Category Archives: Merchandising and Marketing

by Retail Pro

Merchants entice shoppers with displays, retail technology

The new era of retail marketing isn't about ecommerce eclipsing traditional stores – it's about merchants taking advantage of retail technology to engage consumers in new and exciting ways. Innovative resources allow retailers to be present to customers like never before, but they need to develop new marketing strategies to stay competitive.

According to the Orange County Register, shoppers aren't visiting malls any less frequently, but they have changed the way that they visit stores. Instead of browsing and buying on impulse, customers are more likely to research online before they leave for a shopping center. Therefore, businesses need different strategies to attract consumers to their stores. The source noted that many retailers are expanding their displays to create eye-catching visuals and using technology to foster an interactive, enticing experience for shoppers.

"Online is an incredible sales tool, but the store still holds a key part in the whole brand identity where customers can engage with the brand on a different level than they would with the website," R.J. Abbott, Oakley's director of global visual merchandising, told the newspaper.

As the 2014 National Retail Federation Convention, held January 12-15 in New York City, made clear, customers appreciate convenient services like mobile POS systems and tablets where they can look up more information on the spot.

by Retail Pro

EU Consumer Rights Directive aims to improve conditions for retail industry

On June 13, 2014, new regulations will come into effect for retailers in the European Union. The Consumer Rights Directive aims to simplify and harmonize rules for information rights, payment consent, credit card surcharges and buyer obligations. The Guardian noted that it's all part of an effort to make it easier for merchants to enter new markets and gain customers, but business owners need to verify that their ecommerce software and retail technology comply with the new guidelines.

The full report on the Directive is available on the United Kingdom Parliament website, but a number of commentators have identified key areas for retailers. Most of the changes have to do with the way businesses finalize sales with customers, particularly for online transactions. Therefore, merchants should make sure their retail software and websites are updated accordingly to ensure compliance. For example:

  • Confirm order buttons must indicate a contractual agreement to pay. The Guardian explained that this measure protects consumers from accidentally entering subscription services.
  • Clear pricing, including extra fees. Customers will not be held responsible for charges that are not explicitly disclosed in the final charge, BDaily emphasized.
  • 14-day minimum for returns. Retailers must provide full refunds, including shipping costs unless otherwise noted, if shoppers change their minds within two weeks of receiving the product.
by Retail Pro

For omnichannel success, forget the channels

In the retail marketing world, omnichannel was one of the biggest trends of 2013. In the new year, its importance has only continued to grow as industry leaders explore additional ways to keep customers engaged and to use Big Data for personalized marketing. In particular, retailers are focusing on ways to create a more seamless experience for consumers. This means that to customers, the channels disappear into the background.

"Consumers don't think in terms of 'channels,' and neither should retailers," Lori Schafer, SAS retail executive advisor, explained at the 2014 National Retail Federation Convention in New York City, according to Just-Style. "They think 'I need to buy shoes today,' rather than, 'I'll buy shoes from this retailer's website instead of driving to their store today.' The retailer who moves fluidly in this channel-agnostic environment wins."

The most successful omnichannel merchants integrate their channels with comprehensive retail management software so that consumers can make purchases online, on mobile devices, in the store or over the phone just as easily. Not only does consistency over channels improve trust, it also simplifies store operations and increases opportunities to engage customers, Business2Community advised. For example, allowing customers to use coupons from their mobile devices in stores and online creates multiple ways for them to take action on deals.

by Retail Pro

Retail customer trends point to the importance of loyalty programs

From club memberships to mobile apps, merchants encourage customers to return by offering them incentives like discounts or gifts in exchange for their loyalty. But are these retail marketing strategies really worth the investment?

According to the RJMetrics 2014 Ecommerce Benchmark Report, repeat customers are one of the best assets a company can have. The study found that the top 1 percent of a retailer's shoppers provide more business than the bottom 50 percent combined, Practical eCommerce reported. Therefore, it's well worth the time and effort to foster lasting relationships with customers.

Loyal customers spend more often and buy more each time
The RJMetrics report corroborated findings by an Adobe study from last year indicating that return customers spend greater amounts on each purchase, the source said. Repeat shoppers also tend to require less customer service, reducing human resource costs.

Therefore, while retail marketing campaigns often focus on converting shoppers, it's essential for merchants to maintain good relationships with existing customers. This is a consideration for email marketing and other ad campaigns, where loyalty can be won or lost depending on whether emails are helpful or seem like spam. 

