Author Archives: Jennifer Bosavage

by Jennifer Bosavage

Attracting and retaining the elusive Millennial shopper

 

 

Loyal customers — the Holy Grail for retailers.

Repeat shoppers are a source of recurring revenue. Smart businesspeople know that success lies in cultivating loyalty, and that means more than creating programs that simply collect customer information.

Today’s educated customers understand loyalty programs are often of more value to retailers than to customers.

Millennials in particular are sensitive to that value proposition, and retailers are starting to serve up programs targeted toward the specific desires of this demographic.

A quarter of millennials and 19% of Gen Xers like to shop with family and friends. It’s a social activity that’s enjoyed at a brick-and-mortar storefront.

But, while Gen Xers value the relationship with a store, Millennials value experience and don’t have the same brand loyalty as the older generation.

It’s easier to get a millennial to try a competing brand, so it’s more difficult to retain millennials as customers.

Retailers have to work at providing customers perceived value consistently to earn their loyalty.

3 things Millennials look for:

 

1. Technological “wins”

 
How does a retailer make it easy for customers?

Millennials are dependent on their phones; 84% of them in a recent study said their mobile devices were the most important thing in their lives.

Retailers can use that knowledge to their benefit by, for example, offering mobile apps that are easy-to-use and relevant.

Many say that shopping is easier through an app than through a web site; by offering a digital experience that reduces purchasing friction and makes shopping easier, a brand can improve its relationship with millennials.

 

2. Shared value system

 

What matters to a brand, matters to Millennials.

For example, Patagonia has supported grassroots activists working to find solutions to the environmental crisis.

Shake Shack’s ethos is “We stand for something good,” which is reflected in its carefully sourced premium ingredients from like-minded purveyors as well as in its community support.

Customers feel good purchasing from companies that align with their world views.

 

3. Personalization

 
Yes, for customers, it’s all about “me.”

That doesn’t mean obsequious associates greeting customers they don’t personally know by their first name or creepily sending birthday cards to clients they’ve barely served.

Rather, it means positioning the company in a way that feels customized.

That includes having Instagram-worthy products, immediate customer service response and marketing that focuses on word-of-mouth.

Influencers — high-profile customers whose style is “gospel” — can be more powerful brand advocates than any type of advertising.

But it’s not all about celebrity: For example, Carter’s apparel encourages Millennial parents who want to share photos of their Carter’s-clad babies to use its hashtag #lovecarters.

Retailers can have paying customers, or they can have loyal customers.

High quality products and experiences encourage loyalty in Millennials, who tend to be more easily swayed by special promotions and lower cost than previous generations.

However, loyalty can be earned: Retailers with compelling brand stories and experiences that regularly exceed expectations are positioning themselves to welcome the elusive repeat millennial customer.

by Jennifer Bosavage

Gesture recognition helps retailers gauge shoppers’ real interest

 

 

Artificial intelligence can help even the fussiest customer find just the right product, in a fraction of the time it would take without any technological assistance.

While AI has been used in various businesses, including retail, to improve efficiencies, the technology has also been employed to help stores improve the customer experience by providing more personalized service.

Through advanced gesture recognition, retailers can determine the popularity of an item by analyzing shoppers’ facial and hand gestures.

Software analyzes the way shoppers react to a certain item and determines whether the item is a potential sales buster — or a dud.

Just as an online recommendation engine analyzes a shopper’s movement within a site, gesture recognition software “learns” how an item affects a shopper, and can assist the retailer in finding an item that is perfect for a particular user.

 

Understanding shopping patterns

 
The ability to know what merchandise has been viewed and ultimately rejected is crucial if traditional retailers want to compete against the likes of Amazon.

Digitally native retailers understand customers’ purchase and shopping habits, because their machine learning models see all the data.

Brick and mortar retailers are far behind in understanding customers’ shopping patterns.

Gesture recognition can arm retailers with predictive power.

By analyzing customer data created by interpreting human gestures using mathematical algorithms, retailers can discover which customers are most likely to buy certain products.

 

Prescriptive intelligence

 
As AI advances, businesses will shift from gathering predictive data to prescriptive intelligence.

Once retailers understand why customers buy a product — or why they do not — the next step is to gather intelligence so marketers can illustrate the reasons why shoppers should buy a product.

