Monthly Archives: May 2021

How to benefit from the forthcoming massive wave of ad spend

The recent IPA Bellwether on marketing budgets in the UK has revealed that 2020 saw a fast paced decrease in spend as the effects of the pandemic naturally hit home. Now, as we continue to emerge from the worst of the effects, their forecasts are that there will be a net balance growth of 17.4% which would be the largest increase since 2018.

For the UK, this spend should total up to around £27bn for 2021, with another 7.2% growth predicted for 2022, so how will this be spent? It is clear that the main increases are predicted for Main Media Advertising (10.1%), Public Relations (7.4%), and Direct Marketing (6.8%). The cuts here are reserved for Events (-28.4%) which are still particularly struggling from Covid restrictions, but also Other Marketing (-5.4%) and Market Research (-4.95%).

For many, Main Media Advertising is a must for spend given the reach and benefits it can bring. However some of the other categories are, I believe, up for debate and it would be a mistake to purely dictate spending purely based on variable forecasts without acknowledging what exactly your priorities are and how best to connect with your consumer in order to garner their loyalty.

A new determined consumer mindset

We are gradually coming out of lockdown and consumers continue to be excited about it, indeed 88% of consumers from our latest retail survey results claimed that they have already taken advantage of physical shops being open to make purchases. They are emerging with a determined mind-set, using their new found online skills to narrow down their options before heading to the store to browse and make the final purchase. Now is the ideal time to have boots on the ground in retail areas rather than just generic PR pushes, helping them through their customer journey and promoting your brand to them.

The brand awareness required to engage this consumer can’t come out of Media Advertising or PR spend alone, other channels need to be utilised to ensure you are standing out in a sea of competition. Social media reach can help to a certain extent, however no amount of impressions will replicate getting face to face time with a shopper at the point of purchase. Importantly too, the data that comes from the physical interactions a person is able to provide can prove vital and brings incredibly valuable impact and insights in a short amount of time.

Footfall soars ahead of high-spirited summer

The retail environment is changing and has been particularly fluid over the past year, this data is critical to understanding the new trends that have emerged and forming (or re-forming) brand strategies. Insight from Kantar, online shopping fell in April for what was the second time in a row, and Springboard footfall data showed an increase of 88% week on week for the period that non-essential retail reopened after the 12th. All of this points to the fact that there are more shoppers out there than have been for 14 months, there is a chance here to connect with them while confidence is high and a (hopefully) high-spirited summer begins.

Online share of retail sales is decreasing, although the benchmark remains above the pre-pandemic figure, settling at about 36% in April vs 23% in 2020. This of course indicates the acceleration of a trend that has been growing for a while, but it does mostly remain product specific, and nothing will ever really replace the experiences that in store shopping can offer. The store now is becoming more of an experience hub as well as a purchase point. In-store marketing continues to have the power to not only increase actual sales, but also other key factors such as brand loyalty and even helping to drive social media interactions.

Staying ahead of the competition

When it comes to consumer electronics and large appliances in particular, many consumers will always prefer to touch a product and hear about its benefits first-hand rather than reading a specification sheet online. Hearing their input, from questions to reasons for purchase, can then be fed back directly to a brand, enabling them to react and stay ahead of the competition.

In this new age of retail, the smartest businesses will be the ones that can leverage ad spend across the board in order to reach consumers at every level relevant to them. Effective field marketing can step in to help exceed expectations.

To read the full article by Tom Harwood – Data and Insight Manager Gekko Group, please visit Retail Sector.

Tagged , , , , , , , ,

Back to the future: Retailers need a new approach for winning customers

The easing of lockdown measures, although slow and steady, has come as a welcome relief for retailers. We can now work towards rebuilding through the eventual easing of all restrictions.

While the lockdowns have been long and painful, the appetite to return and shop in-store remains strong. But it would be naive to just act as though it was still 2020 in reopening and returning to the same plan. It is incumbent on retailers to recognise how consumers have changed their shopping behaviours.

Successful retailers have always understood the motivators and triggers for different customer groups and then offering an appropriate, tailored approach. This needs to be recognised and acted upon.

We recently took the temperature of the nation with a survey of changed shopping behaviours – with some interesting and encouraging results. The vast majority polled (70 per cent) revealed they were planning on visiting stores as much, or more than pre-pandemic. Only two per cent of respondents said they wouldn’t return to the high street. But digging into the detail we can start to see some distinct trends within this.

Localism remains strong

A new appreciation of localism has been one big factor that has brought our communities closer and changed perceptions that local perhaps meant less choice, as 35 per cent of respondents said they have purchased from a local or independent store that they would not have done pre-pandemic.

Meanwhile, the expectation might have been the very oldest might be the most loyal to the high street; interestingly, 35-44 year olds in our survey were the most loyal.

