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  • Natalie Raines

How Auto-Replenishment Can Augment the Customer Value Prop of Retail Media Networks

Retailers are turning to media networks to supplement legacy revenue streams, compete with ecommerce giants, and get closer to their customers, but are key experiential components being overlooked in the process?

Over the past few years, Retail Media Networks (RMNs) have come to represent an emerging strategic focal point for retail players in the Consumer Packaged Goods (CPG) and grocery industries. The business model is still very much evolving, but many agree this trend will not be short-lived, evidenced by the investments industry measurement providers are making to track its developments. eMarketer recently released a US retail media networks benchmark report which evaluates different RMN offerings against ad buyers’ priorities. And global revenue from retail media has already tripled since 2020 and is on track to represent a $75 billion market in 2022, according to Coresight.

And while select benefits, such as personalized offers and reduced friction in omnichannel purchasing, have been established, it begs the question of ‘what’s next?’ to enhance the experience and further solidify the value proposition of an RMN for the shopper?

Auto-Replenishment is a congruent digital offering that provides the opportunity for retailers to pair RMNs with direct shopper benefits, while further enhancing revenue beyond what RMNs alone can offer. By enabling shoppers with the ability to easily put their most frequently purchased products on auto-pilot, retailers generate annuity revenue while creating tremendous convenience for their customers.

Similar to the motivation for RMNs, auto-replenishment presents opportunities for brands to personalize their offers closer to the point of purchase, enables retailers to compete with big ecommerce players in a more profitable way, and delivers a convenient omnichannel experience to shoppers who demand it. And, today’s shoppers do demand repeat shopping automation for the needs of the complete household rather than a single product category-based subscription model.

Additionally, the benefit of more deeply understanding customers through RMN data holds true with auto-replenishment data as well, which has grown in importance with the ongoing phase-out of third-party cookies in the digital marketplace. While RMN conversions tell a retailer or brand that an ad played a role in a single transaction, the data point, and related ad spend, becomes that much more valuable if linked to an annuity sale via auto-replenishment. Auto-replenishment data also provides line of sight to affinity categories that a customer is likely to purchase on a repeat basis. This enables retailers and brands to maximize return on investment, by prioritizing placements that speak to a customer’s recurring purchase needs. And once that customer is locked in, retailers can expect her to stick around.

As the shopper journey continues to evolve, commerce media will very likely match the pace and direction, and advertisers will continue to sign on. Brands appreciate being visible where the purchase decision is being made, and shoppers receive the benefit of more seamless personalization. It is just as critical for retailers and brands to serve convenience-motivated shoppers through an auto-replenishment offering. Replenium’s Auto-Replenishment Platform was created by the retail veteran that led Amazon Consumables and AmazonFresh and built by the CTO who led the technology team responsible for building Amazon’s Subscribe & Save program. Contact us to learn more.

Recommended reading:

Retail Media Networks 101 – Association of National Advertisers, August 2, 2021


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