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1、Retail Gazette-Wunderkind ReportAugust 2022Countdown to 2024Personalisation,marketing and the drive for first-party data in retail,as Google extends cookie depreciation deadlineContentsForeword 3 Wunderkind General Manager EMEA Wulfric Light-Wilkinson sets the scene.Introduction 4 Theres a revolutio
2、n underway in personalised marketing,and it brings with it major consequences for brands,consumers,and digital advertising.Digital market dynamics 5 Weve all heard about the growth in digital commerce since the onset of the coronavirus pandemic in spring 2020,but what are the latest trends worth pay
3、ing attention to?Do you know who I am?9 What exactly do consumers expect from brands when it comes to communication and personalisation?Read the highlights from Wunderkinds survey of 2,000 UK consumers.Time is ticking 13 With 2024 rapidly approaching,what are the most pressing priorities for brands
4、looking to kick the cookie addiction and build a sustainable data strategy?5 key takeaways 19 Closing tips for you to put into action.Retail Gazette Wunderkind Report2Although Google has granted the cookie a temporary stay of execution,extending the deprecation deadline to 2024,a year goes by extrem
5、ely quickly in the world of digital marketing.And with Apple also committing to a raft of major privacy updates to iOS,its clear that the next year will see a tectonic shift in how marketers target,segment and engage with their audiences.So,as consumers become increasingly mindful of data privacy wh
6、ile also demanding high-quality,personalised shopping experiences how can retailers carefully balance these imperatives with the need to drive bottom-line growth?And how can they develop a sustainable,future-proof approach to customer data ahead of 2024?To tackle these questions,Wunderkind surveyed
7、over 2,000 UK consumers to understand their shopping habits,communication preferences and sentiments around personalisation,and to clarify what they truly value from the brands they engage with.In parallel,we quizzed a panel of 60 retail sector leaders to uncover how theyre currently identifying and
8、 communicating with customers and how they plan to adapt over the next 12 months.Our findings made one thing abundantly clear:though many retailers have understandable concerns regarding the phasing out of third-party cookies,theres a significant growth opportunity,in revenue,customer loyalty and li
9、fetime value terms,for those that intelligently evolve their approach.By utilising sustainable first-party and zero-party data practices,and prioritising respectful one-to-one communications with consumers,brands can put themselves in pole position to make digital gains in 2024.Read on to learn how.
10、Theres no getting away from it:third-party cookies are on their way out.ForewordWulfric Light-Wilkinson,General Manager EMEA,WunderkindThird-party identifiers,including online cookies,are standardised ways of identifying and sharing user data between publishers and the ad tech community,supporting t
11、argeted messaging and measurement of marketing performance.But tech titans Google and Apple are leading the charge to change the system.Working towards an extended deadline of 2024,Google is phasing out third-party cookies(3PCs)in its Chrome browser replacing them with a new interest-based targeting
12、 proposition called Topics.The key difference is that Topics selects topics of interest(based on the users browsing history)and shares those topics with participating sites,enabling targeted digital ads to be served.Previously planned for 2023,the extended timeframe for change recognises the disrupt
13、ion Googles move will cause the digital ad industry.Meanwhile,in a similar vein,Apple has changed its Identifier for Advertisers(IDFA),with an update brought in with iOS 14 meaning consumers must now opt in to allow their data to be tracked by advertisers.Previously this just ran as a matter of cour
14、se with Apple users having to opt out if they didnt want it.Both of these tech behemoths say their decisions revolve around improving consumer privacy Apple even used Data Privacy Day,on 28 January,to tell the world how companies track user data across websites and apps,while underlining its own com
15、mitment to privacy.Whatever the intention good,or to take greater control over the digital ad ecosystem,or perhaps both these moves are unsettling.Wunderkind and Retail Gazette have teamed up to gauge the digital ad landscape as it stands,and assess how it might evolve in the next couple of years.Th
16、is report assesses the lay of the land,backed up by exclusive statistics from in-depth research that shines a light on retail industry preparedness for new marketing structures and exactly what consumers are looking for from brands.Read on for insights and statistics as the countdown to 2024 beginsI
17、ntroductionTheres a revolution underway in personalised marketing,and it brings with it major consequences for brands,consumers,and digital advertising.First,lets highlight the fundamentals.Weve all heard about the growth in digital commerce since the onset of the coronavirus pandemic in spring 2020