 

Sales help

 
AI has the potential to amplify and augment retailers’ creativity, by providing not only necessary data, but also freedom from time-consuming, mundane tasks.

The key for brick and mortars is to employ AI in ways that provide in-store assistance to human retail associates.

For example, AI that is integrated into inventory systems can quickly and accurately answer repetitive questions such as stock requests, store hours and directions.

Sales associates can then focus on helping and closing deals with customers.

Such tasks can accumulate and chip away at salespeople’s time, leaving them little time to create customer relationships.

Gesture recognition is no different in terms of its potential to enhance customer service.

Salespeople receive accurate insights quickly, providing them with the opportunity to react appropriately.

“AI assistants” can help provide associates freedom from mundane, routine tasks so associates can work on improving personalized customer experiences.

By making appointments, sifting through and prioritizing email and scheduling various tasks, an AI assistant allows the retail associate to shine in pursuit of customer satisfaction.

by Jennifer Bosavage

Going omnichannel doesn’t mean using every channel

 

 

Through the past decade, retailers have worked to create and maintain a digital, omnichannel presence.

For most, that has primarily meant improving the connection among their different sales channels, i.e., online with brick and mortar.

But today’s retailer must do more than, for example, ensure a sale can start in one channel and conclude in another, or that inventory of a downtown location can be reliably checked online.

With digital interactions influencing an estimated 56 cents of every dollar spent in retail stores, it is crucial for brick and mortars to invest in the right channel, the right way.

Here are 3 tips for choosing the best channels for your omnichannel investment.

 

1. Hook up with social media

 

The ability of retailers to influence the purchase journey is decreasing, while social media channels are increasingly able to shape sales decisions.

Retailers should embrace integration with and the native capabilities of the major digital platforms where their customers are currently interacting and transacting.

Retailers interact with customers on average, according to Deloitte, six to eight times annually.

Facebook, Instagram and Pinterest interact with those same individuals far more regularly, weekly, daily and even multiple times per day. Advertising on Facebook is not just for niche companies.

Becoming integrated into the fabric of everyday activity means more than old-school mailers or even posting on a business Facebook page or Instagram account.

They must become “top of mind” for customers, and in today’s world, that means being a consistent voice on social media.

 

2. Be millennial-minded

 

Deloitte found that more than three-quarters (78 percent) of non-millennials are now using digital devices either two or three times throughout their shopping trips.

Research indicates that digital plays a large role in inspiration, payment and post-purchase for beauty products, but only a very small role in the grocery business.

Couple that with the fact that more than three-quarters of the buying power is still with those older than 30, and it’s clear that digital strategies should be aimed at how different groups use digital tools differently during the purchasing journey, and a range of customized experiences should be created for each.

Customers want to shop from trusted advisers. Creating a dialogue and a relationship with customers is the future of retailing.

 

3. Look at the data

 

Retailers need to move from a legacy “campaign” mind-set that centers on sales events to a customer mind-set built around the needs of different segments of shoppers.

Reliance on traditional approaches can result in flawed budgeting and investments in the wrong positions.

For instance, a commitment to helping shoppers easily select products may be the most important customer interaction on the path to purchase — rather than promoting the “one-day super sale.”

Staffing and hiring needs to reflect that change: social media specialists and customer relationship managers are increasingly valuable.

Brick and mortars that can marry valuable service from associates that complements their digital presence will ultimately be omnichannel winners.

Digital plays a larger role at different times during a journey, depending on the product that is sought.

Customers want to engage digitally and direct their own journeys, rather than work their ways through a store layout or merchandise hierarchy to locate and purchase products.

The key is to find the moments of inspiration and engage from that moment.

 

 

by Jennifer Bosavage

DIY retail: The self-service CX debate

 

 

Oh, that elusive “seamless” customer experience.

So many retailers are on the hunt for this.

Often, they look to modern self-service solutions for help.

But the totally automated experience is likely to seldom please every shopper.

And while self-service can be part of the solution, many retailers have learned that customers do not always want or prefer the do-it-yourself model.

 

Reinvesting self-service savings

 

Self-service technology can substantially lower front-line staffing costs.

Shoppers identify Amazon as coming from self-service roots, and consequently do not expect much personal attention at the Amazon Go grocery stores.

