Category Archives: Merchandising and Marketing

by Retail Pro

Online marketing is key for brick-and-mortar success

Using online services and marketing tools can be a great way to drum up business for brick-and-mortar stores. By studying online data, retailers can determine strategies for their physical locations. For instance, if a retailer notices online shoppers leaning toward a certain fashion, their brick-and-mortar locations could hold special sales for these products.

"Today, with real-time monitoring and alerts, in-store analytics can make marketing and management aware of low traffic stores immediately," Maria Fernandez Guajardo, the vice president of RetailNext, a retail analytics firm, told Mashable. 

In turn, they can promote in-store events and sales via social media sites like Instagram, Facebook and Twitter. Social media can be an integral tool to bolster brick-and-mortar business, as it offers a new way to interact with customers. Merchants can offer discounts to customers who "check in" at the point of sale on sites like Yelp and FourSquare.

Regional businesses that cater mainly to local consumers can hold contests and promote sales on Twitter and other social media outlets. According to The Houston Chronicle, these tools can also be used to find new customers, as businesses will be able to search for users based on their location and interests, which opens the door for extremely targeted marketing strategies.

by Retail Pro

Using social media can drive up e-commerce sales

Having the best available e-commerce software doesn't do much good if you aren't getting enough traffic to your online store. The recent Academy Awards were a perfect example of social media marketing, as Ellen DeGeneres's staged celebrity selfie broke records on Twitter and certainly caught the attention of the masses – the whole stunt was sponsored by Samsung, and everyone knew it.

While not every retailer has the ability to pull off such a massive stunt, Samsung highlighted the far-reaching power of social media. A MarketForce study from 2012 revealed that 80 percent of shoppers relied on social media to research items prior to making a purchase, according to The Huffington Post.

Business2Community recently spoke with a number of social media experts, and they suggested that content marketing is the leading strategy, as it is projected to account for 40 percent of social media marketing in 2014. Posting relevant news and advice articles to your business's social media sites can help drum up interest in your brand and help you foster a reputation as a thought leader in your niche, whether you sell clothing, video games or any other products. Micro videos, which you could use to highlight sales or new products, accounted for 20 percent of social media trends for the year.

by Retail Pro

Retail marketing requires new strategies to engage millennials

Millennials are beginning to gain ground as young professionals, which means that they're a group with disposable income that the retail industry is very interested to engage. However, this generation has unique characteristics that may require merchants to adjust their strategies to market to them effectively. 

Referring to data from a recent Pew Research poll, CNBC explained that millennials' relatively low level of social trust makes it harder to retailers to gain their loyalty and find success in advertising campaigns.

"You can't base your business model on repeat purchase," Larry Chiagouris, a marketing professor at Pace University, told the source. "You have to compete for the loyalty with each purchase."

What can merchants do? The source noted that millennials desire more opportunities for interaction, so it's important for brands to have a social media presence and explore ways to use retail technology to engage customers. It can also help to reshape how retailers think about traditional strategies, like loyalty programs. For example, Forbes Magazine explained that merchants typically think their loyalty programs aren't effective if shoppers hold cards from multiple stores. However, these initiatives can still be effective in multiple ways, from offering customers interactive reward options to providing retailers with additional consumer data to better personalize their marketing efforts.

by Retail Pro

Finding the silver lining in online shopping cart abandonment

Although online shopping has taken off in the last few years, there's still a lot more browsing going on than buying. According to a recent eMarketer report, two-thirds of shopping carts are abandoned, which means that ecommerce shoppers place items in their carts but don't follow all the way through to the sale. Rather than indicating something about ecommerce software, though, this figure points to customer habits. And it might not be such a bad thing.

Shopping cart abandonment
EMarketer noted that the rates of shopping cart abandonment haven't really changed over the last few years, demonstrating that retailers should be less concerned about preventing abandonment and more focused on how to make the online shopping trip useful to them anyway. The rate is even higher in the United Kingdom, Biz Report noted, referring to a OnePoll survey that found 75 percent of shoppers abandon their cart.