18、,but whats the latest?Office for National Statistics data shows eCommerce represented around one-fifth of total retail sales in the UK at the start of 2020.This year,although dropping to 26%in June,the figure has been much closer to one-third of total sales it even surpassed that twice last year due
19、 to lockdowns and changing consumer behaviour.There will continue to be movement,but with Asos and Boohoo Groups recent acquisitions of Arcadia brands and Debenhams respectively,and the continued shrinking of store estates by multichannel players,digital has clearly risen in power.Wunderkinds resear
20、ch supports this,with 68%of UK shoppers questioned saying they buy more online now than they did since the start of the pandemic.Women were more likely to have increased their propensity to shop online(72%vs 63%of men).And,naturally against this backdrop,comes a greater shift towards digital adverti
21、sing.Digital market dynamicsRetail Gazette Wunderkind Report5A UK Digital Ad Spending 2021 report from market research group eMarketer predicts digital ad spending across all sectors will account for more than three-quarters of total media spend in the UK this year.It comes after brands switched the
22、ir focus from out of home(OOH)to digital display and video in 2020,and do not look like reverting to pre-pandemic activity.Some traditional formats,such as OOH,will see a bounce back as people increasingly abandon their living rooms,according to eMarketer,but many digital consumer habits are anticip
23、ated to stick post-pandemic,prompting brands to spend their ad money online.Retail digital marketing tacticsDigital marketing is far more nuanced than simply running display ads and videos,of course,and the pandemic has prompted eCommerce and marketing professionals to experiment even further than p
24、revious years.Email remains the channel most brands use to communicate and engage with their customers(72%),followed by Facebook(66%)and the social media networks stablemate,Instagram(36%),according to Wunderkinds research.The research also found that 64%of survey respondents acknowledged the accele
25、ration to digital caused by the health crisis has moved personalisation capabilities up their list of priorities this figure jumps to 70%among marketing specific job titles.Two-thirds(66%)said personalisation was a critical initiative in their current operations,rising to 75%among marketing personas
26、 while 67%said the role 72%66%36%Customer EngagementInstagramFacebookEmail6Retail Gazette Wunderkind Reportof personalisation would become even more important to their operations over the next two years.Some 71%took a long-term view and said personalisation would become more important over the next
27、five years.On each occasion,marketing professionals were more inclined to rate personalisation higher than those with ecommerce-specific roles,but it is clear more tailored marketing is a key focus area for all those involved in digital commerce,with 59%saying they plan to put greater investment int
28、o personalisation over the next two years.New dawn breakingAs our introduction alludes to,change is coming in digital advertising.The countdown clock to 2024 is ticking down to a time when 3PC and third-party identifiers from Apple and Google to support brand personalisation tactics will depreciate.
29、At the beginning of 2020,Google announced its Privacy Sandbox initiative,which it describes as a strategy to build“a more private,open web”and aims to among other goals prevent the tracking of people as they browse the web.The phase out of support for 3PC was set for 2022,but in June 2021 Google ann
30、ounced it has“become clear that more time is needed to get this right”,so it extended this process to the end of 2023 followed by yet another extension to the end of 2024.Vinay Goel,Privacy Engineering Director for Google Chrome,said his company will continue to explore how to create more private ap
31、proaches to key areas,including ad measurement,delivering relevant ads and content,and fraud detection.“By ensuring that the ecosystem can support their businesses without tracking individuals across the web,we can all ensure that free access to content continues,”he wrote.“And because of the import
32、ance of this mission,we must take time to evaluate the new technologies,gather feedback and iterate to ensure they 7Retail Gazette Wunderkind Reportmeet our goals for both privacy and performance,and give all developers time to follow the best path for privacy.”After Googles initial proposed post-co
33、okie solution FLoC(Federated Learning of Cohorts)was met with widespread criticism,the search giant officially dropped it in favour of Topics in January 2022.Googles Topics API will work by,on a weekly basis,automatically assigning web users to a number of categories(or topics)based on the websites
34、theyve visited,for example Travel&Transportation or Books&Literature.Topics will then randomly select one relevant category and share it with a participating website the user has visited.The website can then use this information to serve targeted digital ads to users during their visit.Google has st
35、ated that Topics will only ever hold data for a maximum of three weeks,with the aim of creating a form of targeting that keeps the users personal data completely anonymous,while maintaining a high degree of relevance.But how do marketers feel about the shift and this proposed solution?Two-thirds(66%
