In this session, Managing Director of Partnerships Rosie Houston sat down with Co-op Media Network’s Stanley Oyovota to drill down into what true innovation means and how the right approach can help support your strategy.
As Digital Media and Shopper Analytics Lead for CMN, Stanley is no stranger to the importance of innovating with care, intention and planning.
In an increasingly busy commerce media space, retailers are hungry to stay ahead of the curve, whether that be in terms of their toolkits, their tech stack or how they do business. And we’ve already seen some incredible examples where innovation has resulted in some great wins for retailers.
Stan highlights examples such as Amazon Advertising’s recent launch of retail ads, Instacart’s use of AI-powered search and shoppable ads, and WH Smith’s recent launch of its travel retail media proposition.
“What resonates about these examples is how they align the retailer’s proposition with customer and consumer needs.”
But how do retailers resist the temptation to follow competitors and instead build innovations that consistently reinforce their brand’s unique identity?
Fundamentally, Stan believes that achieving consistency here lies in staying true to your business strategy and mission. Always keep in mind what makes a retailer different from others, focus on what your shoppers want, test and learn what works, and always have a goal of delivering long-term value.
“At CMN, we understood that convenience is different to traditional big box retailers, so that difference forms the foundation of our strategy. We looked to create a retail media network that segments its audience on their unique convenience missions, rather than more traditional demographics.”
Rosie added that it’s also important to consider the role the retailer plays for brands and customers. This in turn, makes it much easier to define what innovation is needed to help answer those needs.
But it’s not always easy. In an ever-evolving retail media landscape, it can be tempting to get swept along in the latest trends or innovate for the sake of innovating!
How can retailers ensure they don’t get led astray from their core strategy?
For Stan, it’s first and foremost about ensuring that you have the systems, people, tools and resources to innovate effectively. Innovation should also match the retailer’s maturity level.
Secondly, it’s important to make sure you’re prioritising a great customer experience over short-term revenue generation. Innovation should seek to improve services and experiences, which will ultimately drive better revenue in the long run.
Thirdly, make sure that everything you’re doing ties back to the core mission and strategy. Does this project align with your objectives and business model? If not, it might be time to re-evaluate!
Something to consider is how you can stress-test your innovations before launching in this crowded market.
As Stan shared, CMN activated a pilot with a select group of trusted customers to share feedback before taking their proposition to market. This approach allows you to iterate and make changes before fully launching. It also offers the opportunity to validate your findings and ensure that the product is the right fit.
Once you’ve launched your product or innovation, a key consideration is how you measure success. What does “good” look like? Of course, this will be different for every retailer but as Stan shares, there are some guiding principles that all retailers can learn from.
Success beyond commercial returns is knowing that innovation drives genuine competitive advantage, it enhances the customer experience, and it drives brand loyalty.
So to summarise, there are a few key takeaways when looking at how a retailer or brand should approach innovation:
- Remain clear on your proposition, your strategy and what makes you unique. All innovation should ladder up to your overall business objectives.
- Ensure your business is ready internally before you start on any new project – make sure you have the right people, resources and systems in place.
- Test and learn before you launch any new product. Seek feedback from trusted customers and ensure you have time to iterate or make changes before taking your innovation to market. And finally, define what success looks like! And remember, it’s not just about delivering revenue – innovation should enhance the customer experience and drive long term brand loyalty, not just sales!