In today’s fast-paced world retailers have to keep up with: Shorter seasons Changing trends Increasing consumer demands Tight legislation Fierce competition, A volatile economy Lightening speed technology and all this within an omni-channel, international arena.
Internet-related disintermediation has been a significant to many retailers. Amazon is great examples of retailers who have taken huge chunks of the market that would have been for companies like Best Buy, Circuit City, Borders and Barnes and Nobles. Why go to a store anymore?
Praeto principle can be applied to everything but particularly retail. The primary point we are driving is that there is a group of customers who drive or at least statically drive 80% of your profit, Engaging this group is the greatest lever you have for increasing profits.
What are these customers all about? In general even your top 20% are:
Many things can turn a customer away but usually for a limited time if you keep a connection, Neglect and ignoring your customers thinking they are a gravy train that will keep on running is the ultimate demise of most retailers.
This all translates into the fact that retailers are businesses and as are required by definition to grow and makes profits!
So how do you create that relevant relationship so that you increase company profits. We believe doing these next ten things will lead you to the results you need and keep you from disintermediation by the internet.
Who are those top customers and what makes them tick. How then can you use that information to operationalize a relevant relationship. I assert your loyal customers will give you all the information you want because they trust you. If they wont then they are not loyal and you should seriously understand why?
Customer data is gold! Treat it as such and you will be rewarded. Never misuse this huge competitive advantage by taking advantage of the information and trust your customers have gifted you! Use this information to better understand how to serve your customers not scam them. By the way retailers who survive disintermediation by the internet will do so because they will understand retail business is a service business.
Providing high quality and trusted services is your differentiator. Remember the physical things you sell are just by-products of your service. The customer IS the product!
So now you know your customer and have this precious information. What do you do with it. You operationalize it! How by deconstructing every aspect of how you do business and with focus on the customer now as the product re-construct your business processes with well engineered work flow that provides the output or customer behavior you are wanting to achieve.There are many scenarios I can make up, but ultimately as a retailer this is your job. This is in fact where you create your differentiation.
Some examples revolve around basic human nature. Create a sense of urgency letting your customers know that they are getting this special deal because they are special. These offers should never be a gimmick and must have real value or your customers will see right through you and you will lose their trust. Attention to detail. I remember seeing Retail is Detail all the time years ago? What happened? The detail I am talking about is the connection with your customers providing value without being intrusive.
Customers don’t care about your problems providing value. It is actually very binary. You do or you don’t? Part of providing value is creating a common experience at what ever point of business a customers wants to tap into with equally relevant value and trust. I think of it as ubiquitous connections.
Great examples of what generally is not good and happens is the complete disconnect of the ecommerce experience and the store. The “brick and mortar wall” Two completely different business trying to fake being one. Customers are smart! Ok so you can order on the web and pickup at the store. Nice and important but it isn’t a differentiator any longer it is a requirement to compete.So what are you doing to create a reason to go to the store. The question I asked at the very beginning, technology and access to information real time is essential but its what do you do to create the relevant and exciting experience that flows across you business that ultimately makes the difference. What are you doing to provide guided direction and tools for your sales associates to arm them for delivering this high impact service.
Also important is that you understand your customers and know that a sales associate is not always the answer for the best customer experience, Self service is another very important aspect of extending the ecommerce experience to the store automatically with well engineered work flow. Understand how your customers want to be served and give them choices.
Social networks are not some magical new thing that will automatically make you customer-centric. It is a great way to use those loyal customers as your sales folks, by having your customers blog and discuss why you as a retailer make their life so great they greatly increase your reach and touch more people that are most likely having the same affinities of your loyal customer. This is a must with todays technology
Listen up retailers is a statement we make here at Raymark when we talk about our customer centric strategies and products. So listen to what your customers are saying and do something! Remember the customer is the product!
Also be very critical about how you smash groups of customers together. Remember people want to be treated as individuals. It takes extra effort to understand and adapt your messaging correctly with your individual customers. This is essential to being a successful customer centric retail and will pay off.
Ubiquitous customer connection. ABC! Always be connected to your customers streaming value. If you cannot do this you future may be very bleak.
Mobile is a very broad term. Mobile is the glue between the ecommerce and the store and can be a great tool to drive your top customers to your store. Giving individual promotions with time base limits is a great way to use the phone as a vehicle to drive in-store traffic.
Customer-Centric Retailing in Today's Cross-Channel World
Customer-Centric Retailing inTodays Cross-Channel World
AgendaCustomer-Centric Retailing in Todays Cross-Channel World Will RocheThe Sinners and Saints of Social Retail (Buyosphere) Tara HuntBuffalo Jeans Stephen WhiteSaks Fifth Avenue Theo ChristNetworking Get to know each other!
