tag:econsultancy.com,2008:/topics/ecrm Latest CRM & loyalty programs content from Econsultancy 2017-04-21T12:55:00+01:00 tag:econsultancy.com,2008:Report/3008 2017-04-21T12:55:00+01:00 2017-04-21T12:55:00+01:00 Internet Statistics Compendium Econsultancy <p>Econsultancy’s <strong>Internet Statistics Compendium</strong> is a collection of the most recent statistics and market data publicly available on online marketing, ecommerce, the internet and related digital media. </p> <p><strong>The compendium is available as 11 main reports (in addition to two sector-specific reports, B2B and Healthcare &amp; Pharma) across the following topics:</strong></p> <ul> <li><strong><a href="http://econsultancy.com/reports/advertising-media-statistics">Advertising</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/content-statistics">Content</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/customer-experience-statistics">Customer Experience</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/web-analytics-statistics">Data and Analytics</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/demographics-technology-adoption">Demographics and Technology Adoption</a></strong></li> <li><strong><a href="http://econsultancy.com/uk/reports/ecommerce-statistics">Ecommerce</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/email-ecrm-statistics">Email and eCRM</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/mobile-statistics">Mobile</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/search-marketing-statistics">Search</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/social-media-statistics">Social</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/strategy-and-operations-statistics">Strategy and Operations</a></strong></li> </ul> <p>Updated monthly, each document is a comprehensive compilation of internet statistics and digital market research with data, facts, charts and figures. The reports have been collated from information available to the public, which we have aggregated together in one place to help you quickly find the internet statistics you need - a huge time-saver for presentations and reports.</p> <p>There are all sorts of internet statistics which you can slot into your next presentation, report or client pitch.</p> <p><strong>Sector-specific data and reports are also available:</strong></p> <ul> <li><strong><a title="B2B Internet Statistics Compendium" href="http://econsultancy.com/reports/b2b-internet-statistics-compendium">B2B</a><br></strong></li> <li><strong><strong><a title="Financial Services and Insurance Internet Statistics Compendium" href="https://econsultancy.com/reports/financial-services-and-insurance-internet-statistics-compendium/">Financial Services and Insurance</a></strong></strong></li> <li> <strong><a title="Healthcare and Pharmaceuticals Internet Statistics Compendium" href="https://econsultancy.com/reports/healthcare-and-pharmaceuticals-internet-statistics-compendium/">Healthcare and Pharmaceuticals</a></strong><strong> </strong> </li> <li><strong><a title="Retail Statistics Compendium" href="https://econsultancy.com/reports/retail-statistics-compendium/" target="_self">Retail</a></strong></li> </ul> <p><strong>Regions covered in each document (where data is available) are:</strong></p> <ul> <li><strong>Global</strong></li> <li><strong>UK</strong></li> <li><strong>North America</strong></li> <li><strong>Asia</strong></li> <li><strong>Australia and New Zealand</strong></li> <li><strong>Europe</strong></li> <li><strong>Latin America</strong></li> <li><strong>MENA</strong></li> </ul> <p>A sample of the Internet Statistics Compendium is available for free, with various statistics included and a full table of contents, to show you what you're missing.</p> tag:econsultancy.com,2008:BlogPost/68832 2017-02-24T10:05:00+00:00 2017-02-24T10:05:00+00:00 10 staggering digital marketing stats we've seen this week Nikki Gilliland <p>Please note, we've linked to all original studies where possible. Unfortunately not all of these studies are published online, they often come to us as press releases.</p> <h3>60% of millennials have used chatbots</h3> <p>A new study by Retale has delved into how UK millennials feel about chatbots.</p> <p>From a survey of over 500 consumers aged 18 to 34, nearly 60% of respondents were found to have used a chatbot in the past. Out of the percentage of people that had not, 53% said they were still interested in trying them. </p> <p>Interestingly, <a href="https://econsultancy.com/admin/blog_posts/68805-are-brands-failing-to-promote-chatbots/" target="_blank">branded chatbots</a> appear to be growing in popularity, with 71% of millennials saying they’d be happy to try a chatbot from a consumer brand. Lastly, 86% of respondents agreed that brands should use chatbots to promote deals, discounts and offers. </p> <p><a href="https://econsultancy.com/blog/68800-pizza-express-launches-booking-chatbot-is-it-any-good/" target="_blank"><img src="https://assets.econsultancy.com/images/0008/4128/Pizza_Express_5.JPG" alt="" width="750" height="678"></a></p> <h3>Retailers increasing investment in store technology</h3> <p>The <a href="http://now.jda.com/CEO2017.html" target="_blank">latest report</a> from JDA/PWC has found that 69% of CEOs plan to increase investment in digital technologies to improve the in-store customer experience. </p> <p>76% of CEOs have or are planning to invest in personalised mobile ‘push offers’ and beacons, while 79% are also investing or planning to invest in smart mobile devices for staff in stores. Despite this, 52% of respondents have not yet defined or started implementing <a href="https://econsultancy.com/training/digital-transformation/">a digital transformation strategy</a>. </p> <h3>68% of British retailers have no Brexit plans in place</h3> <p>According to new research from Global-e, 68% of retailers have yet to start planning for Brexit, despite 51% also saying that the vote to leave the EU has already impacted UK sales. The study, which involved a survey of 250 top British retailers, also found that 32% of those selling internationally have seen an increase in online orders from outside the UK. </p> <p>Additionally, 46% of UK retailers were found to be in favour of a soft Brexit, while 36% agreed that a hard Brexit - with no access to the single market - would be better for UK retailers.</p> <h3>Ad blocking levels stabilise</h3> <p>According to the Internet Advertising Bureau's UK <a href="https://iabuk.net/about/press/archive/iab-uk-reveals-latest-ad-blocking-behaviour" target="_blank">Ad Blocking Report</a>, the proportion of British adults online currently using ad blocking software has remained at around 22% for the last year.</p> <p>Despite a predicted rise in ad blocking, this has failed to materialise, perhaps due to many publishers working hard to promote a value exchange.</p> <p>24% of people cited not being able to access online content as the biggest reason for switching off their ad blocker - a figure up from 16% a year ago. Meanwhile, 24% said that it is because they have since switched to a new device.