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

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    20-Aug-2015

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<ol><li> 1. It Shouldnt Be Lonely Atthe Top: 10 Ways RetailersCan Retain Their Top 20% </li><li> 2. 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 </li><li> 3. why be customer-centric? You have to be!Relevance and experience, not productCompetitive differentiationSustainabilityBottom line </li><li> 4. Choose who you want a relationship with. Then be RELENTLESS! </li><li> 5. todays consumer isfickle, loyalty is downin control, demandingoverloaded with mass marketing, low trustexpectation of speed and connectivityconnected, digital lifestylecreative, likes to experiment, seeks self-expressioneducated, awarea multi-tasker </li><li> 6. reasons for losing acustomer *14% Dissatisfaction with product or service9% Competition5% Influenced by friends3% Moves away1% Death* Source: American Society for Quality </li><li> 7. retailer goals Increase loyalty Increase visit conversions Increase ticket size Optimize marketing and customer engagement costs </li><li> 8. Top 10 Ways to Retain Your Top 20% know your customer listen to and nurture your best customersmap out and automate customer engagementsadapt 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-service9 </li><li> 9. 1. know your customerPerformance per channelBusiness- and vertical-specific attributes and demographicinfo (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 ofthe customer, etc.) </li><li> 10. 1. know your customerCapture data at every touch pointCustomer profiling and segmentation using businessintelligence:Revenue-generating customers, most profitableRecency, frequency, monetization (RFM)Customers who respond to offers vs. those that dontWidely-used KPIs: average transaction size and,customer gross profit, performance by segment </li><li> 11. 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 </li><li> 12. 2. map out and automatecustomer engagements Understand consumer behavior workflows to respond to expediency Its 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 </li><li> 13. 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 dont make it past the fitting room </li><li> 14. 3. personalize the customerexperience at every channelEducated, intelligent, and contextual item and offerrecommendations at every channelBased on purchase history and preferencesCustomers who bought X also bought YNew products for you/offers for youHappy Birthday!Keys to cross-sell and up-sellMulti-channel customer spends 3-4xmore than a single-channel customer </li><li> 15. 4. empower sales associates andimprove the store experienceCustomers hit a brick and mortar wallStore experience, customer service, and education areimportant for increasing conversions (dont forgetmerchandising!)In-store associate education/lookup of customerinformation, assisted sellingRaymark Clienteling and Point of SaleMobile handheld, PC/POS/kiosk, slate/tabletCustomer profiling, history lookupAssisted selling, loyalty management, etc. </li><li> 16. 5. surrender to self-serviceThanks, Im just looking.Encouraging self-service is key, force yourself to get outof the wayAdapt to introvertsAt home experience in the store: kiosks, digital displays,smart phones, etc.Successful practices:In store digital product browsingWay findingPersonalized recommendations and offersAccess account information and peer reviewsSelf checkout is emerging </li><li> 17. 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 </li><li> 18. 7. listen to and nurture yourbest customersThey know more about yourbusiness than you do, learn fromthem 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 veryFacebook is the new focus grouppowerful. Divert some investments tothem, organic ROI via law ofreciprocationJeff Bezos, CEO, Amazon </li><li> 19. 8. adapt messaging to customersegmentsLoyalties are generally focused onthe brand, much more than the saleschannelIts the message, much more thanthe mediumAdapt messaging andstore/customer experience toprofiles, emotional connections, andgeographyBreak out niche products? </li><li> 20. 9. integrate your systems,channels, supply chain, &amp;organizationCustomers expect itIntegrate all touch points: stores, web, mobile, callcenters, appointments/service, etc.Add the customer dimension to merchandisingprocess:Meet product demand by integrating customerindicators (preferences/trends by segment, demographicinformation, etc.)Tailoring assortments and pricing by geography anddemographic </li><li> 21. 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 </li><li> 22. demo of MS CRM for retailRaymark Charisma CRM is a retail-specific CRM solution built on the MicrosoftDynamics CRM platformPart of Raymarks 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-basedmarketing4. Improved stock movement with intelligent cross-selling and up-selling5. Win top-of-mind positioning over the competition with messages thatreally engage customers6. Increase productivity with automated marketing and customer service </li><li> 23. something to leave you with </li><li> 24. 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 </li><li> 25. business ingredientsProcesses re-engineer work from outside inInformation treat customer data as an assetand foundation focusMetrics set metrics at multiple levels. What isnot measured does not get done.Technology outline architecture FIRST. Treatas one large integrated and interoperablesystemWithout real time performance managementyou fail! </li><li> 26. technology ingredientsOptimized Infrastructure foundation foroperationalizing data and work flowRetail Web Services Platform Required forconsumption of structured and unstructured dataAnalytics A must for determining what to do with allthat data - most importantly, customer dataRetail Data Warehouse Single view of data forbusiness logic and application executionRich and Portable UI - HTML5Ubiquitous Consumer Connections Customer canconnect and receive same experience no matter whatdevices are chosen </li><li> 27. Presented byWill Rochewroche@raymark.com</li></ol>