Creating Lasting Relationships in the Digital Age
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In the digital age, it's just as important to create lasting relationships with customers. To ensure repeat customers, it's vital that retailers find ways to still connect with shoppers, whether on a computer, tablet or smart phone.
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Creating Lasting Relationships in the Digital Age
- 1. Creating Lasting Relationships in a Digital Age Jim Barnes, CEO
- 3. Reaching beyond the sales transaction via customer clienteling… Creating Lasting Relationships in a Digital Age…
- 4. For centuries, commerce looked essentially the same...
- 5. DIGITAL IS EVERYTHING, BUT NOT EVERYTHING IS DIGITAL. - David Sable, Global CEO Y&R -
- 6. But in a digital marketplace, how do retailers create and maintain relationships with intimacy?
- 7. Digital Challenges how we build Relationships - In person - Authentic - Remote - Non-intimate
- 8. The pace of digital commerce has been unimaginable. • 2003 1st yearly profit reported on Amazon.com • 2006 1st Cyber Monday $610 Million • 2015 Cyber Monday Record = $3.07 Billion Digital Commerce Changes Impact - source CNN Money
- 9. Despite advances one thing has not changed, …success is based on the relationship you build with your consumer. How do you move from transactional sale to meaningful engagement?
- 10. Retail Can Overcome Digital 80% of US shoppers prefer going to a store “because I can touch and feel the product” 74% prefer to shop at a store rather than online “because I am more confident I am buying the right thing” Only 8.9% say that they often buy something online using a mobile device Only 5.2% often “pay for a purchase in a store with Apple Pay, PayPal, Google Wallet or other ‘digital wallet’” SOURCE: Y&R SHOPPER RESEARCH Published Dec 17, 2015
- 11. Shoppers in a Digital Age
- 12. Brick & Mortar Will Evolve • 1.2 million US retail establishments 100,000 retail clothing stores with revenues of $150 Billion annually • 14.2 Billion sq. feet of retail space SOURCES: US Economic Census, ICSC.org About Money, Barbara Farfan, Retail Industry Expert October 22, 2015 0 10 20 30 40 50 US India Mexico UK Canada Australia RETAIL SQUARE FEET PER CAPITA “Many experts believe that most 2014/2015 retail store closings are due in large part to the overgrowth of the U.S. retail industry even before the U.S. Great Recession occurred.”
- 13. • Shops across channels • Browses online then shops in-store • Shops in-store & buys online • Buys due to market influencers – media, advertising, email, TV personalities…. Customer 101 (general trends of todays’ shopper)
- 14. How do you engage? Clienteling is the artful distinction of helping a customer buy, vs. selling to them.
- 15. How do you create Digital Engagement in your store? Must be convenient for sales associate and shopper…it needs to be seamless or a non event Data only works if it’s put it into action Need to create “intimate” shopping experiences – in store, online & via mobile.
- 16. 1) The shopper finds the desired merchandise 2) A decision is made to purchase 3) Purchases are at a fixed-station cash register The POS Customer Experience Traditionally, a 3-Step Process You had me at hello…..but
- 20. POS Limitations. Digital Freedoms Few POS solutions allow: • contact list by sales associate • email to a customer = spam • Profiling or clienteling with sales history and “likes” • Opportunity for post shopping “personal shopper” outreach • Going beyond the “expanded aisle” BETTER Retail Engagement: • Profiling and customer history • In-store “personal shopper-like” engagement based on previous purchases • A custom email from the sales associate that actually helped you
- 21. Less Conversion but More Converts SOURCE: Retail Prophet – Doug Stephens “The purpose of retail will no longer be to solely convert every customer into a buyer of goods but rather transform them into disciples of the brand itself. To begin a relationship – a dialogue that may play out in any number of buying channels; online, in-store, mobile or elsewhere. It doesn’t matter where purchases take place. What matters is that the consumer falls in LOVE with the brand and shares that love with others. The store maintains the potential to be that emotional center of gravity for the brand.”
- 22. Retail Rachel is your customer. She wants: to matter to your business to be remembered, but not stalked a memorable shopping experience Intimacy and interactions – without a “creep factor”
- 23. What should Retail Rachel get? Enterprise inventory visibility Her merchandise with rapid, on time delivery “your company making the promise and keeping the promise.” A customized experience She needs:
- 24. Is new technology the answer? Technology = Hardware/Software • Will continue to change • Evolution from transaction centric to customer centric Mobile Technology • A key piece of engagement • Untethers for mobile check out • Allows for more engagement with the customer
- 25. Changing Retail Perspectives Always thinking …”how I can become a “personal shopper” for my customer.” Understanding if take an interest in them, they “buy from me” Post- sale follow up to continue the retail relationship
- 26. Your digital retail experience must connect your customer. e-Commerce • Not personal • No immediate gratification • Requires memorable interactions to continue relationships • Remember the customer/ clienteling • Engage & upsell Brick & Mortar • Product / inventory – can you see it? • Consumer / sales associate relationships possible • Payment = immediate gratification • POS barriers = consider mobile checkout options • Potential to interact digitally via clienteling • Engage & upsell = be a personal shopper.
