Convenience Store Operators: What to consider when Building Your Own Retail Media Network
As 2023 draws to a close, organizations everywhere are reflecting on their achievements and setting the stage for the future. For me, this time of year is not just about budgeting or strategizing; it's about vision.
A clear, compelling vision is the lifeblood of any successful business. It provides direction, unifies efforts, and ensures that every member of the organization, from the CEO to the newest recruit, is aligned in purpose and ambition.
Convenience stores, in my view, are more than just commercial entities. They are pillars of the communities they serve. Their potential to evolve and embed themselves deeper into the fabric of local life is immense. This is where the concept of building your own retail media network comes into play. It's not merely a business strategy; it's a way for c-stores to strengthen their community ties, understand local preferences, and generate additional revenue all while becoming an even more integral part of people's daily routines.
In this article, we'll explore the concept of retail media networks, their growing importance for c-stores operations, and the foundational steps to consider when building your own retail media network.
But First, What is a Retail Media Network?
A Retail Media Network is a cohesive system, either custom-built or pre-configured by retailers, that empowers them to deliver tailored ads, messages, and offers directly to consumers. Unlike traditional media networks, such as radio, this platform is meticulously crafted to cater to the distinct needs and preferences of the retailer's audience.
Retailers can harness this network to provide advertising opportunities to brands within their ecosystem. From digital displays at fuel pumps to in-store audio systems, retail media networks extend across diverse platforms, including websites, apps, and physical signage.
In recent years, retailers have either developed or acquired existing retail media networks within their stores. They've recognized not only the potential for an additional revenue stream but also the inherent value these networks offer as a precise advertising channel. This channel zeroes in on consumers at pivotal junctures in their shopping experience, particularly during purchase decisions.
In an retail media article on C-Store Dive, reporter Brett Dworski interviewed Michael Greene a senior vice president of global vertical strategy for commerce media company Criteo. Greene summed up the importance of a retail media network pretty succinctly, stating "You’re reaching consumers at the most important time in their shopping journey — when they’re going to buy.
3 Key Considerations for Building your Own Retail Media Network
1. Robust Loyalty Program with Mobile App
One of the foundational components of a own retail media network is a compelling loyalty program. With frequent visits and impulse buys, c-stores have a unique advantage when it comes to establishing customer loyalty, and that loyalty can help drive media engagement.
Plus, with a good loyalty program you can begin to collect data on customer purchases, likes, and interested. The better the program, and the more consideration you put into what you rewards customers, the richer the data you can gather about your customers. Ultimately leading to more targeted and effective media on your media network.
In that same c-store dive article, Paul Brenner the president of Vibenomics was quoted as saying, "The only value in retail media is when you have the first-party data about the person." Know your customers, and build a media network capable of holding its own.
2. A Flexible Web Platform, with E-Commerce and Social Integration
The humble website has always been an important piece of a retail brand's online presence. But for c-store retailers interested in building a retail media network, it’s more important now than ever.
A sophisticated web platform, seamlessly integrated with e-commerce capabilities and social channels, will quickly become the nerve center of your retail media network. Why? Because, todays websites aren’t just showcasing products or services; they are capable of creating a digital ecosystem where vendors can tap into rich, first-party customer data.
A great media network combines platforms of all types, from audio to visual, and a website is a great tool for combine, marketing, and engaging consumers. You control whats displayed, and you provide your brand with options for expansion as web technology evolves and new opportunities arise.
3. In-Store and forecourt Display Network
In the broader retail domain, display networks typically refer to digital screens placed within a store or its surroundings, broadcasting advertisements, promotions, or relevant content. However, for convenience store operators and marketing teams, there's an opportunity to elevate this concept, especially in the forecourt.
The forecourt, where customers fuel up, is a prime real estate for a burgeoning retail media network. If your c-store still operates with traditional, screenless fuel pumps, now might be the moment to think about an upgrade.
Imagine large, sleek touch-screen displays at the pump, engaging customers with timely in-store promotions, showcasing local community events, or even hosting paid advertisements. Such interactions not only enrich the refueling process but also drive in-store traffic and potential sales.
Moreover, with companies like Dover Fuel Solutions rolling out cloud-based display network management platforms like DX Promote, the task of revolutionizing the fueling experience has become more accessible. For retailers keeping an eye on the future, it's crucial to stay informed about these technological shifts and evaluate their potential impact on your customer engagement and revenue strategies.
The Power of Rich Data in Your Retail Media Program
"Why is data so pivotal to my media program?" you might ask. The answer lies in the profound insights and competitive edge data offers.
At its core, data is the compass that guides our understanding of our target audience. It's not just about numbers or demographics; it's about behavior, preferences, and patterns. With data, promotions aren't just broad strokes; they're laser-focused strategies designed to resonate deeply with the intended audience, ensuring that every advertising effort translates into tangible results.
Every stakeholder in the business ecosystem, be it advertisers, retailers, sales teams, or business owners, craves data. Why? Because data is the most potent tool in the arsenal when it comes to securing a sale or expanding a customer base. Knowledge is power, and the more you know about your customer, the more adeptly you can refine your offerings, anticipate their needs, and outpace competitors.
And here's the clincher: as a c-store operator, you're sitting on a goldmine. Your network of stores is not just a chain of retail points; it's a vast reservoir of customer insights waiting to be tapped. Harnessing this data can position you at the forefront of market trends, allowing you to tailor your product range and strategies with unparalleled precision.
Conclusion: Beyond the Basics of Building Your Own Retail Media Networks
While the components mentioned above are foundational to building a retail media network, they are just the tip of the iceberg. As you consider investing in or launching your own network, it's crucial to understand that content quality, data management, and several other considerations play a pivotal role in monetizing your media network effectively.
These components provide a starting point, but a successful retail media venture requires a holistic approach, encompassing various facets of the retail and media landscape.
Ready to delve deeper into the world of building your own retail media networks? Connect with me and we can take a closer look at where you stand with your program. Whether you're at the conceptual stage or gearing up for execution, Archer ATR boasts a team of seasoned consultants ready to guide and support your retail operation every step of the way.
