Client relationship management is one of the most important responsibilities in retail today, as competition, market saturation and other challenges continue to intensify amid the economic recovery in the United States. When firms do not take these matters seriously, the chances of sustaining loyal and engaged customer relationships will drop, which can then lead to significant issues in terms of improving profit margins and driving revenues higher with the passing of each year. 

Studies have indicated that loyal customers are far more financially beneficial than new ones, and this is not to say that companies should only focus on their repeat clientele, but that they need to know how to prioritize budgets, resource allocations and the like. Luckily, with the help of modern retail customer intelligence and relationship management software, striking the right chord with clientele can be far more efficient, effective and strategic today than in the past. 

Not just instant
Some companies will believe that the initial stages of CRM deployments and strategic launches are the only phases that matter, but this is a dangerous misconception. TechTarget recently affirmed that leaders need to be far more aggressive and insightful when approaching these investments and planning procedures, working to balance perspectives on the short- and long-term aspects of implementation, management and optimization. 

In fact, the source argued that the sometimes high upfront costs of getting an advanced CRM solution in play will stifle the chances of the firm adopting those tools, especially when leaders are only focused on the instantaneous benefits that might be yielded by the solutions. As such, the news provider affirmed that business decision-makers need to keep everything in perspective, working to tailor strategies that will lead to long-term functionality and optimization of the CRM solutions in place. 

Additionally, retail customer intelligence solutions and analytics programs will come with similar management demands. 

Where to begin
The initial planning stages will generally dictate the success or failure of the CRM program, as firms that flippantly deploy the tools without any underlying guidance will tend to struggle to monetize the tools immediately and in the long run. By being more diligent when establishing the plans, including objectives, metrics and more, the firm will better position itself for successful experiences, higher returns on investment and a greater level of performance in their client-facing departments. 

This entry was posted by Retail Pro on Monday, January 5th, 2015 at 7:48 am .

Remember the Looney Tunes cartoon with Pepe Le Pew and the little black cat? Poor Pepe struggles with an inability to pick up on the cues that his beloved really just doesn’t want to be bothered. She prefers to remain alone, solo, all by herself — you get the picture. To go about her business as she pleases.

Retail customer trends reveal that consumers still choose brick-and-mortar store locations for a significant portion of their shopping.

Much has been made of retailers wanting to free associates from the cash wrap to interact with customers. The theory is that by creating a relationship between associates and shoppers, sales will increase. However, there is evidence that, in fact, in various circumstances just the opposite can occur.

A study last year by the Coleman Fung Institute at the University of California, Berkley, considered two situations. In the first, liquor stores in Sweden converted from full-service to self service format. Researchers found that not only did those stores offer a wider variety of products in the aftermath of the switch, but also that sales rose, particularly of products with difficult-to-pronounce names:

“Products with difficult-to-pronounce names might experience such a sales increase because consumers may fear being misunderstood or appearing unsophisticated if they mispronounce a name when ordering from a sales clerk; once a store introduces a self-service format and eliminates the need to pronounce a name, consumers may become more comfortable pursuing an otherwise mildly embarrassing or frustrating transaction.”

In other words, having sales staff on hand, being personable and forming relationships with customers might, in some cases, have a detrimental impact on sales, as the customer does not want to appear ignorant. That suggestion is supported by the revenue figures: The market share of products with difficult-to-pronounce names increased 8.4% in stores that switched to self-service.

The second environment studied was that of a pizzeria that had just added Web-based ordering to its phone and counter-service offerings. The researchers found in this case that customers’ purchases of more complex items increased, and orders of higher calorie foods also rose:

“The increase in high calorie items might be driven by a desire to avoid negative social judgment of their eating habits, while the increase in the complexity might be driven by a desire to avoid negative social judgment by appearing difficult or unconventional.”

The average order was found to be 14% more complicated, and have, in general, 3% more calories.