</p> <p><img src="https://assets.econsultancy.com/images/0008/4122/ad_blocking.png" alt="" width="750" height="453"></p> <h3>Travel brands expected to benefit from Oscar hype</h3> <p>Data from Lastminute.com suggests that travel brands have seen an increase in search interest on the back of this year’s Oscar nominations. Searches for flights to Los Angeles shot up by 21% on the day of La La Land’s release. Meanwhile, Martin Scorsese’s Silence prompted an even bigger surge, with searches for flights to Japan up 82% from the week before, and increasing a further 46% in the subsequent two days.</p> <p>Though it hasn’t been nominated for any Academy Awards, Brit flick Eddie the Eagle also prompted greater interest in ski holidays, with on-site searches jumping 10% after its release.</p> <p><img src="https://assets.econsultancy.com/images/0008/4123/Lastminute.JPG" alt="" width="750" height="424"></p> <h3>56% of CRM managers lack firm objectives</h3> <p>In a survey of 500 leading CRM managers, <a href="http://news.wiraya.com/news/crm-managers-dont-believe-theyre-generating-revenue-222319">Wiraya found that CRM</a> is perceived as a key business driver for over 30% of businesses. Despite this fact, it seems many still lack the data and strategy to support their goals and create profitability.</p> <p>While 91% of businesses are currently measuring aspects of their CRM work, 56% do not have firm objectives in place. What’s more, just 17% say that their CRM work is clearly contributing to the company’s overall revenue. This proves that major improvements still need to be made, as just 31% currently consider themselves ‘ambitious’ in terms of CRM maturity.</p> <h3>One in six UK shoppers have switched supermarkets in the past year</h3> <p>In light of Aldi becoming the nation’s fifth largest supermarket, <a href="http://www.tccglobal.com/en/blog/article/uk-shopper-loyalty-study">TCC Global has undertaken a study</a> on the state of consumer loyalty to grocery stores. It found that 32% of UK discount shoppers and 16% of all shoppers have switched their main grocery store in the last 12 months. Meanwhile, 39% of shoppers said that it wouldn’t matter to them if their usual grocery store closed.</p> <p>The research also found that growing convenience is making it even easier to switch between retailers, with shoppers having an average of 11 ‘reachable’, 10 ‘easily reachable’ and five ‘very easily reachable' stores.</p> <p><img src="https://assets.econsultancy.com/images/0008/4124/Aldi.jpg" alt="" width="720" height="480"></p> <h3>UK online retail sales grow 12% year on year in January</h3> <p>The latest figures from <a href="https://www.imrg.org/data-and-reports/imrg-capgemini-sales-indexes/" target="_blank">IMRG Capgemini</a> has revealed that UK online retail sales were up 12% year-on-year in the first month of 2017, with retailers seeing the highest average January spend since 2010. The average basket value was recorded as £85 in January 2017, up from £79 a year earlier. </p> <p>In terms of sectors, growth for gifts reached an eight-year high, with an increase of 62% year-on-year. Meanwhile, electricals were down 9%, falling for the second month in a row.</p> <h3>Consumers struggle to identify British brands</h3> <p>A recent <a href="https://www.spreadco.com/blog/uk-baffled-by-the-origins-of-their-favourite-brands">poll by Spread Co</a> has found that the majority of consumers are baffled by the origins of their favourite brands. 50% of consumers believe Tetley Tea to be British, when it is in fact owned by a foreign company. Similarly, 42% think the same about Branston Pickle and 37% about HP Sauce, when they are actually Indian and Japanese.</p> <p>The survey also found that 61% of UK adults don’t know that The Body Shop is part of L’oreal, while 19% think Tesco is the biggest company in Britain (even though it only represents 0.84% of the market share).</p> <p><img src="https://assets.econsultancy.com/images/0008/4127/body_shop.jpg" alt="" width="650" height="490"></p> <h3>Mulberry and Burberry are the most searched-for brands during LFW</h3> <p>Captify has revealed that the top three searched for designers during London Fashion Week were Mulberry, Burberry and JW Anderson. Other designers saw online searches go through the roof, with Ryan Lo experiencing a jump of 2,000% over the week, followed by surges for Topshop Unique and Sadie Williams.</p> <p>In terms of the most searched-for items, designer trainers rose by 60%, followed by minimalist clothing and 90’s style, which both rose 20%.</p> tag:econsultancy.com,2008:BlogPost/68811 2017-02-16T14:33:00+00:00 2017-02-16T14:33:00+00:00 Loyalty programs are losing their sway: here's what brands can do about it Patricio Robles <p>The consulting firm polled 25,000 consumers around the world, of which 10% were located in the US, and found that more than three-quarters (78%) say they'll pull their loyalty more quickly than they would have three years ago, and slightly more than a third (34%) indicate that what drives their loyalty today is the same as it was three years ago.</p> <p>Despite the prevalence of loyalty programs, over half (54%) reported switching a provider in the past year. As <a href="http://adage.com/article/cmo-strategy/consumers-fickle-billions-spent-loyalty/307974/">reported by</a> AdAge, "Retailers, cable and satellite providers, banks and internet service providers were the most likely victims of switchers."</p> <p>For many brands, loyalty programs have been seen as a potent driver of sales for years, but there's evidence that the effects of these programs are dwindling. That evidence includes slowing same-store sales growth and "millions of points that are laying dormant" in various rewards programs.</p> <p>According to Robert Wollan, a senior managing director at Accenture Strategy, "You have to really look at whether you're suffering from the loyalty illusion – that it worked before so it will keep working – or is it time for a fresh look?"</p> <h3>Giving consumers what they really want</h3> <p>Here are several ways that brands can take a fresh look at their loyalty programs.</p> <h4>1. Offer rewards that really appeal to customers</h4> <p>One of the most obvious implications of Accenture's data is that brands are failing to deliver rewards that appeal to their customers. Knowing that consumer preferences and expectations are rapidly changing, brands operating loyalty programs should constantly be polling their customers and performing market research to determine what components are most appealing.</p> <p>Given the growing <a href="http://adage.com/article/digitalnext/consumers-experiences-things/299994/">consumer preference for experiences over things</a>, in many cases brands might find that their customers value experience-based rewards, such as event invitations, <a href="https://econsultancy.com/blog/68737-why-brands-are-increasingly-creating-experiences-adventures-to-woo-consumers/">adventures</a> and early access to new products, more than they do cash-based rewards or free "stuff."</p> <h4>2. Don't seek to buy loyalty</h4> <p>The Beatles had it right: money can't buy love. While there is clearly opportunity for brands to encourage loyalty through rewards to customers, many consumers expect more from the brands they choose to patronize.</p> <p>Accenture found that younger consumers in particular are highly influenced by an emotional connection to a brand and the brand's alignment to their social values.</p> <p>While there is risk in getting political, to build loyalty in their relationships with consumers, it appears that brands will increasingly have to find ways to create emotional connections, so savvy brands will identify causes and lifestyles with broad appeal that aren't too controversial.