36、)of Wunderkinds survey respondents say they are reliant on 3PC,rising to 75%of marketing professionals.Meanwhile,41%say they rely on these cookies to identify site traffic,which might explain why 48%were nervous or concerned about the forthcoming changes.Throw in Apples privacy updates which now req
37、uire apps to ask users for permission to collect and share data,giving consumers more ability to opt-out of any type of targeting or tracking and brands have much to consider.Time to understand what consumers want from all this8Retail Gazette Wunderkind ReportAs retailers and brands come to terms wi
38、th a changing marketplace,the first thing they should be considering is what exactly their target audience or potential customer base wants from them.That has to be the best way to start developing new strategies in digital advertising.When it came to improving how brands and retailers could communi
39、cate with them,less is more was the battle cry from 38%of UK shoppers surveyed as part of Wunderkinds research.That is as long as they communicate in a way thats more relevant or personalised.Indeed,personalisation came out strongly as a theme in the top three ways retailers can improve communicatio
40、ns to customers,with 36%of consumers saying they want retailers to surprise them with offers based on their knowledge of said customer.Meanwhile,23%said that more personalised communications-which make them feel a retailer understands their needs on an individual basis-would be a welcome improvement
41、.Platforms that resonateChannels that resonate with consumers,according to Wunderkinds research,remain the traditional digital marketing options but there are signs of change.Do you know who I am?9Retail Gazette Wunderkind ReportEmail remains the dominant channel for consumers,with 57%saying they fo
42、und it the most convenient for communications with a retailer during the buying journey.This was followed by text messaging(26%),live chat(21%),and pop-up notifications(17%).Indeed,text messaging remains a channel to watch,with 54%of consumers saying they had received a text message update/communica
43、tion from a retailer in the last 12 months,and 49%suggesting the immediacy of text messaging was beneficial.Whether it was receiving the information faster than they would have done on email,or helping them react to a fast-changing stage in the buying journey e.g.delivery or discount text messaging
44、clearly has a growing place in supporting the buying journey.A further 29%said theyd valued the information being delivered succinctly by text message.Wunderkinds questionnaire to businesses found only 34%currently use text messaging to communicate and engage with customers,Preferred consumer comms
45、channelsEmailText messagingLive chatPop-up notifications57%26%21%17%10Retail Gazette Wunderkind Reportshowing there is significant room to grow in this channel and untapped commercial opportunity to explore.In terms of techniques,consumers are keen on notifications about available discounts.An email
46、 notifying them that an item they had put in their online basket had been discounted was deemed useful by a third of consumers,while the same communication via text message and website pop-up notices was favoured by 29%and 26%respectively.Some 24%said basket reminder notification emails were also us
47、eful in helping them to decide whether to buy a product,so brands and retailers should definitely be deploying these as a method for driving conversions.Clarks customer connectionsThe Wunderkind research shows 58%of consumers are more open to trying new brands now compared to the start of the pandem
48、ic,and this rises to 72%among 18-24-year olds.It means no matter how retailers performed during the last challenging 18 months,with the right tactics and knowledge of consumer behaviour,theres always hope for gaining a new audience.Youve just got to catch the consumers wavering eye.So,lets take a lo
49、ok at one inspiring example of best practice in digital marketing.11Retail Gazette Wunderkind ReportShoe brand and retailer Clarks has enhanced its email capabilities to create meaningful,one-to-one connections with customers over the last 12 months.Whilst Clarks could already identify its website v
50、isitors,the shoe brand wanted to double down on building out its first-party data due to the aforementioned changes to the marketing landscape not to mention heightened regulation in third-party data usage in the form of GDPR,which arrived in 2018.So,the brand opted to utilise Wunderkinds identifica
51、tion and list growth technology,enabling it to de-anonymise 32%of its site traffic within a month of going live.This meant Clarks could determine whether site visitors were already opted-in to its email database,enabling it to target them with high-value,high converting messaging,based on intent beh
52、aviours shoppers display online.Clarks now has the ability to deliver personalised,triggered emails to re-engage the customer ranging from relevant sale reminder messages to offer-ending prompts,and from information about new product drops to cart abandonment notifications.“What the partnership with
53、 Wunderkind enabled us to do was to own our first-party data,and to scale the communication to those consumers.Within the first year of working with them,we doubled our addressable opt-in database.”Marcus Oughton,Head of eCommerce for UK,Republic of Ireland and EMEA at ClarksOther results Clarks now
