VSA’s Jessica Sochol was recently interviewed by AdForum to give insights on the expansion of retail media. During the interview, she discusses the reasons and trends behind the boom of retail media, how retail brands can adapt and use new technologies to improve customer experience, and what that means for brick and mortar locations.
Jessica points to three trends that have propelled the growth of retail media: the rise of retail content creation, the explosion of the digital big-box retailer, and the rise of social media marketing.
She also shares how brands can use personalization to supercharge their CX:
”Brands need to get their data in order, ensuring every customer interaction treats the customer like you’ve met before. That means remembering previous orders, recommending related, relevant products, and offering unique customer service and offers that recognize the existing relationship. As retailers expand their media arms, they have access to more data—especially around the topics and issues each customer cares about—and should be ready to use that information to show up in a way that says, ‘We see you, and we appreciate you.’”
Check out the full article, which includes additional insights about designing retail experiences for Gen Z and Gen A, as well as how to create a powerful physical-digital connection between customer experiences.
This year, VSAers are embarking on an ambitious journey to redesign logos, websites, apps, packaging and more. It’s our contribution to businesses, brands and society by exploring potential solutions to the many types of expressions and experiences in the world we think have the potential of being better. We have not been commissioned for these solutions, but rather it’s our passion for great creativity that motivates us.
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In some instances, we’ll be considering what exists today. At other times, we’ll consider the opportunity for something yet to be solved, but we see it as critical for the future.
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Visit design4better.co to see the ever-evolving sketchpad for ambitious concepts that push design and organizations forward. From bold ideas to new interactions, we create with curiosity and purpose.
Companies don’t always use data to power their brand positioning shifts. Often, it’s a subjective exercise that reflects what internal stakeholders are experiencing when they interact with customers.
That subjectivity can be dangerous for brand positioning work because it can root your brand in promises and messaging that won’t last over the long haul and may not reflect the needs of high-value growth targets.
When clients come to VSA for brand positioning work, we usually suggest their brand positioning journey start with Promise to Performance®, our proprietary quantitative research methodology.
Promise to Performance (P2P) was specifically designed to identify the key ingredients of a brand positioning that is true to your business, relevant to your customers and different from what your competitors are saying. In other words, it’s everything you need, and nothing that you don’t.
P2P provides the answers to three key questions that will help you prioritize the brand promises you should focus on in your brand positioning:
In this piece, let’s focus on promise alignment to high-value audiences—why we approach it the way we do and why it matters for brand growth. We’ll cover the other two areas in future pieces.
Our approach starts with prioritizing across a long list of potential needs—about 20 unique statements, on average—to find out which are most important to each respondent in the survey. The need statements are custom written for each study to capture a range of functional and emotional needs that represent different potential priorities within your particular audience.
We then use need segmentation to define the audience cluster groups. With any segmentation exercise, there are typically foundational needs that all segments identify as important for the category. These needs are important to be competitive in the category—so it’s important to have them covered—but they are not usually differentiating.
Here’s an example: We worked with a company that offers a technology solution for small businesses. First, we surveyed their total audience, and then we performed a need cluster analysis to reveal audience segments with different priorities representing unique mindsets. In this case, all SMB segments have similar reliability and service need priorities.
One of the big benefits of doing need-based segmentation is that it can uncover the hidden gems. These are the needs that don’t immediately rise to the top in overall audience ranking of importance, but they can actually carry outsized weight for certain audiences.
For a differentiated position, we want to isolate those needs that are uniquely important to different customer segments, and then act on them.
On average we find about 4.0 segments with each study, and each segment has an average of about 3.6 needs that shape that segment—meaning, they are both important to the segment and more important for that segment compared to the audience as a whole. Often, segment-defining needs are lower ranking overall, but they over-index in importance for a particular segment. In fact, when we looked back across our P2P studies, we found that 82% of segments have at least one middle-of-the-pack need. And 45% had at least two.
Take our SMB technology provider’s audiences. You can see that some of their needs are foundational to all audiences, and some are unique to just that segment. All segments believe that reliability and great customer service are important, but within each segment there are more nuanced needs that define that particular audience.
Based on these defining needs for each segment, we can now align product capabilities, brand strengths and other reasons to believe to inform both our positioning and our messaging to the opportunity segments.
And in fact, you shouldn’t try to be. As brand marketers face tighter budgets and scrutiny over returns, you need to focus your energy where it will have the most impact. Segmenting your audience based on needs allows you to see which ones have the highest potential for growth and which ones you should deprioritize because they don’t align with the category white space and what your company can deliver.
The risk of overlooking some of the middle-of-the-pack needs becomes particularly impactful when those needs are priorities for your high-value segments. That means more likely than not, there’s something important to your high-value target that’s lurking below the surface.
Back to our technology provider example: Of the four segments, we found that two of the groups (Control Seekers and Tech Skeptics) provided no opportunity for growth at all because of their complacent mindsets toward technology.
And then we found that one additional segment (Customer Advocates) was important but wouldn’t provide the kind of growth the company was looking for.
The fourth segment (Edge Seekers) was where the real opportunity was, and where the company could focus its positioning to accelerate growth. This is a group that (1) has one-third of the market size at 36% and (2) is actively seeking a technology that can grow its business. Both the segment’s size and its mindset make it ripe for growth—and a prime audience to focus on for positioning.
This approach yields more precise, differentiated positioning that will stand out from a sea of vague brand generalities, as well as ensure that the brand is focused on the places where it stands to gain the most. You don’t need to ignore your lower-growth audiences, but you can write positioning that primarily focuses on the accelerator groups while still appealing to the lower-priority audiences.
One of the best parts of P2P is how actionable it is.
After we identify our segments, we then build profiles of these different audience members that includes their needs and how to talk to them. These profiles easily onboard your marketing and sales teams to craft messaging that speaks directly to the things these prioritized audiences care about most. Using these audience profiles, you can also relate the need-based segments to other “addressable” audience profiles that your teams are using, which can serve as a great complement to demographic segmentations.
If you’d like to work with a partner that can identify the key ingredients of a brand positioning that is unique, ownable and aligned to your audience’s core needs, we’d love to hear from you. You can get in touch here to learn more about P2P and how it can work for your business.
