With ADWY 2024 in the rearview mirror, it’s time to reflect on the insights, new learnings, and key ideas shared. In case you missed our panel, “Consumer Purchase Insights – Marketing’s New Currency,” we wanted to offer a quick recap. (We are still catching up on the panels we missed!)
Our Moderator, Damian Garbaccio, Affinity Solution’s Chief Business and Marketing Officer, was joined on stage by Mark Mathews, Executive director, research NRF, Will Warren Expert Partner, FRWD at Bain & Company, and Christine Chung, Director, Advanced Analytics & Clean Room Solutions, Disney Company. The group provided a variety of perspectives about the challenges facing retailers, brands, media in an increasingly competitive economic environment.
The State of Retail
Retailers face unique challenges given the broader economic climate. While many economic indicators may appear positive (like unemployment and cooling inflation), consumer sentiment remains cautious. This dichotomy has forced retailers to adapt to an increasingly more competitive environment. Consumers may feel tight on funds even when their finances are stable, making it harder to convert potential buyers. As a result, understanding the consumer is critical and purchase data as the lens to do so, is invaluable.
The Value of Data
Data has always played a vital role in understanding consumers. But now more than ever, retailers, brands, and media companies are grappling with disparate data, data silos, signal loss, and privacy concerns. Overcoming these challenges is crucial for unlocking the full potential of data-driven marketing.
The right message at the right time has never been more important as consumer attention is divided across more and more channels. Fragmented data leads to a fragmented picture of your consumers.
Challenges of Extracting Value From Data
Even with access to first-party and transactional data many brands, retailers, and media companies still struggle with effectively using this data to drive outcomes. For example, Garbaccio shared that while streaming a football game, he saw a certain commercial repeatedly for a product he was not in the market to buy – so much so, he will actively avoid that product. It’s a common frustration.
With so much data, why are so few able to truly leverage it to drive better outcomes?
- It requires operational excellence. Consumer insights and transactional data are being used in various ways across companies. It is often viewed as either a tool for targeting and planning or measurement, but not both. Additionally, some organizations place these insights in the strategy department reporting directly to the CEO, while others incorporate them into marketing or investor relations. There’s no standard approach. As Mathews noted, “Operational excellence really, really matters.”
- It requires technology to make sense of vast and disparate datasets and to activate data across channels. Weaving datasets, survey results and other audience signals is not easy. Many organizations have robust and thoughtful segmentations based on primary research and data from which they create messaging or creative concepts. That information then gets passed to a different group that must interpret and use it. There is a real disconnect. With media activation, turning those segmentations into scalable audience segments is challenging.
The Power of Consumer Purchase Data: Outcomes from Insights
Consumer purchase data presents a new kind of marketing currency by creating a more complete picture of consumer behavior, preferences, and purchase patterns. It can be used across the entire marketing funnel, from planning and insights to targeting and measurement. By leveraging this data, marketers, media, brands, and retailers can refine targeting, measure campaign effectiveness, and drive better ROI.
Platforms like Disney are enabling brands to leverage their first-party data, combined with proprietary insights, to create highly targeted and effective campaigns. With this technology, they are driving real outcomes from the insights the data derives. Chung said,
“We’re starting to show what you can really prove out with that data. Once [our clients] see that value they say, ‘oh, there is real value there.’”
Consumer purchase data can serve as the source of truth that unites fragmented data and allows organizations to test and learn to drive better outcomes. Warren offered an example from a struggling client. Their sales were declining but because they had historically had a loyal customer base, they invested heavily in strengthening their loyalty program, but sales continued to slump. When they combined their first party data with consumer purchase data, they found the loyalists were growing in basket size. Without this data, they would have sunk more money into solving the wrong problem.
When used effectively, consumer purchase data allows businesses to turn insights into scalable segments, validate their strategies, and ensure they reach the right audience with the right message.
The Art of the Possible
While the rise of digital platforms has transformed advertising, linear TV remains a powerful tool for brands, especially for reaching large audiences. But as the focus shifts from broad reach to more niche, addressable audiences, transactional data is helping brands bridge the gap. The ability to connect linear reach with measurable outcomes across platforms allows brands to balance traditional advertising with digital innovation.
Looking ahead, shoppable TV is poised to become a significant trend in retail. While it’s still in its early stages, this innovation offers the promise of blending entertainment with direct consumer transactions. Brands are already looking for ways to integrate these opportunities into their marketing strategies, but success will depend on testing, learning, and refining the user experience.
To be successful in the ever-evolving retail landscape, organizations need to remember:
- Data-Driven Decision Making is essential for success.
- Collaborating with the right partners (whether data, technology, or both) can help brands navigate the complex data landscape.
- Testing and learning are essential to optimize marketing strategies and drive results.
- While technology is crucial, human insight and creativity remain indispensable. Organizations need strategic leadership.
- By embracing data, innovation, and strategic partnerships, retailers and brands can thrive in this dynamic environment.