Addressing them as a new important group of consumers
Posted On August 9, 2020
EFFICIENT MANAGEMENT OF RESOURCES – Resource efficiency reduces our environmental impact and saves resources for us, our customers and society.
CREATING VALUE – Value-creating solutions are the basis for long-term business solutions for the benefit of our customers, the environment and society.
SAFETY AND HEALTH – Our focus on safety reduces risks and costs for us, our customers and society.
WORKERS – Competent and committed employees are the key to success.
RESPONSIBLE RELATIONS – Responsible relations have an impact on the good functioning of the market and affect the proper social development.
PROFITABILITY – Profitability is a prerequisite for investment in the future and for ecological and social development. Personalization
Good recognition of the client’s needs and expectations allows for far-reaching personalization of the marketing message. Leading retail companies are moving away from mass campaigns in favor of a message tailored to each recipient. They try to reach a given client with individually tailored content, at the right time and using the channel preferred by the client.
Millennials – an important group of consumers
Market experience shows that such hyper-personalization of the message can significantly increase the conversion rate. The implementation of such an approach requires the use of marketing automation tools. Personalization applies not only to the online marketing message, but also to recommendations or dedicated offers triggered by customer interactions with beacons in physical stores.
Another challenge for the retail industry is the generational change that is taking place before our eyes. The first digital generation – the millennial generation – is entering maturity, starting a career and starting families. Addressing them as a new important group of consumers is a significant difficulty for some traditional retail. Not all companies in this sector are associated with the values shared by this generation: transparency, authenticity and social responsibility.
Also, the willingness of this generation to act locally, here and now, has serious implications for commercial companies. Research shows that millennials are increasingly turning away from big brands, opting for smaller, local ones that respect their values.
One of the trends that will gain strength in recent years is the return of small formats. Big retail chains are opening more and more convenience stores and small proximity supermarkets. The new stores, despite their small area, do not have much in common with typical family or neighborhood stores. This is an ideal offer for busy city dwellers: a clear layout, a relatively limited selection of favorite brands and a large selection of ready-to-eat products.
Considering the relatively limited assortment, it becomes very important to carefully adjust it to the purchasing preferences of consumers. Here, too, you can use IT analytical solutions that support the selection of the optimal assortment. This trend, i.e. small formats, will continue to develop, especially in the largest centers. Sustainable trading is also a way to build a better relationship with your customers. Pro-ecological solutions do not have to mean costly investments such as solar panels or geothermal installations. We can take small steps first to help protect the environment and influence the perception of the store by customers. We propose three such solutions:
Resignation from paper
A store is a place where a lot of paper is used up. One way to change this is by emailing receipts, as long as the laws of your country allow it. In this way, we save forests, reduce carbon dioxide emissions, and at the same time produce garbage, because our paper receipts will not end up in the bin.
Limiting the amount of waste generated
It is becoming more and more important for customers how the products they buy are made. If you prepare your products yourself, consider whether you can reduce the production of harmful waste in the production process. If, on the other hand, you are reselling finished goods, ask suppliers for information about the manufacturing process: working and safety conditions, pollution and waste generated during the production of goods.
Recycling old products
In addition to offering customers new products, consider if you can help them recycle old or damaged items. North Face, a brand that produces sportswear, has prepared a special program called “Clothes the Loop”, which offers customers discounts if they bring used clothes to the store. They are later used, among others as a fiber for the production of new clothes or stuffing toys.
- In summary, conducting sustainable commerce can earn customer respect as well as increase your store’s profits. There are many sustainable solutions that can be implemented in-store that do not require a lot of money.
- The condition for the effectiveness of such activities is their transparency and authenticity. Sustainable development has long been a priority of the logistics industry, which already at the design stage of buildings implements solutions ensuring their energy efficiency and low emission.
- The issue of sustainable development should also be taken into account in the dynamically developing e-commerce sector, because e-commerce has a huge impact on the increase in demand for logistics services.
Research into the overall environmental impact of retailing shows that e-commerce improves the sustainability of the entire retail industry. The key to sustainable trade is reducing the impact of transport in retail – the largest source of carbon dioxide emissions in the United States – and e-commerce has great potential in this context.
Consolidating multiple deliveries on a recurring route reduces the carbon footprint of transport by more than 50% – measured in kilograms of carbon dioxide equivalent – compared to the emissions produced by a consumer vehicle when moving from A to B.
If we add to it faster than In the case of individual customers, the pace at which logistics companies implement electrically driven cars, the Internet shopping has a real impact on reducing CO2 emissions compared to purchases in stationary stores.
Although e-commerce requires more packaging, this does not change the fact that this sales model is more beneficial in terms of savings in transport, thus supporting sustainable development. It is estimated that retailing reduces its overall environmental impact by around 15% by purchasing online. Leading research teams from MIT, GRESB, Carbon Management and other institutions using comprehensive statistical modeling have quantified the carbon footprint of individual trade models.