These days, meeting customer expectations is a lot more complicated than just getting the product right. Today’s retail customers are constantly connected, and that has made them savvier about price comparison and information gathering. They’ve also got expectations for engagement with, or about, a brand. Radical shifts in consumer behavior are shaking up the industry in profound ways. But retailers are learning that pleasing the always-on consumer yields big dividends.

1. 7 Ways Connected Consumers are
Driving Retailers to Change for the Better
Jim Nichols, VP Marketing – Conversant®
THE CUSTOMER IS STILL ALWAYS RIGHT

2. Table of Contents
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INTRODUCTION
7 KEY CONSUMER TRENDS
1: The Era of the Omni-Channel Shopper is in Full Swing
2: Consumers Enter Stores Better Armed and Prepared
3: Showrooming is Growing as a Retailer Opportunity
4: Mobilized Shopping is Changing the In-Store Experience in New Ways
5: Consumers Expect Content in Addition to Product Listings and Ads
6: Social Media is Creating Brand Openness
7: Demand for Shoppertainment is Becoming the Rule, Not the Exception
CONCLUSIONS
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3. There’s that old saying – the customer is always right. When the retail and
service industries originated and popularized the statement, it was primarily
about making sure that we were meeting people’s needs in the category.
Whiter whites and brighter colors. No more frizz! More peanutty goodness.
We still have to execute on those promises, of course, as the need to get
the product right is stronger than ever. But there are other sets of needs
these days, brought on by the always-connected consumer.
• The person that’s never more than five feet – usually even less – from a screen
• The person that can type 140 characters and potentially reach millions
• The person who gives something three stars instead of two
Today’s retail customers are constantly connected, and that has made them
savvier about price comparison and information gathering. They’ve also
got expectations for engagement with, or about, a brand. Radical shifts in
consumer behavior are shaking up the industry in profound ways.
Far from creating only problems, however, these new customer dynamics
are creating more opportunities for savvy retailers to drive connections and
sales. It may be harder to do everything right, but the results are worth it.
Here are seven key consumer trends that the best and brightest retailers are
responding to – and using to their advantage.
These days, meeting customer
expectations is a lot more
complicated than just getting the
product right. But retailers are
learning that pleasing the always-on
consumer yields big dividends.
INTRODUCTION
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4. Until recently, brick-and-mortar stores and their online
counterparts were often managed separately, with
different strategies, teams, managers and
executives driving each piece of the business.
But customers don’t see themselves as dot-com
customers or in-store shoppers. They want to be able to
buy something online and return it at the physical store.
Or vice versa. They want shopping that allows them to call
the shots. They want to see a product or sale in a store
and find it online to show their friends later.
It’s one big shopping universe to them. Smart retailers
have a strategy that maps to the consumer as they move
from online to in-store and back. Following the omni-channel
customer journey helps the brand engage with
the customer at the right time and in the right way.
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THE ERA OF THE OMNI-CHANNEL
SHOPPER IS
IN FULL SWING
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5. Because millions more shoppers do their research
before hitting the checkout line and making
a purchase, there has been a power shift.
Consumers are far more knowledgeable
about pricing, products and offerings. In
turn, retailers have less explicit control
over information and experience. No
longer are customers walking into
stores looking to a salesperson for
advice and guidance. They enter
informed, or with a mobile tool in
hand to get informed.
Study after study indicates that
consumers are more likely to be
influenced by peers and online
reviews than by a rep on the sales
floor. But the growth in consumer
power hasn’t made the best retailers
pack up their toys and go home.
Rather, they are capitalizing on the trend
by enhancing their real-world and digital
shopping experiences. Many are integrating
and personalizing all of the touchpoints reaching
each shopper based upon a deeper understanding
of individual needs and purchase patterns.
They’re even connecting people with other consumers who have
used and reviewed a product to provide that final encouragement
or “permission” to buy. For example, a growing number of online
retailers are integrating consumer videos into their sites and apps.
When showrooming began, many retailers were
convinced it was bad news. The conventional
wisdom was that the sale would always go to
the cheapest seller, likely an online-only
property without the complexity and
expense of maintaining physical stores.
But the latest research shows
that showrooming can be more
opportunity than danger for
the savvy retailer. Showrooming
instances are an opportunity to
connect with customers in new
ways. Mobile devices not only let
customers compare prices and
products, or look at reviews while
in-store, but also open the door
to new touch points. For example,
when a customer does a search for
a local store, they usually only see an
address and phone number, and maybe
a website link. But now, stores can take
advantage of this interaction to provide
information, offers and other links.
Consumption of a retailer’s rich site content while in-aisle
can drive more retailer interactions and sales, not fewer. And
when a retailer already has a relationship with a customer, they can
use these new touchpoints to deliver tailored communications
based upon what they already know about each shopper –
something that listings on a comparison site can’t do.
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SHOWROOMING
IS GROWING AS A
RETAILER OPPORTUNITY
CONSUMERS ENTER 3
STORES BETTER ARMED
AND PREPARED
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6. I’ll bet dollars to donuts that the big change in digital advertising
over the next two-to-three years is going to be the nearly ubiquitous
use of first-party “brand relationship” data to inform targeting
and messaging. Brands will embrace the idea of putting their big
customer data to work in all of their digital programs and campaigns.
Traditionally, it has been tough for agencies to convince clients to
share their first-party data for targeting – it can seem like a hassle
and requires the heavy participation of client IT teams. But that is
changing fast. Tag management has made it easier, and the value
of first-party brand data for targeting has proven massive.