ClientelingPlanning Receiving Web Loyalty Vendor Consumer Social Commerce Point Audit Customer centricity Reporting of Sale Allocation Assortment Planning Open ToTHE CUSTOMER BuyBusiness Intelligence StoreMerchandising Analyzing Inventory management Ticketing ExportStock TurnoverPurchasing Warehouse Catalog Mobile Kiosk Mark DownsGroupons Audit
Key Differentiators • Centralized architecture providing up- REAL-TIME to-the-minute access to information across stores and the enterprise. • Connected suite of applications for INTEGRATED Point-of-Sale, Merchandising, Planning, Replenishment, Purchasing and more. CUSTOMER- • Powerful CRM, Loyalty and Clienteling CENTRIC solutions.MULTI-CHANNEL • Brick-and-Mortar, E-Commerce, and Mobile applications for the store. PARTNERS • World-class and strategic companies including Toshiba, RPE, Shift4 and QAS • Installed in over 40 countries. Multi-INTERNATIONAL language, multi-currency, and multi-tax.
Solutions and Services Operations Customer-Centric Retailing Planning & InventoryPoint-of-Sale. Back-Office. Clienteling. Loyalty Management. ManagementMobile POS. Sales Audit. Customer Relationship Management. Product Management. Merchandising.Payment Processing. Warehousing. Replenishment.Employee Management. Purchasing. Sales Force Automation.Ecommerce. Open-to-Buy. Merchandise Planning. Assortment Planning.Enterprise Reporting & Business IntelligenceSaaS / Cloud or On Premise DeploymentsProfessional ServicesAccount Management. Project Management. Business Analysis and Process Review. Change Management. SoftwareCustomizations. Education Services. IT Managed Services. 24/7 Help Desk Support.
CRM is the New ERP POS, Mobile POS People E-commerce Workforce Management Technology Service Management Process B2B Sales Operations Marketing Clienteling Consumer Mobile Loyalty Digital Signage BI Social Media Customer Engagement Planning Replenishment Assortment Planning Space Planning CRM Merchandising
why be customer-centric? You have to be! Relevance and experience, not product Competitive differentiation Sustainability Bottom line
80-20 rule80% of your profits come from 20%of your customers80% of your complaints come from 20%of your customers80% of your profits come from 20%of the time you spend80% of your sales come from 20%of your products80% of your sales are made by 20%of your sales staff
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
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
Top 10 Ways to Retain Your Top 20% know your customer listen to and nurture your best customersmap 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 aempower sales associates and wholeimprove the store experience join the mobile revolution surrender to self-service 12
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.)
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
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 wont give you a long-term, sustainable competitive advantage. But if you can get an edge based on how customers feel about your company, its a much stickier, sustainable relationship over the long haul. - Bob Thompson
2. map out and automatecustomer engagements Understand consumer behavior workflows to respond to expediency It‟s all in the follow up: automation and continuity via scheduled and triggered workflows The right product Sample workflow: Monitor transactions at the POS, capture sale of Brand XWith the right incentive At the right time jeans Trigger 10% off email coupon to customer for Brand X shirts and other accessories (if customer is a Tier 1 spender) Through the right channel Track response and sale, optionally engage in child workflow
2. map out and automatecustomer 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
3. personalize the customerexperience 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-sellMulti-channel customer spends 3-4xmore than a single-channel customer
4. empower sales associates andimprove 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.
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
6. embrace social media, andcustomer-to-customerrelationships 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
7. listen to and nurture yourbest 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
8. adapt messaging to customersegments 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 ?
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
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
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 customerRef: Gartner – “CRM Vision and Strategy: Putting the Pieces Together to Generate Success”
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!
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
Shift4 – Secure Payment Processing• World’s largest independent provider of payment gateway services• Founded in 1994• Helps retailers of all types and sizes turn credit, debit, check, and gift card transactions into dollars in the bank quickly, accurately, and securely• Delivers secure payment processing to leading retailers and e-commerce sites• PCI-compliant solution
®DOLLARS ON THE NET• Processor connectivity and neutrality • Connections to all major processors in North America • Direct to American Express• Centralized accounting and credit card controls • Full online reporting and auditing• Certified for EMV/Chip & PIN in Canada• Tokenization technology (invented and coined the term)• Point-to-Point Encryption (P2PE) • Shift4 manages encryption keys, not the processor
®DOLLARS ON THE NET (cont’d)• Mobile payments support • iPad, iPhone, iPod Touch, Android, etc.• Supports wallet technologies (Google Wallet and ISIS)• BIN management ensures lowest-cost processing method• Fraud controls to combat internal credit card fraud• 24/7/365 live,world-class customer service (in-house)