More relevant than ever: a robust omnichannel strategy

How it is done

Since COVID-19, retailers and manufacturers have been enjoying the benefits of omnichannel selling more than before. To do this well, it takes clean data, analysis, channel coordination and the right organisational structure. Experts can combine and analyse the KPIs and customer experiences that ensure transparency and frictionless commerce, regardless of where your consumer shops.

Market development

In 2020, the pet industry grew faster than expected. Estimates show that the TAM (total available market) in the US is nearing $100 billion (€83 billion).

US pet ownership is expected to increase at a CAGR of 1%, while overall pet spending is likely to grow by 3-4%. Similar trends are anticipated in Europe. The market strength in 2020 and the shift to online offer a proof point for what we should expect in the future.

Current total internet penetration for the pet sector is 22-25%, and it may reach 25-27% by the end of this year. Similar growth patterns and category breakdowns are also seen in the European market, with slightly more emphasis on the cat segment in the EU versus the dog segment in the US.

Further expansion of online

Online penetration of 30-40% is possible – pet tech products have already reached 50%. This is driven by online players such as Chewy in North America and zooplus in the EU, both of them currently experiencing healthy double-digit growth. Online subscription programmes are fast-growing, locking consumers into brands for a longer time than if they would be purchasing products in stores. While each channel has its specialities and unique uses, both are still likely to acquire and retain customers.

Finding and keeping loyal customers

Online is particularly strong at retention, employing loyalty techniques and programmes such as subscriptions, repeat ordering and rich customer data capture to help solve or anticipate consumer problems. Digital tactics that perform well and have the highest ROI are programmatic marketing, e-mail marketing, SEO (search engine optimisation), PLAs (product listing ads), SEM (search engine marketing), affiliates, direct response TV and mail.

Brick and mortar should be a strong acquisition driver, especially for retailers with well-trained sales staff who can offer a superior experience for both pet and pet parent.

Building a brand

Launching a new brand, building brand awareness, upselling and educating, events (for example photos with Santa) and services (for example grooming) – all will entice new consumers. Capturing a new pet parent delivers one of the highest LTV (lifetime value) cohorts possible.

The added enjoyment of shopping with your pet can offer an enhanced experience. Marketing tactics for brick and mortar can be similar to the digital tools mentioned, but they should have a strong call to action specifically targeted at driving store traffic.

Manufacturers interested in launching brands, or re-branding existing offerings, should work closely with their retail partners to develop marketing campaigns, measure NPS (net promoter scores), and offer co-op money for the retailer to train their employees, promote the product, influence shelf space locations, and leverage markdown money for promotions.

Today, there are still unique benefits in each channel. But it is the company who has an omnichannel mindset, and obsessively studies the consumer, that will always come out on top.