Overall, the researchers come to a conclusion that psychologists have recognized for a long time: People avoid social interactions that they perceive to be uncomfortable. While the online pizza orderers may have wanted to exercise more control over accuracy, the report’s authors found that to be a contributing, but not sole, factor in the increase of more complex (and caloric) selections. Rather, individuals change their behavior to put forth a positive image, often to avoid being embarrassed.

For retailers, “forcing” a relationship on those who are uninterested may have the same negative consequences as not engaging a more social customer. So, the next time you push your associates to interact with customers, consider the potential repercussions. While improved interaction provides plenty of benefits, don’t be blind to the potential negative effects. Don’t confuse improved with increased.

All of which underscore the importance of knowing your customer really, really well. Because if you’ve got a little black cat as a customer, the last thing you want to be is an over-attentive skunk.

This entry was posted by Jennifer Bosavage on Friday, January 2nd, 2015 at 2:33 pm .

Retailing incorporates an enormous amount of customer-facing technology, perhaps more so than any other market segment. While other segments certainly use technology, for example, manufacturing, the focus is mainly interna: How can we build things better? In retail, not only do stores depend on technology to reduce costs and improve efficiency, but they also use technology to engage and attract customers. For retail, technology is all-encompassing.

As we look to 2015, a number of technologies will emerge as those best suited to helping retailers achieve their business goals — and that is the true test of technologies worth investing in. Here are three worth noting.

Proximity marketing. Sometimes called “hyperlocal marketing.” this is a successful method of enticing nearby customers — who are equipped with Bluetooth- (or WiFi-) enabled smartphones and have opted in to your marketing program — into a store. In other words, proximity marketing simply uses cellular technology to send marketing messages to mobile-device users who are in close vicinity to a business. Stores are sending ads to customers most likely to buy: They are previous customers who have agreed to receive these messages, and are close to the store. It’s far more targeted than a business who sends a text blast every Thursday to every customer who has opted-in to its marketing program, because of its ability to hone in on location. That text message is unlikely to get the guy who’s washing his car to drop his bucket and run to the store to save 15% on a pair of jeans. But if that guy is 15 feet from the store entrance, he just might go in and make a purchase. NinthDecimal (formerly JiWire) reports that 53% of consumers are willing to share their current location to receive more relevant advertising, and, 63% of consumers feel a coupon is the most valuable form of mobile marketing.

RFID. A properly implemented RFID system pretty much guarantees stock information is accurate. Each item is

RFID tags can be used for a number of retail purposes.

unique, easily identifiable and can be registered with no human intervention. The fashion industry is benefiting greatly from RFID. Take, for example, American Apparel. According to a blog on RFID Arena, this retailer normally supplies online sales from the warehouse. However, when an item is not available in the warehouse, the system checks different stores’ stock levels, finds the item and allocates the order to the appropriate store. The stores become mini-distributors by packing and shipping the goods to the customers. This has a direct impact on customer satisfaction, and is possible because of RFID. With the growing popularity of click and collect — shoppers buying online but wishing to pickup their items in-store — RFID tracking will become even more mission critical to retailers.

Mobile Wallets. Finally, shoppers in the U.S. will embrace mobile wallets, most likely enticed by Apple Pay, available on the iPhone6. Chevron gas stations, for example, have announced they will start accepting the payment early in 2015. Sure, Google Wallet has been around since 2011, but it took the genius of Apple’s marketing to show consumers how simple — and secure — the technology can be. The “tap to pay” phenomenon may reach a tipping point soon. No longer spooked by security breaches at retailers including Target, Home Depot, and Michaels, customers appear comfortable with the new technology. Because Apple’s system, for example, doesn’t save transaction information, customers are less apprehensive about using it to make a purchase at a store.

This entry was posted by Jennifer Bosavage on Wednesday, December 31st, 2014 at 8:24 pm .

In the past several years, the number and rate of companies that have started up solely in the digital frontier have increased exponentially, driven by the much lower costs associated with Web-based ownership and lackluster state of commercial real estate. While many of these firms have been highly successful in generating revenues without spending all that much money on their facilities, ecommerce is still best served when accompanied by a physical storefront. 

