Insights into Retail Marketing: 5 Fascinating Stats to Kickstart Your Week

Retail marketing effectiveness reaches six-year high

In 2022, research conducted by the Data and Marketing Association (DMA) revealed that marketing effectiveness in the retail sector achieved its highest point in six years. The number of brand effects per retail campaign saw a significant increase, more than doubling from 0.2 in 2021 to 0.5 in the previous year. Additionally, response effects experienced a 60% growth, rising from 1.8 to 2.9, while business effects witnessed a 67% boost, increasing from 0.3 to 0.5.

According to the DMA, retail marketers adopted a well-rounded strategy for their campaigns this year. They focused on generating short-term response through promotions and discounts while also investing in activities to enhance their brands.

During the cost-of-living crisis, trading conditions have been undeniably challenging, as revealed by Ian Gibbs, the DMA director of insight. Squeezed household budgets have affected consumer demand, and cost inflation has had a negative impact on retailer profit margins.

However, retailers have mastered the art of campaign strategy with a perfect balance between acquisition and retention efforts. In fact, they have achieved the most even distribution between brand and response activities in the past six years, with approximately one-third of campaigns aiming for brand goals.

When it comes to campaign effects, the retail sector takes the lead with the highest average. Following closely behind are the financial services sector with the second-highest number of effects, and the utilities sector takes the third spot.

Source: DMA

Half of marketers fear AI might stall career advancement

According to data from the Chartered Institute of Marketing (CIM), 52% of marketers express concerns that the rise of generative AI could overshadow specific aspects of their roles, potentially impacting career progression.

While 61% of marketers feel confident in their ability to adapt to the introduction of new digital technologies, almost two-thirds believe that AI is being implemented at a rapid pace. In response to this, organizations have had to swiftly establish guidelines to govern the use of AI, as it has been swiftly embraced by staff throughout the year.

According to CIM CEO Chris Daly, AI and digital transformation are not temporary fads but essential elements of the modern marketing era. While the rapid pace of technological progress may seem daunting, marketers must view it as an opportunity to grow. A whopping 92% of marketers are of the opinion that their organizations will need to adjust to embrace these emerging technologies.

Source: CIM

The average rebrand sees 251 assets transformed

Research from Bynder reveals that a typical rebranding process involves the transformation of 251 assets and takes approximately seven months. In the survey conducted by Bynder, it was found that 82% of the marketers had experience working on a rebrand.

Updating marketing assets is ranked as the most difficult aspect of a rebrand by 47% of marketers, closely followed by communicating the rebrand to their audience, according to survey respondents. The marketers surveyed reveal that online assets are the most challenging to update in a brand.

The primary reason for embarking on a rebrand is to update the brand identity, as reported by 57% of respondents. This is followed by a brand repositioning in the market at 47%, and catering to a change in target audience at 41%.

Almost one in 10 (8%) marketers surveyed say they have taken part in a rebrand that took between one and two years.

Source: Bynder

Nearly half of retail marketers have seen increased employee turnover

Over four in 10 (43%) retail marketers report an increase in employee turnover in the last 12 months.

31% of organizations are making redundancies due to financial constraints, while 38% are facing budget constraints in the uncertain economic climate. Additionally, 39% say their budget effectiveness has decreased. On a brighter note, 77% anticipate an increase in their marketing budget in the next year.

Nearly two-fifths (37%) of marketers say their organisation has struggled to recruit to fill gaps, meaning understaffed teams are becoming common.

Source: ROI Hunter

Most UK consumers disengage with unrepresentative media

Over half (57%) of UK consumers say they disengage with unrepresentative media and advertising, according to research from Spark Foundry.

Among diverse communities, the proportion is even higher. Approximately 79% of individuals from ethnic minorities have disengaged from a piece of media due to its lack of representation. Similarly, neurodiverse individuals make up 76% of those who choose to disengage, while 62% of LGBTQ+ individuals disengage for the same reason. The primary factor behind this disengagement is the absence or negative portrayal of these groups.

The food and beverage industry is considered the most representative, with travel coming in a close second. On the other hand, young people, neurodivergent individuals, and BAME respondents identified the fashion, beauty, and travel sectors as the least representative.

Source: Spark Foundry