54、 captures more data to re-engage consumers who havent completed a purchase Clarks can maximise conversions by focusing on high-intent customers Clarks now has a more segmented approach to implementing email Clarks sends emails based on consumers last digital point of interaction with the brand.How C
55、larks enhanced its digital targeting and personalisation strategyRetail Gazette Wunderkind Report12The title of this final chapter is not just a reference to the rise in power of video sharing app and growing social network TikTok although it is worth recognising that the ByteDance-owned platform sh
56、ould be on almost every brands list of marketing channels to explore.It added over ten million UK adult users last year to reach 13.9 million by March 2021.The title of this section also indicates the countdown to a new digital marketing landscape has started and knowing who their customers are and
57、what they like(and crucially,being able to act on that information)is going to be of even more importance to retailers and brands in the very near future.Ground zeroWith the European Union stepping up its game with its strict third-party data privacy laws on the one hand and consumers still expectin
58、g brand messages to be personalised,timely,and delivered on the right platform without having to sacrifice their privacy on the other it is inevitable that marketers need to start maximising the value and insights they can derive from their first-party data.Enza Iannopollo,Principal Analyst at Forre
59、ster,describes digital advertising as being“on the brink of major,systematic changes”,in the manner this report has already alluded to.“Values-based customers increasingly look to share their data with companies that embrace privacy as a value and treat data ethically,”she Time is tickingRetail Gaze
60、tte Wunderkind Report13says,describing information customers proactively and deliberately share with brands as“zero-party data”.“On top of it,the death of the third-party cookie forces companies to focus more on collecting data directly from customers and rely less on more risky third-party data.CMO
61、s will start to make strategic revisions to their ecosystem.”She adds that CMOs must partner with their security,risk,and privacy peers to select the right technology and develop processes to support their objectives in this space.Iannopollo also suggests consumers are“more likely to share their dat
62、a and to spend more money with companies that they believe will keep their data safe”.Food for thought,then,for retailers and brands navigating this new landscape.Its resulting in some interesting tactics forming across the industry.Subscription services and new-style loyalty schemes in retail have
63、arguably never been more popular,as companies look to increase their first-party data pools and to get closer to consumers.Barclaycard Payments research suggests the UKs subscriptions economy is worth 395 million up 23%year-on-year,supported by a 16%rise in the number of shoppers signed up to subscr
64、iptions.From Lush to The Fragrance Shop and from Hotel Chocolat to Morrisons,retailers from all sectors have launched new-style subscription services that bring additional benefits to those who join these initiatives.Traditional retails involvement in this space follows the success of the subscripti
65、on specialists,such as meal kit providers Hello Fresh and Gusto,and Unilever-owned Dollar Shave Club.These could be described as new forms of loyalty scheme,although the financial outlay associated with subscription means customers are essentially paying for a premium service.Tesco and Walmart are t
66、wo major retailers that have created their own annual paid-for memberships over the last two years,which build on previous loyalty programmes but promise year-long benefits to customers buying into their respective ecosystems.14Retail Gazette Wunderkind ReportAmazon Primes success it recently reache
67、d 200 million members worldwide shows just what companies can do if they offer multi-layered services in return for an annual fee and access to their data.Other retailers are now looking to forge their own versions to get that all-important first-party data and create recurring revenue.Preventing re
68、tailers veering off courseIf a key aim for the retail industry is to get a handle on just what customers are doing,there is clearly room for improvement.According to the Wunderkind study,66%of eCommerce and marketing professionals say they already identify their site traffic,however 40%can only iden
69、tify between 26-50%,and 23%can only identify up to 25%of their site traffic.A significant 28%said they had issues identifying a shopper when they come on site using different devices,while 26%had issues identifying the customer when they move from one channel to another and then come onto site for e
70、xample from app to website.Some 82%said they wanted to do more to improve cross-channel customer engagement this rose to 86%for eCommerce professionals with 43%admitting they over-relied on one channel when looking to engage with shoppers or target audiences.Can eCommerce and Marketing professionals