But those costs can be reinvested in the business, either in more technology to improve service or product selection, or by further boosting efficiency by training former cashiers and having them function as associates in other service-dominant areas.

Moving some of the customer experience toward automation can help increase the number of customer touchpoints — thereby increasing revenue of accessories and other items.

Adding an Amazon Go option of fast shopping using an app and sensors might also provide exceptional experience.

 

Different needs for different occasions

 

From the customers’ view, a seamless experience can differ, and depends upon a number of factors.

One factor is shoppers’ goals. Those can change daily.

Not all customers always want to check out the same way, every time.

Someone who is in a rush one day might need assistance during another visit.

Grabbing a snack at a convenience store may be deemed “frictionless” if selection was good and service speedy.

But when selecting shoes at a department store, a high level of personal attention may be desired to ensure a “frictionless” experience.

Sometimes more associate help, rather than less, can provide a smoother transaction.

However, traditional brick and mortars need to provide customer service in the most valuable ways, which might not be at the cash register, but on the floor and in the aisles instead.

 

Best of both worlds

 
Providing cashiers as well as self-service not only lets customer choose how they pay, but also frees up some associates — who might otherwise be manning a till — to assist customers needing help.

The best experience is the one that seems personally tailored on an as-needed basis, rather than one that is designed to fit everyone, all the time.

 

 

by Jennifer Bosavage

Omnichannel: The “new” brick & mortar concept

 

 

The face of Main Street stores has changed significantly during the last 20 years.

Bookstores have been replaced by nail salons, clothing shops are now restaurants and flower shops have made way for pet groomers.

Those are the types of services you can’t buy online, and they’re finding brick-and-mortar success.

They are taking back Main Street, breathing life back into the vacant store fronts.

And adding to this new look for downtown are traditional retailers that are using omnichannel to open successful businesses.

 

VIP Click and Collect

 

Take Nordstrom.

The venerable, high-fashion store has debuted “Nordstrom Local.”

Nordstrom Local doesn’t need a huge footprint, and doesn’t carry much inventory.

But it’s a way for shoppers to buy online, pick up in store but also enjoy other amenities that are afforded the VIP shopper.

Today’s fashionistas often order online, motivated by styles presented on social networking sites such as Instagram.

A customer places her order online, then heads to Nordstrom Local to pick up her merchandise instead of taking advantage of free shipping.

Why? To enjoy a manicure while sipping a smoothie and getting the inside scoop on the season’s hottest collection from the friendly, professional associate.

Sure, curbside pickup is a popular option for those on-the-go, but those pedicure stations also have their place.

Those are the competitive differences that will make Nordstrom’s top-of-mind for their next purchases.

It’s Click & Collect, taken to new heights. It’s that type of something extra that drive customers into the store.

This is the next level of omnichannel, in which the channel used for purchase is irrelevant.

 

Compare that to Amazon 4-Star

 

These days, fewer clothing stores have a presence on Main Street, with the exception of pricey boutiques that offer unique products unlikely to be found on Amazon.

Conversely, Amazon 4-Star carries a curated selection of product that caters to a local area.

This is almost the exact opposite of Nordstrom’s model, yet it is also very similar.

Both retailers are trying to cultivate a customer base that enjoys shopping online, but is missing human interaction.

While Amazon attempts to capture “discovery” shoppers, Nordstrom targets the efficient-with-benefits shopper.

And both are offering their clientele an experience tailored to their interests, which align with the shoppers in that demographic.

 

A personalized approach

 

Retailers today need to entice shoppers out of their homes and into the stores.

Just a few years ago, brick and mortar were written off as a dying breed, suitable only for “showrooming.”

Slowly but surely, brick and mortar shops are finding secure footing back on Main Street.

Not all the old names will make it back, and some are gone for good, because they just couldn’t reinvent themselves or their customer experience fast enough.

But physical locations are a vital part of the omnichannel, offering a more personalized approach than any pure ecommerce retailer ever could.

Just ask Amazon.
 

 

by Jennifer Bosavage

How to Create Shopper Personas to Know Who’s Buying from You and How to Sell More

Knowing and understanding customers is key for any retailer’s success.

