By Laurent Quatrefages, Co-founder & CEO of Swaven
During the last 9 weeks of lockdown, Swaven has recorded changes in the demand patterns for many product categories. For example, we have seen an increased demand for hair and skin care products. This week we also confirmed the continued recovery trend that we recently observed for perfumes. We also noticed an upward trend in make-up, as well as a strong increase of online traffic in Spain, as confinement is lifted.
On the retailer side, we have registered a dramatic increase in all key categories of new online clients. This new interest most likely came from physical brick and mortar shoppers, with a higher repurchase rate across the board. Will this last after deconfinement, as it appears to be gradual?
UNDERSTANDING THE brand funnel
What have we learnt from this unprecedented situation experienced by brands and retailers, with enormous fluctuations in weekly demand?
At Swaven, our conviction is that brands need to keep these signals in mind when allocating their media budgets in order to optimize the outcome of their (huge) investments. They must capitalize on their brand funnel data to capture consumers’ attention in the right places with the right messages.
At a time when marketing investment will be assessed in the wake of the tough economic climate, strengthening the links between branding and commerce with live data and shared indicators at category and product level is key for multi distributed brands.
Consumers spend more time online in their buying journey, seeking brands’ assurance and advice, expecting direction to convenient purchase routes. They get easily frustrated and abandon if the purchase path is complex or they are led to dead ends (no availability).
Time to do things differently, or Perseverare*?
So what are the options? Some brands maintain a strict status quo between their marketing and sales teams, with each party “staying in its lane” and debating retrospectively on their attributions to business. Interesting, sometimes tough discussions and tensions will increase.
A second option, that we champion in, is to foster a better collaboration between branding and commerce. To help, we have listened to what really matters to both sides. We have developed a model to compute a Business Impact synthetic indicator using data science to extrapolate actual channel revenues from marketing generated traffic. The merit of this indicator is to create a shared performance baseline, understanding the levers of improvement and identifying leads leakage on both sides.
If you’d like to further explore the second option with Swaven and learn about our Business Impact indicator, please contact us.
*Errare humanum est, perseverare diabolicum