Retail marketing isn't just about making the sale – it's about winning loyal customers and establishing a brand. At the 2014 National Retail Federation Convention, held January 12-15 at Javits Convention Center in New York, industry experts gathered to discuss retail customer trends and loyalty programs.

Customer loyalty strategies
On January 12, Emmanuel Déchelette, general manager of dunnhumby France, and Stéphane Maquaire, CEO of Monoprix, described strategies for using big data in order to retain customers, the Convention newsletter reported. They used retail reports and surveys to assess the state of Monoprix's relationship with its customers. According to the source, their research demonstrated that a single loyal customer was worth five short-term (or "opportunity") customers. Therefore, it is well worth investing time and money in improving loyalty through branding, engagement, and assessing shoppers' priorities (such as free delivery) through big data analytics. 

At a separate panel, representatives from Sears, Century 21 and Sephora discussed the importance of mobile in loyalty programs. According to the newsletter, the experts described their efforts to revitalize their loyalty programs by launching new apps. For example, Century 21 plans to offer an app in which customers can spin a prize wheel for discounts, the source said, and Sephora reaches out to customers in stores by prompting them to look up reviews and comparisons on mobile devices.

According to 1to1 Media, Convention exhibitors have showcased a number of innovative loyalty ideas, especially for mobile devices. The overall trend is to offer customers personalized options in convenient, easily accessed platforms. For example, the source reported that Punchcard is teaming with Digby to add location-based marketing to its personalized rewards system.

Relationships are always key in retail marketing
However, loyalty programs and retail technology cannot replace the personal element. Déchelette and Maquaire framed their analysis in terms of a "customer health check," an assessment of the company's relationship with its consumers. The panelists from Sears, Century 21 and Sephora emphasized the employee-customer dynamic. In addition to being friendly and helpful, store associates need to be able to help shoppers use the company's engagement tools, like apps. 

"You can't just drop technology in your stores and make it work," explained Johnna Marcus, director of mobile and digital store marketing of Sephora, adding that employees sometimes detract from the success of technology if they give opposing advice or complain about it, according to the newsletter.

Instead, employees should be well-trained in the store's mobile initiatives and act as partners in engaging customers through these new options. When pleasant staff assist customers with tools like apps or encourage them to connect on social networks, it adds a personal element to the retail technology, helping to forge those important relationships.

In the retail industry, customer service goes beyond friendliness and efficiency at the check out. Many companies use social media as part of retail marketing, but few are making use of the technology as a customer service tool. And they're missing out.

At a recent discussion held by the Wharton School of the University of Pennsylvania, panelists argued that communication with customers via social networks will soon be essential, including rapid responses to customer complaints and questions. For example, a British Airways flier spent money on Twitter to send his complaint about lost luggage to thousands of people, Smarter Travel reported. The airline was slow to respond, and received a dose of bad publicity as a result. Conversely, USA Today announced that many weather-grounded fliers who were unable to connect with customer service on busy phone lines received a rapid response online. 

And that's what customers really want – responsiveness. According to a Maritz Research report, 83 percent of customers appreciate follow up from companies on Twitter, even if they don't specifically ask the company for help. Social media can be tricky, but a few tips can help: businesses should avoid canned responses, keep a light tone, and monitor closely for rapid responses, the UPenn panel advised.

The majority of retailers worldwide plan to increase their use of data and analytics this year, according to the newly released Exacttarget Marketing Cloud 2014 State of Marketing study. The cross-industry survey, completed by Salesforce.com and summarized in a Business Wire press release, examined responses from 2,600 mid- to senior-level marketing managers. To augment digital marketing campaigns, merchants plan to use retail customer intelligence fueled by big data to more effectively target and convert consumers.

The plan is a wise one, according to Forrester Research. As reported in Forbes, Forrester highlighted big data capabilities in its top tech trends for 2014 and beyond. Technological advancements in data collection and analytics will help firms surpass previous limitations in customer engagement and retail management. Predictive applications draw on information such as POS data, social data and syndicated data, which can help anticipate customers' needs to offer solutions in real time.

However, Gary Edwards, chief customer officer at Mindshare Technologies, wrote in an article for Retail Customer Experience that local businesses still lag behind on big data. Store managers often lack the resources and time to implement strategies for actionable data analysis. Therefore, companies should empower local store supervisors to develop programs and improve customer experiences by providing them with data and insights based on retail reports.

Mobile devices are surging to the forefront of how people interact in today's retail industry. Consequently, businesses that want to remain competitive will do well to accelerate their strategies for using and accommodating mobile devices.

Smartphone use and mobile web browsing are becoming the norm
Nearly half of Western Europeans are expected to use the mobile web in 2014, according to eMarketer estimates. In the United States, smartphone use is even more prominent – 56 percent of U.S. adults use smartphones, including 80 percent of 18 to 29 year olds, a Pew research poll found. The poll also reported that 63 percent of  American adults use cell phones to go online, a figure that has doubled since 2009.

"A majority of the public now owns a smartphone, and mobile devices are playing an increasingly central role in the way that Americans access online services and information," said Aaron Smith, a senior researcher at the Pew Research Center's Internet Project.

Turning mobile prominence into profits 
An active mobile strategy is essential for businesses to take advantage of the opportunities afforded by ever-present mobile devices and not get left behind. A study conducted by IBM found that only 20 percent of organizations believe they have a leading mobile strategy compared to their peers, but 44 percent plan to get ahead in the next few years. 

