Bernard Wilson, Cashrewards' CEO, spoke at the 2022 Retail Leaders Forum in Melbourne about adapting to a fast-changing retail environment with confidence. Some of the key points Bernard raised included the growth upon growth in e-commerce, the challenges facing marketers and the continuing rising importance of customer loyalty.
‘’Step-change” cannot be overused
There is so much talk about the “step-change” to e-commerce during COVID. But the term is not overused. We will keep talking about it because e-commerce growth hasn’t normalised, the step-change continues.
Bernard said, "At Cashrewards, we are seeing many of our brands still growing 100% year-on-year. The challenge in retail is to make all of the moving parts fit together to meet that demand."
"If you're not growing fast enough, you're losing."
With the continued significant growth, retailers can’t rest on their laurels. Looking at great year-on-year sales growth in a vacuum is dangerous because there is a risk that the market and your competitors are growing faster. The rising tide is lifting all boats.
Bernard said, "Retailers we talk to effectively brought forward three years of digital investment to manage in response to COVID, and that continues. Increasingly Horizon 3 from a strategy and investment point of view is becoming Horizon 1.”
For those that are resilient and agile enough to adapt to this, it’s an enormous opportunity.
Bernard said, “at Cashrewards, we are seeing many of our biggest brands still growing 100% year-on-year. The challenge in retail is to make all the moving parts fit together to meet that demand."
“We are seeing many of our biggest brands still growing 100% year-on-year. The challenge in retail is to make all the moving parts fit together to meet that demand.” - says Bernard Wilson, Chief Executive Officer and Managing Director, Cashrewards.
Trust and empower your marketers
The acceleration of online shopping has been wonderful for customers. They can easily browse and compare products from multiple stores, making it convenient and easier to find the best deal than ever before. Plus they can see how other customers rate experiences with brands. Retail has become fully transparent and real-time.
This evolution continues to increase the stakes for marketing. A brand can’t be everywhere at once, but it needs to be where its customers are.
Bernard said, "Retail marketing is just increasingly hard. There are a bunch of reasons why. With the move to digital, the shopping journey is no longer linear, and there's no place to hide. Your brand, your products and your prices are there for everyone to see."
"As an example, our data shows that 80% of millennials compare to get the best value and 73% go out of their way in search of a bargain."
In addition, the broader media landscape is facing multiple changes and challenges. Digital advertising spend has overtaken traditional advertising spend; data used by marketers to track customers across web interfaces or attribute performance is becoming obsolete.
"Marketers really need to continuously innovate, and organisations really need to support and empower the people who work in marketing to do that. What worked yesterday won't work tomorrow. It is an environment where innovation needs to continue."
How can Cashrewards help? Reach customers in the moments that matter - find high-value customers for your brand who spend more, shop more frequently and only ever pay for results.
"When we talk about loyalty, it's not about a program; it's about loyalty as an outcome versus an input. That's simply because customers expect more from a brand. They expect value in many forms: simplicity, ease and convenience. So, brands, whether they have a program or not, need to focus on retention by trying to meet and exceed customer needs.” - Bernard Wilson, Chief Executive Officer and Managing Director, Cashrewards.
Importance of loyalty
Customer retention is always cheaper (and easier) than acquisition, but customer expectations continue to increase. Companies now have more data than ever before and it is critical that they continue to build that first-party data asset and that they leverage that data to deliver better customer experiences that build loyalty.
Bernard said, "When we talk about loyalty, it's not about a program; it's about loyalty as an outcome versus an input. That's simply because customers expect more from a brand. They expect value in many forms: simplicity, ease and convenience. So, brands, whether they have a program or not, need to focus on retention by trying to meet and exceed customer needs.”
How can Cashrewards help? Drive a range of customer outcomes including acquisition, increased frequency and loyalty whilst also building your first-party data asset.
Grow your business with Cashrewards
Make 2022 the year of capitalising on the growth opportunities ahead of you. Get in touch with Cashrewards to start your journey of building resilience, driving the growth of high-value customers and increasing loyalty.