Category Archives: Customer Engagement & Business Intelligence

by Retail Pro

Consumers want seamless retail experiences

In today's world, retail marketing usually involves multiple channels of advertising and customer engagement. New technological innovations have lead to the rise of online sales and new expectations among customers for faster responses and greater options for making purchases. As retailers branch out to take advantage of additional points of interaction with shoppers, they should make sure that they're maintaining a consistent, unified brand and experience. Seamless interaction across channels will be crucial for the coming era of retail, according to The Guardian's recent roundtable of industry leaders.

The roundtable cautioned that expanding into multiple channels can cause brands to splinter or lose their consistency. Instead, merchants should integrate their operations as much as possible and make sure they're sending a unified message to consumers, taking into consideration shoppers' preferences and need for convenient options.

"Consumers are very impatient, they always look at the best in class," one of the roundtable participants said. "It is very hard to create that friction-free world and adapt your internal technologies at the rate you have to."

Business Reporter also emphasized the importance of giving customers a consistent experience. Consolidating data from digital platforms also enables merchants to derive insights and form a more comprehensive view of their patrons, the source added.

by Retail Pro

Tablets surpass smartphones for mobile purchases

Retailers have been honing their multichannel marketing strategies to take advantage of the growing popularity of smartphones and tablets. According to recent retail reports, customers are increasingly using tablets to seek information and make purchases. Therefore, merchants should make sure their websites and ecommerce software adapt well to the platform.

Javelin Strategy & Research's study revealed that tablets accounted for more than half of mobile commerce in 2013, surpassing smartphones for the first time. Customers spent $28.7 billion dollars on tablets, which was more than five times the amount of tablet payments in 2012. The Neilson Company similarly found that consumers are turning to their tablets more often than their smartphones for researching products, reading reviews, making digital purchases and buying physical items.

In addition to creating online shopping resources that are optimized for tablets, merchants should be aware of customer preferences for app-based or Web-based transactions, the report noted. 

"While functionality should differ between the two methods, it is also critical for vendors to ensure that the user experience is similar for both methods so that crossover is frictionless," said Mary Monahan, executive vice president and research director of mobile at Javelin Strategy & Research. "Similar visual elements and layouts should be used to simplify the process and build a recognizable brand experience."

by Retail Pro

Can data improve your retail marketing strategies?

One of the advantages of retail technology is the opportunity to gather large amounts of data about customers and their shopping habits. This information can drive business intelligence initiatives, ultimately helping retailers to improve their store operations and enhance their marketing strategies.

Opportunities to collect information continue to grow
In addition to traditional methods to gather customer information, such as asking for data at check-out, merchants are finding opportunities to take information from smartphones that customers use in stores. Business Spectator explained that retailers can derive useful stats by offering free Wi-Fi in their stores. By storing anonymous information about connections, managers can collect information about store traffic and customers' movement through the aisles. iBeacons are also useful for gathering this type of data. For more targeted information, stores can offer apps through which customers authorize the system to identify them. This allows retailers to tie in-store habits to the rest of the shopper's information, such as demographics and purchase history.

Information is power
This data is only valuable when it can be turned into actionable insights. Merchants can run retail reports to analyze the information and use it to drive better marketing decisions. For example, a panel at the National Retail Federation's annual convention explained how store managers can use data to assess the profitability of their initiatives, such as offering home delivery. Business Spectator recommended incorporating information into customer loyalty programs or identifying which store locations are most popular. Better inventory management can be driven by more detailed sales data, Billing World suggested.

The key is to start with business objectives for data projects. Billing World emphasized the distinction between "objectives," such as collecting sales data, and "business objectives," such as knowing when to restock.  

But with power comes responsibility
Merchants have great opportunities to collect data and many ways to use that data to improve their marketing strategies. However, they must be careful about how they use and store customer information so shoppers don't feel violated or vulnerable.

