#None #Omnicom #Flywheel #Total Commerce

New Insights into Managing Fragmentation in Commerce

In a world where consumer shopping journeys are increasingly complex and non-linear, Flywheel has released its latest report, The Big Shift From Managing to Mastering Fragmentation. This white paper offers brands vital insights on how to unify their approach across various channels to drive growth more effectively.

Understanding Fragmentation in Consumer Journeys

According to recent data, roughly 80% of consumers now take a non-linear path to purchase, often interacting with multiple platforms before making their final decision. Despite this trend, many businesses still operate through fragmented teams and budgets, leading to inefficiencies and missed opportunities. Flywheel emphasizes that a disconnected approach not only wastes media investments but also impedes the agility that modern brands require.

The Total Commerce Approach

To tackle these challenges, Flywheel advocates for a new Total Commerce model. This model seeks to integrate every aspect of consumer engagement, from media and retail activation to trade planning, into a cohesive operating system. As Mike Feldman, SVP of Commerce at Flywheel, states, "The brands winning today are not treating those moments as separate channels. They are organizing around one connected consumer journey."

The Forces Driving Change

In examining the current state of commerce, the report identifies three critical forces driving fragmentation:
1. Shift in Consumer Discovery: Social media platforms have evolved into primary vehicles for product discovery, with significant portions of both Gen Z (73%) and Millennials (67%) relying on social channels to learn about new products.
2. Rise of AI as a Discovery Channel: A notable 36% of consumers, particularly younger demographics, are transitioning their product searches away from traditional search engines to generative AI platforms.
3. Retailers as Media Companies: The landscape has changed such that retailers are now effectively media enterprises, leveraging content and advertising to make direct connections between media exposure and purchase decisions.

The Importance of Physical Retail

While digital channels are transforming commerce, the physical shelf remains a cornerstone of the consumer experience. Phil Camarota, Chief Creative Officer at Flywheel, highlights that, "The physical shelf is still one of the most important moments in commerce, but it is no longer the starting point. By the time a shopper reaches a store, they have already been influenced through various touchpoints."

Case Study: Danone's 'Become a Home'Rista' Campaign

One prominent example showcased in the report is Danone's successful 'Become a Home'Rista' campaign. Designed to change consumer perceptions about barista-quality coffee, this initiative connected influencer content, retail media, and in-store experiences. The campaign garnered 641 million impressions and led to significant cross-brand sales growth. Ariel Dalton, Head of Strategic Insights at Danone, credited the initiative's success to a robust understanding of consumer needs combined with the brand's offerings.

Conclusion: Mastering Fragmentation

Ultimately, Flywheel's report underscores a critical choice for brands: manage fragmentation or master it. The companies that can align internally on objectives, collaborate effectively with retailers, and create seamless consumer experiences will emerge as leaders in the evolving market landscape. With a strategic focus on driving shared outcomes, businesses can turn the challenge of fragmentation into a compelling competitive advantage.

For brands operating in this dynamic environment, adopting a Total Commerce approach not only facilitates growth but sets the stage for enduring success in a complex marketplace.