Consumers, even younger ones who are becoming more apt to purchase goods and services online, still prefer the ability to visit the establishment, especially for many types of products that need to be tried out or evaluated in person. As such, combining an ecommerce platform with a physical storefront can be one method to maintain a competitive edge moving into the new year. 

Proof is in the pudding
Small Business Trends recently explained some of the reasons why retailers will still want to have a physical storefront in the coming years, affirming that businesses are already seeming to pick up on this need ahead of expectations. According to the news provider, brand management and online sales can often be significantly improved when the retailer has a physical storefront, which can be seen in myriad examples across the industry. 

The source pointed to two separate entrepreneurial firms that decided to complement their burgeoning digital ventures with a brick-and-mortar location, which has since proven to be the right choice. Citing an interview between Fox Business and Suzette Munson of Love 41, a retailer, Small Business Trends quoted the company's leader regarding her experiences in this venture. 

"We can see the trend of Internet sales going up every year," Munson explained to Fox Business, according to the source. "Every year people are becoming more Internet buyers for Christmas rather than going to jam-packed malls. But we have a dedicated following – and one thing they've always desired is a destination where they can put their hands on our products."

Takeaways for retailers
Now, this is not to say that physical storefronts are for everyone, but rather that businesses should at least diligently look into the potential merits of launching one to complement their ecommerce platforms in the near future. When it is feasible to do so, this can have a profoundly positive impact on brand image in the eyes of current and prospective clientele. 

This entry was posted by Retail Pro on Wednesday, December 31st, 2014 at 10:13 am .

There is no denying that the ecommerce industry has exploded in recent years, becoming incredibly saturated and competitive in a range of market segments and showing now signs of slowing any time soon. Businesses are increasingly reliant upon strong financial performances in both physical and online stores, and this can be difficult when the brand and website do not stand out from the crowd. 

Retailers often have the most to gain from putting a little pizzazz into their brands, focusing on the creation and consistent improvement of all marketing, ecommerce and other strategies that defy convention and enter into the bolder category. Looking toward the coming years, retailers will want to keep up with the trends that are defining what it means to be bold in marketing and other operational components. 

What's to come?
Practical Ecommerce recently listed some of the trends in ecommerce website demand that it expects to have a major impact on the sector in the coming year, affirming that a combination of aesthetic appeal and intuitive functionality will continue to be the driving forces of success in this arena. According to the news provider, hidden menus have become a bit more popular and preferable among consumers, as they allow the firm to reduce clutter from mobile webpages. 

However, the standard components of ecommerce websites are not necessarily the most interesting sources of innovation to watch, as newer additions by way of video content and background images are also going through some changes with respect to best practices. The source pointed out that video content, larger-format pictures and more appealing typography are all likely to be priorities among ecommerce retailers in the new year. 

Retailers who work hard to set trends in these matters, rather than merely follow them, will likely enjoy a greater level of opportunities to excel in the coming years. 

Strategic tactics
When it comes to making an ecommerce website as appealing as possible, business leaders should be looking to streamline the visual and functional aspects of the pages, then try to add in various pieces of flare to truly keep customers coming back for more. This can often be achieved through the integration of marketing and sales procedures with standing brand objectives and strategies, as this will effectively yield a consistent and desirable voice across channels. 

This entry was posted by Retail Pro on Tuesday, December 30th, 2014 at 9:18 am .

The volume, velocity and variety of information coming through modern big data strategies have forever transformed the meaning of retail customer intelligence, as businesses work to harness the power of analytics to drive decision-making across operations. Firms that have yet to embrace these technologies are likely to find themselves at a competitive disadvantage before long, as stronger availability of insights tends to translate to more prolific financial performances. 

When customer intelligence reaches a pinnacle of functionality, utilization and integration, the business will be far more likely to enjoy speed and agility when trying to adjust to forthcoming and current trends in consumer preferences and beyond. This is why marketing departments in retail are becoming some of the most avid adopters and users of big data technology, reshaping what it means to put forth an intelligent, relevant brand image. 

