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Future of Retail — Omnichannel
issue 07
IMAGES AND VIDEO INCREASINGLY VALUABLE Such solutions very much utilise the power of digital imagery and it is this that JML uses to promote its products in retailers’ stores. Ken Daly, chief executive of JML, says the company has 8,000 screens in UK stores that help sell goods by demonstrating the items: “The power of in-store video is perfect for product launches, and for creating retail theatre. There also needs to be a story to tell.” Joe McEwan, UK head of brand at Innocent
Drinks, believes that any communications with customers has to be meaningful – and ideally there is a two-way relationship created. This has certainly been boosted by social media, which Innocent uses heavily, but is very careful with how it handles this type of engagement. “With social media we can now tell people
about our drinks and get people to talk to us. We recognise that it’s not a TV ad break, we’re coming between people talking to family and friends. So we try and share entertaining content. Brands can go wrong by wanting to be in the conversation but having nothing to say,” he suggests. For JML the real value of the digital content
delivered to stores is when it is aligned with TV and online advertising. This combination has a multiplier effect on sales, according to Daly, who says it can often be the case that
the cost of the promoted item does not make a profit for JML but the effects of cross-selling of additional items – often across channels - ensures the model stacks up.
DON’T FORGET OTHER REVENUE STREAMS The cross-sold items could almost be a form of secondary revenue, which is definitely creeping up the agendas of retailers as they grapple with greater competition and squeezed margins. Richard Piper, business development manager at Webloyalty, says such revenues are defined as being derived from products and services outside the core of the business. The airlines have been successful in this
area selling lots of ancillary items like car hire, priority boarding and insurance. Retailers are following a similar path as they seek out extra revenue, according to a Webloyalty/BRC report, which found that as much as 67% of UK retailers have done business that has brought in additional (secondary) revenues. The key areas he highlighted to drive
secondary revenues for retailers are: advertising other goods and services from third-parties on the website; affiliates, which are effectively referrals from other websites; cross-selling of complementary items that do not compete with the retailers’ core range; and loyalty programmes that encompass internal and external such as Air Miles.
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