Transcript

It Shouldn’t Be Lonely At the Top: 10 Ways Retailers Can Retain Their Top 20%

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

Choose who you want a relationship with. Then be RELENTLESS!

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 

something to leave you with…

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]


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