Loyalty programs
Offering customers incentives to return is an excellent strategy for building loyalty. These programs are most effective when they make use of technological options and focus on relationships, not just numbers. For example, retail customer intelligence makes it possible to offer shoppers personalized rewards based on their shopping activity. 

At the National Retail Federation (NRF) Convention, held January 12-15 in New York City, industry leaders discussed some of the ways they are using mobile to transform their loyalty programs. Representatives from Century 21 explained how they created a mobile app to optimize their four-year-old loyalty program, the convention newsletter said. The app makes the loyalty program more exciting and interactive by giving customers the opportunity to spin a prize wheel and it informs loyal shoppers when there's a flash sale, the source explained.

Loyalty programs are strongest when they foster a relationship between consumers and retailers. At the NRF Convention, representatives from Sephora emphasized the importance of having employees involved in promoting loyalty programs, particularly when they're excited about engaging apps, the newsletter said. Merchants can include loyalty apps in their POS retail management software to make it easier for employees to add customers to their program.

by Retail Pro

Email remains a key retail marketing tool

The 2014 National Retail Federation (NRF) Convention, held January 12-15 in New York City, showcased some of the brightest innovations in retail technology. However, research shows that new strategies like social media advertising and mobile apps are no replacement for some of the classic tools of the trade. Just as the importance of customer service will never die, email is likely to remain a winning strategy for years to come.

According to a recent McKinsey & Company report, email marketing is nearly 40 times more effective for customer conversion than Facebook and Twitter combined. Despite the gains made by Facebook messaging services, email remains the primary means of electronic communication, which means that it's generally the most reliable way to reach customers.

Of course, merely getting a message to an inbox is not enough. There are a few best practices that retailers can follow to make sure their emails have a greater impact.

  1. Always be useful. Justin WIlliams, a marketing strategist for StrongView, reminded retailers that usefulness is the key to having customers open emails time and again. Whether merchants are sending email receipts or deals, they should use retail customer intelligence to personalize the message and options.
  2. Give subscribers options. Williams and McKinsey & Company agree that bombarding customers with emails can be counterproductive. Regular contact is a good thing, but not when it's unsolicited or annoying. Letting individuals choose which types of emails they want to receive or how often they want to see deals can help retailers foster positive engagement. Merchants should make it easy for customers to unsubscribe and resubscribe so they don't feel like they're being spammed.
  3. The click is not the goal. McKinsey & Company suggested that customized landing pages, rather than links to generic home pages, are far more effective because they're more useful for customers and they draw people deeper into the shopping journey.
  4. Plan for mobile. As individuals increasingly read email on mobile devices, email marketing strategies must incorporate designs that are optimal for the platform. That includes designing buttons and links that are easy to select with fingers rather than a mouse.
  5. Be trustworthy. The need for secure links and ecommerce software is a no-brainer, but retailers must also make sure their emails are reassuring and dependable. Williams recommended keeping language, style and images consistent so customers know what to expect. This also helps consumers recognize emails that falsely claim to represent a company.
by Retail Pro

Retailers turn to technology as global economy improves

Things are looking up for the global economy. Both the International Monetary Fund (IMF) and the United Nations anticipate that the next few years will bring growth. According to PricewaterhouseCoopers' (PwC​) 17th Annual Global CEO Survey, business leaders are optimistic about the coming year and plan to use retail technology to help bolster a period of expansion.

The survey found that despite worries about over-regulation and deficits, CEOs are more optimistic about the global economy and their business prospects than they were last year. This means that they can turn their attention toward growth and gaining a competitive edge, instead of fortifying a survival strategy.

Business leaders expect the U.S., German, U.K., and emerging markets to provide the greatest opportunities, the report said, rather than BRIC countries (Brazil, Russia, India and China) which were a focus in previous years. Their strategy for making the most of more positive economic conditions has a strong technological component – 81 percent of CEOs believe that technological advancements will play a strong role in their future success, Business Today indicated.

Business Standard reported that, according to a recent Tata Consultancy Services study, CIOs want to capitalize on the positive economic conditions with multichannel integration, ecommerce software and retail business intelligence. The source said that CIOs are planning to implement mobile strategies including payment and POS services.

by Retail Pro

Retail marketing meets customers where they’re at with location-sharing apps

Recent developments in retail technology are focused on shopper-centric marketing strategies. Retail customer intelligence helps businesses personalize ads and deals to individual consumers. One of the latest areas of exploration, called geofencing, uses customers' locations to send them retail information they can use immediately.