"If one of your customers starts visiting baby shops, do you then send them a message congratulating them on the good news, saying 'I understand you're pregnant'? Obviously, no. Retailers need to be careful with information at hand. Follow the Google path: Let's not be evil about it," Ruckus' regional manager Chris Evans told Business Spectator.

When designing strategies that make use of data, retailers should keep information privacy at the front of their minds and use discretion with how they use data to interact with customers. 

by Retail Pro

How does your customer service stack up?

This year, the retail industry has devoted a lot of attention to improving the customer experience. Retail technology offers merchants great opportunities to empower their employees and provide better service.

"Retailers have a unique opportunity to provide a superior service by taking advantage of the influence digital has on the purchasing decision – therefore getting ahead of their online and offline competitors," Bruno Berthezene, Solocal Group UK managing director, told Real Business.   

However, the American Customer Satisfaction Index found that large retailers are struggling to meet customers' expectations in terms of quality service. Although some brick-and-mortar stores were able to increase shopper satisfaction by using technology to shorten check-out lines and better manage their inventory, according to The Atlantic Journal-Constitution, larger retailers faced challenges with employee morale and  integrating their system across their sizable operations. This made it difficult for them to provide fluid, consistent experiences for customers, Time Magazine explained.

For technology to serve as a true asset, it needs to be implemented correctly. Merchants should make sure their systems are designed to reduce redundancies and make processes smooth and efficient for customers. Training employees to use the technology effectively is also a vital step in improving in-store experiences.

by Retail Pro

Gathering information about in-store shopping habits

Ecommerce software enables retailers to collect a wealth of information about their shoppers so they can develop more personalized marketing efforts and improve business intelligence. With the expansion of mobile technology and retail management systems, merchants can pursue similar insights about their in-store shoppers.

In an article for SAP.com, Rick Dutta, CEO of NetVisionIX, described how retailers can collect valuable data about shopping habits as customers browse their aisles and make purchases. For example, stores that offer free Wi-Fi services can derive insights about in-store movement, Dutta explained. Tracking IP addresses can also yield information about the number of customers, busy traffic times and return frequency for loyal patrons. Aside from Wi-Fi, retailers can use technology such as iBeacons, in-store sensors and mobile check-in apps to collect information about on-site customers.

Merchants can analyze this data to improve their store operations, such as planning for busy times with additional staff or optimizing their displays. They can also use location-based data to send targeted promotions to customers in real time. According to MDG Advertising, 72 percent of customers respond to marketing messages they receive when they're in close proximity to the retailer and 53 percent are more likely to engage with advertising when it is location-based.

by Retail Pro

Retail business intelligence helps merchants approach emerging markets

Developing markets across the globe offer exciting opportunities for the retail industry, especially as expanded technology makes it increasingly possible to reach diverse populations through ecommerce and efficient business operations. However, entering a new market environment comes with its own significant challenges. The Wall Street Journal cautioned investors to do their research before jumping into emerging markets. Big data and retail business intelligence might be able to help retailers prepare for their global ventures.

According to Retail Info System News, global companies competing for developing middle classes need information resources to help them navigate new waters. Data-driven insights are crucial for identifying strategies that work well in different cultures and among diverse populations, the source added. Consequently, merchants need access to information that can fuel useful retail reports to isolate and predict trends. When collecting their own information based on sales and initiatives in other countries, retailers require management software that is robust enough to consolidate large amounts of data and separate information if they want to analyze specific regions.

"The difficulty you face in emerging markets is the timing," Richard Titherington, chief investment officer of J.P. Morgan Asset Management, told the Wall Street Journal. 

Merchants need reporting tools to help them plan for rapidly changing conditions and to become familiar with new market environments.

by Retail Pro

UK shoppers swayed by quality of customer service

Retail marketing strategies aim to entice shoppers with appealing products and deals, but customer service is another crucial element of retaining patrons and driving profits. The quality of service is even more important in the UK than it is in the US, according to a recent NewVoiceMedia report. Merchants can stay competitive by implementing retail technology that empowers staff members to serve customers better. 

