Making retail personalization more relevant

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Many retailers are still struggling with what it means to deliver a great, unique in-store experience. This paper contains eight examples that will help retailers visualize personalized experiences and better serve their customers. It also answers the question "Why translate omnichannel personalization into today’s food retail?"

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Making retail personalization more relevant

  1. 1. Making Retail Personalization More Relevant Based on the Brick Meets Click presentation given at the Annual Food Industry Summit Saint Joseph’s University, March 13, 2014 By Bill Bishop Chief Architect, Brick Meets Click Follow us Twitter, Facebook or LinkedIn www.brickmeetsclick.com Brick Meets Click delivers the strategic insight and guidance that retailers, suppliers, & technology providers need to drive growth by meeting shopper needs in an omnichannel environment .
  2. 2. March 2014 2 Many leading food retailers have made progress in personalizing offers – in particular, their circulars. This is key to making it easier for customers to find the items they want from among the 30,000 to 40,000 on store shelves. But the real question is: Does personalizing the offer go far enough to win the “hearts and minds” of shoppers? A report on Omnichannel Personalization by The CMO Club* indicates that the answer may be NO and shows how retail marketers are moving beyond just personalization of offers to personalizing the shopping experience and building the basis for future purchases. We want to build on the conversation started by The CMO Club’s paper and explore examples that will help food retailers move beyond the limits of personalized offers and toward engaging more fully with their customers via omnichannel personalization. * The reports lead author is Nadine Dietz, SVP of Global Consultancy 5one; request a copy Why personalization?
  3. 3. March 2014 3 What’s the problem? Shoppers are not reacting the way they used to to marketing and promotions. Takeaway: Your offering has to change. More Information Greater Choice Increased Market Power
  4. 4. March 2014 4 Why translate omnichannel personalization into today’s food retail? Aligning the offer with your shopper’s perspective Winning the trip Interaction makes customer segmentation more dynamic Retention is more profitable/efficient than acquisition
  5. 5. March 2014 5  Accessing more new information sources  Communicating more frequently online Takeaway: These shoppers expect more options. Omnichannel describes the empowered shopper who is:
  6. 6. March 2014 6  It shows you understand who they are.  It sorts through all the choices to make it easier for them to find what they want. Takeaway: Personalization will soon be REQUIRED to satisfy the empowered shopper. Personalization is one way to appeal more effectively to the empowered shopper
  7. 7. March 2014 7 The core principles of omnichannel personalization Takeaway: Emphasize these principles as you navigate the changing marketplace and embrace the digital path to purchase. Expanding engagement Creating experience Increasing retention
  8. 8. March 2014 8 Adjusting to the Digital Path to Purchase One of the ideas highlighted in the CMO Club report is the shift from the traditional concept of path-to-purchase to the notion of a customer journey on which all the new digital touchpoints can play an active role. We see opportunities to translate this idea to food retailing. The shopper In home On the go In- store On the web GETTING STARTED Here are eight examples from outside of the food industry that fit into a customer’s digital path to purchase/journey. These will help you visualize what is possible. At the end of each example is specific guidance in the form of a takeaway, plus a call-out for ideas about translating the key idea to your business.
  9. 9. March 2014 9 In home Following the customer’s lead IKEA personalizes communications by analyzing the way customers communicate inside the store’s loyalty program, IKEA Family. They look at how each customer engages with them via email, mobile, social and the store website, and then IKEA develops “purchase triggers” to deliver communications in a way that shoppers have shown they want to get them. In this way, IKEA personalizes communications to fit each individual customer’s digital preferences. Their engagement is particularly effective as they connect customers with what’s available in the store. IKEA believes “our store…is our richest source of content.” Takeaway: Find ways to personalize communications that match your shoppers digital activities. This shows you know them so well you can anticipate their preferences. Ideas? Expanding engagement Creating experience Increasing retention
  10. 10. March 2014 10 Reserving items anywhere/anytime Takeaway: Identify options for customers to blend online shopping with the convenience of store pick- up, and give them the confidence that what they want will be there when they want it. This encourages a trip to the store. Ideas? The Gap opens up more personal choice for its customers through a “Reserve In-store” program that was tested in 2013. The service was so well received that it’s now rolling out across the country. Online, customers can reserve an item at a nearby store anytime of day or night. The store sends them a text reminder when the item(s) have been set aside for them, and customers then complete the purchase at the store when it’s convenient for their personal schedule. In home
