Retail

How to use retail media to supercharge the customer experience

With strong in-person retail shopping trends, retail media is a powerful digital signage tool to transform customer experience in stores. We reached out to Paul Brenner, SVP for retail media and partnerships at Vibenomics, to learn strategies.

Image: Adobe Stock (generated with AI)

June 28, 2024 by Daniel Brown — Editor, Networld Media Group

Despite recent global challenges and the growth of eCommerce competition, the in-person retail sector is strong — 45% of consumers still opt for brick-and-mortar stores as their preferred shopping source, according to a recent report from CapitalOne Shopping, and 72% shop in physical stores every week; indeed, the power of in-store shopping has fueled emerging technologies we've been covering recently, such as the Wi-Charge wirelessly-powered retail digital signage product lines.

Part of tapping into this market involves making the in-store experience more powerful by engineering a unique, memorable experience. Digital signage is a huge part of that, including the explosion in retail media, in which projected ad spending is set to surpass $106 billion by 2027. We've followed the way behemoths like Amazon have been muscling into the in-store DOOH world, and we've seen the creative ways brands like H&M have used emerging tech like holograms at retail locations to surprise and delight in-store shoppers.

But in the age of growing AI and augmented reality, how can the modern operator use retail media effectively without falling into the common errors that can disrupt customer satisfaction and harm ROI?

To learn more, we reached out to Paul Brenner, SVP for retail media and partnerships at Vibenomics, a Mood Media company. Brenner joined us via email interview to discuss the power of retail media to transform the customer experience in retail environments, along with practical strategies.

Retail media Q&A with Paul Brenner

Q: Just to set up our conversation, can you share a little about how your journey led you to be a retail media expert?

A: My career has spanned more than 25 years in leadership roles at the intersection of media, advertising and technology. I've held executive positions, including division president at Emmis Operating Company and president at NextRadio/TagStation, where I honed my expertise in leveraging emerging technologies to create innovative advertising solutions.

In 2019, I was drawn to Vibenomics by the opportunity to develop the go-to-market strategy for their groundbreaking Audio In-Store advertising solution. I recognized that in-store audio had tremendous untapped potential to reach customers at the point of purchase. After successfully launching and scaling this new ad medium, I took on the role of President of Audio OOH to drive revenue growth.

Now, as SVP of Retail Media and Partnerships at Vibenomics, I'm evangelizing in-store audio as a key component of the fast-growing retail media category. With the recent integration of Vibenomics and Mood Media, given their footprint of over 500,000 retail locations globally, we're poised to accelerate innovation and help retailers unlock the full potential of in-store advertising to engage shoppers and drive incremental revenue.

Q: Can retail media help address customer satisfaction with in-store experiences, and to what degree?

A: Absolutely. The key to successful retail media is implementing solutions that seamlessly integrate with the customer journey. With over 90% of customers dissatisfied with current in-store experiences, there's a huge opportunity for retail media to bridge this gap. By investing in familiar, comfortable technologies, retailers can deliver engaging, personalized content to shoppers at the point of purchase.

Our audio in-store advertising solution is a prime example. It enhances the shopping experience with curated music, relevant promotions and contextual brand messaging. By reaching customers through a medium they're already accustomed to, retailers create a more enjoyable environment while driving incremental ad revenue.

The impact of retail media on customer satisfaction depends on the specific solutions implemented and their alignment with customer preferences and behaviors. Retailers prioritizing customer-centric strategies that leverage familiar technologies and non-disruptive ad experiences will see the greatest improvement in satisfaction and, consequently, increased ad spend from brands seeking to engage these audiences.

Q: When studying the impact of retail media, are there different rules for approaching different cohorts of customers? For example, do you have unique advice for approaching Gen Z customers as opposed to other groups?

A: While the fundamental principles of delivering seamless, non-disruptive retail media experiences apply across all customer cohorts, there are certainly nuances to consider when approaching different generations, particularly Gen Z.

Gen Z, the first true digital natives, has grown up in a world saturated with digital content and advertising. They're savvy, discerning and highly attuned to authenticity. When it comes to retail media, Zoomers certainly expect seamlessness, but they also want highly personalized, interactive and socially conscious experiences.

