The retail landscape is experiencing a monumental shift as technology and customer behavior intersect, forging new opportunities for retailers to capitalize on their most valuable asset: customer behavior data from their physical retail stores. "Beyond trade" activities, including Retail Media Networks, are projected to make up half of a typical Western market retailer's profits by 2030 according to Bain & Company.
We'll delve deeper into the power of "beyond trade" activities, how Footprints AI can help retailers capitalize on this trend, and why customer engagement and in-store traffic are a retailer's most valuable business assets.
Retail Media Networks: The Catalyst for 'Beyond Trade' Growth
Retail Media Networks have gained prominence as they provide brands with targeted advertising opportunities within the retailer's ecosystem. According to BCG, the retail media market will reach $100bn as early as 2026 - and that’s just in the US - by which point it will account for 25% of total digital ad spend.
This growth is driven by several key factors:
- Enhanced Customer Experience: Retail Media Networks enable personalized and relevant advertising, improving customer experience and driving increased engagement.
- Increased Revenue Streams: Retailers can generate new revenue streams by offering targeted advertising opportunities to brands within their ecosystem.
- Improved Data Utilization: Retailers can capitalize on their vast customer behavior data to create more targeted and effective advertising campaigns, increasing ROI for both retailers and brands.
- Evolving Market Dynamics: The future of retail is being shaped by rapidly evolving customer expectations, the rise of e-commerce, and the need for physical retailers to find new ways to stay competitive in the marketplace.
The Power of 'Beyond Trade' Activities:
Bain & Company forecast that “beyond trade” diversification, rather than the traditional selling that dominates today, will account for half of a retailer's profits in a typical Western market retailer by 2030 (source: Bain & Company). This highlights the immense potential that lies in unlocking the power of customer behavior data to drive revenue and growth. Retailers who prioritize "beyond trade" activities can expect to see a significant impact on their bottom line, as well as long-term competitive advantages.
Footprints AI: Unlocking Retail Media Potential
Footprints AI is one of the most advanced AI-powered Retail Media platform that empowers physical retailers to capitalize on the potential of Retail Media Networks. In-store traffic and customer engagement are a retailer's most valuable business assets. By leveraging this wealth of data, Footprints AI can help retailers accelerate their go-to-market strategy and boost profits:
- Fast Launch: Footprints AI enables retailers to launch their Omnichannel Retail Media Network in just 3 months, compared to the typical 3 years, giving them a competitive advantage in the market.
- High-Profit Revenue Generation: Footprints AI helps retailers generate high-profit revenue by launching new retail media streams or boosting their current media offerings.
- Improved Efficiency: Footprints AI's cutting-edge AI technology allows retailers to achieve 5-8x better retail media performance of their own media investment. This means greater returns on ad spend (ROAS) and enhanced profitability.
- Comprehensive Customer Data: Footprints AI helps retailers know their customers beyond transactions and in-app registrations, providing a more comprehensive view of customer behavior.
Capitalizing on In-Store Traffic and Customer Engagement:
In-store traffic and customer engagement data is the foundation for driving profits and growth in the retail media space. Footprints AI harnesses this valuable data to optimize ad campaigns and improve efficiency, resulting in increased profits for physical retailers.
Actionable Insights for Retailers:
To harness the full potential of Retail Media Networks and Footprints AI, physical retailers should consider the following steps:
- Invest in Data Analytics: Develop a data-driven strategy to maximize the value of customer behavior data from physical retail stores, focusing on in-store traffic and customer engagement.
- Prioritize Personalization: Leverage the power of AI and machine learning to deliver personalized advertising and promotions, driving customer engagement and loyalty.
- Collaborate with Brands: Establish strong partnerships with brands to create mutually beneficial advertising opportunities within your retail ecosystem.
The projection that "beyond trade" activities will make up half of a retailer's profits by 2030 emphasizes the immense potential of Retail Media Networks. Physical retailers must capitalize on this opportunity and focus on in-store traffic and customer engagement as their most valuable business assets.
By adopting Footprints AI, physical retailers can enhance their customer experience, generate new revenue streams, and make the most of their customer behavior data, ensuring a thriving future in the competitive retail landscape.