Geofencing works through mobile apps that identify a shopper's location and send him or her relevant messages. For example, Apple's new iBeacon protocol can help retailers engage customers on location. This means that consumers can receive deals and suggestions while they are in the store or shopping center, which can lead to more immediate responses.

Retailers can take advantage of this technology in a number of ways. The ABA Banking Journal described a scenario in which customers could receive information or coupons when they stop in front of a specific display, such as a shelf of Keurig products.

The application of this technology must be done in a non-threatening, non-invasive way to prevent customers from feeling bombarded by ads or violated by location tracking, the journal cautioned. Apps that allow shoppers to opt-in on services like coupons or suggestions can help. At the same time, consumers are beginning to feel more comfortable about having their location shared through apps. A recent Life360 survey revealed that nearly two thirds of smartphone users allow apps to share their location.

by Retail Pro

Retail technology can help alleviate post-holiday returns

If the holiday season holds retailers' sales dreams, the subsequent months hold their returns nightmares. A side effect of ecommerce growth has been an increasing number of returns, the BBC reported. However, retail technology can also help to reduce some of the stress for merchants.

According to the source, online sales often result in more returns than in-store purchases, since customers aren't able to try out items in advance. To help shoppers make more informed decisions, retailers have improved product descriptions and images, but analysts still estimate that between 25 percent and 50 percent of online purchases are returned, the source noted.

With inventory flowing out and in through multiple channels, retailers need integrated systems that can accurately track what they have in stock. RFID tags can help businesses better monitor individual items, and merchants can use retail management software to immediately update information across their systems, as industry leaders at the 2014 National Retail Federation (NRF) Convention explained.

Retail business intelligence can help companies transform returns data into an advantage. For example, customers who buy two sizes of the same shoe are more likely to return a pair, and merchants can use this data to better analyze their sales figures. Stein Mart explained at the NRF Convention that it uses business data to prevent fraudulent returns and reward customers who make returns less frequently.

by Retail Pro

NRF advice: Use digital receipts for customer engagement

Digital receipts are environmentally friendly and convenient for customers. They reduce paper consumption, avoid toxic chemicals often found in receipts and help buyers keep track of their documents. According to Retail Week, Twitter founder Jack Dorsey is encouraging retailers to focus on an often over-looked benefit of electronic receipts: customer engagement.

At the National Retail Federation (NRF) Convention on Jan. 15, Dorsey explained how businesses can use digital receipts as a component of their retail marketing strategies, the source reported. He suggested merchants use interactive digital receipts that can be sent as an email or text message, a venue for opening the door of communication between the store and the customer.

"Sometimes the receipt isn't taken –  the reason it's not taken is it's not useful," Dorsey said in his keynote address, according to Retail Week. "We see the receipt more as a communication and publishing medium – a product in itself that people want to take home and engage with."

POS software makes this form of customer engagement easier for businesses. For example, Retail Pro, in partnership with flexReceipts, offers eReceipts through its retail management software. By sending eReceipts, retailers can include personalized promotions to engage consumers and encourage additional purchases.

by Retail Pro

Email retail marketing breaks records in 2013

In addition to massive ecommerce sales, 2013 was a record-breaking year for email marketing in the retail industry. Compared to last year, email volume increased almost 13 percent, an Experian report revealed. When inboxes are flooded with emails, they often lose their effectiveness, but the data indicated that 2013 also saw more transactions and revenue from email marketing.

According to Custora, an analytics company, email conversions have quadrupled over the last four years. Part of the reason retail marketing seems to have found a new stride in email campaigns is the strategic use of retail customer intelligence and analytics. Retailers can present consumers with personalized ads and options based on their previous purchase history, search habits and other information. These ads are more useful to customers, and more likely to catch their eye as they skim through their inbox.

Twitter recently introduced options for advertisers to use email information for target audiences. Marketing Magazine reported that Twitter now allows retailers to target users with promoted tweets based on data derived from the customers' email accounts. Companies can create lists for Twitter campaigns by securely uploading their email lists, the source said. However, part of the reason email yields more results than social media is that customers voluntarily sign up, according to Forbes, so unsolicited Twitter contact might not be as well-received.