Successful businesses study their shoppers, learning what they like – which can be as important as figuring out what they don’t like – and using that information to help predict what they’ll buy in the future.

Studying consumer behavior helps retailers determine factors that influence their buying decisions, which allows them to offer products that satisfy their customers’ needs.

If you want to really understand your customers, consider developing buyer personas.

 

  1. Who is your typical buyer?

The answer to this can be one type of person (e.g., a soccer outfitter) or a number of types (e.g., a general sporting goods store).

Using purchase data from your POS, you can discover who your end customers tend to be.

Hopefully, the results won’t be entirely shocking.

 

  1. Look at Their Product Purchases

Next, look at your products and connect the dots to the buyers.

Are your customers buying for themselves or others?

Some stores may find clear evidence that they are a gift-giving destination, while others may find it’s parents rather than teenagers who are doing the buying.

Consider creating a persona not just for the shoppers buying for themselves, but also for the ones buying on behalf of someone else.

At first, you are simply defining your clientele and placing them in large categories.

 

  1. Refine Your Search

The next step is refining your research:

Where do your customers live?

What are their ages?

Gender?

Hobbies?

Education level?

Income level?

Language spoken?

 

 

Some of these distinguishing traits will be more important than others.

Furthermore, there may be additional questions that are particularly relevant to your business.

 

  1. Draw Conclusions

Ultimately, you want to take the answers and compare that to what is being purchased and draw conclusions.

That can be accomplished by gathering reams of data not only from the point of sale terminal but also (potentially) from contest submissions or newsletter subscriptions.

Don’t forget past or inactive customers.

 

  1. Test Your Findings

It’s beneficial to understand why they may have stopped shopping at your business, so pick up the phone, send an email, create a survey – and find out you’re your shortcomings are; whether they are perceived or real they are valuable.

Offer an incentive, such as a coupon code and not only will they be more apt to respond, but they may also give your business a second shot.

 

  1. Tie in Online Data

If you have an e-commerce site in addition to brick and mortar, use tools such as Google Analytics Audience reports to nail down the demographics of online shoppers.

Take it one step further and unite all that data – POS, ecommerce, Google Analytics, and any other retail software you use – into an analytics platform that can help you predict what your customers will do next.

 

Successful retailers know their customers.

They not only know what they are buying and what they want to purchase but also their likes and dislikes outside of the store environment.

They know personal details.

And they’ve analyzed all that information so they can provide a stellar customer experience, not just today but for well into the future.

They know that the day they stop knowing their customer is the day they lose that customer.

by Jennifer Bosavage

3 Ways To Get Personalization Right

 

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Today’s shoppers have immediate access to product information at their fingertips.

Competition is plentiful and fierce, so retailers must differentiate themselves to be top-of-mind.

To be that “go-to” store, retailers increasingly must create personalized experiences that appeal to an individual’s desire to be valued and sought-after.

Retailers must leverage the customer data they have — or should have — to create that unique environment.

Intelligence on customer preferences and their interactions must be accessible and actionable; in other words, if you have information, use it. Analyze it.

And interpret it through the prism of providing a top-notch retail experience.

Why? Because it’s profitable.

Customers report that meaningful personalization does increase spending.

Retailers using personalization strategies experience revenue gains of six to 10 percent, a rate two to three times greater than other retailers, Boston Consulting Group research reports.

 

Here are three ways to get personalization right:

 

1.  Create personalized marketing campaign around product usage

Consider how your products or store can help customers achieve their goals.

The data that helps you determine which products customers may be interested in will also help you figure out why they need those items.

That knowledge will help you craft an individual message to every shopper.

Sometimes a group message is appropriate, but most often, the more you treat your customer as an individual with unique needs, the better you can illustrate your brand’s respect for individual customers.

 

2. Use detailed customer data to meaningfully personalize teasers, promotions and discounts

Communicate through data-driven email.

Personalizing messages requires email segmentation, analyzing customer data and creating a 360-degree customer view from a centralized database.

However, although email list segmentation has proven to lead to higher sales rates, half of marketers surveyed by Tune said they are not segmenting their email lists and less than nine percent of marketers said they aggregate their data within a single system of record.

Targeted email marketing is very successful; 47 percent of marketers told Emma’s 2017 Email Marketing Industry Report that email generates the most ROI for their organizations.