What drives customers to put items in their cart that they ultimately don't buy? Biz Report pointed to the likelihood that consumers are shopping around, checking prices on items at other retail locations or websites. This isn't all that much different from in-store behavior – many patrons will check product prices at a few stores before making a purchase. What's different is how they use the online shopping cart as a way to track the items they're interested in buying.

Opportunities for retail marketing
This behavior can actually be beneficial to retailers, who gain from insights into retail customer trends. EMarketer explained that even abandoned shopping carts give merchants data about shopping habits and consumer interest in specific items. At the first level, Biz Report suggested, this information is a useful tool for re-marketing and customer engagement.

"By abandoning their cart, the customer is inviting you to open a conversation via a triggered email and, 20 percent of the time, close the deal," James Critchley, CEO of Cloud.IQ, told Biz Report. "This opportunity is unique to ecommerce businesses which can foster a one-on-one relationship with their customers in a way bricks and mortar establishments can't."

By combining shopping cart information with other data, merchants have even more opportunities. EMarketer described how using website analytics and customer information in conjunction with cart abandonment data can provide a more comprehensive view of shopping habits. For example, with a customer-centric approach, retailers can discover whether customers are more likely to make purchases on return visits, whether being able to save items for later in their carts could drive sales and whether changes in their ecommerce software have made an impact on buyer activity.

by Retail Pro

Is location-based technology right for your store?

One of the latest innovations in retail technology makes use of smartphone locations to deliver highly targeting advertisements and services to shoppers. Apple's iBeacons allow retailers to pinpoint a customer's precise location through opt-in technology, making it possible to deliver ads based on details like whether a patron is standing in front of a specific display. Philips developed a similar system using store lighting to send information to shoppers' smartphones as they browse the aisles and request data on apps. Other stores have used information from devices that are connected to their Wi-Fi networks to assess shopping trends and interact with customers.

These options are beginning to gain a foothold in the retail industry. For example, Alex and Ani recently implemented an iBeacon system in all 40 of its store locations, Retail Info System News reported. The jewelry seller uses the technology to send messages to customers' smartphones based on their precise location within the store, after they opt-in to the micro-location Bluetooth service. The source noted that Alex and Ani enjoyed a 75 percent engagement rate during their pilot program.

Deciding on location-based strategies
How can retailers know whether this strategy is right for them? There are many advantages to gathering more data about shoppers' habits and interacting with them in a more personalized manner. However, there are some considerations that merchants should take to mind before deciding on new technology for retail marketing. 

Street Fight Magazine offered a few guidelines for merchants considering location-based marketing tools. In the immediate future, the source explained, larger retailers with a significant amount of foot traffic are more likely to benefit from the technology than smaller stores. Merchants also need to make sure they will be able to analyze and effectively use the data. Location-based technology is an investment, and it requires additional services to be in place, including retail management software that facilitates data analytics.

Store managers should also make sure that customers will be open to location-based technology. Medill Reports described how some hyper-personalized marketing based on location can seem invasive to shoppers. Offering shoppers the option to opt-in to location-based services can help avoid making them feel like they have Big Brother looking over their shoulder. Merchants should also evaluate how the technology can add value for their customers, Street Fight recommended. To assess this factor, retailers can consider their consumer base, the general shopping experience and patrons' preferences. 

by Retail Pro

Get creative with your retail mobile marketing

In addition to the general success of ecommerce, mobile platforms are increasingly crucial for the retail industry. Customers are completing more transactions on mobile devices, but the possibilities for retailers extend beyond actual sales. Merchants can benefit from mobile advertising and promotional opportunities, taking advantage of the prominent place smartphones and tablets hold in consumers' lives.

Mobile advertising is a different ballgame than other types of marketing. To make their efforts more effective, merchants should pay attention to retail reports that identify consumer responsiveness to mobile engagement techniques. PricewaterhouseCoopers' (PwC) recent report revealed that shoppers are receptive to mobile ads, but context and relevancy are crucial, Mobile Marketing Watch summarized. The study found that marketers must be creative in order to overcome the common perception that mobile devices should be ad-free. Largely because of this perception, many consumers don't respond to ads on mobile phones, especially because they often find them to be irrelevant, Forbes reported. Interactive features on smartphones offer additional possibilities for engagement, suggested PwC.

