Retail is a lot like dating.
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Retail is a lot like dating.

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Successful brands and retailers create engaging consumer experiences which result in long term relationships and an improved bottom line. This presentation offers tips on how to build enduring ...

Successful brands and retailers create engaging consumer experiences which result in long term relationships and an improved bottom line. This presentation offers tips on how to build enduring relationships at retail.

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Retail is a lot like dating. Presentation Transcript

  • 1. LIQUID AGENCY Retailing is a lot like dating. © 2011 Liquid Agency, Inc. CONFIDENTIAL. DO NOT DISTRIBUTE.
  • 2. How to win your way to a consumer’s heart. I LOVE IT!!!
  • 3. How to win your way to a consumer’s heart. And then their wallet. I’M LOVE IT!!! I BUYING IT!!!
  • 4. LIQUID AGENCY Let’s face it. Retail is not what it used to be.
  • 5. “The convergence of a new consumer paradigm and an overcrowded marketplace has finally brought the (retail) industry to the brink of fundamental change.” Robin Lewis CEO, The Robin Report
  • 6. Let’s take a closer look at what’s happening. And how we can leverage it.
  • 7. LIQUID AGENCY OLD MODEL RETAILERS/BRANDS HAD THE POWER ONE SHOPPING PLATFORM “I NEED STUFF” FOCUS ON ACTUAL CURRENCY STORE = PLACE NEW MODEL  CONSUMER HAS THE POWER MULTIPLE SHOPPING PLATFORMS “I WANT AN EXPERIENCE” FOCUS ON SOCIAL CURRENCY STORE = INTEGRATED BRAND EXPERIENCE
  • 8. “Welcome to a new era of marketing and service in which your brand is defined by those who experience it” Brian Solis Digital Futurist The Altimeter Group
  • 9. LIQUID AGENCY What are the key insights? 1 Engaging experiences help build relationships. 2 Relationships lead to more and better transactions.
  • 10. A couple of facts and figures: Create a negative experience 89% SOURCE: 2011 RightNow Customer Experience Impact Report. Percentage of customers who tend to switch to a competitor’s brand
  • 11. Average cost of losing a customer: $300 SOURCE: KissMetrics – The Price of Bad Customer Service
  • 12. Let’s put this in perspective: $300,000,000 JC Penney lost 1,000,000 customers in 3 months. Which means they lost this much revenue in that period. SOURCE: Forrester / The Business Impact Of Customer Experience, 2012
  • 13. LIQUID AGENCY In today’s world consumers expect more from retailers and brands. They want to feel: • Understood and engaged. • Entertained and amused. • Surprised and delighted. • Flattered and appreciated.
  • 14. They want to be courted. I told you, it’s a lot like dating!
  • 15. LIQUID AGENCY Consumers want engaging and rewarding experiences. By embracing this “want” we have an opportunity to build stronger and more meaningful relationships.
  • 16. “Consumers today seek reciprocal relationships with partners who ‘get’ them—who are into the same things, who speak their language, who want similar outcomes in life and who are willing to be invested in the relationship. Retailers and brands should seek meaningful encounters, rather than just incenting cold, one-time transactions.” Dee Warmath UoW Center for Retailing Excellence And fierce Hockey Player.
  • 17. LIQUID AGENCY Get it? “Meaningful encounters” Not just “cold one time transactions”
  • 18. Let us tell you about STORY.
  • 19. LIQUID AGENCY STORY is 2000 square foot retail concept in NYC that takes the point of view of a magazine, changes like a gallery and sells things like a store. Every four to eight weeks, STORY completely reinvents itself and features a new theme, trend, or issue – through merchandise selection and retail design.
  • 20. LIQUID AGENCY
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  • 22. LIQUID AGENCY The idea was to create a retail concept that could serve as a matchmaker between brands and consumers, integrating strategies of marketing, merchandising, and business development. Sounds like “dating” again.