Revolutionizing retail advertising
Forbes recently listed several ways in which the use of big data will likely impact marketing strategies in 2015, beginning with the prospect of agile retargeting when certain advertising efforts have not come back with the expected returns. Essentially, businesses will be able to leverage the insights garnered from big data solutions to quickly and accurately retarget various marketing and branding efforts to work to the best advantage of the firm. 

According to the news provider, personas will also likely become a more important matter in the realm of online marketing, as companies are now more capable of identifying certain types of shoppers and tailoring the content to them in a more effective fashion. This can lead to a greater level of loyalty, as well as enhanced visibility when current customers are happy enough to spread the word about their positive experiences with the firm. 

Finally, the source noted that personalization and the consistent integration of online and offline marketing efforts will further reshape the advertising arena, driven by big data's availability. 

More intelligence to come
When retailers take a comprehensive approach to customer intelligence strategies, marketing programs are far from being the only processes that can be improved. Rather, the types of information entering will often indicate which areas of the business are in need of improvement, as well as how the business can progress in such a way that most closely conforms to the demands of current and future clientele. 

This entry was posted by Retail Pro on Tuesday, December 30th, 2014 at 9:18 am .

As mobile shopping continues to grow — 60 percent of Amazon’s holiday traffic originated from mobile devices, for example — customers are going to start demanding ways to streamline the experience. Today, it’s a treat to find a retailer who has integrated inventory online with its brick and mortar counterpart. And e-commerce sites that offer in-store pickup are also a shopper’s dream. In the coming year, however, those options will slowly but surely become must-haves for retailers hoping to increase their piece of the pie. Here’s a look at three apps that are worth paying attention to in the coming months.

Mobile apps and shopping sites offer a great deal of convenience to consumers, but retailers should keep the customer experience in mind when implementing their mobile options.

Curbside

The Curbside app works with a number of retailers in the San Francisco area, including Target, Macy’s, Sears and Gamestop. (Sears offers “In-Vehicle Pickup” at other stores as part of its Shop Your Way loyalty program.) The customer can search for and buy products from local stores that can be picked up the same day. The user can search across multiple retailers and locations, and check out with one tap. At some stores, curbside pickup is available; at others the order is awaiting customer pickup. If successful, this could usher in a new wave of customers, particularly those with small children who may otherwise find it inconvenient to run errands with kids in tow. In addition, Curbside has introduced “Handoff,” which lets one person create the Curbside pickup, and invite someone else to pick it up.

Postmates

Postmates is Uber for deliveries. Users place an order from a restaurant or store and are matched with a Postdates courier. The courier retrieves and delivers the order in under an hour. Couriers go through a background check and must be customer-service savvy. They can earn $25/hour and work either part or full time. For users, pricing starts at $5 and is determined based on the distance of delivery. Furthermore, it doesn’t matter if the business offers delivery, Postmates handles it independently.

Instacart

Many parts of the United Statesre served by grocery chains’ online delivery service. In the Northeast, for example, it’s Peapod, owned by Stop and Shop. While Instacart delivers groceries, it provides the service to different chains, so a shopper could use the app for Whole Foods on Monday and, if you’re in Philly, Reading Terminal Market on Saturday. The great advantage is the variety of stores offered by the service. Retailers do not need to set their own logistics, freeing themselves up to concentrate on their core business rather than on delivery vans.

Mobile will only continue to grow in 2015, as customers look to employ apps that will help them be more productive and efficient shoppers.

This entry was posted by Jennifer Bosavage on Monday, December 29th, 2014 at 8:44 pm .

The ecommerce revolution is in full effect, with a breadth of new businesses – especially retailers and professional service providers – launching operations in entirely digital environments to reduce overhead and drive financial performances higher. Although the recent resurgence in the United States economy has presented business leaders with a wealth of new opportunities and far more preferable conditions than any time since the recession, it has also lead to increased market saturation.