- 27. Future Thinking Retailers • Stores will be touch/feel showrooms • Associates can access more data To see other inventory To manage delivery options To know customer’s buying habits • Move from traditional transactions • Will connect more with customers… o Adopt customer engagement intimacy model o Increase value/effort into relationships o Consider modeling, loyalty, long-term o Ensure the same experience everywhere
- 28. Thank you for attending.
- 29. 4“P’s of Retailing REVISE your THINKING Product – has more visibility with online, chat, across channels Pricing – you must consider consumer savvy, online pricing competition, in-store mobile access Place – with so much competition, you must facilitate the buying experience online AND create the POS opportunity in the store. Offer shipping. People – still control the personal experience Old School Thinking 1. PRODUCT 2. PRICING 3. PLACE 4. PEOPLE
- 30. Re-Consider Retail Space • Physical space needs to be more social (an experience) • Need to deliver a customer experience (not just product) How can your sales associates start interacting? – WHAT are your customer’s preferences?? – Start here. – Equip associates with intelligence to support today’s customer. The brick and mortar retail environment is changing.
Hinweis der Redaktion
- Open with a quote… from the Retail Prophet – Doug Stephens…http://www.retailprophet/blog/the-future-of-retail/ Less Conversion but More Converts The purpose of retail will no longer be to solely convert every customer into a buyer of goods but rather transform them into disciples of the brand itself. To begin a relationship – a dialogue that may play out in any number of buying channels; online, in-store, mobile or elsewhere. It doesn’t matter where purchases take place. What matters is that the consumer falls in LOVE with the brand and shares that love with others. The store maintains the potential to be that emotional center of gravity for the brand.
- 17th or 18th century trade was based upon relationship. It was build upon trust, product for the price or for fair trade
- I love this quote… it rings true to what is going on today in our world commerce. David Sable is a business colleague of mind and I think his quote hits the mark David Sable is an early digital entrepreneur for one of the world’s leading global marketing communications companies. It’s important to remember as retailers… that digital is just one piece…
- Marketplaces bring people together… But in a digital marketplace, How do retailers create and maintain relationships with intimacy? – this is our biggest challenge for the digital age. People by buy from people. Think of it, do you remember the first time you saw an advertiser mention a URL on a TV ad? “ Learn more at http://www.Ford.com) – such an odd thing back then.. And yet today, if you are buying a car, that’s the one of the first place we go.
- So, the relationship with your local market vendor or even your co-workers is less– now with digital, texting, internet, etc. BUT – when a disrupter comes along, it can make us re-think how we are currently existing. Consider Amazon- delivery now in real-time. Uber – is battling the taxi crunch and Zappos- one year return, no shipping, no hassle. With digital relationships win the customer with the “convenient relationship it offers over traditional services.
- Previous on-line record – 3-days prior 2015 Black Friday $2.74 billion Nearly ½ of Black Friday & Cyber Monday web traffic came from smartphones or tablets 72% of actual sales came from computers. - source CNN Money
- Tell story about Lush, vs. apple experience. Despite advances, over all the decades, the one thing that has not changed – is that your success is MADE or BROKEN based on the relationship you build with your customers. How are doing this now. How will your sales team need to evolve???
- 80% of US shoppers prefer going to a store --- “because I can touch and feel the product” 74% prefer to shop at a store rather than online - “because I am more confident I am buying the right thing” Only 8.9% say that they often buy something online using a mobile device Only 5.2% often “pay for a purchase in a store with Apple Pay, PayPal, Google Wallet or other ‘digital wallet’” Even with Starbucks, only 3.4% say that they often use the Starbucks App to pay
- Shoppers in a digital age have more visible options and are more price /product comparison savvy. 68 percent of shoppers expect store associates to be experts on the products in store – that’s a challenge to an associate left without technology support. Delivery is KEY– to the digital age. The customer conversion rate doubles among retailers that offer buy-on-line and pick up in store – VS companies that don’t. THIS FACT IS INTERESTING… KEY THING… people still like that “immediacy” that brick and mortar offers– but want to have the option to purchase when it’s convenient, then pick it up– immediate gratification – lots of retailers jumping in there to fulfill from store . 84% Retailers are increasing the number of online orders fulfilled from the store– Best Buy, Wal-Mart, Home Depot, and numerous catalog box stores. Bringing traffic back to store helps store overall, maybe the customer will also buy something else– chance to cross sell and up sell once they are on site.