  • 23. LIQUID AGENCY STORY introduces innovative ideas about creating engaging experiences – from pasta making classes to talks from TED luminaries, inspiring brand partnerships with start-ups and Fortune 500 companies like HP and Pepsi – and consistent creative collaboration.
  • 24. “Don’t think of sales per square foot but experience per square foot” Rachel Schechtman Founder STORY / Retail Store
  • 25. LIQUID AGENCY RESULTS: On average, most new retail concepts take about three years to turn a profit. STORY was profitable in year 1 – and it has become a media-darling, attracting new customers, much bigger or much cooler brands, and is continuing to evolve and grow.
  • 26. More facts and figures: Percentage of consumers who will pay more for a better experience 4X 86% Consumers who are emotionally connected with a retailer are more likely to shop with them SOURCE 1: Harbor Industries: Industry Trends and Insights SOURCE 2: Forbes Magazine / Customer experience: Is it the chicken or egg?
  • 27. Anthropologie sure knows how to romance.
  • 28. “We spend the money that other companies spend on marketing to create a store experience that exceeds people's expectations. We don't spend money on messages—we invest in execution.” Glen Senk President of Anthropologie
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  • 39. Umpqua reimagined the banking experience. Then did it again.
  • 40. LIQUID AGENCY Banks are boring. Technology has been depersonalizing the banking process. The banking industry is mostly focused on efficiency and transaction. So, Umpqua Bank decided to completely change the experience.
  • 41. LIQUID AGENCY They started with a brand perspective. BRAND DNA Community Prosperity AUDIENCE TRENDS Localists Slow Movement -Localism
  • 42. LIQUID AGENCY Umpqua built an environment where their customers like to be. Umpqua delivered a banking experience that provided a sense of community – inviting customers to linger, sip coffee and shop for services.
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  • 46. LIQUID AGENCY Umpqua 2.0 Later, Umpqua applied social networking ideas to a physical community bank and altered the community experience. -  A community table allows groups to meet -  An interactive mosaic showcases community events/activities; -  Offerings were made more accessible to reflect the increasing desire for transparency; -  And, in its dedication to small business, conference rooms were offered as a service.
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  • 49. LIQUID AGENCY Umpqua 3.0 Recently, Umpqua rolled out yet another iteration of its bank experience to include a “Discovery Wall” -  An interactive touchscreen showcasing financial tools and info. -  “Return on Responsibility”, featuring real-time information about how Umpqua supports the community (hours volunteered by bank associates, youth financial literacy initiatives, charitable contributions made by Umpqua, etc.) -  “LocalSpotlight” - featuring local merchants and their products. -  There’s even a hotline phone so customers call the bank’s president directly.
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  • 52. LIQUID AGENCY RESULTS: A better experience helped Umpqua grow from $120M to $8B and has meant substantially more deposits, more loan purchases, better recruits and a community of happier customers.
  • 53. More facts and figures: Loyal customers spend more than new customers. 33% 50% SOURCE: Forrester / The Business Impact Of Customer Experience, 2012 Retailers that invested in relationships saw their sales increase by this much. (Without increasing their marketing budget)
  • 54. The customer journey has changed.
  • 55. LIQUID AGENCY Consumers expect better experiences. They want to be courted not to be sold. Sounds like dating again! Instead of thinking about the path to purchase think about the journey to a relationship.
  • 56. The path to purchase has changed. The old path A B
  • 57. The journey to relationship. The old path A B The new path
  • 58. Introduce yourself. Surprise her. Inspire her to share. Understand her. Get to know her. Thank her. A Learn what she likes. Invite her in. B Entertain her. Help her discover something new. Anticipate her needs. Keep in touch.
  • 59. The path to purchase.
  • 60. The journey to relationships.
  • 61. LIQUID AGENCY Relationships lead to transactions. To go after the single sale and skimp on the relationship is to miss out on an entire community of customers and future transactions.
  • 62. “We are evolving into a KINSHIP ECONOMY in which the job of the brand is to facilitate and foster relationships and connections among consumers.” “Brands need to offer social currency that consumers can spend with other consumers.” J. Walker Smith The Futures Company
  • 63. LIQUID AGENCY Create experiences that add value. In this kinship economy, along this new path, communications should focus on courting the customer, not selling to her. Brands need to add value, not solely “sell.” And to add value they must create meaningful, relevant, interesting experiences.
  • 64. LIQUID AGENCY And here’s why it matters:
  • 65. Introduce yourself. Surprise her. Inspire her to share. Understand her. Get to know her. Thank her. A Learn what she likes. Invite her in. B Entertain her. Help her discover something new. Anticipate her needs. Keep in touch.
  • 66. SOCIAL CURRENCY: Positive conversations Positive reputation Social network B ACTUAL CURRENCY: More customers More transactions More margin
  • 67. LIQUID AGENCY It may sound crazy. It is bold to tell retailers and brands to make the purchase secondary and invest in relationships first. But it also makes good business sense. Because those relationships will build social currency. And that social currency will pay off in actual currency now, and down the road.
  • 68. More facts and figures: 74% 55% 74% 50% Percentage of brand marketers saw an increase in website traffic after investing just 6 hours per week on social media. Percentage of shoppers who share their purchases on social networks. Percentage of consumers that rely on social networks to guide their purchasing decisions. Percentage of revenue that brands are expected to generate through social media by 2015. SOURCE: Dr4Ward / What Is Social Currency And How Does It Effect Social Commerce? Infographic
  • 69. LIQUID AGENCY Conclusion: 1 Engaging experiences help build relationships. 2 Relationships lead to more and better transactions.
  • 70. Want to do better at retail? Here are a few dating tips.
  • 71. LIQUID AGENCY 1 Get noticed. You can’t start a relationship if you’re a wallflower. Go from bland to brand. Stand out from the rest. 2 Be honest. Stay true to your brand personality. If it feels forced to you, odds are it feels forced to your customer too. Sophisticated digital tools mean you don’t have to assume what she wants. Use them the right way to ensure you understand her needs and wants. 3 Get to know her. 4 Give her temptation to follow the crowd. What’s right for one brand, may something special. not be right for you. Find what makes you unique and use it. 5 Surprise her. Give her something she can’t get somewhere else. Resist the Keep her engaged with something unexpected–something that invites her back again and again.
  • 72. LIQUID AGENCY 6 Stay connected. Thoughtful notes, updates and conversations let her know you’re thinking of her, even when she isn’t buying something. 7 Don’t over do it. Yes, technology is great. But just because you can, doesn’t mean you should. 8 Be nice to her friends. The opinion of her community goes a long way–and can make or break your success in the end. 9 Remember: It’s not all about you. In this new era of retailing, the consumer has the power. And it’s all about her.
  • 73. Good luck.
  • 74. Thank you.
  • 75. LIQUID AGENCY We’re a brand experience agency. From the very beginning, we set out with a clear purpose — help our clients create value for their businesses through smart and effective branding programs. Over time it became evident that the biggest opportunity for this to happen rested in our ability to transform the way brands engage with their audiences. So, we decided to focus on creating unique, relevant and interesting experiences across the touchpoints that really matter. Thankfully, we had the chance to be exposed to the way that things are done in Silicon Valley — which taught us to embrace innovativon and inspired us to develop new methodologies and new tools. We're now considered the No. 1 agency in Silicon Valley. We love what we do. And like to work with clients that challenge us to create amazing experiences.
  • 76. Liquid Agency USA EU LATAM SAN JOSE, CA SAN FRANCISCO, CA PORTLAND, OR NEW YORK, NY NOTTINGHAM, UK SANTIAGO, CHILE W W W . L I Q U I D A G E N C Y. C O M