80% of your profits come from 20% of your customers
80% of your complaints come from 20% of your customers
80% of your profits come from 20% of the time you spend
80% of your sales come from 20% of your products
80% of your sales are made by 20% of your sales staff
80-20 rule
why be customer-centric?why be customer-centric?
You have to be!Relevance and experience, not
product
Competitive differentiation
Sustainability
Bottom line
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
14% – Dissatisfaction with product or service
9% – Competition
5% – Influenced by friends
3% – Moves away
1% – Death
* Source: American Society for Quality
reasons for losing a customer *
68% NEGLECT!
retailer goalsIncrease loyalty
Increase visit conversions
Increase ticket size
Optimize marketing and customer engagement costs
Top Top 1010 Ways to Retain Your Ways to Retain Your TopTop 20% 20%
9
know your customer
map out and automate customer engagements
personalize the customer experience at every channel
empower sales associates
and improve the store experience surrender to self-service
listen to and nurture your best customers
adapt branding to customer segments
integrate your systems, channels, supply chain, and organization as a whole
join the mobile revolution
1. know your customer
Performance per channelBusiness- 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.)
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
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 won't give you a long-term, sustainable competitive advantage. But if you can get an edge based on how customers feel about your company, it's a much stickier, sustainable relationship over the long haul.
- Bob Thompson
2. map out and automate customer engagements
Understand consumer behavior workflows to respond to expediency
It’s all in the follow up: automation and continuity via scheduled and triggered workflows
Sample workflow:
Monitor transactions at the POS, capture sale of Brand X jeans
Trigger 10% off email coupon to customer for Brand X shirts and other accessories (if customer is a Tier 1 spender)
Track response and sale, optionally engage in child workflow
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
2. map out and automate customer engagements
3. personalize the customer experience at every channelEducated, intelligent, and contextual item and
offer recommendations at every channelBased 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-sell
Multi-channel customer spends 3-4x more than a single-channel customer
4. empower sales associates and improve the store experienceCustomers 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, and customer-to-customer relationships
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 your best customers
They know more about your business than you do, learn from them
Brand evangelists and advocates, fuel viral word of mouth
Facebook is the new focus group
Divert some investments to them, organic ROI via law of reciprocation
If you do build a great experience,
customers tell each other about that.
Word of mouth is very powerful.
Jeff Bezos, CEO, Amazon
8. adapt messaging to customer segments
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
demo of MS CRM for retail
Raymark Charisma CRM is a retail-specific CRM solution built on the Microsoft Dynamics CRM platform
Part of Raymark’s customer-centric retailing offering, it allows you to:
1. Identify your best customers2. Obtain a 3600 view of your customers across all channels3. Improved loyalty with targeted, personalized, relationship-
based marketing4. Improved stock movement with intelligent cross-selling and
up-selling5. Win top-of-mind positioning over the competition with
messages that really engage customers6. Increase productivity with automated marketing and customer
service
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 customer
Ref: Gartner – “CRM Vision and Strategy: Putting the Pieces Together to Generate Success”
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!
business 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
technology ingredients
Presented byWill [email protected]