</p> <h4>3. Focus on product and customer service experience</h4> <p>For consumers aged 18-34, product and customer service experience are two of the three biggest drivers of loyalty today, a reminder to brands that if they're not delivering a quality customer experience overall, a loyalty program isn't likely to make up for it. </p> <h3>The perfect case study?</h3> <p>A great example of a brand that is doing much of the above is REI. The retailer, which sells outdoor gear, operates as a co-op and allows its customers to become members.</p> <p>With a $20 lifetime membership, customers receive 10% cash back in the form of an annual member dividend, member-only special offers and exclusive access to REI Garage Sales, semi-annual events at which returned products are available at hefty discounts.</p> <p>In addition, REI members receive special pricing on the brand's services, which include classes, rentals and REI Adventures - tours that offer participants trips to "extraordinary places with handpicked local guides."</p> <p>Beyond the benefits REI offers its members directly, the company actively supports conservation efforts, donates millions of dollars annually to non-profits, purchases green power and carbon offsets, and releases an annual Stewardship and Earnings Report. In 2015, it made headlines with its <a href="https://econsultancy.com/blog/67109-rei-opts-out-of-black-friday-sort-of/">#OptOutside campaign</a> in which the company chose to sit out Black Friday, instead giving its employees the day off and encouraging consumers to enjoy the outdoors.</p> <p>REI's formula appears to be working: its membership has swelled to more than 6m, with more than 1m new members <a href="http://www.geekwire.com/2016/outdoor-retailer-rei-reports-23-increase-digital-sales-record-membership-growth/">being added</a> in the company's fiscal year 2015. That was the first time ever the retailer, which was founded in 1938, gained more than a million members in a year.</p> <p>And those members proved loyal and willing to open their wallets, with fiscal year 2015 revenue growing by nearly 10% to nearly $2.4bn.</p> tag:econsultancy.com,2008:BlogPost/68769 2017-02-06T10:32:10+00:00 2017-02-06T10:32:10+00:00 What's the difference between CRM, marketing automation and DMPs? Ben Davis <h3>CRM in layman's terms</h3> <p>It is common for troubled CEOs to utter the immortal line, "we are putting the customer at the heart of everything we do". Well, old-fashioned CRM did exactly that.</p> <p>CRM programmes were designed to allow companies to foster customer feeling and loyalty, rather than simply transactional interactions. This focus on retention (keeping track of communication with the customer) delivered greater ROI than simply chasing more and more novel sales prospects.</p> <p>CRM enables the analysis and management of customer interactions with sales, marketing and service departments, ultimately shaping the customer lifecycle but also, more broadly, organisational processes.</p> <h3>Isn't that marketing automation?</h3> <p>Marketing automation systems often work closely with CRM software, indeed many CRM solutions have incorporated marketing automation functionality (e.g. Salesforce Pardot).</p> <p>However automation is a fairly generic idea, reducing the repetitive labour of customer communications - for example, triggered emails or website messaging.</p> <p>Characteristically, marketing automation has been used for lead nurturing, with resultant customers looked after by the CRM, but that distinction is perhaps no longer a helpful one, given marketing automation is more and more embedded with CRM systems.</p> <h3>How is CRM different from a data management platform?</h3> <p>Data management platforms (DMPs) are most associated with online advertising, where large amounts of cookie and campaign data can be managed (including third-party data), and are often managed entirely separately from CRM.</p> <p>However, the integration of CRM and DMP platforms is a nascent but growing area. <a href="https://econsultancy.com/blog/68639-how-crm-and-a-dmp-can-combine-to-give-a-360-degree-view-of-the-customer/">As Chris O'Hara points out</a>, this can enable marketers to target non-openers of emails with display advertising (using anonymised email IDs), for example.</p> <p>In Chris's hypothetical example, a pizza company could deliver display ads during the week, up to Thursday (the day it knows certain customers are likely to order a pizza) when it could send an email coupon.</p> <p>It makes sense that CRM and <a href="https://econsultancy.com/reports/customer-lifetime-value/">customer lifetime value data</a> can be brought to bear on paid media, not just in an ad hoc fashion. It also makes sense that data management platforms should start to be used for more than simply display advertising, but to improve attribution of value to multiple marketing channels.</p> <p>However, as many marketers make plain, increasing IT complexity can sometimes distract the organisation, particularly if there isn't enough analyst capacity to dig into the newly expanded data.</p> <p>Andrew Campbell, CRM expert, expands on this point:</p> <p>“As the quantity of data increases, the need to identify quality data becomes a marketing imperative. Data management platforms have industrialised the processing and management of big data, but marketers need to find a way to drink from the hose!</p> <p>"It is no longer practical (even in the cloud) to pull all available data (posts, tweets, app usage etc.) into a single Master Customer record.”</p> <h3>Where does CRM fit into small and large organisations?</h3> <p>CRM's impact on sales, marketing and service makes it pretty central to any organisation. And CRM doesn't just impact on these three departments, but should be viewed at the organisational level, often affecting supply chains and back-office processes.</p> <p>Microsoft even uses the term XRM ('anything' relationship management) to define this idea of managing relationships across a business, not just the customer facing parts.</p> <p>Customer data is often fragmented, stored in different parts of the organisation - bringing this together is one of the challenges of CRM. Some organisations have CRM departments that still sit separately to online marketing.</p> <p>Using a slightly dry but useful typology model (see figure 1 below, taken from Econsultancy's <a href="https://econsultancy.com/reports/customer-relationship-management-in-the-social-age-a-best-practice-guide">CRM in the Social Age</a> report), we can look at the various development stages of CRM.</p> <ol> <li> <strong>Operational CRM:</strong> 'reengineering the customer-facing business processes and systems to ensure the efficiency and accuracy of day-to-day operations across sales, marketing and customer service'.</li> <li> <strong>Analytical CRM:</strong> Storing, extracting, interpreting and reporting on customer data - to optimise business decisions and support customer-centricity.</li> <li> <strong>Collaborative CRM:</strong> 'integration of the front- and back-office processes that combine to support customer interactions.'</li> <li> <strong>Social CRM:</strong> Deliver a consistent customer experience across social media, using analytics to support customer conversations and response handling. Integration of social data with broader CRM.