To take full advantage of email’s potential, retailers can send personalized teasers, promotions and discounts to loyal shoppers as well as prospects, in addition to those who’ve abandoned their shopping carts.

 

3. Engage consumers at key moments in their shopping experiences with push notifications

Text notifications can push shoppers through your door.

Research has found that 57 percent of shoppers spent more money at a retailer after receiving a notification.

An even more impressive figure is that 68 percent of consumers reported an impulse buy after receiving a notification.

Sending push notifications effectively helps boost sales by engaging consumers at key moments in their shopping experiences.

 

 

by Jennifer Bosavage

How To Win More Customers This Holiday Season

 

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Holiday shoppers will be headed out to the malls and Main Street this year.

They might also be shopping online, but the foot traffic is music to most retailers’ ears.

According to a study by Natural Insight, 87% of shoppers are planning to hit the road and shop. That number is spread out among younger shoppers, age 18 to 29, as well as older ones, age 45 to 59.

Once they’re in the store, the trick is to entice them to become customers.

Smart retailers will analyze customer data to pinpoint areas of differentiation. Providing a relevant, efficient customer experience is the end game. The trick is getting there.

Here are a few ways two big retailers are strategizing to make the most out of the most critical shopping time of the year.

 

Target

Target is striving to reignite its hip style image, while keeping products affordable.

 

Ship to Store

Target is offering its ship-from-store program at an additional 300 stores this holiday season.

The offering gets online orders to customers faster, and brings them into the store — where impulse shopping can drive up the total sale.

 

Reduce returns

Target’s GiftNow relieves some gift-giving anxiety.

A customer selects the GiftNow button when buying an item on Target.com.

The recipient receives the present as a digital gift box and has the option to accept, modify or pick an entirely different item.

In effect, the recipient can exchange the gift before ever receiving it. Less hassle for the recipient and less costly for Target.

 

Understanding demographics

Target has had success attracting families and Latinos with last year’s holiday campaign, but it didn’t connect with either young adults without children or empty nesters.

Some of the exclusive brands it plans to launch, including Hearth & Hand with Magnolia, a partnership with HGTV ties, and JoyLab, an atheleisure line, are geared toward appealing to that market.

 

Toys R Us

Success this holiday season is a life or death proposition for Toys R Us, which recently filed for Chapter 11 bankruptcy protection.

 

Technology

The toy retailer is using augmented reality technology to transform its customer experience.

Customers – in particular, their children – use an app to view AR activities that implant computer-generated images on top of a real-world environment, a la Pokemon Go.

Shoppers are guided by flashing icons and stickers on the floor, and by pointing their mobile devices at shelf sign or floor decal, see a toy or activity come to life on the screen.

Each activity lets the player earn stars; as more stars are earned, more experiences are offered.

The idea is to offer shoppers a compelling customer experience so they  visit a store, rather than shop online.

The goal is to be a shopping destination where fun informs purchasing decisions.

 

Experiential retail

In addition, the retailer will open playrooms at many of its stores, where children can try out toys and demonstrations will be available.

That can go a long way in reversing a mindset of not wanting to shop with the kids who are frustrated at not being able to touch and play with toys on the shelf.

Instead, the strategy encourages bringing children and listening to their feedback.

 

Brick and mortars that understand their shoppers and formulate strategies specifically geared toward them will be best positioned this holiday season.

Those who continue with tired formulas that meet neither the needs nor the expectations of shoppers will lose out to online competitors, as well as to the brick and mortars that are evolving with their customers.

 

 

by Jennifer Bosavage

Mobile Wallets Drive Customer Loyalty

Mobile wallets are a great way to offer customers discounts and promotions as well as to make it easier for them to pay for purchases. Discounts, promotions and efficiency are all factors that drive loyalty. Mobile wallets offer advantages that encourage shoppers to visit often, and retailers that provide their own apps with built-in wallets find that loyalty increases.

Loyalty programs play a large role in mobile wallet adoption for retailers. For years, Starbucks and Dunkin’ Donuts have had successful loyalty programs that have helped them to acquire mobile wallet users. Such programs offer drink and food specials, which leave customers feeling valued and appreciated. That, in turn, has helped stores to grow traffic and conversion rates.

