- The Challenge: Retail media faces a crucial battle against digital giants like Google and Meta for brands' advertising dollars.
- The Need for Transformation: Retailers must undergo a premiumization process to maintain profitability and gain a competitive edge.
- Harnessing AI for Behavioral Insights: Retailers need to extend beyond online, transactional and loyalty data. Behavioral data from physical retail & AI plays a pivotal role in understanding and anticipating customer behavior.
- Intelligent and Contextual Retail Media: With this approach, retail media can evolve to offer innovations in advertising formats that truly cater to customer context and needs.
- The Post-Digital Era of Retail Media: Retail media's future is not about emulating digital giants but leveraging unique customer behavioral data currently captured in physical retail.
Introduction: Setting the Stage for Change
In the escalating battle for brands' advertising dollars, traditionally dominated by giants like Google and Meta, retail media is at a pivotal crossroads. The next two years are poised to witness a significant shift - a premiumization process in retail media. This transformation is not just necessary but imperative for retailers to maintain high profit margins and gain a competitive edge. Premiumization in retail media is about transcending traditional transactional & online data to embrace a deeper, more predictive understanding of customer behaviors, preferences, and needs.
The Imperative of Premiumization
- Why Premiumization? Premiumization is critical because it fulfills the true mission of retail media: fostering unprecedented engagement between brands and customers. While by “unprecedented engagement” we can understand a new stage in the search for more relevance, better targeting, more personalization, better Return on Ad Spend. This will allow retail media to be marketed as a premium ad service with high-profit margins and a tremendous differentiator versus the high-volume, low impact ad services from main competitors.
- Beyond Transactions and Loyalty Schemes: To achieve this, retailers need to explore beyond the 10-15% data from transactions and loyalty programs. It involves going beyond online behavior, transactions, and loyalty schemes to a more holistic view of customer interactions, encompassing both physical and digital realms. Although current data from transactions and loyalty programs are detailed and valuable, they represent only a fraction of the total data retailers can leverage. To truly revolutionize retail media, this perspective needs to expand.
Harnessing Behavioral Data with AI
Behavioral data is a goldmine for retailers, offering insights into psychographics, socio-demographics, and predictive behavior. This data can revolutionize marketing engagement strategies and retail media monetization success. For instance:
- Psychographic Analysis: Understanding customers' values, attitudes, life stages and lifestyles based on physical retail behavior and omnichannel shopping habits.
- Socio-Demographic Profiling: Using AI & behavioral data to predict gender and age of anonymous customers based on their shopping habits and the context when these patterns happen.
- Predictive Behavior Modeling: Anticipating future needs, visits, and purchases to optimize customer knowledge and improve relevance across the complete path to purchase.
Technology Enablers in Premium Retail Media
Various technologies play a crucial role in gathering this rich behavioral data:
- Wi-Fi Analytics: By capturing Wi-Fi signals from mobile devices, retailers can track customer location and movement patterns through a 100% compliant method, offering insights into in-store behavior and path analysis.
- Camera Analytics: Anonymous visual data capture for customer traffic patterns, dwell times, and in-store hotspots.
- Smart Shopping Carts and Shelves: Equipped with sensors & indoor positioning capabilities, these can track product interactions, preferences, and in-store shopping patterns.
- Indoor Positioning Systems (IPS) in Scan & Go Apps: For precise in-store navigation and product location, enhancing customer knowledge and behavioral analysis.
- Smart Shelf Displays: Utilizing proximity sensors, cameras and NFC/RFID technology for customer profiling, proximity, product interaction, sentiment, and attention analysis.
Looking ahead, these immersive technologies are set to revolutionize retail media with unprecedented levels of engagement and personalization. Staying ahead in this rapidly evolving landscape of data monetization is crucial for retailers aiming to harness the full potential of data-driven profit models.
Leveraging Footprints AI for Predictive Omnichannel Retail
Footprints AI stands at the forefront of this premiumization process, offering unparalleled predictive and hyper-personalized targeting.
Footprints AI's Role: to transform retail media through predictive, omnichannel, contextual and hyper-personalized targeting:
By analyzing the data collected through the aforementioned technologies, Footprints AI can:
- Reveal detailed customer profiles fueled by the most valuable data retailers hold about their customers: their physical retail behavior.
- Predict next 30-day retail behaviors.
- Enable omnichannel predictive targeting, influencing customer future decisions, both in the physical retail and in e-commerce.
