By Dave Donnelly, Eyeview
As we head towards the heart of the winter season, forecasts of “polar vortexes” are being realized through freezing days and the beginnings of heavy snowfall. For retailers, these first signs of winter elicit recollections of last year’s below zero temperatures, seemingly endless snow and associated lost sales and diminished revenue. 2013’s Q4 and this year’s Q1 were riddled with reports of how the retail industry, and even the economy as a whole, suffered as a result of harsh winter weather. In fact, reports from the National Retail Federation say that while sales were projected to increase last winter, they actually fell 0.4% – all because of the winter weather.
With extremely cold weather again positioned to negatively impact what are historically some of the most profitable months of the year, retailers must strategically think ahead and get a plan in place in order to avoid defeat deja vu come February. For many retailers, elements of this plan will be obvious: adding bandwidth for expected increased e-Commerce activity, allocating extra time for deliveries and coordination with carriers, etc.
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But truly savvy retail brands must take their preparations to a granular level. Specifically, retailers must look to address the challenges they are facing as advertisers, with a renewed and increased attention to how they are advertising their brand, heading into the winter season. Last year saw many retailers’ ad dollars wasted as consumers ignored in-store promotions in favor of a warm home. In order to have a truly effective plan for dealing with winter weather, advertising activities must be optimized for the real-world conditions that impact consumers’ shopping preferences, which in this case, means the far-from-ideal weather conditions.
These challenges aren’t insurmountable, but advertisers must be diligent in examining their marketing plans in able to overcome them. Below is one suggested four-step process advertisers can use to determine how they can best prepare for harsh winter weather and optimize their efforts for better ROI.
Step one: Pick your prime products
Scan your inventory to pick out any items that have particular relevance during this season – anything from shovels to sweaters to stew pots and more – customers are preparing now for months of chill, and amping up your product-specific advertising will help ensure that your items are top their lists.
Step two: Pair the weather with the product and channel
To get the most out of your advertising strategy, consider how to best connect the right product to the right channel based on current weather or near-term forecast – all with the goal of reaching the right consumer.
For instance, a timely ad letting shoppers know that a blizzard is on the way can prompt your customers to head in-store to pick up salt and shovels, while delivering an ad highlighting your free next-day shipping alongside the abysmally low current temperatures could prompt a shopper to buy on your website.
Being able to personalize your advertising to your customer through the weather they’re experiencing or the content of the ad they’re served is the best way at ensuring that you get the biggest bang for your advertising buck here. The more relevant your ad is for your shopper, the more likely he or she is to turn to your brand this winter.
Step three: If you say you have it, have it
Aligning your inventory and your ads a top priority. Time is of the essence for shoppers seeking winter sundries – if your store doesn’t have an advertised product in stock, you risk a massive hit to a customer’s loyalty.
You can do this in a number of ways: If your budget is tight, choose to only advertise for items that you have plenty of stock of, or focus on replenishing the items you feature heavily in your ads. If you have a bit more spend, investing in ad technology that ties your inventory data to the items featured in your ads is ideal. This will take some of the work off you, and ensure that you’re giving your customer the service they deserve.
Step four: Offer more value to build more loyalty
This time of year is also an opportunity to amp up the value you provide to consumers through your ad strategy. Simply showing a consumer that you have the products they need when they need them doesn’t have to be the end of the value you offer. Instead, promote a section of your brand website that offers tips and tricks for preparing for winter storms, or being best equipped during colder temperatures. Home-improvement retailers could have a section of their website (mentioned in their ads) with the must-have winter items for a blizzard, or a new car owner, or a new homeowner. By tying your ads to valuable information for consumers, you can not only drive traffic to your website, but also increase customer loyalty.
The winter season is full of potential for retailers; between holiday shopping and new year refreshing, there is ample opportunity for brands to go above and beyond their sales goals. However, as 2013 showed us, weather-related challenges can easily derail even the most prepared retailers. The key is to treat this time of year differently in every way, and optimize at every level. Focus your efforts on the right products, using technology to be smarter about your inventory and ad efforts, and offering extra value to your customers, and you’ll have a much better chance at avoiding the sales downturn that plagued the economy last year.
Dave Donnelly is a seasoned sales professional who brings more than 12 years of online advertising experience to Eyeview. As VP East Coast Sales, Donnelly successfully leads sales efforts for key strategic accounts across Eyeview’s Retail, QSR and Entertainment verticals. As part of his role, Donnelly focuses on identifying, building and executing custom dynamic innovative video solutions to enable Eyeview’s partners to achieve increased brand equity and key online brand metrics.