To effectively engage Gen Z through retail media, retailers should:

Prioritize authenticity and transparency in their brand's values, practices and products.
Embrace interactivity and co-creation, such as shoppable videos, AR/VR experiences and user-generated content.
Align with social and environmental causes, showcasing their commitment through their retail media content and partnerships.
Leverage emerging social channels and formats, including short-form video content and livestream shopping events.

While these strategies are particularly relevant for Gen Z, many of these principles are becoming increasingly important across all age groups. Retailers must stay attuned to the unique preferences and behaviors of each cohort while delivering authentic, engaging and seamlessly integrated retail media experiences.

Q: What is the most important rule of retail media that all stores need to keep in mind?

A: The most important rule is this: Always put the customer experience first.

Retail media presents a tremendous opportunity for retailers to monetize their in-store and digital assets, but this should never come at the expense of the customer experience. Shoppers come to stores primarily to purchase products, not to be bombarded with ads. If retail media is too intrusive, disruptive or irrelevant, it can quickly erode customer satisfaction and loyalty.

Q: What is the biggest mistake that you continue to see stores making?

A: The biggest mistake I consistently see stores making with retail media is treating it as a separate, siloed initiative rather than an integral part of the overall customer experience. This siloed approach often stems from a lack of standardized in-store measurement, which makes it difficult for retailers to understand the true impact of retail media on customer behavior and sentiment. Without a clear, unified framework for measuring in-store media effectiveness, retailers may rush to implement ad solutions that prioritize short-term revenue over long-term customer value, leading to ad experiences that feel disjointed, intrusive or irrelevant to shoppers.

Standardized in-store measurement is critical for avoiding these pitfalls and ensuring that retail media enhances rather than detracts from the customer experience. By establishing consistent metrics and methodologies for tracking customer engagement, sentiment and purchase behavior in response to in-store media, retailers can gain a holistic view of how retail media fits into the broader customer journey. This data-driven approach enables retailers to make informed decisions about ad placements, formats and content, ensuring each touchpoint adds value for the customer.

Q: Does retail media success look different depending on retail category? For instance, should a Whole Foods approach the problem differently than a Best Buy?

While the core principles of effective retail media apply across all categories, the specific strategies may vary based on each vertical's unique customer behaviors and expectations.

For Whole Foods, given their strategic focus on curated store design, a grocery retailer with frequent, repetitive visits, retail media success might include contextually relevant product suggestions, new product discovery, sponsored recipes showcasing featured brands and targeted sampling events. In contrast, Best Buy, a consumer electronics retailer with less frequent, higher-consideration purchases, might prioritize interactive in-store displays, sponsored content educating customers on complex technologies and personalized promotions based on past browsing and purchase behavior.

The key is to deeply understand customer needs and behaviors within each retail vertical and design retail media strategies that align with those insights. By taking a customer-centric, category-specific approach, retailers across all verticals can drive retail media success that feels authentic and valuable to their unique shopper base.

Q: You have said: "Customers don't want to have to 'figure out' how to use something. Tech that meets customers where they already are can boost ad revenue without disrupting the customer journey." Why do customers feel this way, and how can retail media meet these standards?

A: Customers feel this way because they value convenience, simplicity, and efficiency in their shopping experiences. Consumers are already inundated with new apps, devices and interfaces that often require a learning curve. The last thing you want to do in a retail setting is throw another new piece of technology for them to figure out while trying to shop. Friction can lead to abandoned purchases, reduced customer satisfaction and a negative impact on the retailer's bottom line.

Retail media can meet these standards by leveraging technologies and channels that customers are already comfortable with, like mobile devices and digital signage. Using these technologies reduces the learning curve and cognitive load for customers, allowing them to focus on relevant products and offers. This approach can lead to higher conversion rates, increased basket sizes, and improved customer loyalty over time. By meeting customers where they are and integrating retail media into existing touchpoints, retailers can deliver a seamless experience that feels like a natural extension of the customer journey.

