge amount of digital disruption over the past ten years, this is just another challenge to take in its stride.

The headlines love to paint a gloomy picture of the state of the high street, but as long as we need to eat, get dressed and decorate our homes, retail is here to stay. On our high streets and online.

The shift towards online retail is clear. In 2010, ecommerce made up 6.5% of Great Britain’s retail sales. By 2019, that figure had increased to 18.7%. In 2020, the Covid pandemic accelerated that shift to online retail faster still.

The rapid growth in ecommerce has created a host of opportunities for retailers – but it’s been more than just creating an online presence or diversifying into omnichannel retail. Retail’s digital transformation has presented threats and concerns, and given access to trends and transitions.

So, what can retailers learn from the past ten years?

Giving consumers what they want meant investment

Every retailer needs to give customers what they want. Over the past ten years, that has meant greater convenience and an enhanced shopping experience. 

Online retailers are able to offer both, but not without considerable investment. Retailers haven’t simply been able to shift their efforts away from the high street to online. And nor should they. Consumers want the best of both worlds – the ability to shop in physical stores and online. Giving customers what they want means giving them options. 

Over the past decade, retailers have been presented with a dilemma. Diversification, certainly. But how much? Full-blown investment in the online retail space would mean they could capitalize on the opportunity, but it could also mean losing traditional high street customers in the process. The alternative? Keeping with their current offering, but risk losing customers to digital competitors.

For some retailers who made early investment in digital technology, the results were not as favourable as they would have liked. The world of gathering customer data and using insights to inform supply and demand is not easy. But while some companies struggled, others shone.

Personalisation took centre stage

With the rise of Amazon came the scramble for personalisation. But while matching Amazon in terms of convenience is no mean feat, smaller brands had something Amazon lacked – the human touch.

Brands have had to work hard to anticipate and then meet consumer wants and needs. Exceeding customer expectations has meant going further still. Those that have used data insights in the right way have reaped the rewards, building meaningful relationships with customers and increasing loyalty.

By focusing on creating a more personalised offering and blending that with high levels of service, greater convenience and an enhanced experience, retailers have worked out how to use technology as a differentiator.

Taking the concept of personalisation a step further, augmented and virtual shopping experiences have also made their mark on the last decade. These give consumers even more of what they want. The ability to ‘try on’ trainers without going to a shop, or to see how that armchair would look in their living room. 

Giving customers the perfect blend of convenience, immediacy, and a more tangible experience has meant fewer online shopping fails – and less buyer’s remorse.

The demand for greater sustainability

Today, customers are looking for more ethical and sustainable brands than they were ten years ago. Society’s growing awareness of climate change has resulted in more consumers moving towards greener brands. A good product is no longer enough to win consumer favour. Customers want to know about its eco-credentials. 

According to a survey by Hotwire, 47% of consumers want to buy from brands that support their personal values. Top of that list of values? Protecting the environment. Customers want to know how products are made, where they are made and how materials are sourced.

Failing to meet this demand for greater sustainability is not an option. A brand exposed as being unethical, unsustainable or not caring about the environment will face a social media outcry, resulting in reputational damage and a sharp loss of customers.

2021 and beyond

2021 continues to present many of the challenges we’ve seen in 2020, especially in relation to Covid-19.

But if the pandemic has helped retailers at all, it’s by confirming that digital and traditional retail are dependent on one another. Rather than retailers opting for one or the other, they should be used together to give consumers the choice they so desperately want.

In-store retail is still very much alive, but needs to adapt and evolve to offer the kind of personalisation seen in online retail. Customers have missed the ability to enter physical stores, and 2021 could be the year when nostalgia for the great British high street really comes to the fore. 

If you need help delivering engaging, immersive customer experiences at every touchpoint, look no further than The Delta Group. Get in touch today to find out more about our services and solutions.