Marco Pelà, Head of Experience & Digital at Ogilvy Italy, is adept at transforming complication into simplicity through solution-fitting processes applied to Business Strategy, Brand Experience and Digital Transformation fields. Speaking on the growth in retail media, he identifies key elements to creating a more flexible shopping experience for customers.
In your opinion, what has been the catalyst for this explosive growth of retail media?
The explosive growth of retail media could – in my view – be attributed to several key factors. First, the proliferation of digital technology and e-commerce platforms has enabled retailers to collect – compliantly – large amounts of customer data, enabling them to better understand customer behaviors and preferences. Second, the increasing use of personalized marketing strategies has fueled the growth of retail media. By leveraging customer data, retailers could create highly targeted ads that resonate with individual consumers, thereby increasing engagement and conversion rates.
Finally, the integration of on-line and off-line retail experiences has also contributed to the growth of retail media. This omni-channel approach enables retailers to engage customers at multiple touch-points, improving the overall CX (i.e. Customer Experience) and increasing sales.
Retailers are becoming media owners. How will this impact brand strategy and media planning?
As retailers become media owners, they gain control of the advertising space on their on-line platforms as well as digital media spaces within the stores. This change will likely requires a shift in brand strategy and media planning. Brands will need to build stronger relationships with retailers to secure prime advertising space and effectively reach their audiences. In addition, brands may have to adapt their media planning strategies to account for the unique characteristics and capabilities of retail media. For example, they may need to incorporate more data-driven tactics to take advantage of the rich customer data that retailers possess. This could lead to more personalized and effective advertising campaigns.
What opportunities do AI and CX data offer brands in the customer journey?
AI and CX data offer brands numerous opportunities to improve the design of the Customer Journeys.
AI could analyze large volumes of CX data to identify patterns and trends, which could inform decision making and strategy development. For example, AI could help brands outline customer behavior predictions , enabling them to deliver personalized experiences that meet their needs and expectations. In addition, AI could automate various aspects of the Customer Journey, such as customer service and product recommendations, improving efficiency and customer satisfaction.
On the other hand, CX data enables brands to measure and optimize the broader customer experience.
By collecting and analyzing data on customer interactions and feedback, as Ogilvy we could support brands in the identification of improvement areas and make changes to improve the overall experience.
This could ultimately lead to increase customer satisfaction and loyalty, that are key elements of the relationship design.
What kind of retail experiences do GenZ and GenA value?
GenZ and GenA seem to value interactive and personalized retail experiences, in particular they could be interested in brands that offer unique in-store experiences, such as pop-up shops or experiential retail spaces.
Personalization is also key, as these generations expect brands to understand their individual needs and preferences, both as individuals and as a community. They are also more likely to support brands that demonstrate a commitment to social and environmental responsibility.
How can brick and mortar locations evolve so that they remain relevant in a digital world?
Brick-and-mortar stores could remain relevant in the digital world by embracing technology and creating unique in-store experiences. In Ogilvy we advise and work with brands to adopt technologies able to enhance the shopping experience, such as through virtual fitting rooms, AR totems and mobile payment options.
In addition, stores could host events or offer services that could not be replicated online, such as workshops or personal styling sessions. By offering an experience beyond just buying products, brick-and-mortar stores could attract customers and differentiate themselves from online retailers and direct-to-consumers stores. In addition, offering services such as click-and-collect or in-store pickup could bridge the gap between on-line and off-line shopping. This allows customers to shop on-line and pick up their purchases in store, providing at the same time a more convenient and flexible shopping experience for customers as well as an up-selling opportunity for retailers.