71、 identify their site traffic?Can identify66%40%23%Can only identify 26-50%Can only identify 25%15Retail Gazette Wunderkind ReportNot being able to understand intent signals was the personalisation challenge cited by most respondents(44%),while the ability to curate content based on a customers inter
72、ests(38%)and knowing if a shopper has come onto site to browse or buy(34%)were also huge problems noted by industry professionals.It is perhaps unsurprising that retailers are trying all types of new tactics to get this process right,given that knowing customers intrinsically can lead to commercial
73、success.Consumer view:Retailer comms and personalisationIm less likely to engage with content that feels automatedIm often recommended products and services that arent relevant to meIm more likely to engage with content that feels as though its been tailored to my needs and interestsIm more likely t
74、o buy a product if the recommendation is personalised to meCommunication that isnt personalised can put me off buying with that retailer or brandRetailers and brands who curate content based on my needs or interests are more likely to earn my loyaltyCommunications feel like they have been sent to ev
75、eryone and dont have a personal touchAgreeDisagreeNeither Agree or Disagree23%8%8%12%12%11%16%9%24%20%22%27%26%35%68%68%67%69%60%63%48%16Retail Gazette Wunderkind ReportThis years talk about Googles imminent 3PC depreciation and Apples privacy update comes just three years after the introduction of
76、GDPR.As we write this,responsible data management and brand-consumer relationships are truly under the microscope.Emilie Maunoury has navigated the last few years as Digital,eCommerce&CRM Director at beauty brand Clarins UK,but talks positively about the changing landscape.Clarins saw a huge dip in
77、its addressable database after GDPR officially took effect in May 2018 and,like many retailers and customer-facing organisations,it needed to rebuild.Clarins brought in Wunderkind in 2018 to build a high-quality,engaged CRM list and deploy a more effective and efficient retargeting strategy that wou
78、ld increase the value of customers on that list.In just six months,Clarins was able to add 68,000 emails to its CRM.This allowed the brand to drastically increase its triggered email reach and grow its revenue from triggered email by 13x.Maunoury takes many positives from GDPR and the ongoing projec
79、t.“I think it was a healthy thing because we were carrying along visitors who were not interested in the brand,”she explains.“GDPR was a health check for company databases,and it helped us clear out the people who were never going to be engaged customers.”She continues:“Im adding people to my list w
80、ho have been showing interest in my site and intent to buy;it just makes sense.To me,that was the biggest Wunderkind selling point quality growth.”Quality not quantityRetail Gazette Wunderkind Report17In this period of change in digital advertising,a positive attitude will take brands far.If compani
81、es look at the forthcoming Google and recent Apple changes simply as new rules by which they can serve consumers better,that can surely be no bad thing.As we have illustrated,there are plenty of techniques to do this.Theres also some great technology out there to support retailers and brands on that
82、 journey.But what are the most important points to consider?18Retail Gazette Wunderkind ReportIf retailers take nothing else from this report,consider the following:1.Strive for 1-2-1 marketing first-party data(or zero-party data,if you take the Forrester description)is crucial to marketing success
83、in retail.Do all you can to get hold of it to enable personalised consumer comms.2.Ride the digital rollercoaster the pandemic has fast-tracked eCommerces popularity,so continually assessing and tweaking which tech tools,and sales and online marketing channels you use and how you use them is crucial
84、.3.Harness email and text email is the preferred marketing communication channel among consumers,but dont dismiss text messagings growing power to influence purchasing behaviour.4.Seize the opportunity like GDPR before it,phasing out of third-party identifiers represents real disruption to the digit
85、al ad space,so use this time as an opportunity to rebuild and focus on whats important:the customer.5.Partner up with so many changes on the horizon,retailers and brands are going to rely on tech partnerships more than ever,so make sure those comprising your tech stack are talking to you and speakin
86、g your language.Key takeaways5Retail Gazette Wunderkind Report19Tools to get to know customers in the countdown to 2024Wunderkind is a performance marketing channel that delivers one-to-one messages at unprecedented scale,for over 650 clients.We identify users by device(without cookies!)and match th
87、em back to an email address in real-time.This lets brands automate personalised experiences on-site and in inboxes to convert more users.The result is a new,scalable revenue channel with directly attributable performance at industry-defining levels.6-10%2-5%#3Additional digital revenue driven by Wunderkind,measured last-clickAverage conversion rate increase through personalised experiencesRanked performance channel for clients,alongside Facebook and GoogleLearn more and request a demo at wunderkind.co Retail Gazette Wunderkind Report20