With the different factors motivating consumers to return to shops, 27 per cent of over-55s said the enjoyment of shopping was the thing they were looking forward to most. But this compared with only 15 per cent of under-55s. 81 per cent of respondents cited convenience as a key factor; this trend was most prominent in 18-24 year olds.

There is potential for physical retailers to target younger consumers with a focus on the unparalleled customer experience in-person shopping can achieve.

Flaws in online

Despite the huge choice online, the idea that consumer behaviour has been entirely different digitally was somewhat dispelled by the research. 49 per cent of respondents said they mainly shopped from the same stores online that they always used to visit offline.

But our research also really highlights the flaws in the online experience. A massive 58 per cent cited issues with ordering as a key disadvantage to online shopping. Interestingly, issues with orders was selected most prominently in people aged 34 and under.

Those most concerned by returns were 55-64 year olds in comparison with 18-24s who were least concerned. This highlights the different ways people have been brought up shopping. Given environmental issues are a concern to younger shoppers, we should perhaps emphasise more the fact physical retail can reduce a consumer’s carbon footprint.

A hybrid approach

Rather than just focusing on one channel now at the expense of another, if the pandemic has taught us anything it is the strength of having a hybrid omni-channel offering – being agile and flexible to respond to changing customer requirements.

Certainly consumers seem adept at mixing and matching their in-person and online shopping. For example, 38 per cent would use new online skills to research an item online and then buy it in-store, and over-65s are the most likely to do this (54 per cent).

This underscores the need for a joined up brand and retail experience. This is particularly the case with the considered purchase sector; as we came out of previous lockdowns, consumers have shown a willingness to ‘shop with purpose’ in- store for items they have researched online.

As we return to something akin to normality, it is clear just rolling out a 2019/2020 strategy won’t cut it. The desire for physical retail is there, but we need to understand people’s changed realities.

Retail is one of the most dynamic industries, and changing to meet the needs of consumers has been the hallmark of great retailers in the past and will be tomorrow. Let’s get back to the future.

To read the full article please visit ERT.

The photo that accompanies this article is by Kaique Rocha from Pexels

Tagged , , , , , , , , , , , ,

New Gekko survey finds the majority of shoppers have returned to stores

With retail lockdowns across the UK now easing, our research has found that 88% of shoppers have returned to physical stores in the first two weeks and felt good about it!

At Gekko we are always looking to better understand the customer journey at all stages of the shopping cycles in all categories. We do this to gain a wider understanding of the retail environment, allowing us to better train our staff and serve our clients.

Back in February, while non-essential retail was still subjected to lockdown restrictions, we surveyed consumers to gauge their shopping intentions once lockdown ended. Our Great British Retail Take Off survey revealed that there was a huge pent up demand to return to the high street with 70% of people planning on visiting stores as much, or more than pre-pandemic and with key motivators being the ability to physically interact with products and have an enjoyable experience.

With the majority of retail restriction now lifted, Gekko wanted to revisit the subject and gain an insight into whether the public have returned to stores in the levels that said they would in the previous survey. Further from this, we wanted to see how the public felt about the way stores are trying to keep them safe. The survey, which was conducted between 26th-30th April, two weeks following the reopening of non-essential retail, provides an insight into the positive sentiments of UK shoppers have regarding stores reopening.

Indications are that physical retail is back, and shoppers are excited to return. Through the responses from this survey, and the comparison between these results and our previous Great British Retail Take-Off survey, we are able to see several noticeable trends.

In a win for bricks and mortar shops, people have visited stores more in the two weeks since restrictions were eased than they did pre-pandemic (previously predicted at 12%, now at 18%). This is backed up by the fact that 87% of people returned to physical stores at least once in the 2 weeks after lockdowns were eased, compared with only 70% who said they were looking forward to returning to store in our previous results.

The overwhelming majority (80%) of people who had returned to store felt that stores were doing enough to make them feel safe. Retail has continued to adapt at every stage of the pandemic, and the fact that so many are willing and able to get back out and shop safely is testament to that.

About the research -The online consumer survey was conducted by Gekko between 26th – 30th April 2021.

To find out more about this survey please visit our website or to obtain a full copy of the report, please contact us at info@gekko-uk.com

Tagged , , , , , , , , , , , , , , , , , , ,

Future Proof: What’s next for retail?

Future Proof Podcast: the marketing podcast from Kantar and Saïd Business School, Oxford University

In this episode, Daniel Todaro, founder and managing director of Gekko Group, the retail marketing agency specialising in consumer electronics speaks to Jane Ostler from Kantar.

Dan talks about how brands and retailers can improve the experience for customers in an evolving marketplace, noting that while omnichannel and online shopping has increased in importance, shoppers are still very keen to touch, try and experience a product – so high street retailers have plenty to think about when it comes to satisfying pent-up demand. He also discusses the increased use of electronics at home, how Gekko has delivered training during the pandemic, and the way sustainability and localism will affect retail strategies.

Please click here to listen to the podcast

Tagged , , , , , , ,
%d bloggers like this: