Author Archives: Jennifer Bosavage

by Jennifer Bosavage

Omnichannel Strategies Are a Gift for Retailers

 

 

Looks like store traffic is expected to be on the rise this holiday season.

Recent studies from AlixPartners, Deloitte and KPMG are predicting in-store sales will rise approximately 4% this year.

Despite some retail store closures this year, only 6% of those surveyed by AlixPartners said that would cause them to reconsider the purchase.

Rather, 36% of consumers said they’d simply shop competitors.

Retailers can best position themselves to win this holiday by providing customers with integrated omnichannel strategies.

However, not all multi-channel experiences are omnichannel.

Having online ordering, a brick-and-mortar storefront and a social media presence is simply having a multichannel strategy.

To have a true omnichannel experience, the retailer must provide the customer with a seamless experience and consistent messaging across each of channels.

In particular, millennials want to be able to start shopping at any touchpoint — online, mobile or in-store — and end the transaction at any other point in the sales process.

An example of omnichannel success is U.K.-based Oasis.

The retailer’s associates are equipped with tablets to provide immediate answers to customer questions on the sales floor.

The handhelds also act as cash registers, and out of stock items can be instantly ordered online for home delivery.

Many retailers have realized the devastating impact poor inventory management can have: Customers are often unwilling to go back to a store that is out of a desired product and that makes no effort to locate it.

As a result, retailers have invested in inventory visibility.

Analytics along with inventory tracking software takes the pressure off retailers because it eliminates the guessing about how to allocate stock.

They can plan more accurately and locate products in other store locations quickly and accurately.

Retailers should take advantage of customers’ desire to holiday shop in person by increasing efforts to drive customers into their stores.

Standing apart from the competition is critical.

Some will respond by offering exclusive merchandise, others by providing engaging experiences.

Knowledgeable and helpful sales associates are always a plus.

And there’s also price.

For millennials, the fastest growing shopping segment, price has the greatest influence.

Quality, brand, store and availability are important but in the end, price rules, likely because they have the ability instantly to price compare and save on almost anything they buy.

Retailers, therefore, need to offer competitive pricing as well as more value than consumers can obtain on Amazon, Google or other large retail outlets.

Omnichannel experiences are key to retaining customers and perhaps regaining sales previously lost to online.

 

by Jennifer Bosavage

3 Key Trends Driving Retail Innovation

 

As we enter the final quarter of 2017, let’s look at three major factors that will continue to be hot topics for leading retailers in 2018. In a world with increasing retail competition, innovation will be the key to success.

1. Data analytics will be used better to improve customer experience

 
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Sales information is a treasure trove of information. What’s hot, what’s not and what’s coming can all be derived from a deep dive into data. For example, Amazon will rely heavily on its expertise in data-driven customer service in its grocery business. The online powerhouse fundamentally manages operations differently from traditional retail supermarkets.

Namely, Amazon has always been customer-centric: It ranks products based on popularity, it encourages interactivity with reviews and is responsive to customer input. Most supermarkets focus on the products. Likewise, many retailers in a broad variety of specialties employ sophisticated category management practices but don’t have similar customer management programs.

2. Geolocation-based tools will make offers more relevant

 

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When retailers know where customers go to most frequently, where they linger – and where they avoid, the shopping experience can be made more intuitive. When the shopping experience is stress-free, customers are more likely to return. For example, $155 billion pharmacy chain CVS uses geolocation tools to target in-store customers with the CVS app with medication reminders and health alerts. Patients are actively encourage to manage their health through the CVS app.

3. Omnichannel synergy will help shoppers get more comfortable with the process

 

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Mobile sites reflect what is happening at the local brick and mortar location. Customers want a seamless experience. Many shoppers use multiple channels, sometimes starting online and picking up purchases in store, and other times starting in a brick and mortar store but finishing the transaction by paying via a mobile device. Whichever way they choose to shop, the process must be easy and familiar.

To this end, Best Buy has turned around impressively and is today considered a leader in connecting in-store and online experiences. It sees itself as a multichannel retailer, which offers its customers different opportunities to research, browse and buy products that best suit their lifestyles.

 

 

 

by Jennifer Bosavage

IoT Tech Helps Retail Make Customer Connections

The Internet of Things — the network of everyday devices that can be monitored and managed over the Internet – is steadily becoming a part of retail operations. Juniper Research forecasts that merchants will spend $2.5 billion on IoT technologies by 2020. The advantage?  Linking hardware such as RFID tags,beacons and connected consumer electronics — including wearables with software — analytics offers in-depth business insight and a more personalized customer experience.

Connecting with the IoT lets retailers analyze data that can help with inventory selection.

Connecting with the IoT lets retailers analyze data that can help with inventory selection.

IoT can help bring relevant technology directly to the customer. Wireless tablets let sales associates interact more closely with customers, checking inventory for the perfect color, correct size and brand, for instance. Increasingly, more stores are equipping sales staff with wireless tablets that can scan products and perform credit card transactions. More customers can be assisted on the sales floor without going to a front-line cash register. The IoT technology keeps track of pricing and inventory, applies discounts and sales, and items are logged immediately after the transaction is complete.

The IoT benefit doesn’t end after the sale is rung, either. The data gathered from a connected POS system to analyze customer buying trends can help retailers stock smart: According to the National Retail Federation, U.S. retailers lose $224 billion because of excess inventory and $45 billion from not having inventory in stock. A good point-of-sale system can set an alert that informs retailers when a certain item should be reordered. And top-performing systems can tell you the most recent price the retailer paid the supplier, as well as the average price paid previously. Off-hours, a retailer can run reports on inventory activity for the day, week or month. For a holistic view, some POS systems can track inventory from year to year, so comparisons are quick and easily extrapolated.

The various data generated by IoT/POS transactions can provide new, valuable insights about customers, pricing, product sales trends and more. Analyzing each piece and making correlations can prove invaluable to retailers aiming to create lasting relationships with their shoppers.

 

by Jennifer Bosavage

3 Variables to Measure When Optimizing Customer Experience

A photo by Lechon Kirb. unsplash.com/photos/yvx7LSZSzeo

 

The number one area every company needs to improve is customer experience. Customer experience can make or break any retailer, but it is especially true with brick and mortar establishments.

Most retailers think they are doing an awesome job with their shoppers — but research shows just the opposite, and in a resounding way. One study said that more than 80% of retailers thought customer satisfaction was high, but only eight percent of customers surveyed agreed. Eight percent is very dismal.

Think online competition will lessen the importance of knowing your customers? Think again: As according to a Walker study, by the year 2020 customer experience will overtake price and product as the key brand differentiator.

But, you say, your customers are the eight percent! Let’s see:

• Are they loyal? What is your customer retention rate?
• What are customers saying on social media and what is your strategy for replying?
• How are sales?

It’s likely that the answers to those questions indicate your customers are outside the could use improvement.

If customer experience (CX) is in a few short years going to be so important, it’s crucial to start preparing now. There is plenty of time if you start crafting a plan immediately. Here are areas to consider studying.

1. Measure loyalty

How many customers are repeat shoppers from a year ago? How many times have they shopped in the past year? If you go back two years, can you find a pattern? Good results and bad ones are both insightful. If you don’t have a loyalty rewards program, now might be the time to implement one. Make the sign-up process simple, and keep reward offerings fresh to keep customers interested. Loyalty programs should never lose money — so be careful about what is offered to customers.

2. Research the customer & competition

Look at sales details. What is selling and what is languishing? Good point of sale software can make running that type of report easy, and the payback is immense. Then, look at the competition and discover what it is offering, and at what price. What is the customer experience like at your competitor? Your customer has many choices; figure out why he or she would want to buy from you and then offer those products and services.

3. Monitor Social Media

See what is said about your company by employees and customers. Act on it. Also learn what brands are popular. Can you offer them — or a smart alternative? Respond quickly to any posts directly to your company, even if it is just to let the customer know you are acknowledging the problem and will have an answer shortly. And, be sure to answer promptly — within an hour. In November 2015, Mediapost.com reported that 83% of those reaching out to retail brands on social media don’t receive a prompt response. A slow response makes new or existing customers hesitant in contacting your brand again.

In The Loyalty Effect, author Fred Reichheld said that just a five percent increase in customer retention can lead to a huge 25% to 100% increase in profit. Even if your customers are part of the happy eight percent of satisfied customers, it’s certainly worth the effort to put the effort in to keep them happy and loyal. And if they are in the remaining 93%, it’s a no brainer.

by Jennifer Bosavage

Brick and Mortar Retail Is On Its Way to Becoming a Media Channel

 

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Many brick and mortar retailers have invested in providing customers exciting, engaging and satisfying shopping experiences in order to effectively compete against e-commerce.

Online retailers have done a remarkable job of offering shoppers the goods, pricing, and availability they want. The most recent figures available show continued strength for e-commerce sales: According to the U.S. Census Bureau, total e-commerce sales for 2016 were estimated at $394.9 billion, an increase of 15.1 percent (±1.8%) from 2015. Online orders increased 8.9% in the third quarter of 2016. 

Retailers with a base of operations in the physical world are now not only deftly entering the e-commerce arena, but they are leveraging their physical presence as well.

Brands becoming part of the in-store experience

Today, brick and mortar retail is on its way to becoming a media channel. In fact, some have suggested that retailers will not simply offer products for sale, but actually charge brands an upfront fee for the privilege of being a part of the in-store experience. So retailers might have a larger selection available online to customers, but a few, select lines are actually available to see “in person” on the showroom floor.

Think of brand boutiques in larger stores as a similar example of the strategy, but more curated, and the brands pay the retailer for the privilege.

Beacons used for personalized suggestive selling

Beacon technology is another way retailers can learn about shopper behavior.

These devices can learn where shoppers linger within a store and also provide shopper-specific information if a client agrees to opt-in to that type of data collection. That information can then be used by retailers to personalize the in-store experience, for example, suggesting available merchandise. 

Beacons can also remind shoppers of products they may have overlooked during the current shopping trip that they have previously bought. Beacons can also spotlight products a customer has previously expressed interest in, as the technology detects customers’ lingering in particular locations. 

Instead of associates spending all their time and energy on duties such as stocking shelves, counting inventory, cleaning, etc., they can instead focus on providing the best customer service possible. Managers can then invest more time learning how the store functions as a destination and how it can improve to exceed customer expectations.

by Jennifer Bosavage

2 Things Retailers Forfeit By Foregoing Employee Training

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Providing customers in-store experiences that are unique, fun and yet still profitable is the challenge retailers with physical stores continue to face. The cornerstone to providing that vision to shoppers are employees.

Good employees keep a retailer running; great employees are its heart and soul. They believe in the product, brand or mission of the company. And they are customers themselves, so the know how to make shoppers feel special, convert browsers into buyers and cultivate loyalty.

But too many retailers underestimate the value of trained employees.

Just 35% of employers trained low-skill workers and hired them for high-skill jobs in 2015, and slightly fewer — 33% — plan to do the same this year, according to CareerBuilder. And while 68% of firms say they offer training programs, 50% say the budgets have not changed and 11% say budgets have decreased.

Here are 2 things retailers forfeit when they do no invest in training.

 

1. Cost Savings

Training can save retailers money. It reduces turnover, and staff retention reduces costs. It’s expensive to hire staff. It also provides the worker with the precise skills needed for his or her current position. It’s obvious that higher-end retailers, such as Nordstrom’s, think of service as a culture and use training to reinforce that ethic.

But smaller and lower-margin retailers are also embracing training for employees.

For example, Dollar General this month announced its full-year sales rose nearly 8%, and noted part of the reason for the sales bump were its managers.

During a conference call, CEO Todd Vasos said: “To strengthen our position for the long-term, we are making significant investments, primarily in compensation and training for our store managers given the critical role this position plays in our customer experience, as well as strategic initiatives.”

Dollar General saw a nearly 1% increase in same-store sales in 2016, and the discounter plans to open 1,000 more outlets this year. “In fiscal 2017, these investments will be focused on an increased compensation structure and additional training for our store managers, as they play a critical role in our customers’ experience and the profitability of each store.”

 

2. Staff Loyalty

Investing in employee training is a great way to improve your in-store service and get employees “on the same page” about what is expected, desirable, etc. In addition, employees expect some sort of training – Accenture found that 80% of 2016 college graduates expect some formal training from their employers.

Unfortunately, only 14% of employees would grade their company an “A” for the availability of training resources, according to another study from Spherion.

Training can make workers feel more marketable, which is appealing to staff but is often the reason employers shy away from it. Too many are concerned about training staff who will leave for a competitor. Given the high turnover rate at some retailers, it’s a valid concern.

However, while we think of providing high-quality service as driving customer loyalty, offering relevant employee training as a central benefit of a customer-service driven, flexible and creative work culture may be just the way to increase staff loyalty as well.

by Jennifer Bosavage

Embrace Social – Or Else

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Social media is no longer the purview of newlyweds, new parents and kitten videos. It is increasingly used by retailers looking to strengthen their brands. Conversely, as mobile shopping continues to grow, social media is putting new power into the customers’ hands. Customers not only are using their mobile tools to purchase online or even in-store, but also to communicate with retailers. And the majority of them want responses. Now.

Most businesses use social as a way to promote their brand rather than as a true channel for facilitating two-way communication.  But consumers view social media differently: They see it as a way to have a dialogue with the store or brand. According to research from Sprout, 90% of people surveyed have used social in some way to communicate directly with a brand. Retailers are faced now with a very public airing of customer concerns. Email and telephone calls are no longer top-of-mind for the disgruntled customer. Instead, their gripe is online for all the view to see – and, potentially – agree with. Social media is the first option customers turn to when they have a problem with a product or service.

The first option.

One social media complaint can quickly turn into a disaster. Retailers, therefore, must respond quickly and publicly, because the response isn’t just aimed at the unhappy customer, it also must show potential customers and loyal shoppers alike that you care about all of their business. How quickly? Very. According to Convince and Convert, 42% of your customers will expect a response within 60 minutes, and 57% expect the same response time at night or weekends as during regular business hours. There is no rest for the socially weary.

How to respond? Be polite. Don’t try to be cute or funny in most cases, because it’s easy for that strategy to backfire. Then, simply apologize and invite the customer to private message you. Do not remove their critical comment or others’. (Trolls are different. Abusive or irrational commentary should be deleted and the poster banned.)

Once you have established a private dialogue, discover what the issue is, apologize and offer an explanation if appropriate and then come up with a plan to rectify the problem. Follow up to ensure the fix was implemented and satisfactory. The last thing you want is for a second complaint to be lodged on social media.

Unfortunately, brands generally do a poor job of responding to customer criticism. On average, brands reply to only 11% of those posts. And, to compound customers’ frustration, brands send 23 promotional messages for each response provided. That’s a recipe for louder complaints and reduced customer satisfaction.

Retailers face enough competition; they should not be fighting their own social media policies as well. By getting on top of negative posts in an honest and open fashion, they can take negative situations and turn them into positive ones. Even a service problem can be used to improve customer satisfaction, if handled promptly and in a manner in which customers feel is aimed at genuinely helping them.

 

by Jennifer Bosavage

Use Mobile In-Store To Combat Online Competition

 

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Do you have mobile technology that your associates can use to help find products in different store locations, or to order an out-of-stock selection? Great, but if that’s the only reason for the technology, you’re stuck in 2014.

To keep up with the times and the online competitors who give your shoppers ultimate control – and attract Millennial shoppers – share that technology to beef up their customer experience.

Here are 2 ways to do it.

 

1. Self-serve mobile

First off, it’s an ideal way for the shopper who’s a “loner” – the one who wants nothing to do with associates and shops online for a reason!

A retail touchscreen lets these clients self-serve entirely. Think of it as an update to kiosk technology. This is more user-friendly, mobile and definitely full featured: Customers can search for items and complete the buying process independently.

And, with permissions levels easily set by your retail IT group, you can rest secure knowing shoppers won’t accidentally wonder off into your confidential retail records.

 

2. Mobile clienteling & endless aisle

Second, mobile technology can not only be used to locate products by the salesperson, it can also be used by the customer and associate together, for some human suggestive selling.

The salesperson can use a touchscreen as a tool to share items that are in the “endless aisle,” – products available but not physically in the store. In addition, the touchscreen can be a useful aid in retail clienteling.

Although Millennials are known to be rather aloof with salespeople and prefer a do-it-yourself approach to shopping, they do share purchase decisions and seek input from friends and perceived experts when shopping.

So, an associate might find something within the “endless aisle” and share it with the customer by physically handing him or her the screen. Customers could then add the suggestion to a cart or wish list, or begin a consultative conversation with the salesperson if the product didn’t quite hit the mark. At best, it’s a sale; at worst, it’s a solid conversation starter.

 

Supporting in-house mobile technology allows retailers to adapt readily to shopping preferences of consumers accustomed to taking control over their experience with online shopping.

Many shoppers complain of overbearing associates – when those salespeople have actually been trained to do many of the behaviors the customer finds annoying. By providing a mobile option, retailers are offering an alternative that will facilitate customer engagement in-store,  yet has more of the independence many of today’s shoppers want.

 

Want to learn about mobile POS options from Retail Pro?

Learn more about Retail Pro Prism

 

 

 

by Jennifer Bosavage

Mobile Marketing Must Be In Your Future

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Are you marketing your business without acknowledging that a vast majority of your shoppers are mobile-equipped? That means you could be communicating with them far more than simply when they venture into your store. With roughly 80% of internet users owning smartphones, and 40% of users’ internet time being spent on mobile devices, retailers need to incorporate mobile into their marketing mix.

Researchers are predicting that smartphones will account for 60 percent of e-commerce visits by the end of 2017. Mobile is disrupting how customers engage with brands. That means retailers shying away from mobile marketing will be left behind as customers increasingly report wanting to interact with their favorite stores on mobile platforms.

Ideally, a mobile strategy connects shoppers with retailers through smartphones, tablets, and other mobile devices. Mobile customers can ask customer service agents questions, chat with agents, and get personalized information, including recent account statements and in-stock inventory.

Retailers can build loyalty programs into mobile marketing efforts to encourage customer trial and create shopping habits.

There are several ways of integrating mobile into your strategy:

App-based: Retailers don’t have to create an app themselves; various services are available to help design mobile ads that appear within third-party mobile apps. And Facebook lets advertisers create ads that are integrated into the social network’s mobile app. Promoted Post ads integrate seamlessly with Facebook’s news feed, so users often don’t realize they’re viewing ads.

In-game: These appear within mobile games as banner pop-ups, full-page image ads or sometimes as video ads that are visible between loading screens.

Location-based marketing: Advertisements appear on mobile devices based upon a user’s location. If they are in the mall where your business is located, they’ll receive a coupon as a text message, for example. Retailers choose specific boundaries on how far these ads can travel.

Mobile ordering: Offering ordering via an app is a great differentiator for a retailer. Customers expect a seamless experience, so building a robust app is crucial. The mobile order experience should include the elements of an in-store order within the app: view full menu, customize items, make a mobile payment, and complete the order.

It’s a mobile-first world, with increasing numbers of shoppers using their devices to complete or research purchases. The time is now to start building —or improving — your mobile presence.

by Jennifer Bosavage

3 Tips for Using Your Retail Data to Attract More Customers

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For retailers, much of the work that goes into making a sale is done before your customer ever sets foot in your store. Here are 3 tips for using your retail data to attract more customers.

 

1. Use outbound marketing as a targeted follow-up to inbound marketing.

Fresh, high-quality content is available to sales prospects 24/7. Whether it’s on the web, in stores, or via email, information is out there, waiting to be consumed by eager customers. Savvy retailers are using their content assets to attract customers, and it’s working: Interesting, relevant material attracts leads to a business’ site, social media presence and/or store. That content must position your company as a market leader. Valuable content that informs the customer is key. The more specific your content, the more focused you can be.

2. Collect data on your customer.

To really provide such highly focused, relevant content, you must understand customers’ interests and tastes, as well as their demographic information. Only then can you tailor both your content, which attracts customers, and the message, which will be used to close the sale. Outbound marketing only succeeds when it reaches the appropriate audience. Personalized campaigns can go a long way when you are courting a customer. Let the data you gather help inform the way you engage with customers.

3. Use predictive analytics.

Look back and use past performance to gauge future sales. Predictive analytics examines a variety of data and then systematically offers the makeup of the best leads. Big data crunching can help find those sweet spots invisible to the naked eye. In addition, sales teams knowledgeable in the science of data analytics can gain insight into purchasing triggers. Paying attention to small triggers can get your retail marketing campaigns out ahead of the competition’s.