</li> </ol> <p><img src="https://assets.econsultancy.com/images/0008/3662/crm.jpg" alt="crm" width="800"></p> <p><em><strong>Now read:</strong></em></p> <ul> <li><a href="https://econsultancy.com/reports/the-role-of-crm-in-data-driven-marketing/">The Role of CRM in Data-Driven Marketing</a></li> </ul> tag:econsultancy.com,2008:BlogPost/68633 2016-12-13T11:17:11+00:00 2016-12-13T11:17:11+00:00 How Britain's favourite brands are attracting consumers this Christmas James Collins <p>Our recent research revealed that <a href="https://econsultancy.com/blog/68590-10-dazzling-digital-marketing-stats-from-this-week/" target="_blank">Marks &amp; Spencer is the UK’s favourite Christmas shop</a>. Of the 2,000 consumers we surveyed, 28% said they will spend the most on gifts at M&amp;S this month, with Boots, John Lewis, Next and House of Fraser making up the rest of the top five.</p> <p>Attracting Christmas shoppers pays off for these brands, and not just in the short term. Our survey also revealed that 84% of UK shoppers plan to carry on spending in their chosen stores after the Christmas season has ended.</p> <h3>The modern consumer journey</h3> <p>The top five brands are ones which UK shoppers have known and loved for a long time. Although the stores aren’t new, their methods of attracting customers have changed dramatically since the stores were founded.</p> <p>These changes have been driven by the transformation of consumer behaviour. According to research by Webloyalty &amp; Conlumino, the average consumer typically used around two touchpoints during their path to purchase in the year 2000. By 2015, this had increased to around five.</p> <p><img style="vertical-align: middle;" src="https://assets.econsultancy.com/images/0008/2364/christmas-shoppers-on-smartphone.jpg" alt="Christmas shoppers on smartphone" width="800" height="450"></p> <p>Shoppers are interacting with more touchpoints across more marketing channels and devices than ever before.</p> <p>But which of these is having the biggest impact on consumer choice, and how are Britain’s favourite brands making the most of it?</p> <h3>The famous Christmas TV ad campaign</h3> <p>Despite the big budgets and hype, our research found that only 27% of people make a purchase based on brands’ TV adverts alone.</p> <p>This may seem a small percentage in return for the huge investment in TV ads, but no channel performs in a silo. As multi-device ownership increases – according to the IAB’s 2015 Full Year Digital Adspend Results, there are an average of 8.3 connected devices per home – the ways to reach consumers increase too.</p> <p>For a TV advert to be most effective, it must be part of a multichannel campaign delivering consistent messaging across channels and devices. </p> <p>John Lewis – whose Christmas campaign is often the most talked about – is taking this multichannel approach seriously, <a href="https://econsultancy.com/blog/68512-john-lewis-combines-tv-ad-with-snapchat-lens-and-email/">combining both on and offline experiences</a>.</p> <p>Buster the Boxer soft toys and picture books are on sale, and the brand has partnered with Snapchat to produce a custom filter, created bespoke Twitter stickers, and offered an Oculus Rift VR experience in the Oxford Street flagship store. </p> <p>The brand’s creative multichannel approach pays off. Speaking before the release of this year’s campaign, John Lewis’ head of marketing, Rachel Swift, said that the Christmas TV ad campaign is the store’s most profitable return on investment. </p> <p><iframe src="https://www.youtube.com/embed/sr6lr_VRsEo?wmode=transparent" width="560" height="315"></iframe></p> <h3>Advice from friends and family</h3> <p>Our survey found that 31% of people listen to advice from friends and family about where to purchase Christmas gifts from.</p> <p>Social media is the modern equivalent of word of mouth. Today’s brands understand the importance of using social media as part of a multichannel campaign.</p> <p>For example, M&amp;S has ‘Mrs Claus’, the star of its TV ad, taking over its Twitter account, has created the hashtag #lovemrsclaus, and has even designed its own Mrs Claus emoji.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">A delightful morning full of giving (and receiving) awaits. Stay tuned... <a href="https://twitter.com/hashtag/LoveMrsClaus?src=hash">#LoveMrsClaus</a> <a href="https://t.co/au6wzme7AC">pic.twitter.com/au6wzme7AC</a></p> — M&amp;S (@marksandspencer) <a href="https://twitter.com/marksandspencer/status/806770300905848833">December 8, 2016</a> </blockquote> <p>According to Waggener Edstrom, from 4–20 November 2016, M&amp;S clocked up 43,376 mentions across social media, second only to John Lewis (which had a huge 203,199).</p> <p>Again the scale of the social buzz surrounding these big campaigns helps hammer home the importance of creating a campaign that is active across multiple channels.</p> <h3>Browsing a retailer’s own website</h3> <p>Our survey results also showed that 33% of shoppers browse a brand’s own website to help them decide where to buy gifts. So, it’s essential to make sure people can navigate around your site easily.</p> <p>Next’s online Christmas store is a prime example of so many retail websites at this time of year – there’s an obvious Christmas section in the main navigation, ‘gifts for…’ category pages, Secret Santa guides, the list goes on. It’s easy for consumers to find what they’re looking for in whatever way that suits them.</p> <p>But this on-site experience is only beneficial if people are actually visiting your website in the first place. Attracting relevant traffic isn’t just about the short term tactics, like <a href="https://econsultancy.com/blog/68573-seven-examples-of-black-friday-email-marketing-from-retailers/">the barrage of Black Friday emails</a> we experienced last month.</p> <p>Campaigns that focus on the long term, like partnerships with relevant blogs and online magazines, can help you attract more of your target customers over a longer period of time. </p> <p>The tricky thing is measuring the impact of campaigns like this. If a customer reads your Christmas gift guide on their favourite fashion blog and then visits your website a few days later, last-click measurement won’t acknowledge the contribution of the content campaign. </p> <p>Brands, including some of those in our top five, are moving towards attributed measurement to help them understand the value of marketing channels that appear earlier in the user journey.</p> <p>House of Fraser, for example, saw an 83% rise in the number of affiliate touchpoints awarded commission when it moved away from the last-click model.</p> <p>This view of the full user journey allowed House of Fraser to recognise the touchpoints that were driving customers to its website on a longer term basis.</p> <h3>Saving money with vouchers and loyalty schemes</h3> <p>Finally, we found that 44% of consumers are encouraged to buy from a store if they know they can use a voucher code, and 23% are persuaded by the chance to build up loyalty points.</p> <p>Boots is a great example of a store that uses vouchers and loyalty points well. You can quickly find offers on voucher and cashback sites, the brand’s Advantage Card is extremely popular, and its 3-for-2 offers at Christmas practically fill the store.