I recently had the pleasure of speaking on a panel about “Technology and the Multi-Location Brand” at Localogy 2022.
There were many great topics of conversation. We discussed how technology companies are helping brands navigate privacy regulations, where location intelligence is headed as a growth driver for multi-location brands, what the online-to-offline marketing technology stack looks like, and much more. Below I have summarized 3 key takeaways from our discussion.
#1. Location intelligence has advanced
Location intelligence has become much more sophisticated in recent years. We no longer only rely on the use of mapping and geospatial data. Today, advanced location intelligence solutions combine additional data sources such as demographics, preferences, behaviors, transaction history, and more.
This robust combination of data results in a deeper understanding of the consumer which enables advertisers to better address their needs, serving as a growth driver for multi-location brands. Having a holistic understanding of the consumer’s needs enables brands to reach them with the most relevant message, and direct them to the most appropriate location, whether that be online or offline.
#2. Personalization is crucial
In order for advertisements to resonate, they need to be relevant. McKinsey shared that 71% of consumers expect companies to deliver personalized interactions and 76% get frustrated when this doesn’t happen. My fellow panelists and I spoke in-depth about the many ways that personalization can support effective advertising. What became undeniably apparent is the desire consumers have for an authentic personalization experience at every consumer touchpoint.
Not only does this provide consumers with a more enjoyable shopping experience, but it also delivers stronger advertising performance for brands. The McKinsey research revealed that personalization drives a 10% to 15% lift in revenue. Advertisers leveraging personalization also benefit from stronger retention and loyalty. By adapting to consumer preferences, advertisers will reap the rewards.
#3. Privacy is imperative
Perhaps the most prominent conversation during my panel and also the other sessions I attended was how imperative privacy protection is. We know that consumers want brands to customize their advertising experience and ensure their interactions are authentic and personalized. They also want their online privacy to be respected.
In order to ensure privacy compliance while offering the relevant experiences that consumers expect, advertisers need access to quality data. This quality data expands far beyond first-party. Yes, brands that have ample first-party data have a competitive advantage, but, deterministic targeting will not have the scale that it once did. It was clear during our discussion that brands that partner with technology companies that leverage probabilistic data that is privacy-compliant, will access the scale needed to drive sustainable performance.
The 2022 Localogy event was a reminder of how quickly things are moving in our industry (as always). I was reminded of the quote that validates that the nimble, win:
“All failure is failure to adapt, all success is successful adaptation.” – Max McKeown.
Small businesses may be at a disadvantage with resources, but they are at an advantage with their ability to be flexible and move quickly through the ever-evolving landscape. With access to privacy-compliant data and the means to execute personalized advertising at scale, brands can thrive in the new age of advertising.
If you would like to know more about any of the takeaways I shared, feel free to reach out to me directly at sk@a.ki
Stephanie Klimaszewski, SVP of Marketing at Aki