2017 is just around the corner so we thought it would be interesting to reach out to our clients to see what’s on their mind for the coming year.
First, the good news… there’s a general feeling of optimism among the clients we spoke to. Arguably, the economy was one of the biggest issues in the recent election and the pro-business stance of the incoming administration is seen as a definite positive for marketers.
Still, there are a number of issues keeping multi-channel retailers up at night as they look at the New Year.
Amazon. Over half of US households currently have Amazon Prime and 55% of all online searches start on Amazon. Few brands can afford to ignore the product exposure Amazon offers even though it comes at the expense of both margin and the brand’s relationship with the customer.
Attribution. This remains a key challenge for multi-channel retailers. The ability to accurately determine which channel is responsible for the sale and which offers the best return on investment also presents an ongoing challenge.
Marketing Budgets. For most retailers, 2017 budgets are expected to remain relatively flat. With more ways to spend marketing dollars, marketers will be forced to make some tough decisions.
Shrinking margins. The market may drive product prices, but it doesn’t necessarily drive product costs. From materials and manufacturing to marketing, margins are under constant pressure. Maintaining profitability remains a constant struggle.
Aging Customer Base. Many marketers are finding that they need to appeal to a younger consumer while not alienating their aging core customer base. As customer demographics and psychographics change, marketers need to strike a balance between old and new.
The simple fact is that, even in a pro-business environment, retailers will still face many challenges. The New Year is almost upon us and marketers need to be ready for whatever opportunities and challenges lie ahead. More than ever, brands must be nimble and quick to adapt and manage change. They must maximize return on every dollar spent with bold ideas that strengthen their brand’s relationship with their customer.
If you’d like to make sure your brand is positioned for success in the New Year, give us a call… we’d love to help you reach your goals.
Contact EVP, Brand Strategy, Chris Hayes, at 913-236-2415 or chrish@jschmid.com
Tags: catalog industry, chris hayes, marketing, retailers
