The Significance of Digital Marketing in the Retail Industry

The coronavirus pandemic has hastened the move to digital shopping among UK consumers. People formed new habits during the lockdown, and these behaviours are set to stick beyond 2020, as the high street is unlikely to fully recover.

How has the coronavirus pandemic affected retail e-commerce in the UK?

The lockdown orders, which were in effect from March 23, left the UK population unable to shop in-store.

Digital retail became a necessity for many, as evidenced by our latest forecast. Growth in retail e-commerce will spike this year, followed by a slight recalibration in 2021 and strong growth thereafter. We expect e-commerce will account for an ever-greater proportion of total retail sales.

The lockdown orders, which were in effect from March 23, left the UK population unable to shop in-store. From June 15, non-essential stores can begin reopening. Digital retail became a necessity for many, as evidenced by our latest forecast. Growth in retail e-commerce will spike this year, followed by a slight recalibration in 2021 and strong regrowth

How has the pandemic affected physical retail?

The UK high street has been closed for business, grocery aside, with severe effects on non-e-commerce sales. Restrictions are beginning to ease, but with digital habits having embedded themselves in the consumer psyche, we don’t expect physical retail sales to reach pre-pandemic levels again.

A good digital marketing strategy is key for having a healthy retail market.

The main objective of Digital Marketing is to take advantage of the techniques out of the offline world and translate them into the online world by applying different marketing strategies.

In the retail world, companies that have boosted their e-commerce, have verified how fast you can generate income thanks to a series of conditioning factors that digital marketing offers (lower costs, innovation, strategies dedicated to a more specific target or tools that help manage the relationship with the customer).

Successful companies in the retail arena have shown how digital marketing helps improve business performance. These retailers and many others are now aware that a well-planned and executed digital marketing strategy can be extremely rewarding. With online shopping increasingly gaining ground, the need for digital marketing in the retail industry has reached new heights. Let’s find out why.

 

Digital Marketing in Today’s Retail Industry 

With the rapidly evolving technology in today’s age, one of the greatest mistakes retailers could make is ignoring digital marketing. To grow as a successful business and compete with larger organizations, brick-and-mortar retail companies must consider selling and marketing their products in the digital marketplace. Every year, customers visit online marketplaces more than physical ones and make greater purchases than ever before. That said, in order to thrive in this rapidly changing industry, contemporary retailers must incorporate digital marketing strategy into their business plan.

When it comes to retail, the link between marketing and revenue is undeniable. Every year, thousands of retailers globally miss out on business opportunities due to their absence on digital platforms. To prevent this, retail marketers must use digital marketing as a competitive tool. By using a mix of both offline and online channels in their marketing strategy, businesses are much more likely to find, attract, convert, and retain their audience.

The Digital Marketing Trends in Retail

Although there are still many customers who visit physical stores, e-commerce sites are increasingly gaining popularity. Currently, more than 25% of the world’s population are online shoppers, 75% of which shop online at least once a month. If we consider the entire customer shopping journey, almost two-thirds (63%) of shopping journeys start online. This makes digital marketing a crucial factor in attracting customers through online mediums at the beginning of their buying journey.

Key Challenges in the Retail Industry

Technological advancement has handed great power to consumers. Today, with in excess of purchasing options available, consumers can find and purchase products and services in ways that are much easier than ever before. The expansion of the retail market on a digital scale has made the industry much more competitive and challenging.

Here are 3 elements that businesses must now consider:

New channels and devices 

The availability of different selling channels like company websites, social media, online advertising as well as various consumer purchasing devices such as smartphones, laptops and tablets has intensified challenges for retail companies. In the past, customers only had one way to purchase  – visiting physical stores in person. Now, there are dozens of ways to discover and purchase products or services. In fact, for the past few years, many online users prefer shopping online rather than visiting a physical store. To make the most of their potential, businesses must ensure that they are active and optimized on each of these channels and devises.

Customer expectations

With a wide variety of e-commerce platforms, modern customers expect retailers to have a seamless buying process that can be done from anywhere and at any time. If customers experience difficulties making their purchase, they are likely to be unsatisfied and turn to a competitor. To overcome these challenges, retail marketers must improve their customer journey to match client expectations.

More competitors

With global digital retailers appearing day in and day out, the competition has become fierce for businesses in the industry. Whereas in the past, companies may have only had a few competitors. Now, due to globalization, they most likely have hundreds, if not thousands of competitors. To improve their competitive edge, marketers need to use digital marketing techniques to offer the best value to customers.

Benefits and Importance of Digital Marketing in Retail

Digital Marketing has the perspective of modern consumers. Today, no business can fully flourish and stay ahead of the competition without a proper digital marketing strategy. A well-planned digital marketing strategy influences the overall performance of retail businesses in many ways. Here are a few key benefits:

Enhance customer experience

Retailers, irrespective of their size need to invest in digital marketing to ensure the best possible user experience for buyers. User experience involves everything from the pre-purchase experience to the post-purchase experience. Every interaction that customers have with the brand should be pleasant and seamless to maximize convenience and efficiency for the consumer.

Leverage new opportunities

The advancement of technology has given retail marketers many opportunities that were not available in the past. Companies can now attract leads beyond geographical boundaries, reduce their marketing cost, provide improved support services and much more. All retailers need to take full advantage of these to maximize their potential.

Improve brand metrics

Having a strong brand helps retail businesses differentiate themselves from competitors. Digital marketing can allow a company to improve the knowledge and perception customers have about a brand by investing in brand awareness, brand reputation, brand image and more.

Enhance acquisition, conversion and retention rates

Retailers can use other digital platforms to reach prospects and clients at the right time, at the right place and in the right way to increase client acquisitions, conversions and retention. Businesses are able to interact and engage with clients in a personalized manner to encourage purchase.

Overcome competition

Digital marketing allows small and medium-sized retailers to tackle stiff competition even with limited resources. Small budget retail marketers can conveniently promote their brand globally and reach consumers across the nation with ease.

 

Digital Marketing Implementation for Retail Business

Digital marketing can be a boon to modern-day retailers. However, before retailers can reap these benefits, they must first implement proper digital marketing tactics. Here are a few of the most useful digital activities retail businesses can concentrate on to promote their products:

• Website design & development: Having a strong website customized for the target audience improves customer experience and satisfaction for all prospective and current customers.
• Search engine marketing: Ranking on search engines for relevant keywords allows customers to find the retail business they are looking for with ease. Have you ever shopped with a page who’s on page 50 in the Google rankings? Me neither…
• Content marketing: To attract new customers and retain existing ones, retailers should focus on publishing valuable written and visual content. Whether it’s a video showcasing your products or promoting your online store or the photographs of the process behind the scenes. Content is important and it’s what will get you a better reach.
• Email marketing: Retail businesses should send prospective and current customers emails, including product offers and important messages that are of interest to them.
• Social media marketing: Retailers should identify the platforms that their audience frequents the most and use these to attract and retain customers. SMM is a great way of not only advertising your products but also marketing to a wider audience.

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