</p> <p>Typically, online vouchers are associated with short-term gains at the last click – arguably perfect for the Christmas push. But it’s important to understand the incremental value that vouchers offer.</p> <p>As our survey shows, they can prompt shoppers to choose one brand over another. Vouchers can also add value across the whole user journey: We found a 22% uplift in revenue from voucher sites when taking earlier touchpoints into account, rather than just last click.</p> <p>So, we’ve seen that the modern consumer journey is complex. Christmas shoppers are influenced by lots of different touchpoints – there’s no one channel that trumps them all. The UK stores that win the Christmas retail battle are the ones that target their audience across all the relevant channels available to them.</p> <p>The brands that truly win at this time of the year, however, are the ones that understand the importance of <a href="https://econsultancy.com/blog/65435-what-is-customer-lifetime-value-clv-and-why-do-you-need-to-measure-it/">lifetime value</a>. Attracting customers and encouraging them to buy Christmas gifts is only the first step.</p> <p>Retailers that succeed are those that use their data cleverly to help them make the most of the 84% of Christmas shoppers who intend to shop at their chosen store again – and attract as many of the remaining 26% as possible.</p> <p>Having a rounded understanding of the user journey, and the many touchpoints that users encounter both pre- and post-purchase, allows you to test and discover what messages to use – and when – to encourage more customers to return again and again.</p> tag:econsultancy.com,2008:BlogPost/68574 2016-11-30T01:00:00+00:00 2016-11-30T01:00:00+00:00 The five pillars of an online to offline tracking programme Jeff Rajeck <p>One thing which is still eluding brands, though, is how to continue tracking customers when they move from online to offline.  </p> <p>That is, <strong>marketers know their customers' online behaviours but when customers step foot in the store they lose track.</strong></p> <p>Some companies have come up with a number of solutions to this problem, as shown in a recent Econsultancy report, <a href="https://econsultancy.com/reports/understanding-the-customer-journey">Understanding the Customer Journey</a>. </p> <p><img src="https://assets.econsultancy.com/images/0008/1872/graph.png" alt="" width="800" height="486"></p> <p>As none of the systems listed in the graph are being used by more than two in five marketers, however, it seems that <strong>many companies are still struggling with how to track customers from their various online platforms to offline locations.</strong></p> <p>To find out more about what successful companies are doing, we spoke to a number of marketers at our recent Digital Cream Singapore at a table sponsored by Universal Data Hub provider, <a href="http://tealium.com/">Tealium</a>.</p> <p>The result was five key requirements, or 'pillars', for an online to offline tracking programme.</p> <h3>1. The business case</h3> <p>According to one participant, tracking customers from online to offline is a long-term project and will require resources and buy-in from senior management.</p> <p>In order get buy-in, though, the project needs to be a priority to the business and so <strong>marketers need to draw up a business case.</strong></p> <p>It doesn't have to be extensive, but the business case should include resources required and let management know why tracking customers from online and offline is important to the business.</p> <p>Ideally, it will also include data which gives the business a reason to invest. One source of this data is the <a href="https://www.consumerbarometer.com/en/">Google Consumer Barometer</a> which offers data about how customer behaviour has changed in recent years.  </p> <p>This can form the basis for the argument that if the business doesn't cater to these new behaviours, customers will start doing business elsewhere.</p> <p>Additionally, one attendee noted, the business case should offer a 'clear vision' of why the department heads should support the project. Otherwise, an initiative of this size may never get off the ground.</p> <p><img src="https://assets.econsultancy.com/images/0008/1873/1.jpg" alt="" width="800" height="533"></p> <h3>2. Responsibility</h3> <p>Once senior management is bought-in, <strong>marketers need ensure that the right departments are on-board.</strong>  </p> <p>Tracking customers between online and offline is not just a marketing project, said one participant. IT and sales, at the very least, should be involved from the start, as well.</p> <p>Responsibilities need to be assigned, too. Without defining roles, it is likely that the project managers will face resistance from departments which will, naturally, be protecting their domains.</p> <p>One participant noted that, at their firm, IT initially protested that adding tracking tags slowed down the website. Additionally, the CRM team was hesitant about sharing customer data with marketers.</p> <p>Getting support from the CTO and the CIO was the only way to overcome these objections.</p> <p>Through ensuring that these departments are on-board at a senior level, marketers will have the leverage they need to access the relevant data and push through the changes required to implement customer tracking.</p> <p><img src="https://assets.econsultancy.com/images/0008/1874/2.jpg" alt="" width="800" height="533"></p> <h3>3. Goals</h3> <p>In addition to drafting a business case and assigning responsibilities, <strong>project leaders will also need to set goals for the initiative.</strong> That is, what exactly is the team trying to achieve?</p> <p>One suggestion was that the goal should be to 'stitch together online and offline data' to obtain 'a single view of the customer' throughout the organisation.</p> <p>To find out more about what this goal achieves for the project team, and indeed the business, watch this short video by the table subject matter expert, Andy Clark.</p> <p><iframe src="https://player.vimeo.com/video/193306758" width="480" height="360"></iframe></p> <h3>4. Tactics</h3> <p>After plans are signed and goals are agreed upon, marketers need to get to work.  </p> <p>The consensus at the table was that<strong> the team should not try too many tactics at one time</strong>, but instead they should 'chip away at small blocks'.</p> <p>This could be as simple as implementing tracking codes on online coupons or collecting customer data at point-of-sale.</p> <p>Participants encouraged those just starting out to use free services at first and learn about how the technology works. After some time, they will likely need to upgrade to a more feature-rich solution but, having learned from their initial efforts, they will have data to support their requests for more budget and resources.</p> <p><img src="https://assets.econsultancy.com/images/0008/1875/3.jpg" alt="" width="800" height="533"></p> <h3>5. Measuring success</h3> <p>The final pillar of tracking customers from online to offline is to agree from the outset about how the team should measure and report success.</p> <p>This should not be an afterthought, said one delegate, as project members will have so much data on their hands that it will be 'coming out of their ears'.  </p> <p><strong>Agreeing on metrics and key performance indicators (KPIs) beforehand will help the team avoid 'data overload'</strong> and assist them in producing reports which are meaningful to the team and to the business.</p> <p>One suggestion was that<strong> marketers should look at customer-based metrics as well as ones which are more business-oriented</strong>.  </p> <p>This is because tracking the customer between their device and an offline location may not immediately demonstrate financial ROI and so expectations need to be set accordingly.</p> <p>Marketers should, instead, look for uplifts in customer satisfaction, engagement, and loyalty and include these both as goals and as ongoing KPIs.</p> <p>Without agreeing on achievable success criteria, one attendee suggested, a programme which takes this much effort and resources will struggle to get the continuous support from management that it requires.</p> <h3>A word of thanks</h3> <p>Econsultancy would like to thank all of the marketers who participated on the day, our table moderator, Econsultancy trainer Martin Ross, and our table sponsor for the day, Tealium.</p> <p>We hope to see you all at future Singapore Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0008/1877/4.jpg" alt="" width="800" height="533"></p> tag:econsultancy.com,2008:BlogPost/68555 2016-11-29T14:14:00+00:00 2016-11-29T14:14:00+00:00 A day in the life of... senior director for strategy & analytics at Zeta Global Ben Davis <p>Don't forget, if you're looking for a new career, check out the <a href="https://jobs.econsultancy.com/">Econsultancy Jobs page</a>.</p> <h3>Please describe your job: What do you do?</h3> <p>I’m Senior Director for Strategy and Analytics at <a href="http://www.zetaglobal.com/">Zeta Global</a>, which is a fast-growing acquisition and customer lifecycle marketing company that recently acquired eBay Enterprise and Acxiom Impact.</p> <p>I lead our planning, analytics and creative teams, who are focused on helping our clients to grow customer value by developing, testing and measuring different elements of their <a href="https://econsultancy.com/reports/the-role-of-crm-in-data-driven-marketing/">CRM programmes</a>.</p> <p><img src="https://assets.econsultancy.com/images/0008/1835/jill.jpg" alt="jill brittlebank" width="200" height="235"></p> <h3>Whereabouts do you sit within the organisation? Who do you report to? </h3> <p>I report into Juliet Schuler, our country manager who in turn reports to Zeta CRM’s President, Anil Krishnan.  </p> <h3>What kind of skills do you need to be effective in your role?</h3> <p>Being data-driven and numerate is the bread and butter of my role.</p> <p>But a whole host of other skills are equally important, ranging from the ability to understand analytic outputs and convert them into client recommendations, to explaining CRM best practice to clients in a way that makes it relevant to the specific business challenges they face. </p> <p>Communication skills are critical, particularly when it comes to getting to know our clients and developing a thorough understanding of their objectives, so we can drive the value that they need. </p> <p>And as well as managing multi-functional teams, I have to work collaboratively with the client service, technical and marketing operations teams who are spread across our UK, USA and Indian offices.</p> <p>More generally, as part of the leadership team I need a good understanding of the general management functions, such as operational efficiencies, organisational culture and development.</p> <p>Finally, a strong commercial focus is an absolute must.</p> <h3>Tell us about a typical working day…  </h3> <p>My first priority is to read the emails that have come in over night from our clients and colleagues in different time zones. We work with over 500 brands right across the world so it’s good to start the day with a clean inbox.</p> <p>We have a daily morning scrum for the planning, analytics and creative teams to check in on how client projects are progressing and make sure we are all on the same page.</p> <p>I try to keep a portion of my time free for ‘drop ins’, so I can respond quickly to any last minute client requests. But the rest of the day can vary wildly, taken up by anything from project kick-off meetings to peer review sessions.</p> <p>I work with the team here and with our clients on creating channel development plans, on quarterly or bi-annual reviews with clients and key stakeholders across their business, as well on strategic projects to address specific client needs.</p> <p>We’re keen to share learnings across all our clients so they only invest in activities that truly drive results, and right now we are investing a lot of energy into creating client case studies to make this sharing as seamless as possible.</p> <p>I’m working with our Planning and Creative Directors on the best ways to capture and share those learnings across the organisation so that we all have a similar level of appreciation about how we work with clients, the projects we undertake and the results they deliver.</p> <h3>What do you love about your job? What sucks?</h3> <p>I love the mix of data analysis and human behaviour. I love drilling down into a piece of analysis to identify the key behaviour trends that will help us develop brilliant insightful programmes for our clients.</p> <p>And the fact that the channels we work in are measurable in real time means we can be nimble in tweaking client projects to drive the best results.</p> <p>If I could change one thing, I’d add more hours to the day – there’s always more that we want to do. I’d like to have a pause button on time so I can get ahead of the to-do list!</p> <p><em>Zeta Global</em></p> <p><img src="https://assets.econsultancy.com/images/0008/1837/Screen_Shot_2016-11-29_at_11.31.13.png" alt="zeta global" width="615" height="339"></p> <h3>What kind of goals do you have? What are the most useful metrics and KPIs for measuring success?  </h3> <p>Our goals are primarily centred around growth – both for our clients and our business. For clients, it’s about understanding their engagement KPIs and how they have a direct relationship to ROI.</p> <p>We’re focused on preventing attrition and creating growth in customer volume and value, and making sure we understand their performance relative to the industry and over time, so we can identify any factors that are impacting performance – for better or for worse. </p> <p>Although we’re lucky that the channels we work in are very measurable, softer internal metrics of success are important as well.</p> <p>These include things like <a href="https://econsultancy.com/blog/68487-how-can-companies-attract-and-retain-talent-in-the-digital-age/">staff retention and development</a> – if teams are motivated and committed, they will deliver better work for our clients.</p> <p>And by ensuring that we work effectively and efficiently, we create space for innovative developments that can, in turn, be used by our clients.</p> <h3>What are your favourite tools to help you to get the job done?</h3> <p>A whiteboard and a marker. I find it much easier to explain ideas and work out solutions when I can draw them out.</p> <p>And a calculator – in some ways, I’m very old school!</p> <h3>How did you get started in the digital industry, and where might you go from here?</h3> <p>I started off working in offline CRM, but the increase in focus on digital from our clients led me to where I am now.</p> <p>And digital is constantly changing, so as a team we’re focusing on continuing to develop our proposition across the emerging digital channels that are important to our clients. </p> <p>In terms of where next, I’m not planning on moving away from CRM planning and insight… but maybe in another life, I’d be running a tea and cake shop – so focusing on a different kind of cookie!</p> <h3>Which brands do you think are doing digital well?</h3> <p>John Lewis is approaching digital in a way that’s been really successful. It does a great job of joining up its online and offline store proposition.</p> <p>And of course I’m slap-bang in the middle of their core demographic...</p> <h3>Do you have any advice for people who want to work in the digital industry?</h3> <p>Understand the technology but don’t let that be your only strength, because technology changes all the time.</p> <p>And never lose sight of the fact that, more than ever, it’s all about the consumer, their needs and motivations and how well we are addressing them.</p> <p>Your competition is only ever a click away, so every interaction has to count. </p> <p><em><strong>Now read:</strong></em></p> <ul> <li><a href="https://econsultancy.com/blog/68132-10-key-challenges-facing-crm-marketers/">10 key challenges facing CRM marketers</a></li> </ul> tag:econsultancy.com,2008:BlogPost/68564 2016-11-28T15:13:35+00:00 2016-11-28T15:13:35+00:00 2016: The good, the bad and the future of digital marketing Blake Cahill <p>However, while some of my “predictions” turned out to be fairly accurate, there have also been more than a few surprises over the last 12 months.</p> <p>Here are a couple of the most unexpected trends that have taken off this year, two of the biggest digital disappointments and my personal trend pick for 2017.</p> <h3>The surprise revival of silent video</h3> <p>One of the most unexpected trends that made a real comeback this year was silent video. Over <a href="http://www.smartinsights.com/mobile-marketing/mobile-marketing-analytics/mobile-marketing-statistics/">80% of internet users own a smartphone</a>, but average video viewing time is <a href="http://www.campaignlive.com/article/facebooks-everson-agencies-lagging-mobile-creative/1388780">1.7 seconds</a>, meaning consumers are in rapid consumption mode and marketers have had to become even savvier at grabbing their attention.</p> <p>What this means is there’s a real need for content that packs a punch at the beginning of the clip. If you only have a miniscule amount of time to grab a customer’s attention before they scroll past, then the video needs to have an immediate hook.</p> <p><iframe src="https://www.youtube.com/embed/glX_vgRCmKE?wmode=transparent" width="640" height="360"></iframe></p> <p>A perfect example of this is the social media clip that Apple pushed out following the release of the new iPhone 7. The advert is completely silent and simplistic in nature, with each frame changing every 0.5 seconds. </p> <p>In an age where most of us have our smartphones on silent, Apple has managed to discover a way to capture our attention in the most straight-forward of ways.</p> <h3>Hail to the community managers</h3> <p>2016 has also become the year of the <a href="https://econsultancy.com/training/courses/online-community-management/">community manager</a>. It’s common for brands to think of social as a one trick pony, but the brands that are succeeding on social don’t just have someone schedule 10 tweets a day and like the occasional @ comment. </p> <p>The brands that allow their community managers to become the human face of the company add an extra dimension to their social media capabilities and provide the consumer with a real sense of personality.</p> <p>Some brands that really know how to do this are Innocent Drinks, <a href="https://econsultancy.com/blog/61946-how-tesco-uses-facebook-twitter-pinterest-and-google/">Tesco</a>, Virgin Trains and <a href="http://www.telegraph.co.uk/technology/2015/12/010/10-of-the-most-brilliant-customer-service-exchanges-ever-seen-on/">Oreo</a>. They understand the importance of employing empowered community managers and with any luck, 2017 should see more brands following in their footsteps.</p> <h3>The problem with live content</h3> <p>Of all the successes and surprises in 2016, some of the newer marketing methods are still proving problematic.</p> <p>One of these is live content – it just isn’t working out. Despite the potential, all too many brands still don’t seem to realise how to properly manage live content. </p> <p>Maybe the production value is too low, the content is too tedious, the functionality is broken... Ultimately, without a high value exchange, live content is never going to have any impact with consumers.</p> <p>One example of a brand that has really nailed live content, however, is <a href="http://www.experian.com/blogs/news/about/creditchat/">Experian</a>. It holds straight-forward, weekly chats via YouTube Live, Snapchat and <a href="http://www.experian.com/blogs/news/about/creditscope/">Periscope</a> to talk directly with consumers about their money worries.</p> <p><iframe src="https://www.facebook.com/plugins/video.php?href=https%3A%2F%2Fwww.facebook.com%2FExperianUK%2Fvideos%2F1062124017192953%2F&amp;show_text=1&amp;width=560" width="560" height="665"></iframe></p> <p>Experian understands that for live content to work, companies need to accept that what a brand thinks is interesting for customers is rarely what they will actually spend time watching.</p> <p><em>For more on this topic, read about <a href="https://econsultancy.com/blog/67808-10-pioneering-examples-of-brands-using-facebook-live/">10 pioneering examples of brands using Facebook Live</a>.</em></p> <h3>Where are the iBeacons?</h3> <p>Back in 2014, I was convinced that retail use of iBeacons would swiftly take centre stage in our marketing strategies. </p> <p>We all <a href="https://econsultancy.com/blog/65221-ibeacon-trials-13-brands-trying-to-find-a-use-case/">saw the </a><a href="https://econsultancy.com/blog/65221-ibeacon-trials-13-brands-trying-to-find-a-use-case/">potential</a> and several big brands got on board – <a href="https://blog.virgin-atlantic.com/t5/Our-Future/Virgin-Atlantic-lights-the-way-with-Apple-s-iBeacon-technology/ba-p/26359">Virgin</a> used them in its Heathrow airport lounges and Macy’s rolled them out in over 800 stores to track customer movements <a href="http://www.zdnet.com/article/macys-taps-ibm-watson-to-improve-in-store-shopping-app/">in-store</a>, push product recommendations and discounts and to inform shoppers about sale items.</p> <p>But despite these examples, they just haven’t made it to the mainstream yet. </p> <p>Despite predictions that 85 of the top 100 retailers would be using them by the end of 2016, only 3% of retailers had implemented beacon technology by 2015 and only 16% had plans to implement them in the near <a href="http://www.huffingtonpost.com/shane-paul-neil/is-ibeacon-marketing-fina_b_10508218.html">future</a>.</p> <p>So what’s the hold up? Well, they can be hard to manage and maintain from a logistical point of view, as all beacon marketing requires user opt-in and customers just aren’t sold on it yet. </p> <p>This could change in 2017 but my bet is that it’ll be a slow process before they start to become a standard part of our marketing efforts.