The NewVoiceMedia report indicated that 50 percent of UK shoppers tend to switch stores if they have a dissatisfying customer service experience. 

"While UK consumers are more likely to leave a company following poor service than those from the US, they share the same frustrations – not feeling appreciated as a customer, being kept on hold and having to repeat themselves to multiple agents," said Jonathan Gale, CEO at NewVoiceMedia. "Great customer service is the critical differentiator and investing in providing personalized and engaging customer experiences every time, through every channel, will help businesses succeed in retaining customers and securing new business."

A recent [24]7 study confirmed that the impact of frustrating experiences applies to ecommerce as well. The report said that one-third of shoppers take their business elsewhere after receiving poor service on a retailer's website. 

by Retail Pro

Location, location, location

Online commerce may have made significant gains, but retail customer trends point to the continued importance of physical store locations for merchants. In addition to preferring the brick-and-mortar experience for some products, customers are drawn in by on-hand merchandise and the convenience and novel experiences offered by retail technology. As multichannel strategies continue to merge into integrated marketing approaches, even previously online-only sellers are beginning to seek store space to take advantage of diversified opportunities, The Financial Post explained.

It's not just about having a store front, of course. Merchants need to find the right brick-and-mortar presence for their brand and customer base. For example, The Globe and Mail described how mid-rise project developers consider demographics and seek corresponding retailers to create the right overall experience in their completed projects.

"If you match the location with destination retailers, you can create character," Jason Lester, chief operating officer of Dundee Realty Corporation, told the news source. "Our strategy and approach is to define the type of retail that will go in on the ground floor."

In addition to integrated projects like Lester's development, merchants can draw on retail customer trends and business intelligence to identify areas where they'll be most competitive and isolate strategies that will appeal to targeted demographics.

by Retail Pro

What’s in your wallet? Probably not much cash

In addition to embracing online shopping options, customers have predominantly shifted away from paying in cash. According to Walker Sands' 2014 Future of Retail Study, 60 percent of shoppers carry less that $20 in cash at any time. Twenty percent don't carry any cash at all.

These figures point to the centrality of offering customers multiple payment options. Large retailers already accept credit and debit transactions, and many are embracing new retail technology, such as payment systems that allow consumers to use their smartphones to complete a purchase. However, all merchants should consider shoppers' payment habits and preferences to make sure they're not driving away sales opportunities. 

Beyond the decline of cash-based transactions, consumers' shopping preferences are changing, especially as they become more accustomed to the convenience offered by integrated multichannel approaches. Steven Barr, PricewaterhouseCoopers's U.S. retail & consumer practice leader, explained that consumers now take multichannel operations for granted and expect similar options across store platforms. Knowing these retail customer trends can help merchants stay competitive and optimize their marketing strategies. For example, the Walker Sands report found that 66 percent of online shoppers would choose to shop in brick-and-mortar stores if they offered mobile checkout. 

by Retail Pro

Emerging retail trend: browse online, buy in store

As merchants streamline their multichannel store operations and focus on enhancing the customer experience, many shoppers are choosing to return to stores to make their purchases. Even if they first browse online, consumers sometimes prefer to buy products in stores, where they can see the item and maybe try it on before completing the transaction. This trend, which Accenture calls "webrooming," demonstrates how integrated retail marketing approaches are changing the way customers shop.

"Today's shopper expects to be able to shop easily across different channels to fulfill their shopping mission. In fact, it is expected that well over half of retail sales will be influenced by online and mobile, regardless of where the ultimate purchase is made," said Renato Scaff, executive partner of Accenture, according to MSNBC.

Accenture's study found that 78 percent of shoppers have looked at product information online and then purchased an item from a physical store location. In addition to the in-store experience, shoppers were motivated to purchase off-line if stores had the items stocked so they could take them home on the same day instead of waiting for delivery. The study emphasized the importance of seamless retail marketing for customers, who want to be able to choose how and where they purchase products without feeling a difference between channels.