Customers are people first. From the moment they wake up to the time they go to bed, someone is trying to sell them something. 80% of the time, they're not buying. So what makes the other 20% so different? Relationships. Customers buy from retailers they feel connected to and listened by - simple as that. Your top customers love your products, spend the most money in your stores, and tell their friends about you. Neglect them, and they'll do the same for someone else. Nurture your relationship with them, and they will bring you countless rewards.

1. It Shouldn‟t Be Lonely At
the Top: 10 Ways Retailers
Can Retain Their Top 20%

2. 80-20 rule
80% of your profits come from 20%
of your customers
80% of your complaints come from 20%
of your customers
80% of your profits come from 20%
of the time you spend
80% of your sales come from 20%
of your products
80% of your sales are made by 20%
of your sales staff

3. why be customer-centric?
You have to be!
Relevance and experience, not product
Competitive differentiation
Sustainability
Bottom line

5. Choose who you want a relationship with.
Then be RELENTLESS!

6. today‟s consumer is…
…fickle, loyalty is down
…in control, demanding
…overloaded with mass marketing, low trust
…expectation of speed and connectivity
…connected, digital lifestyle
…creative, likes to experiment, seeks self-
expression
…educated, aware
…a multi-tasker

7. reasons for losing a
customer *
14% – Dissatisfaction with product or service
9% – Competition
5% – Influenced by friends
3% – Moves away
1% – Death
* Source: American Society for Quality

8. retailer goals
Increase loyalty
Increase visit conversions
Increase ticket size
Optimize marketing and customer
engagement costs

9. Top 10 Ways to Retain Your Top 20%
know your customer
listen to and nurture your best customers
map out and automate customer engagements
adapt branding to customer
personalize the customer segments
experience at every channel
integrate your systems, channels,
supply chain, and organization as a
empower sales associates and whole
improve the store experience join the mobile revolution
surrender to self-service 9

10. 1. know your customer
Performance per channel
Business- and vertical-specific attributes and demographic
info (skin type, concerns, occupation, size category, age range,
geography, products/categories, etc.)
Advanced analytics: trend identification and predictive analysis
(trends in category performance, sales forecasts per channel,
future consumer behavior and preferences, lifetime value of
the customer, etc.)

11. 1. know your customer
Capture data at every touch point
Customer profiling and segmentation using business
intelligence:
Revenue-generating customers, most profitable
Recency, frequency, monetization (RFM)
Customers who respond to offers vs. those that don‟t
Widely-used KPIs: average transaction size and,
customer gross profit, performance by segment

12. 1. know your customer
Successful CRM is about competing in the
relationship dimension. Not as an alternative to
having a competitive product or reasonable price -
but as a differentiator. If your competitors are doing
the same thing you are (as they generally are),
product and price won't give you a long-term,
sustainable competitive advantage. But if you can get
an edge based on how customers feel about your
company, it's a much stickier, sustainable
relationship over the long haul.
- Bob Thompson

13. 2. map out and automate
customer engagements
Understand consumer behavior workflows to respond to
expediency
It‟s all in the follow up: automation and continuity via
scheduled and triggered workflows
Sample workflow:
Monitor transactions at the POS, capture sale of Brand X
jeans
Trigger 10% off email coupon to customer for Brand X
shirts and other accessories (if customer is a Tier 1
spender)
Track response and sale, optionally engage in child
workflow

14. 2. map out and automate
customer engagements
Day 1: create a sense of exclusivity and urgency
(time-limited offers, exclusive sales/online
shopping clubs)
Day 2: follow up on abandoned e-commerce carts
and/or items that don‟t make it past the fitting
room

15. 3. personalize the customer
experience at every channel
Educated, intelligent, and contextual item and offer
recommendations at every channel
Based on purchase history and preferences
Customers who bought X also bought Y
New products for you/offers for you
Happy Birthday!
Keys to cross-sell and up-sell
Multi-channel customer spends 3-4x
more than a single-channel customer

16. 4. empower sales associates and
improve the store experience
Customers hit a „brick and mortar‟ wall
Store experience, customer service, and education are
important for increasing conversions (don‟t forget
merchandising!)
In-store associate education/lookup of customer
information, assisted selling
Raymark Clienteling and Point of Sale
Mobile handheld, PC/POS/kiosk, slate/tablet
Customer profiling, history lookup
Assisted selling, loyalty management, etc.

