These days, many CPG brands are starting their product marketing journey online as DTC brands. Many don't have any presence in physical stores, and they spend their marketing budgets pursuing digital marketing strategies, justifiably considering retail marketing in stores to be prohibitively expensive.
While the direct-to-consumer model offers many advantages, such as the ability to gather valuable customer data and establish a direct relationship with consumers, it also presents its own set of challenges. One major challenge is that the cost of customer acquisition via digital marketing can easily consume any savings the brand enjoys by avoiding brokers' commissions and retail markups. Another is the need to build brand awareness and trust without the benefit of physical retail locations and face-to-face marketing opportunities. It is next to impossible to have your product "discovered" online without the benefit of an actual sensory experience of smell, touch, or taste, particularly if the product is in a new category that needs consumers to be educated about its properties or unique qualities.
That is when the benefits of personal, face-to-face marketing are hard to overstate. The kind of marketing that is often called experiential, and involves the engagement of a shopper by a brand ambassador.
Any situation in which you introduce your products to an individual shopper in person is referred to as face-to-face marketing. You get to address the potential customers directly while making your pitch or establishing a personal connection with them. These can be as simple as striking up a conversation with someone at the store, explaining the value of your products, and offering to experience them on the spot. It gives you a chance to provide more information as requested, learn how the consumers perceive your message and your products, and assess actual feedback in action as they buy your products from your table. That is where face-to-face and experiential marketing tactics intersect, with very powerful implications for brands, retailers, and agencies such as brokers and distributors.
What is customer loyalty to a retail store?
A recent study from 84.51°, Kroger's retail data science, insights, and media company, is taking a closer look at what motivates customer loyalty today and how brands and retailers can respond in the wake of years of shopping disruptions and ongoing economic uncertainties.
According to the study, more than 30% of consumers define loyalty in terms of their purchasing patterns, 24% define it in terms of consideration, and 43% define it in terms of preference. The research indicates that the majority of consumers define brand loyalty as purchasing a particular brand "most frequently" while remaining open to trying other brands.
For retailer loyalty, the same holds true. Only 6% of consumers said that being a loyal customer meant going to the same store for all of their needs, while 29% said that it meant going there "most frequently."
Given the incredible variety of products available in most supermarkets and specialty food retailers, it is not realistic to expect most consumers to go to the same store "for all their needs," but it is entirely possible to incite more than 29% of your customers to visit your stores "most frequently" if you can generate a more engaging environment in your stores than your competitors. That means more experiential face-to-face marketing to make customer visits more entertaining and interesting.
Trust and value are viewed as important factors in fostering customer loyalty, with trust directly influencing one's perception of brand value, whether it is a product manufacturer's brand or that of the retailer. For instance, giving away free items is a key factor in retaining customers between the ages of 35 and 44, but customers 65 and older are more concerned with health and dietary implications.
When shoppers are engaged, as they fill their cart in-store, by a product brand ambassador who offers a free sample of a new product with answers to personalized questions about taste profile or nutritional values, the brand value of the retailer is raised, along with the brand value of the vendor who pays for that event. If such events are hosted consistently, shoppers can expect to experience different products every time they visit the store, increasing the frequency of their visits and, therefore, their loyalty to the retailer. The economic impact of such a retail marketing strategy can be estimated using this model.
The need for face-to-face interaction has never been more important, but such a retail marketing strategy cannot be implemented without in-store event management software.
An in-store demo event is an opportunity to create a personalized experience that leaves the customer feeling appreciated and increases the probability of a sale and continuous patronage for the product and the retailer. Long-term benefits can be realized by listening to the customer’s concerns and identifying ways your product and messaging can be improved. In fact, 85% of people say face-to-face in store promotional events are essential for establishing brand loyalty. Meeting in person makes the customer feel more valued, as their thoughts are heard and their questions are answered immediately. Delivering a positive, memorable experience also increases the likelihood that they will recommend your business to others.
Face-to-face in-store demo marketing can provide valuable insights into the needs of your target customers. You can better understand your customers' needs by paying attention to their queries, comments, and objections. This will also help you develop your future marketing and advertising strategies. Being able to foresee and prepare for any questions or pain points ensures quick fixes and increases your credibility.
Up to 87% of CPG executives emphasize the importance of in-store sampling events, yet experiential marketing statistics show less than 50% of field marketing professionals have a standardized process with which to measure event impact.
You may think you compete against another store in your neighborhood, but in reality, you are up against your customers' most recent positive experience.
