5 cool stats to start your week
Marketing Directors Expect Rapid Growth in DTC Over Next Five Years
Most UK marketing managers expect direct-to-consumer (DTC) channels to generate at least 20% of their sales over the next five years.
The vast majority (97%) say DTC channels have become a higher priority since the start of the pandemic, while 47% of brands are selling more products through their own channels than they were before Covid.
As a result, 90% believe their brand is now in a stronger negotiating position with business partners.
Brits plan to do everything this Christmas, but will be more careful with money
Consumers are keen to make up for the lack of celebration last Christmas, with 83% of Gen Z and 67% of Gen Y planning to go all out this holiday season.
More than half (51%) have put more savings aside because of the decrease in spending in the past year, but 73% say they will think more carefully about how they spend their money now.
The pandemic has made 86% of those polled to enjoy time spent at home with their families more, and 48% say they plan to buy fewer gifts but make larger, more thoughtful purchases for loved ones.
When it comes to gifts, 58% of people across all generations would prefer experience-based gifts to ‘more stuff’, while two-thirds of Gen Z (68%) and Millennials (64 %) would prefer the freebies they requested. for rather than a surprise this Christmas.
Almost half (48%) of Britons plan to start their Christmas shopping by October, and almost a third (28%) are already doing their Christmas shopping. Given concerns about labor shortages affecting supply chains, the study suggests that marketers and consumers should plan ahead to ensure they don’t miss the opportunity. target this Christmas.
The culture of effectiveness increases when the value of marketing is understood by the C-suite
While the culture of effectiveness of UK brands and agencies is “encouraging”, there is still “significant” marketing work to be done to drive business performance, according to the first IPA Effectiveness Culture Monitor.
The study reveals that securing senior executives’ adherence to an efficiency approach is a “key driver” for improving the culture score between brands.
The brand’s culture of efficiency scores go from 5.7 on average when there is no senior membership to 7.4 when these values are shared by leadership, reveals the monitor.
The study received some 178 responses from 91 different brands and agencies, including 37 brands in all major categories.
When asked to rate their own culture of marketing effectiveness out of 10, brands averaged a “healthy” score of 6.9. Agencies ranked slightly higher with a score of 7.3, although the spectrum for each respondent group ranges from two to 10.
As study participants self-select, the bias in favor of marketing effectiveness is not surprising. Interestingly, however, organizations and agencies that claim to have an effectiveness ‘roadmap’ in place scored 26% (7.7) higher than those that did not (6 , 2).
In particular, the implementation of a roadmap makes it possible to considerably increase the “focus” score of an organization – to have a clear vision which includes the levers of impact and value – from 5.4 to 7, 8.
The IPA defines an effectiveness roadmap as a “coherent strategy and plan for continuous improvement of business value” through four key pillars of effectiveness: people, processes, direction and people. data, tools and measurement. The roadmap must be understood by the organization as a whole.
While nearly half (49%) of respondents say their organization has a marketing effectiveness roadmap, reaching 54% among brands alone, 22% do not and the rest do not. not sure.
Internal policy prevents a common reflection on CX
While 86% of companies agree that customer experience directly equates to business value (49% strongly agree), two in five decision makers say the pandemic has seriously affected their efforts.
The lack of face-to-face meetings is highlighted as a major challenge for CX collaboration by 44% of respondents, while 33% say the pandemic has resulted in less cross-departmental CX collaboration.
The main obstacles preventing internal collaboration are lack of time (32%), internal politics (31%), silos (29%), disaggregated data (24%) and poor internal communication (24%).
Source: Paragon DCX
Grocery sales plummet as pre-Covid behaviors return
With “big lifestyle changes” on the horizon, take-out grocery sales fell 1.9% year-on-year in the 12 weeks leading up to September 5, according to the latest data from Kantar.
Sales remain 8.7% above pre-Covid levels, reflecting the continuing impact of the pandemic on the market. However, with commuters due to return to offices and children returning to school this month, Fraser McKevitt, Kantar’s retail and consumer manager, expects further changes in the way which people shop for.
Already, the first week of September produced the highest traffic in supermarkets all year round outside of Easter.
“This suggests a hint of change and could see shoppers shy away from the ‘department store’ in favor of more frequent refill purchases,” says McKevitt. “But we shouldn’t expect to shift from learning habits during lockdown directly to pre-Covid models overnight. Chances are, the needle will settle somewhere in between.
According to McKevitt, Kantar has already seen “signs of fatigue” around home cooking, with sales of refrigerated ready meals up 11%.
Online, the average store is now worth almost £ 17 less than its peak at the start of the pandemic for a total of £ 78.28. The online grocery market share fell from 13% four weeks ago to 12.2% this month, the lowest level since May 2020.
Waitrose and Tesco were the only major supermarkets to report year-over-year sales growth, at 2.2% and 0.2% respectively. As a result, Waitrose increased its market share to 5.1%, a fifth consecutive increase for the grocer. Tesco also gained shares, gaining 0.5 percentage points to account for 27.3% of all sales.
Sainsbury’s claims the second highest share at 15%, while Asda takes 14.3%, Aldi takes 8.1% and Lidl takes 6.1%.
Meanwhile, like-for-like food prices rose 1.3% year-on-year over the past four weeks. According to McKevitt, this comes as supermarkets begin to focus on everyday low prices rather than sales promotions.