Marketing Profs offered the following tips for optimizing mobile marketing:

  • Engagement must be timely – over half of conversions occur in the hour following a shopper's mobile search.
  • Sites should be simple and easy to navigate.
  • Context is crucial – retailers should use data to send personalized ads that are more effective.
by Retail Pro

Four exciting ways to leverage mobile for retail marketing

From in-store innovations to ecommerce platforms, merchants are seeing exciting ways to use retail technology to improve the customer experience and engage shoppers. Mobile platforms offer a wealth of possibilities, particularly as smartphones become more integrated within the lives of most Americans. Retailers can use mobile technology both to capture online sales and draw more shoppers into their physical stores. The trick is implementing creative strategies that integrate well with the rest of the store management technology. Here are a few ideas:

  1. Offer mobile coupons. Allowing shoppers to download and redeem promotions via smartphone can reduce printing costs and provide convenient options for customers, Biz Community suggested.
  2. Track in-store conversion rates. According to Business 2 Community contributor Himanshu Sareen, founder and CEO of Icreon Tech, merchants can use mobile technology to track window-to-conversion rates, allowing them to better assess their displays' effectiveness.
  3. Showcase brand personalities. As part of an effort to be more accessible and appealing to consumers, retailers can give their brands a more "human" face through interactive features on mobile platforms, such as video clips, suggested The Guardian.
  4. Take loyalty programs to mobile. Merchants can make it easier for customers to participate in loyalty programs by integrating them with their mobile POS systems and by providing loyalty apps so customers don't even need to carry a card, Biz Community advised.
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

5 keys to omnichannel marketing success

In the competitive world of retail marketing, merchants need to make use of multiple channels to engage customers and drive sales. Consumers are coming to expect multichannel retail as a given, PricewaterhouseCoopers explained, especially as technology becomes more prominent and integrated across their day-to-day activities. Retailers who want to gain a competitive edge are now seeking ways to create fluid, consistent experiences across channels. Here are five key strategies to make the most out of multiple commerce channels:

  1. Integrate. Consolidating data, such as from CRM and Web operations, with comprehensive retail management software allows retailers to conduct better reports, Multichannel Merchant noted. This, in turn, leads to greater business intelligence opportunities. 
  2. Standardize. Customers are looking for a consistent experience, regardless of the platform they use to shop. Processes, prices and branding should be the same across devices and channels.
  3. Measure. To optimize marketing campaigns, merchants must be able to assess the outcome of their initiatives. The source recommended checking ROI for each conversion effort.
  4. Personalize. Customized promotions based on retail customer intelligence are increasingly common and greatly effective. Retailers should pursue these targeted campaigns while ensuring personal data is protected, advised PwC. 
  5. Empower. Technology gives employees great resources to provide more informed service to customers. To maintain accuracy across channels, associates and customers must have real-time access to updated inventory and product information.
by Retail Pro

Online experience influences brand perception

In addition to serving as another channel for sales, the Internet offers valuable opportunities for retailers to spread the word about their stores and engage patrons. The nature of retailers' online presence can help shape the way customers view and trust their brand. That's why it's important for merchants to make sure shoppers have positive experiences on their websites, which should be supported by high-end ecommerce software.

According to a recent Peer 1 Hosting report, 76 percent of ecommerce marketers believe that website experiences have a direct impact on brand image and reputation. Because of this influence, merchants need to make sure their websites are designed to optimize the shopping process. The report explained that a user-centric approach can make a big difference in converting customers and earning revenue. The best websites have optimal shopping cart and check-out features, work well on mobile devices, load quickly, uphold top-end security and appear high in search results, the source added.

Promotion World indicated that security plays a significant role in earning patrons' trust and shaping their impressions. The source suggested bolstering retail websites with SSL (Secure Socket Layer), password protection, security icons, transparent privacy policies and fraud detection services.