Room for improvement
We've identified three key areas that we believe will skyrocket the success of RMNs and capture even more growth for retail and CPG companies:
1. Enhanced data sharing
There are certainly challenges to overcome to improve collaboration between retailers and CPG manufacturers, especially when it comes to sharing valuable consumer insights. However, the wealth of first-party data between them has the potential to significantly optimize campaign performance and ROI of RMNs to deliver business value. The CPG and retail partners that do this well will have:
- Clear data-sharing goals linked to business plans
- An agreement on the type of data needed to support those goals to enable growth
- A data governance framework with defined parameters such as ways to constantly monitor and measure the effectiveness of the RMN program
- Advanced analytics and quality data to drive the best insights
- A contractual agreement to establish rules around sharing data
2. Better targeting and analytics
RMNs, by their very nature, offer exceptional targeting and analytics capabilities, but they could be even more sophisticated. By sharing data, retail and CPG companies can uncover more insights about target audiences than each party could have achieved alone, such as purchasing behavior, conversion rates, and customer lifetime value. And you can improve targeting efficiency by analyzing which types of buyers interact with your ads.
3. More engaging ads
Consumers are increasingly adept at ignoring all brands' best efforts when it comes to advertising. That's why CPG firms must continually innovate their advertising strategies and formats.
Through collaboration, retail and CPG companies can take full advantage of interactive ad formats offered by RMNs – such as user-generated content, gamification, and personalized ads with targeted offers – to improve customer experiences. Especially with location-based targeting, CPGs can appeal to specific shopper segments.
With the right data and tools, both parties can optimize campaign performance and increase basket sizes.