Integrating site interaction data – available when a brand tags
all of its pages – is a great start because it helps reveal the
preferences, interests, browsing and even purchases that
customers conduct online. Further, by using first-party data and
cookies, you can actually identify more of your customers and
hand raisers as they browse the web. However, when you rely
exclusively on third-party cookies, a high percentage of your
users are hiding in plain sight because you won’t know that they
have a pre-existing relationship with your brand.
Data from other digital interactions can also enrich your insights
– and through them, your overall program effectiveness. In most
categories, 80 percent or more of products are purchased offline.
Offline brand interaction data is a very powerful tool allowing you to
understand and measure the offline impact of your online programs.
MOBILIZED SHOPPING
IS CHANGING THE
IN-STORE EXPERIENCE
IN NEW WAYS
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7. Due to the growing content cravings of
consumers, many retailers are starting to behave
more like media companies. Retailers are
increasingly becoming content machines, from
generating social content and blog posts to
turning their catalogs into mini-magazines.
Personalized advertising and web content
are driving greater relevance and brand
engagement, and consumers are rewarding
brands that generate or showcase high-quality,
product-related content with their attention
and purchases. Consequently, retailers are
developing rich partnerships with content
leaders to leverage their ideas. Visit your
favorite retail website for examples. From
content partnerships with cable networks to
expert-led branded blogs, retailers are upping
their content games in myriad ways.
Many retailers are seeing that while Facebook
and Twitter are great environments to be active
in, blogs are still fantastic for delivering rich
content. And one of the most important trends in
affiliate is leveraging bloggers as affiliates, where
esteemed content creators can connect their
product recommendations to places where the
products can be purchased.
Consumers are rewarding
brands that generate or
showcase high-quality,
product-related content
with their attention
and purchases
CONSUMERS EXPECT CONTENT IN
5 ADDITION TO PRODUCT LISTINGS AND ADS
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8. Consumers demand open and honest communication from
brands, and view engagement with a brand as more akin
to person-to-person communication. Those brands
that screw up in this area get flayed. These days
the retailer must have a concrete action plan
for the angry customer who uses his digital
soapbox to publicize his complaints.
But more and more retailers realize
that they needn’t be paralyzed
by the potential social media
dangers. We’re learning that
customers – angry or delighted
– understand that we are all
human. They don’t expect
perfection. Rather they expect
ownership of one’s own actions.
The rule of thumb here is to be
direct and personal on Social – own
your mistakes, nobody is expecting
you to be perfect. But it’s more
than just owning up to an error. Since
consumer opinions now carry more weight
than ever, retailers who are doing it right are
taking advantage of these communications
to engage with the customer. For example, when
someone posts a negative (or even positive) review,
the brand should be there to engage and provide proof that
they are listening. And today, brand campaigns are frequently
tailored based on the feedback they receive from customers.
Perhaps originating in part from the shorter attention
spans of the younger generations, shopping
is increasingly incorporating entertainment
to put people in the aisles. Brick-and-mortar
stores are adding elements of
entertainment to draw in shoppers.
Bringing in musicians and authors
to encourage consumers to come
in. Scheduling yoga classes in the
aisles near yoga wear. Or just look
at Bloomington, Minnesota’s Mall
of America and its theme park
rides and attractions.
Digital is following suit.
From “making of” videos for
TV commercials, to musician
interviews on musical instrument
sites, to webisodes of branded
content, to elf games at Christmas
time, retailers recognize that they
need more to draw people in than
200x200 product shot gifs.
DEMAND FOR
SHOPPERTAINMENT IS
BECOMING THE RULE,
NOT THE EXCEPTION
7 SOCIAL MEDIA IS
CREATING BRAND
OPENNESS
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9. CONCLUSIONS
Retail has long promulgated the philosophy that the customer is always right. Perhaps the massive changes retailers are making in the ways
that they do business are best understood in that context. The one thing that we can be certain of is that the face of retail in 10 years will be
completely different than its face today, and the customers, who are still always right, will have a major hand in shaping that future.
ABOUT THE AUTHOR
Jim Nichols is VP-Marketing for Conversant, Inc. His 25-year advertising agency, brand management, and market research career spans over
80 categories, from packaged goods and beverages to financial services, software and technology. Brands he’s helped develop include ABC
Daytime, Bank One, Brach’s, Cablevision, Cap’n Crunch, Comcast, Darden Restaurants, Disney Parks and Resorts, Hyundai, Kodak, Lakerol,
Microsoft, Ofoto, Oracle University, Pfizer, Register.com, Schick, Sega, Showtime, SOAPnet, Suave, Symantec, Unilever (36 brands), Virtual
Makeover, Wachovia, Zone.com and more than 40 digital media companies and technologies. Jim’s experience spans B2B and B2C, and
includes a strong track record marketing to both broad audiences and specific market segments including African Americans, Hispanics, and
Mothers. He holds a BA from University of Pennsylvania and an MBA in marketing from University of Chicago.
ABOUT CONVERSANT
Conversant, Inc. (NASDAQ: CNVR) is the leader in personalized digital marketing. Conversant helps the world’s biggest companies
grow by creating personalized experiences that deliver higher returns for brands and greater satisfaction for people. We offer a fully
integrated personalization platform, personalized media programs and the world’s largest affiliate marketing network – all fueled by a deep
understanding of what motivates people to engage, connect and buy.
For more information, please visit www.conversantmedia.com.
Copyright 2014, Conversant, Inc. All rights reserved. Conversant is a trademark of Conversant, Inc.
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