Recent years in retail have seen the rise and rise of private labels. Private labels bring in a host of benefits, including improved margins and much greater control over the brand story. In a margin-constrained environment such as grocery eCommerce, a successful private label story can spell the difference between profitability and a business that is a drain on the company’s finances and carried on as a mere defense against competition.
The store provides ample opportunity for the store associate to promote the right private label brand to the appropriate customer. Replicating the process on the eCommerce channel in a way that adds value to the shopper (and makes the benefit clearly visible) is not easy. Of course, retailers have tried techniques such as product recommendations, search boost and bury. But such approaches have lacked personalization, and the benefit to the customer is not clear.
We at Litmus7 have built an “Owned Brand Promoter ” solution that presents the right private label alternative to the appropriate customer at the right moment in the purchase journey. The Owned Brand Promoter maps national brands to equivalent private label brands. On the product listing page, on the product detail page, on the search results page, and across the checkout journey- the private label recommendation is offered alongside the national brand the shopper might be browsing. The recommendation system is personalized and also benefits the customer.
The solution can lead to a 20% annual growth in the private label business
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