17. 5. surrender to self-service
“Thanks, I‟m just looking.”
Encouraging self-service is key, force yourself to get out
of the way
Adapt to introverts
At home experience in the store: kiosks, digital displays,
smart phones, etc.
Successful practices:
In store digital product browsing
Way finding
Personalized recommendations and offers
Access account information and peer reviews
Self checkout is emerging

18. 6. embrace social media, and
customer-to-customer
relationships
Consumers are connected and are talking
about your brand and products.
Become part of the conversation!
Be mindful of social shopping and gift
giving
Published wish lists
Facebook „fan‟ pages and „likes‟
Outfitting tools/virtual dressing rooms

19. 7. listen to and nurture your
best customers
They know more about your
business than you do, learn from
them
If you do build a great
experience, customers tell Brand evangelists and advocates,
fuel viral word of mouth
each other about that.
Word of mouth is very Facebook is the new focus group
powerful. Divert some investments to
them, organic ROI via law of
reciprocation
Jeff Bezos, CEO, Amazon

20. 8. adapt messaging to customer
segments
Loyalties are generally focused on
the brand, much more than the sales
channel
It’s the message, much more than
the medium
Adapt messaging and
store/customer experience to
profiles, emotional connections, and
geography
Break out niche products
?

21. 9. integrate your systems,
channels, supply chain, &
organization
Customers expect it
Integrate all touch points: stores, web, mobile, call
centers, appointments/service, etc.
Add the customer dimension to merchandising
process:
Meet product demand by integrating customer
indicators (preferences/trends by segment, demographic
information, etc.)
Tailoring assortments and pricing by geography and
demographic

22. 10. join the mobile revolution
Line of business applications
Mobile POS, Clienteling
Consumer applications
Mobile 101: m-commerce friendly site
Mobile couponing, promotions, and product
recommendations (text messaging and/or rich
apps)
Location-based services
Personalized kiosk (Meijer: way-finding)
Hybrid strategy of deploying proprietary apps +
joining networked/community apps

23. demo of MS CRM for retail
Raymark Charisma CRM is a retail-specific CRM solution built on the Microsoft
Dynamics CRM platform
Part of Raymark’s customer-centric retailing offering, it allows you to:
1. Identify your best customers
2. Obtain a 3600 view of your customers across all channels
3. Improved loyalty with targeted, personalized, relationship-based
marketing
4. Improved stock movement with intelligent cross-selling and up-selling
5. Win top-of-mind positioning over the competition with messages that
really engage customers
6. Increase productivity with automated marketing and customer service

24. something to leave you with…

25. business ingredients
Vision! The WHY – set the corporate vision
Strategy – set customer base as asset and drive
process to it
Customer experience – define and refine with
constant feedback. What makes you relevant and
valuable?
Organizational collaboration – change
organization and incentives around customer
Ref: Gartner – “CRM Vision and Strategy: Putting the Pieces Together to Generate Success”

26. business ingredients
Processes – re-engineer work from outside in
Information – treat customer data as an asset
and foundation focus
Metrics – set metrics at multiple levels. What is
not measured does not get done.
Technology – outline architecture FIRST. Treat
as one large integrated and interoperable
system
Without real time performance management
you fail!

27. technology ingredients
Optimized Infrastructure – foundation for
operationalizing data and work flow
Retail Web Services Platform – Required for
consumption of structured and unstructured data
Analytics – A must for determining what to do with all
that data - most importantly, customer data
Retail Data Warehouse – Single view of data for
business logic and application execution
Rich and Portable UI - HTML5
Ubiquitous Consumer Connections – Customer can
connect and receive same experience no matter what
devices are chosen

28. Presented by
Will Roche
wroche@raymark.com