Retail marketing in transition

From the watering can principle to targeted customer activation

As many retailers as possible, as many measures as possible, as wide a reach as possible: this was the principle of retail marketing for a long time. However, what sounded like efficiency all too often turned out to be inaccurate in practice. Modern retail marketing works differently: it focusses on regional market potential, target group structures and performance data. It uses data-driven strategies for a targeted, differentiated customer approach. And this is where Marketing Management Systems come into play.

Why a broad approach is not very effective

One-size-fits-all in retail marketing: it sounds convenient, but it is not very effective. Same budgets, same measures, same advertising materials – regardless of whether a retailer operates in an urban growth market or in a rural region with a limited target group – such a strategy has significant weaknesses:

• Insufficient relevance: measures are often not tailored to regional characteristics or local target groups.
• Inefficient budget utilisation: resources are not used where they could have the greatest impact.
• Lack of transparency: traditional retail marketing with a limited database does not provide any comparative values. This makes it impossible to identify which campaigns are effective and which retailers are particularly active.

What data-driven retail marketing can do

Modern retail marketing strategies focus precisely on this: they aim to manage measures more precisely, use budgets more efficiently and provide targeted support to retailers. A key lever is retailer classification. Those who take a differentiated view of their retail partners can develop tailored measures, such as special promotional packages for premium partners or digitally optimised campaigns for digitally savvy retailers.

Data at regional level, for example on competition or local target group potential, helps enormously in better understanding a retailer’s environment and developing tailored measures. At the same time, flexible budgets enable targeted promotion, depending on the market potential or strategic relevance of the location. This increases the impact of national campaigns and reduces wastage.

Artificial intelligence provides valuable support: it can identify behavioural patterns in extensive data sets, cluster customer groups and calculate probabilities for the impact of measures. In addition, it identifies the most effective channels for each target group and considers the channel-specific characteristics in the region.

Modern retail marketing therefore works specifically with a pipette instead of a watering can and uses advertising measures where they have the greatest impact.

What technological systems must achieve

For the transition to data-driven retail marketing to succeed, it takes more than a new strategy – it requires the support of a Marketing Management System. This should meet the following minimum requirements:

• Central data integration: all relevant information, from target group analyses to retailer profiles, must be systematically recorded and evaluable.
• Individual measure control: retailers should be able to choose from a centrally specified portfolio of suitable, CI-compliant measures, ideally automated and individually preconfigured.
• Transparency and reporting: to further optimise measures, continuous success monitoring is required, with key figures that can also be evaluated on a regional and retailer-specific basis.

The days of the watering can principle in retail marketing are over. The trend towards individualisation, segmentation and data-driven activation will continue to grow. Successful brand management at a local level today requires targeted, data-based strategies and systems that enable their implementation.

With Marketing Management Software, gaps in the market can be accurately identified and growth regions systematically tapped into. Another effect: it encourages retailers’ engagement and strengthens their loyalty, turning them into active brand ambassadors.

Are you ready for new approaches in retail marketing? Then get in touch with us!