Ironically, while mobile wallets are growing in popularity with consumers, some merchants have been slow to adopt near-field communication (NFC) technology, and are underwhelmed by universal mobile wallets such as Apple Pay and Samsung Pay. Still, in the United States alone, there are currently 2.5 million NFC payment terminals, and that number is poised to grow significantly.

Customers are letting their preferences for mobile wallets be known at the register. A 2016 Urban Airship study reported that 67 percent of consumers want loyalty functionality in mobile wallets. By leveraging loyalty programs with mobile payment options, company sales are expected to grow at a five-year compound annual growth rate of 68 percent, according to a report from BI Intelligence.

Universal wallet choices are plentiful, with digital wallet choices including Masterpass, Android Pay, Apple Passbook and Venmo. A new study from MasterCard found that social media users often mentioned that they’d like to store loyalty cards on their wallet and use their phone to pay for transit system fares. Customers want mobile wallets to be multi-functional and flexible. Apple Pay has integrated its solution into a few transit authorities in the U.S., Europe, Japan and Singapore, but availability is still minimal.

Android Pay, Apple Pay and Samsung Pay support loyalty card integration in their mobile wallets, which could encourage habit formation, but many major retailers, such as Walmart and CVS, are waiting on loyalty or payments integration, hoping instead to boost adoption of their own wallets.

Regardless of whether the mobile wallet is universal or part of a store’s own app, integrated loyalty programs are a critical feature in consumers’ minds. The number of customers using smartphones to pay has steadily risen from six percent in 2014 to 17% in 2017. Furthermore, 44 percent of millennials responded to an AdWeek survey that they prefer using their mobile phones to cash when paying for small items.

Efficiency, coupled with special promos for mobile wallet users will certainly have a positive impact on boosting repeat business. Smart retailers will take seriously the need to implement and promote mobile payment options in order to satisfy customer desires.

 

by Jennifer Bosavage

Two Ways to Keep Shoppers Coming Back

Repeat customers are a valuable commodity. It’s seven times more expensive to find a new customer than to retain one, according to Kissmetrics. In addition, the research has found that the probability of selling to an existing customer is 60 to 70 percent, while the probability of selling to a new prospect is just five to 20 percent.

With Black Friday and Cyber Monday around the corner, it’s the perfect time to re-introduce your brand or store with customers who may not have made a recent purchase. Marketing automation and CRM solutions can generate follow-up emails and trigger behavioral-based campaigns to keep shoppers engaged with your store. And the new holiday shoppers you attract can be made to feel like they, too, are part of a special community well after the initial purchase is made and the holidays are packed up and put away.

Marketing Automation Helps Identify Your Advocates

Returning customers buy more and are more cost-effective than acquiring new ones, but they can also become advocates for your business. They can help you identify and bring in new customers. Marketing automation helps businesses automate repetitive marketing tasks such as emails, social media, and other website actions. It can help identify brand advocates and nurture prospects with highly personalized, useful content that helps convert prospects to customers and turn customers into delighted customers.

Nurturing leads is an important part of marketing automation. If a particular customer has shared a few of your blog posts on social media, for example, encourage this behavior by proactively sharing relevant posts with this person.

Retail marketing isn't just about making the sale - it's about winning loyal customers and establishing a brand.

Retail marketing isn’t just about making the sale – it’s about winning loyal customers and establishing a brand.

Never send a generic message. Always personalize content so your audience understands why specifically he or she should visit your store.

CRM Solutions

Compiling information about customer behavior in the aggregate and comparing it with data on individual customers will help discern what products a store should sell and how to market those products. A CRM solution stores every desired piece of customer data, so a business can reach and engage with every customer type. And it’ll help with up-selling, too, a critical part of customer retention.

Upselling should make customers feel as though they are winning – not as if they are simply shelling out more money. CRM marketing streamlines and organizes the process: Through analysis and data mining, businesses can determine the optimal time and method to propose an upsell. Upselling is easier than selling to a customer for the first time and can help a store’s revenue grow faster.

Grow your bottom line efficiently by reaching out to past and repeat customers. Make it clear why you deserve these customers business, and why you offer a better value proposition than competitors. Most importantly, let them know how they’ll profit too, because, after all, everyone wants to be a winner.