As a result, ecommerce retailers need to find ways to separate themselves from the competition and drive visibility in crowded markets, and this can be achieved through the use of the right targeted marketing efforts. By thinking out of the box and never allowing the firm to take a cookie-cutter approach to brand management, this can certainly be achieved in a comfortable fashion. 

Simple steps toward greener pastures
Forbes recently listed several tips for ecommerce retailers who want to add a little spice to their marketing communications, affirming that the first step is to try and identify the context of these pursuits and build comprehension throughout the strategy using these insights. Sometimes marketers will fall into a trap in which they are reciting certain communications constantly and losing sight of what it all means. 

By staying focused and on target, this issue – which can quickly reduce customer engagement – can be adequately mitigated. According to the news provider, retailers should always be looking to their customers – both prospects and loyal consumers – for guidance on how their marketing communications should sound and be delivered. This takes the guesswork out of strategic oversight and fills it in with more accurate and effective activities, bolstering the positive impact of advertising investments over time. 

Furthermore, the source noted that ecommerce retailers might want to expand the number of languages available on their websites to ensure that all prospective customers can understand them in their native tongues. 

Other recommendations
One of the most critical aspects of online marketing is the differentiation of a firm's communications and brand from others in the field, and this will only be achieved when leaders take a highly unique and guided approach to strategic oversight. Get employees in various departments involved in the planning stages, and work to align communications and brand management tasks with specific missions, objectives and values of the business.

This entry was posted by Retail Pro on Monday, December 29th, 2014 at 5:26 am .

Business intelligence solutions have been used by organizations for decades, but those that were common back in the day are not close to modern big data analytics tools that are hitting the market today. Because of the rapid and erratic explosion of data that has taken place in the past few years, companies have been seeking methods of turning unstructured and structured information into more actionable insights, and analytics serves as the best path forward in this regard. 

Now, it is worth noting that big data analytics and retail customer intelligence solutions have been rapidly evolving for years now, and there are no signs that innovation will begin to falter anytime soon. Rather, retailers will be tasked with keeping up with the best practices of customer relationship management – and the tools used to achieve goals – rather than falling behind the pack and putting themselves at risk of having poor retention and loyalty performances. 

What's to come?
Computerworld recently listed several predictions for CRM in 2015, affirming that studies are showing clear signs of growth in spending on predictive analytics in the next 12 months. Citing a study from Gartner, the source pointed out that predictive and prescriptive analytics will become more commonly used tools among decision-makers in a wealth of industries next year, and that intelligence solutions will further improve retention and client experiences for many companies. 

According to the news provider, another priority in the new year that has not always been a major point of contention is employee engagement, meaning that businesses will need to find ways to empower their staff and keep them productive using these modern CRM tools. When staff members are not engaged, it does not take long for the negative impacts to bleed into client relationships and customer retention, meaning that this decline must be avoided at all costs. 

Push it to the limit
Business leaders should recognize that modern CRM solutions are far more powerful than the iterations of the past, and can be used to improve a wide range of operational processes when properly implemented and managed. From analyzing the performances of various departments to better understanding the needs and desires of clientele, retailers can set themselves up for a financially advantageous year in 2015 through the use of advanced CRM solutions and intelligence tools. 

This entry was posted by Retail Pro on Monday, December 29th, 2014 at 3:51 am .

The Christmas holiday season has come to a close

And next comes the question we just have to pose:

For you, dear retailer, was it a success —

Or was it plain and simply a mess?

Was your POS system mobile and free —

Or were customers driven right up a tree?

Were inventories in sync online and in-store —

Or were items missing, to be found never more?

Indeed, RFID holds such great promise,

But never found its way onto your to-do list.

Clienteling and customization are all the rage

However, you never got on the same page.

And yet, dear retailer, please don’t despair.

Not everyone had iBeacon covering their lair.

Tomorrow’s the start of holiday planning ’15

And you can become a lean, mean, retail machine!

 What’s your plan for 2015? Tell us in the comments below.

This entry was posted by Jennifer Bosavage on Thursday, December 25th, 2014 at 8:07 pm .