How customer access can become a valuable product

You have an unusually direct relationship with your customers, which can be commoditized to everyone’s benefit.

The traditional retail model is pretty basic – the retailer has products customers want, the customers have money the retailer wants, and the market helps set a price which both parties find acceptable.

But within those simple transactions a relationship forms. Paradoxically, as retailers get physically more removed from their customers through websites, apps, texts and emails, etc., they get closer in terms of better understanding what they want to buy, when they want to buy it, and what types of incentives will nudge them from consideration to purchase.

Increasingly, interested third parties want in on the action. When constructed and executed correctly, partnerships that provide access to customers and customer data to entities such as brands and social media networks can benefit retailers, customers and the third partners. Here are a few examples:

Retail media networks

Having started with Tier I retailers like Amazon, Target and Walmart in the mid-teens and then first spreading through the grocery and CPG verticals, retail media networks have become a ubiquitous offering throughout the entire industry.

Retail media networks enable advertisers, which can include both endemic advertisers who sell their products through a retailer or non-endemic advertisers who do not but want to expand their promotional target base, to directly message shoppers based on their behavior with a retailer. 

This can include timed, personalized messages delivered in-store via kiosks, devices such as smart carts, shopping apps or at checkout, remotely on an e-commerce site or app, or even through channels such as connected TV. If retailers properly calibrate the promotions, shoppers will receive timely and valuable offers on products they genuinely need.

However, retailers must be careful not to inundate any one customer with too many offers in too short a time over too many different channels, or to deliver promotions that don’t suit the shopper’s needs. And of course, customer privacy must be respected to avoid the creepiness factor (nobody wants to feel like a brand is looking over their shoulder) and to abide by all laws and ethical boundaries.

Social media/metaverse environments

It’s no secret that customers, particularly valuable Gen Z and Gen Alpha shoppers, are spending an increasing amount of time on social media sites and apps, as well as in virtual metaverse environments such as the Roblox immersive gaming platform.

Since shoppers are already there, it’s not a surprise that retailers and brands are setting up shop (so to speak) in digital worlds, selling virtual and even physical merchandise. And it’s not just hip, youth-oriented companies – Walmart and Miller Lite beer have both developed metaverse shopping and socializing spaces.

Following the same guidelines as with retail media networks, this type of partnership is truly a win/win/win. Consumers are already visiting virtual environments in large numbers.

By offering promotions and shopping opportunities retailers can take advantage of the presence of some of their customers while social and metaverse platforms can potentially attract new users and give existing users more reason to spend time with the availability of their favorite retailers and brands.

Influencers/celebrities

Finally, it is worth noting the growing importance of influencers and celebrities in the world of retail promotions. While some data is mixed, a lot of research indicates that consumers frequently look to influencers, creators and celebrities for purchase inspiration.

[READ MORE: Survey: Influencer marketing playing increased role in gift purchases]

Similar to the relationship between retailers and social/virtual world platforms, influencers and celebrities can offer retailers a source of customers while also obtaining a storefront and the chance to reach a wider audience and potentially convert new followers.

A perfect recent example is the holiday merchandising partnership between pop superstar Taylor Swift and Target. The discounter will offer two exclusive Taylor Swift holiday releases (a book and an album) available starting Black Friday. The purchasing power and sheer size of the Swiftie audience is legendary, but Swift can still pick up some new customers/followers among the broad and deep Target customer base while Target gives her a well-established mechanism to get products to consumers. And clearly consumers won’t complain about more access to Taylor Swift.