Q: It's all about the ROI! Can you speak to the cost/benefit ratio for retailers that might be considering retail media for the first time?

Implementing a retail media program requires an initial investment in technology, talent and partnerships, but these costs are typically lower than traditional media channels due to the advantages of digital media, such as precise targeting and automated delivery.

Retail media offers retailers a compelling value proposition. It represents a new, high-margin revenue stream that can add millions or even billions to the bottom line by monetizing valuable first-party data and in-store assets. For brands, retail media provides an unparalleled opportunity to influence shoppers at the point of purchase, driving incremental sales, market share and customer loyalty.

Retail media ROI is particularly striking when considering the impact of full-funnel, omnichannel campaigns. A recent case study with a major CPG brand found that joint exposure to in-store and onsite retail media campaigns drove a 50% increase in share of category and a 40% increase in spending per household, compared to either tactic in isolation.

These results demonstrate the power of retail media to influence customer decisions at every stage of the purchase journey, from initial awareness to final conversion. By leveraging a combination of in-store and digital touchpoints, retailers and brands can create a surround-sound effect that drives measurable, incremental growth.

What's more, retail media's precise targeting and closed-loop measurement capabilities allow for granular analysis of campaign performance, enabling retailers and brands to continuously optimize their strategies and maximize ROI over time. With the ability to track the impact of specific ads and offers on individual purchase behavior, retail media provides a level of accountability and transparency that traditional media channels simply can't match.

Q: Can small-to-medium and independent retailers benefit from retail media, or is this just a tool for the big fish? What's your advice to the smaller players who may be interested in retail media technology?

A:Yes! In fact, retail media can be a game-changer for smaller players looking to level the playing field with larger competitors. By monetizing their valuable first-party data and in-store assets, smaller retailers can generate incremental revenue, differentiate themselves from competitors, enhance the customer experience and achieve cost-effective marketing.

For example, a local grocery chain could use retail media to showcase unique, locally sourced products that larger competitors may not carry, attracting both customers and brand partnerships.

My advice to smaller retailers interested in retail media technology is to start small by testing it in a few key product categories or stores. Partner with providers who understand the unique needs of smaller retailers and who offer flexible, scalable solutions. Prioritize the customer experience, ensuring that retail media feels authentic and relevant to your shoppers while continuously measuring and optimizing your strategies based on real-world results.

Smaller retailers must leverage their unique strengths, such as deep local knowledge, personal customer relationships and agile decision-making. By combining these advantages with the benefits of retail media, smaller players can punch above their weight and drive significant value for their businesses.

Q: Is there anything we missed that you're passionate about covering for our audience on this topic?

A: One area of retail media I'm particularly passionate about is the potential of AI-powered solutions to revolutionize in-store sensors for audience insights. With this technology, the customer journey within a venue can drive decisions on content, behaviors and lift. Retailers could optimize product placement down to the individual SKU level, while brands could test different packaging designs or promotional displays and get instant feedback on their performance. Customers could be served targeted audio or digital ads on nearby screens or mobile apps, promoting products that are just a few feet away, or across the store, and perfectly tailored to their preferences and past purchase history. This kind of seamless, data-driven shopping experience represents the future of retail media.

As the industry moves forward, it will be crucial to address challenges such as data privacy concerns and the technical complexity of implementing these systems at scale. However, I firmly believe that the convergence of online and offline data, coupled with the power of AI to turn that data into actionable insights, will define the next generation of retail media. As an industry, we have an exciting opportunity to shape this future in a way that benefits retailers, brands and consumers alike.

About Daniel Brown

Daniel Brown is the editor of Digital Signage Today, a contributing editor for Automation & Self-Service, and an accomplished writer and multimedia content producer with extensive experience covering technology and business. His work has appeared in a range of business and technology publications, including interviews with eminent business leaders, inventors and technologists. He has written extensively on AI and the integration of technology and business strategy with empathy and the human touch. Brown is the author of two novels and a podcaster. His previous experience includes IT work at an Ivy League research institution, education and business consulting, and retail sales and management.