Successful mobile strategies don't stop at email communication. "The organizations that come out ahead will be the ones that prioritize mobile and redefine its use to drive a new set of business expectations and user experiences," said Kevin Custis, Social Business and Mobile practices leader at IBM. The IBM study examined how "mobile strategy leaders" are best making use of new technology, giving insight into the challenges and opportunities for companies in 2014. Below are the major pointers:

1. Interoperability and integration. Businesses that take advantage of mobile devices, such as handheld pos software, are most successful when mobile apps are fully integrated with existing systems. Customers' interactions should be seamless and consistent, regardless of the platform.

2. Smart and speedy use of data. One of the major benefits of a mobile environment is accessibility of information. Companies can enable employees to work outside of the office, and leaders should analyze and utilize the abundant data made available by mobile interactions. For example, companies can use data to offer targeted deals to customers faster.

3. Design for mobile devices. Sixty-one percent of web-based emails are opened on mobile devices, according to Mobile Marketing Watch, and an increasing percentage of shopping and purchases occur online, too. Businesses need to take mobile design into consideration for advertisements, store websites, and apps. 

4. Security. No one wants insecure data. Online transactions need to be secure with dependable ecommerce software. In an age of BYOD, security needs to take priority in a well-documented strategy.

By now, it should come as no surprise to many company owners that as official retail reports come streaming in, there is confirmation that the 2013 holiday situation was relatively dismal. Sure, the majority of businesses did turn a profit and saw a substantial amount of money at the point of sale, but in comparison to years past, many fell flat.

For instance, the International Council of Shopping Centers and Goldman Sachs revealed that, as of Dec. 21, weekly sales at American retail locations rose by only 1.4 percent, while year-over-year, that figure reached 2.7 percent as compared to 2012. While these statistics are favorable, they're not exactly strong, given the close proximity to Christmas. 

Numbers like these suggest that the U.S. economy leading up to the winter holidays was not as stable as many had predicted. And on top of that, Bloomberg Businessweek called contributing factors like consumer demand "anemic," also pointing out that foot traffic and satisfaction were less-than-desirable. 

To create a stronger 2014, merchants might have to buckle down and invest in things like better service, retail customer intelligence and more competitive pricing to bolster profit margins. The source reported that elements such as shipping problems, late deals and other factors contributed to the nearly stagnant 2013 holiday season, so, equipped with that knowledge, retailers might be able to sidestep such issues in the coming year.

Meeting the demands of multiple shopper demographics using an increasing number of devices, apps and other shopping aids can be difficult for merchants without the right level of retail business intelligence to properly understand their customers' habits. Decision-makers might act on their gut, rather than fact, and miss out on key sales that could have been generated with just a little more insight. 

Some businesses experience the misconception that older generations are not comfortable digital shoppers. But according to Shoppercentric, senior shoppers in the United Kingdom are almost as likely to browse products online as their younger counterparts. Among 70-79 year olds, 70 percent of respondents looked goods up online at least once every two weeks, in comparison to 91 percent of 18-29 year olds. As much as these two age groups may differ, they represent the extremes analyzed by Shoppercentric. Among the multiple categories for 30-69 year olds, browsing habits become much more alike. 

Where older shoppers diverge from more junior consumers is in how often they follow through on their online research by buying goods on the Internet. While 67 percent of customers age 18-29 purchase items digitally every two weeks or less, only 33 percent of 70-79 year olds do the same. 

These findings emphasize the importance of omnichannel retail, as well as the fact that older customers will still utilize technology for product reviews and related research. 

To implement the best business strategies, retailers rely on numerous sources of information, from following the practices of other successful companies to hiring consultants for their expert opinions. Yet one of the best ways to improve sales operations is to draw on customer data. Each company is unique, and the multiple regions, demographics and other particulars can also differentiate one brick-and-mortar store from another, even when they are in the same chain. Those merchants that know who their customers are will have an advantage over less-informed competitors. 

Multichannel Merchant recently highlighted the critical role that master data management (MDM) will play in the industry, noting that it may be one of the most important investments for creating a successful omnichannel strategy in 2014. Decision-makers can enhance retail business intelligence efforts by centralizing customer information, regardless of its original source. With consumers researching and buying products from multiple devices, being able to understand the entire funnel from initial interest to the final transaction will be key to recognizing what factors helped drive the purchase, as well as changing consumer habits. 

Better data can lead to improved personalization
Multichannel Merchant also cited a survey from MyBuys and the e-tailing group that found that customers recognize personalization efforts, with 66 percent having noticed that promotions are often based on past purchases. Being able to provide tailored offers relies on knowing who shoppers are, which in turn means deploying retail software that can track them across various channels. According to the survey, more than half of potential patrons are willing to give personal data to assist in these endeavors, but first decision-makers must have the right systems in place to benefit from the information. 

Look internally
Along with collecting and analyzing customer data, merchants should also have the ability to gather information about their supply chain, inventory and other store operations to enhance efficiency and productivity, Multichannel Merchant noted. As omnichannel shopping can lead to consumers buying products in a brick-and-mortar location or having them delivered to their homes, understanding an item's journey from the warehouse to the doorstep can lead to better service and more effective stock management. But this hinges on possessing the right tools that can easily comprehend multiple data points, which is why merchants should seek out best in class software options when readying for omnichannel retail.