Thriving in Europe’s evolving retail landscape

Marigold is a Business Reporter client.

The European retail industry is facing a period of significant transformation, marked by shifting consumer behaviours and economic uncertainties. In 2023, the retail trade volume in the European Union increased by 5.2 per cent compared with the previous year, reflecting the continued recovery of consumer spending after the Covid-19 pandemic. As consumer expectations continue to rise and the economic landscape shifts, one thing remains constant: the importance of building genuine, long-lasting relationships with customers.

Marigold’s 2024 European Consumer Trends Index reveals a telling story. Despite economic uncertainty, 65 per cent of consumers are willing to pay more to shop with the brands they’re loyal to. This underscores the immense value of brand loyalty and the need for retailers to invest in strategies that cultivate these deep connections.

At the heart of successful relationship marketing lies personalisation. The data shows that 84 per cent of European consumers say their favourite brand treats them as an individual, while 78 per cent are likely to engage with a personalised offer tailored to their interests.

This aligns with the broader trend identified which notes that European consumers are increasingly demanding more tailored experiences, including personalised product recommendations and customised loyalty programs.

To deliver this level of personalisation, European retailers must leverage the wealth of data available to them. By collecting zero-party data directly from customers, such as their preferences, interests and pain points, brands can craft tailored experiences that resonate on a deeper level. This is especially crucial as the industry moves away from third-party cookie tracking, with 62 per cent of European consumers finding ads based on indirect tracking tools “creepy”.

But personalisation is just one piece of the puzzle. Relationship marketing also requires a deep understanding of your customers’ evolving needs and pain points. The 2024 European Consumer Trends Index reveals that economic considerations are influencing consumer behaviour, with 48 per cent of consumers doing more research before purchasing and 48 per cent waiting longer for products to go on sale. Savvy retailers must adapt their strategies accordingly, prioritising value, convenience, and exceptional customer service over price alone.

In today’s interconnected world, European consumers expect a seamless shopping experience across multiple channels. Whether they’re browsing online, visiting a physical store or interacting on social media, they expect consistency and convenience at every interaction.

Omnichannel marketing enables retailers to create cohesive experiences that bridge the gap between online and offline channels. By integrating data and communication channels, retailers can deliver personalised messages and offers that follow customers throughout their journey, regardless of the touchpoint.

With 63 per cent of consumers engaging with social media less for the sake of their mental health, it’s crucial for retailers to maintain a strong presence in channels such as email, SMS and push notifications. These direct lines of communication allow brands to stay connected with customers, even as social media engagement wanes.

Email’s dominance as the top marketing channel for driving consumer purchases is a testament to its enduring power. According to the data, 50 per cent of consumers have made a purchase from an email in the last year, compared with 48 per cent for social media advertisements and 44 per cent for social media posts.

This underscores email’s continuing ability to reach and engage consumers, even as new channels emerge. The prevalence of email in our daily lives, coupled with advancements in personalisation technology, has allowed marketers to deliver highly relevant, personalised messages that resonate with their audience. As brands navigate the evolving retail landscape, email’s proven track record as a reliable driver of purchases makes it an essential component of any successful relationship marketing strategy.

Ultimately, the key to thriving in Europe’s evolving retail landscape lies in the ability to forge genuine, long-lasting relationships with customers. By embracing personalisation, understanding shifting European consumer needs and leveraging direct communication channels, European retailers can build a loyal customer base that will weather any economic storm.

Source: independent.co.uk