Trends 2021: Retailer Collaboration

While the pandemic shifted many brand marketer mindsets last year, one thing has remained constant: collaboration is still important, if not more critical than before. This year’s survey asked brand marketers to rate retailers on their ability to share actionable shopper data to drive more effective marketing. Kroger and CVS Pharmacy rose to the top, with 93% and 82% of respondents, respectively, rating them as excellent or good. Interestingly, those two retailers were also cited as using their data prowess as a revenue source rather than a collaborative effort by a higher proportion of respondents. (Amazon, Walgreens and Walmart also were tagged more often as opportunistic rather than altruistic.) While officially launching its new media network in August, CVS touted a closed-loop metrics system and advanced reporting capabilities that allow brands to connect sales to ad placements.Alternatively, twice as many (44% vs. 20%) marketers who work with Meijer said its data sharing is collaborative vs. a revenue source, making the Midwestern mass merchant far and away the most partnership-minded retailer on the list.Not surprisingly, then, when asked to name one thing they’d most like retailers to change in regard to their collaborative practices, an overwhelming majority of respondents pointed to more sharing of data and easier, lower-cost access to it. One respondent implored retailers to “trust that we are trying our best to meet the needs of their shoppers with insights that drive everything that we do. Without sharing data from their end, it inhibits us smaller companies to show our prowess when collaboration happens with the larger manufacturers.”In terms of segmenting online sales versus brick-and-mortar sales – an insight whose need skyrocketed in importance last year – Target, Kroger and Amazon received high marks, with the latter two rated “excellent” by 40% and 45% of respondents, respectively. Home Depot, Lowe’s and Walmart were also given high scores. Meanwhile, Whole Foods was knocked for doing a poor job at segmentation, while 7-Eleven was dinged for lacking the capability altogether.In addition to topping the ranks for data sharing – or maybe in part because of those practices – Kroger also topped the retailer rankings for having the loyalty program that delivers the best opportunity for engaging shoppers. All of Kroger’s banners offer loyalty cards. Nearly 90% of Kroger’s sales come from loyalty cardholders and approximately half of U.S. households are members of one of the programs. The retailer prides itself on being an industry leader in using loyalty card data to provide individualized promotions. Members who create digital accounts receive personalized offers and exclusive promotions via email. What’s more, likely as a result of its loyalty program prowess, Kroger also earned the highest honors among retailers for effectively personalizing offers for shoppers. Some respondents credited Kroger subsidiary 84.51 and its advanced targeting capabilities and measurement acumen for setting the retailer apart. “Kroger’s loyalty program is very well developed,” one respondent said. “We believe this success is due to the targeting capabilities offered in the various shopper marketing services. We rely on these opportunities.” Amazon/Whole Foods and Target also perform well in this area, according to close to half of respondents (44% and 45%, respectively). Additional responses regarding the loyalty program and personalization capabilities of specific retailers included:• “[Albertsons Cos.’] Just for U digital coupon offers have multiple touchpoints to reach consumers, such as in-store circular ads, direct mail ads and digital banners.”• Target does a good job facilitating “brand-specific deals and offers.”• CVS offers a “very targeted ability to customize messages and creative,” one respondent said, while another called the retailer “the best and most established way for us to identify lapsed users.” For a deeper dive into the survey and its results, see the "Summary of Findings."

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