Footprints AI: The Omnichannel Contextualization Retail Media
Personalization is not about knowing someone’s name or showing them ads for things they might like. It is about knowing what matters to them in the situation they are in. It is about being able to see the world from their perspective and offer them solutions that fit their needs and desires. It is about going beyond the digital traces they leave behind and tapping into the physical reality they inhabit. This is what we do with our Omnichannel Contextualization Retail Media Platform. We create personalized experiences that are tailored to the phygital context of each customer.
- Beyond Digital Personalization: Footprints AI transcends traditional digital personalization by understanding what matters to customers in their current situation.
- Omnichannel Contextualization Media Platform: This platform creates personalized experiences by merging digital insights with the physical reality customers inhabit, offering solutions that align with their needs and desires in their phygital context.
Contextual and Intelligent Retail Media
The premiumization journey begins with unique data from physical retailers, leading to innovative advertising formats. These formats are not just about recommending the right product on the right channel but also about suggesting the most suitable purchase method and channel based on the customer's context.
Innovative Advertising Formats: These formats recommend products and purchase methods based on the customer's context, like:
- Time-Based Recommendations: Suggesting online or in-store purchases based on the time of day. Late Night Online Recommendations: Suggesting online purchases for overnight delivery. Morning In-Store Shopping: Encouraging visits to nearby stores during off-peak hours for convenience and savings.
- Contextual Promotions: Tailoring offers based on real-time customer location, time of day, and other contextual factors, like the preferred channel of purchase or weather outside.
Conclusion: A New Era of Retail Media Value and Profitability
Transforming Retail Media's Role:
- The Objective: Moving beyond replicating digital models to utilizing unique physical retail data.
In the evolving landscape of media spending, the aim for retail media is not merely to imitate the tools and strategies of digital advertising behemoths like Google and Meta. The real power and potential of retail media lie in its unique capability to harness and analyze the wealth of data available through physical retail interactions. This approach enables brands to achieve an unmatched level of relevance and profitability in their advertising investments.
- The Outcome: Monetizing omnichannel media audiences with a 10X increase in value and profitability.
By embracing premiumization, retailers can unlock the full potential of their omnichannel media audiences. This evolution is more than just a competitive response; it's a transformative journey towards realizing 10X growth in both the volumes and the monetization value of their retail media audiences. By tapping into the rich, diverse, and dynamic data streams that physical retail environments offer, retailers can curate tenfold more media inventories with significantly higher profit margins.
- The Strategy: Premiumization leads to more sophisticated, targeted media offerings with higher profit margins.
The essence of this premiumization process is the creation of a more refined, sophisticated, and targeted media offering. It's about delivering not just any audience to advertisers but the most relevant and engaged audience. This shift ensures that every ad dollar spent is more effective, driving higher returns for brands and elevating the overall profitability of the retail media sector.
- The Vision: Retail media's future lies in personalized, predictive customer experiences, setting new standards in advertising.
In summary, the future of retail media is not about replicating existing digital models but about pioneering a new paradigm. One where the intrinsic value of physical retail data is fully leveraged to create advertising experiences that are as profitable as they are pertinent. This is the new frontier in retail media, where premiumization is not just a strategy but the key to unlocking a new era of growth and profitability in the battle for advertising dollars.
This is more than a strategy; it's a vision where the intrinsic value of physical retail data is fully leveraged to create advertising experiences that are as profitable as they are impactful.
Footprints AI transforms the way retailers utilize omnichannel customer data, allowing for the generation of new revenue streams with the aid of AI in 3 months or less, and with high profit margins as it creates a premium value and pricing of retail media services for any retail media network.
- Footprints AI is a premium, private Managed SaaS delivered within a retailer's IT architecture, in full compliance and with no data sharing, ranking as one of the leading Next-Gen AI-powered omnichannel retail media software platforms.
- Retailers & retail properties are looking for an all-in-one solution to monetize their customer data from both physical and digital, with Footprints AI generating 10X more valuable and actionable insights and 10X larger omnichannel retail media audiences that are monetizable.
- With Footprints AI, retailers & retail properties can generate 10x more profits from their omnichannel data in 3 months or less, positioning it as the most profitable platform solution to launch an omnichannel retail media network.
- Brands can experience a 5-8X exponential growth of their ROAS and drive in-store sales by tapping into Footprints AI's unique predictive targeting capabilities that can influence physical shopping behaviors.
- Our commitment to data privacy extends beyond mere GDPR compliance. We prioritize ethical practices in data usage as a strategic choice, essential for building lasting trust with customers. Our approach ensures that customer data is not only protected but also used responsibly, aligning with our core values of respect and integrity in all our operations.
Join Footprints AI in pioneering this new paradigm in retail media.