Arcade1up at shoptalk recap: Data, Algorithms, and Retail Partnerships
At this year’s Shoptalk, Justin Lowe, the Chief Marketing Officer of Arcade1Up, shared invaluable insights on how to adapt marketing strategies for retail partners. In a dynamic discussion, Justin highlighted the importance of leveraging data, understanding retailer-specific strategies, and navigating the evolving challenges of algorithms and privacy regulations. Below, we delve into his key takeaways from the session.
1. Using Data to Adapt Marketing for Retail Partners
One of the standout insights from Justin’s talk was his emphasis on aligning marketing efforts with each retailer’s unique customer base. With loyalty programs and established buyer habits, retailers have developed distinct customer profiles. Justin noted that around 65% of customers at one major retail chain do not shop at a competitor for 9 to 10 months.
Instead of attempting to override a retailer’s strategy, Justin recommends adapting content, influencers, and social media campaigns to fit the retailer’s approach. The key is to align marketing efforts with the retailer’s established strategies to ensure success.
2. Prioritizing Sales and Staying Agile
In marketing, sales performance is king. Justin underscored the importance of prioritizing sales by swiftly increasing the budget when a strategy proves successful. He described it as “throwing gasoline” on what’s working, emphasizing that quick action is essential in the fast-paced retail landscape.
Large retailers, according to Justin, often have access to more data and faster-moving operations than Arcade1Up, so staying nimble is critical to keep up. Following the lead of big-box retailers and scaling up effective campaigns helps ensure Arcade1Up’s marketing efforts stay competitive.
3. The Importance of Collaboration Between Teams and Agencies
With a small, specialized marketing team of about seven people, Justin stressed the importance of collaboration, particularly with agencies that work closely with retailers. Agencies often have deeper insights into what works at the retailer level and can assist with scaling marketing efforts effectively. Arcade1Up’s approach to partnerships allows for rapid adaptation and more informed decisions.
4. Key Performance Indicators (KPIs) in Retail and Online Marketing
Justin provided a glimpse into the KPIs that Arcade1Up uses to gauge the success of their marketing efforts, both online and in-store:
· Buy Online, Pick Up In-Store (BOPIS) Rates: BOPIS transactions are the most profitable for retailers as they eliminate shipping costs and often lead to additional in-store purchases.
· Dwell Times: In-store metrics like dwell times (how long customers spend interacting with products) are crucial. Though retailers may not always share this data, understanding dwell times can highlight the value Arcade1Up brings to retail spaces.
· Click-Through Rates (CTR): Justin emphasized that a high CTR, particularly when compared to industry benchmarks, can strengthen Arcade1Up’s position in meetings with retail partners.
Much of Arcade1Up’s decision-making is based on a mix of incomplete data and gut instinct, as retail data is often delayed. This requires a combination of data-driven strategies and experience-based intuition to stay ahead.
5. Challenges with Algorithms
Algorithms have become both a challenge and a key player in successful digital marketing. Justin referred to them as his “enemy,” noting that understanding algorithms is crucial to scaling ad campaigns effectively. Rather than quickly pouring money into campaigns, he advised studying the algorithm’s behavior and scaling slowly, which builds credibility with the algorithm and improves performance over time.
6. Adapting to Privacy and Algorithmic Changes
The future of digital marketing is growing increasingly complex due to privacy regulations and the self-awareness of algorithms. Justin highlighted the need to adapt marketing strategies to comply with tightening privacy laws like iOS updates, which limit tracking and customer behavior insights. This requires marketers to be more innovative in how they gather and use data while navigating new algorithmic landscapes.
7. Biggest Challenges in Marketing
One of the most pressing challenges Justin mentioned was the impact of privacy laws and algorithmic changes. As privacy regulations become stricter, it becomes harder to track customer behavior, limiting the reach and effectiveness of marketing campaigns. The ever-evolving nature of algorithms also requires constant learning and adaptation, especially as these algorithms become smarter and more challenging to work with.
8. Final Takeaways: Blending Data with Intuition
In wrapping up his insights, Justin emphasized that while Arcade1Up may face challenges in collecting and using retail data efficiently, they adapt by blending data-driven decisions with experience and intuition. The key to surviving in the fast-evolving retail and digital marketing world is to stay flexible, continue learning, and apply a mix of data and instinct.
As algorithms grow more complex and privacy concerns mount, marketers like Justin Lowe are finding new ways to leverage limited data while remaining adaptable. For Arcade1Up, it’s about creating marketing strategies that both align with retail partners and overcome the limitations imposed by digital advertising challenges.
By focusing on sales-driven marketing, collaborative teamwork, and an adaptive approach to ever-changing algorithms, Justin Lowe is helping Arcade1Up navigate the future of retail marketing.
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