Gone are the days of linear retail ecosystems

TBWA\RAAD

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Dubai, Emiratos Árabes Unidos

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Astha Sirpaul

Planning Director — TBWA\RAAD

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TBWA\RAAD's Planning Director, Astha Sirpaul, is a brand solutions professional with specialization in the area of research, consumer insights and data driven brand strategy. An expert in customer journey mapping on digital, she delineates the opportunities for retailers that lie in personalized experiences and tailored advertising.

In your opinion, what has been the catalyst for this explosive growth of retail media? 

It sounds like a cliché but ongoing digitization takeover, spurred by increased internet penetration and smartphone usage, has created new and amplified opportunities for retailers to engage with consumers online. Take e-commerce in the Middle East for example. Middle Eastern consumers are mobile first, which means they overwhelmingly favor mobile apps as their preferred channel of engagement 1.6 times higher than the developed markets of Europe and North America¹. So unsurprisingly, these platforms are becoming prime retail estate for retailers seeking consumer attention. Add to that the ‘youth bulge’ in this region, along with the globally rising trend of targeted advertising with the tidal wave of influencer marketing and voila, you have the explosion of retail media. Not to forget the fierce competition among retailers, prompting innovations and application of data analytics for more personalized experiences and tailored advertising. The result? A dynamic retail ecosystem where brands captivate audiences with precision and finesse, reshaping consumer engagement like never before.

Retailers are becoming media owners. How will this impact brand strategy and media planning?

This evolution as one may put it, from being retailers to becoming media owners, has granted retailers unparalleled access to consumer data, insights, and engagement opportunities. This in turn has revolutionized the way these brands interact with their audiences. Take Souq.com (now Amazon.sa) and Noon, in the Middle East for example. These are leading e-commerce platforms that have elevated retailing into powerful media channeling. These platforms offer brands the chance to not only sell products but also engage audiences through sponsored content, influencer collabs and targeted advertising. 

In short, with retailers owning media channels, brands ought to adapat their strategies to capitalize on this newfound aveneue for consumer reach. This can take the form factor of integrating retail media into omnichannle campaigns, optimizing content for specific platforms, and sharpening audience targeting and retargeting based on retail data insights. In fact, this is a great opportunity for brands to co-create content and expereinces with retailers that resonate with consumers on their shopping journey.

What opportunities do AI and CX data offer brands in the customer journey?   

If there is a word that can define the opportunities that AI and CX offers brands in enhancing the customer journey, it will be ‘exponential’. Because now brands can deliver tailored expereinced at ‘every’ touchpoint with AI personalization. This benefits brands in two ways that leads to exponential growth – one, they attract more of new customers who are seeking this persoanlization, and two, they get more out of their existing customers because personalization fosters deeper engagement and loyalty.

In both these cases, brands are maximizing their revenue opportunities. Further what automation enables is that it streamlines processes, improves efficiency and frees key resources for other high value tasks. The best example is the chatbot revolution that has helped brands not only provide round the clock support to customers, but also significantly save on support costs.

What is key is to understand the symbiotic relationship that exists between AI and CX. AI allows CX to be personalized every step of the customer journey and CX data fuels AI-driven improvements. If this partnership is shown love, brands will witness exponential returns by ensuring they are always ahead of the curve in meeting evolving customer expectations.

How can brick and mortar locations evolve so that they remain relevant in a digital world?

Brick-and-mortar stores have an opportunity to become ‘digital experience epicenters’ by getting creative with technology. Imagine walking into a store and using your phone to see how furniture would look like in your living room with augmented reality. In fact, these stores can become epicenters where the online and offline brand experience merge, offering personalized offerings and engagement. By ensuring that shopping is made for fun, these stores will also be able to drive the required footfalls. Think about ordering online and picking up your items at the store, hassle-free. That will definitely be the kind of store visit one looks forward to!