- Of those 1.2 million retailers… the United States has about 100,000 retail clothing stores, which reap annual revenues of $150 billion annually. This equates to a per store revenue average of $1.5 million. BUT This calculation is misleading because the 50 largest companies in the apparel industry command 65 percent of the market's total revenue, or approximately $97 billion. (http://www.icsc.org/srch/faq_categor...earch&cat_id=3) There is approximately 46.6 square feet of retail space per capita in the U.S., compared to 2 per capita in India, 1.5 in Mexico, 23 in the United Kingdom, 13 in Canada, and 6.5 in Australia.
- The customer of today shops across channels. They browse online but then might shop in the store. They shop in the store but might go home to purchase on line. They buy based on what the Kardashians or their favorite athletes are wearing. But what if, each purchase made by your customer was saved. And monitored- if it was returned . If preferences were recorded. And if your sales associates had access to this information???
- So how do you move from a sales TX mentality to a customer centric mentality? How do you engage with a customer where the sales associate is an advocate of helping you buy vs. selling to you. Meaning let me help you so you will buy from me vs. let me sell to you.
- So… It’s important to build memorable experiences for your customer – we call her… Retail Rachel —not based on your technology, your constraints, or your beliefs— but that customer that will drive the relationship.
- Today’s point of sale (POS) solutions should go beyond capturing retail transactions; they should be leveraged to increase customer engagement, and make an sales TX a non event.
- SO, you could re-imaging your customer approach And your sales associates had access to customer information, it’s not a blind slate each time this customer buys from your establishment. You could keep a running history of your customers, and help them with purchases in the store- offering selections much like a personal shopper might. And you could follow up and alert them to sales or new items in store… Would a piece of technology or software change your sales team?? Could it impact your sales?
- SO, you could re-imaging your customer approach And your sales associates had access to customer information, it’s not a blind slate each time this customer buys from your establishment. You could keep a running history of your customers, and help them with purchases in the store- offering selections much like a personal shopper might. And you could follow up and alert them to sales or new items in store… Would a piece of technology or software change your sales team?? Could it impact your sales?
- SO, you could re-imaging your customer approach And your sales associates had access to customer information, it’s not a blind slate each time this customer buys from your establishment. You could keep a running history of your customers, and help them with purchases in the store- offering selections much like a personal shopper might. And you could follow up and alert them to sales or new items in store… Would a piece of technology or software change your sales team?? Could it impact your sales?
- How do you curate a buyer? The customer begins to rely on the personal shopper element from the More intimate if you received a custom email from the sales associate that actually helped you.
- … from the Retail Prophet – Doug Stephens…http://www.retailprophet/blog/the-future-of-retail/
- Enablers. If you don’t have a mindset to engage customers, you won’t– even with a stellar piece of hardware or software, but is a piece of hardware the real answer?
- How do you take enabling technology/software – to create an experience around people? From a technology perspective, we have POS and eComm that enable the same interactions and relationship that you have in the store, only via digital. Intimacy without intrusiveness. You want to leave the impression – Wow, they know me – Wow that is Cool – NOT that is scary/creepy.
- Stores of the future won’t carry a ton of merchandise – they will be show rooms to touch and feel Successful associates will have information access 1) Do I have the inventory in my supply chain? 2) How long will it take to deliver ? 3) What do I know about this customer’s buying habits? People have the innate desire to engage - Different buying groups… models will be different based on age, ethnic diversity, gender…. Engagement model Loyalty, and Loyalty creates a long term customer. NEED to work in Millennial, how they buy vs. Gen X or Baby Boomers What does that model look like??? vs. store that is a show room, where you can touch and feel the merchandise and speak to a sales associate who is an expert Sales associates have critical pieces of information: Do I have the inventory in my supply chain (capable to deliver) and how long will it take to me to deliver it to you (capable to promise). Sales associates have critical pieces of information: Do I have the inventory in my supply chain (capable to deliver) and how long will it take to me to deliver it to you (capable to promise).
- You have to re-think the CLASSIC approach to retailing. It used to be you have the right product, sold at the right price, and targeted to the right audience, store was in a great location and your team of great people made the sale. NOW – the product has visibility at numerous stores- so the price becomes key– as comparison shopping is a given but our our PLACE becomes vital- what does your store or on-line experience offer the shopper– do they have a pervious relationship with you? Is there loyalty and trust – customers may pay more if they have a great experience with you--- and ultimately it comes down to PEOPLE within your store or on-line chat that will impact those retail interactions.
- Remember customer’s based on preferences and interactions equipped with intelligence to support today’s intelligent consumers who are comparison and price shopping online – even while they are in your store. Thus if you are another ‘me too’ product – the shoppers of today/tomorrow – tweens with mobile phones in their hands – they will go elsewhere