  11. 11. March 2014 11 Creating value from "moments" Takeaway: Look for opportunities to increase the personal value of rewards by delivering them immediately following the desired action by your customer. This connects your business with the satisfaction and emotion of being rewarded. In the words of Brian Wong, “Respect the customer.” Ideas? Brian Wong, Founder of Kiip (pronounced “keep”), uses rewards to create a wow experience with apps. It’s a way to connect the virtual and the physical worlds by bringing alive the moment with an immediate reward. In a task management app sponsored by manufacturers called any.do rewards, customers are given a reward each time they cross a task off their to-do list, thus providing immediate gratification. On the Web
  12. 12. March 2014 12 Experiencing life with your shopper Takeaway: Retailers can tap into the popularity of reality shows by providing individual customers with ways to become part of events themed around holidays and other occasions like back-to- school. Ideas? Target’s Bullseye University streamed a live, 24-hour reality- TV-like dorm event to connect with college students. The program offered advice as well as fun and prizes, and students could personalize it by: • Calling in their own question • Sending in a photo for a chance to have a caricature drawn on the show Bullseye University didn’t simply break through the clutter with a video of college students; it invited them to be part of it. On the Web
  13. 13. March 2014 13 Making shopping easier Takeaway: Develop ways to personally engage shoppers that simplify their lives by helping them keep track of what they’ve bought, especially the products that are really important to them. Ideas? Sephora has streamlined the way it connects personally with each of its shoppers via the store’s app and website. • They make it easy for customers to keep track of all their Sephora purchases in one place, whether they were made in-store or online. • They give customers an easy-to-use and fun place to personally engage called My Beauty Bag. • They reserve a special area for “products I love,” and make it easy for customers to access the rich content of Sephora’s website. • They automatically enroll customers in the store loyalty program when they sign up for My Beauty Bag. On the go
  14. 14. March 2014 14 When “At Your Service” is at your finger tips Takeaway: The same customer will come to the store with different needs depending on the shopping occasion. Good customers can be made even better customers by giving them exactly the experience they’re looking for. Ideas? Neiman Marcus offers an “At Your Service” app that gives customers an easy way to build the personalized experience they want on their next visit to the store. Via the app: • A customer can book an appointment with their favorite sales associate as well as ask questions and send them messages. • Customers can also call out their favorite products to be automatically communicated to the sales associate, and the app will alert the associate the moment they enter the store so they can have immediate service. On the go
  15. 15. March 2014 15 Augmenting the in-store experience with iPads Takeaway: Food-shopping customers also enjoy the discovery that can happen when they learn something new. Imagine how you could surprise and delight your customers with this experience. Ideas? Kate Spade, the apparel retailer, is personalizing the in-store experience in its Saturday Stores by building on the insight that sometimes “dwell time is more important than sell time.” They’re using IPads located throughout the store to give shoppers expanded access to different products: What was the design inspiration? How was it made? When and where should it be worn? This can be helpful and fun. The tablet- size screen also lets it be a shared social experience. In-store
  16. 16. March 2014 16 Making in-store more “my own” experience Takeaway: Some suppliers have plenty of good reasons to increase their personal experience with your customers. We’ve seen it in the Nutella section at Eataly, where staff interacts with customers. There’s plenty of room for partnerships with suppliers that deliver high-value, personal shopping experiences. Ideas? Media Markt, a German retailer, is leveraging ideas from employees and partnerships with suppliers to transform the shopping experience into one that helps neutralize the advantage of online retailers by personalizing their experience in the store. Among the many ways they do this is by encouraging customers to bring their own content to play or listen to on the products displayed in the store, thus simulating the experience of owning the item before it’s actually purchased. In-store
  17. 17. March 2014 17 Brick Meets Click helps food retailers, suppliers and tech providers work smarter in today’s omnichannel environment. We also host a commercial-free forum on our site about the future of shopping and grocery retailing - Give us a visit! brickmeetsclick.com Get regular updates by following us on: Twitter, LinkedIn, Google+ or Facebook

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