The Retailer's Guide to 2024 - The rise of alternative revenue streams

The rise of alternative revenue streams

While traditional revenue channels remain essential, exploring alternative streams can provide resilience against market fluctuations and nurture innovation. This chapter sheds light on four key alternative revenue streams – retail media, services, subscriptions, and repair services – offering insights into their implementation and benefits. Learn what it means for your business.

Retailers are becoming advertising networks 

The rise of retail media presents an opportunity for businesses to monetize on their digital platforms. By utilizing consumer data and leveraging digital advertising space, companies can transform their online presence into a revenue-generating asset. Through targeted advertising solutions, sponsored product placements, and collaborations with third-party advertisers, brands can effectively engage with their audience while driving higher conversion rates and revenue

Insider Intelligence predicts retail media to emerge as the fastest growing advertising channel in the media landscape, projecting annual growth rates exceeding 20% through 2027. By this time, retail media will tie with social media as the second-largest advertising spend channel, trailing only behind search. Surpassing connected TV, digital audio, and linear television advertising combined, retail media is set to dominate advertising in 2027. If you haven’t yet tapped into this trend, the time to do so is now.

Services as a differentiator 

Beyond traditional product offerings, integrating services into the business model can create new revenue streams and deepen customer relationships. Whether it’s consulting, installation, or customization services, providing value-added solutions can set your brand apart in a competitive market. By identifying service gaps, investing in employee training, and leveraging customer feedback, businesses can develop comprehensive service offerings that enhance customer loyalty and generate recurring revenue.

Subscriptions drive revenue and loyalty 

Subscription-based models have changed the way businesses generate revenue, offering predictable income streams and nurturing long-term customer loyalty. By providing subscription tiers with differentiated value propositions, companies can cater to diverse customer segments and maximize revenue potential. Through strategic pricing, continuous content refreshment, and personalized recommendations, businesses can drive subscription growth, increase customer lifetime value, and gain valuable insights into consumer behavior.

Do you want to read the whole guide? It's only one click away.