</p> <h3>The democracy of content</h3> <p>Enough about 2016, let’s look to the future.</p> <p>In 2017, brands need to be able to engage and connect with their customers better than ever before (one nice example of this is Philips’ <a href="https://www.youtube.com/watch?v=PBGcW5AtKyg">Every Day Hero</a> campaign). Nowadays however, companies aren’t just competing with another brand’s marketing anymore; they’re competing with the entire internet and this is where it starts to get tricky.</p> <p>Any company hoping to inspire consistent engagement has to accept that consumers now have access to tools (like <a href="https://itunes.apple.com/gb/app/boomerang-from-instagram/id1041596399?mt=8">Boomerang</a> and <a href="https://itunes.apple.com/gb/app/hyperlapse-from-instagram/id740146917?mt=8">Hyperlapse)</a> that can result in better, more engaging pieces of video content than the stuff many of the brands are developing themselves.</p> <p>Earlier this year, a survey found that 85% of users find visual user-generated content (UGC) more influential than brand photos or <a href="http://www.adweek.com/socialtimes/why-consumers-share-user-generated-content-infographic/639636">videos</a>. Another report found shoppers who interact with UGC are <a href="https://www.entrepreneur.com/article/278152">97% more likely to convert</a> with a retailer than customers who do not.</p> <p>What this means is we can expect to see a huge surge in marketers working with UGC in 2017. It’s nothing new (Burberry launched its <a href="http://artofthetrench.burberry.com/">Art of Trench</a> website back in 2009 for example), but I wouldn’t be surprised if it quickly becomes a much more common feature of brand campaigns.</p> <p>So roll on 2017. I’m looking forward to finding out if I’m right!</p> tag:econsultancy.com,2008:BlogPost/68559 2016-11-24T14:46:00+00:00 2016-11-24T14:46:00+00:00 How to identify retail customers in store David Sealey <p>I've recently started taking golf lessons and needed to pick up some gear from American Golf.</p> <p>At the till I was asked if I was a member of their loyalty scheme. I wasn't and signed up in the store. The clerk asked for me name, postal address, email address and mobile number before scanning a new loyalty card and handing it over.</p> <p>I had a similar experience in Thomas Pink recently. At the till I was asked to confirm my postcode and name.</p> <p>I did and the clerk appeared to connect my store order to some kind of account they keep on me. I assume this links to my online purchases to give a complete view of my purchase history.</p> <p>With Black Friday almost upon us, these experiences got me thinking about a few questions that retailers should consider:</p> <ol> <li>How do we best identify customers in-store?</li> <li>What data do we collect and when?</li> <li>How do we best activate and engage those who provide their details in store?</li> </ol> <h2>In-store customer identifiers</h2> <p><img src="https://assets.econsultancy.com/images/resized/0008/1731/american_golf_loyalty_card-blog-flyer.jpg" alt="The American Golf loyalty card and accompanying flyer" width="470" height="353"></p> <p>The following identifiers can be used to connect a store sale with a single customer record. These should apply whether the customer is using a self-checkout or being served at the counter by a team member.</p> <h3><strong>Loyalty card number</strong></h3> <p>A number that can be stored in a barcode, QR code or magnetic strip to identify the individual. Examples would be Nectar or Tesco Clubcard.</p> <h3><strong>Debit/Credit card number</strong></h3> <p>Securely matching the card number back to a customer record. Becomes difficult due to cash transactions.</p> <h3><strong>Email address</strong></h3> <p>Requesting an email address at checkout is becoming more common. On a recent trip to the US I noticed that some retailers were offering a screen at the till point to type it in.</p> <p>The challenge here is that email addresses can be difficult to say aloud or to hear and type in to an EPOS.</p> <h3> <strong>Mobile number</strong> </h3> <p>Could easily be entered through the chip and pin terminal or said aloud to a staff member.</p> <p>The key thing with using this channel is to quickly follow up with a text containing a URL to complete an online registration form.</p> <h3><strong>Postcode</strong></h3> <p>Thomas Pink asked for a postcode to start off the customer lookup process and then they asked for my fullname to confirm the address.</p> <p>A postcode is quick to say but requires a second stage to validate that this is the right person - also it will require further information from the customer to communicate with them digitally</p> <h3><strong>Wi-Fi</strong></h3> <p>Instore Wi-Fi can be useful for locations where there is a prolonged dwell time.</p> <p>Once registered it is possible then to match the device MAC address back to the individual when they return to the store (potentially triggering real-time offers). Wi-Fi antennas can also triangulate customer movements within a store</p> <h3><strong>Mobile app</strong></h3> <p>Sandwich retailer Subway, for example, has an app that contains a QR code that can be scanned at the point of purchase. Effectively the app becomes a replacement for the traditional loyalty card</p> <h3><strong>iBeacons</strong></h3> <p><a href="https://econsultancy.com/blog/68199-beyond-the-hype-how-should-marketers-really-use-ibeacons/">iBeacons</a> require a mobile app to track precise customer movements in a store. It could be challenging to directly connect proximity with an individual transaction.</p> <h3><strong>Facial recognition</strong></h3> <p>High resolution cameras at tills can scan faces and facial recognition software can identify and profile individuals.</p> <p>Accuracy can be an issue but it could be combined with other methods of identification (MAC address, iBeacon or payment card) to improve certainty. Cost is likely to be another issue.</p> <h3><strong>Personal voucher code</strong></h3> <p>Vouchers with a personalised redemption code can be used to connect transactions with an individual record.</p> <h2>Data collection considerations</h2> <p>Before selecting the method for customers to identify themselves, the following factors should be considered.</p> <h3> <strong>Speed</strong> </h3> <p>How much information do you need from the customer? Minimise this to ensure you don't create huge delays in the checkout process that will create a poor impression for customers.</p> <h3><strong>Customer privacy</strong></h3> <p>What information is your customer going to be happy to say aloud in a store?</p> <h3><strong>Proposition</strong></h3> <p>Why are you trying to identify this customer? What's in it for the customer?</p> <p>Serious consideration should be given to these questions as the old points for pounds spent is getting a little tired.</p> <h3><strong>Consent</strong></h3> <p>Marketing consent should be requested and under GDPR you may also need to clearly state that the customer is consenting to have their data processed by you.</p> <h3><strong>Enrichment</strong></h3> <p>Remember that you don't need to request every bit of data upfront.</p> <p>Demographic profiles (such as ACORN) and social information can be added post transaction. Follow up registration forms and questionnaires can be used to collect additional information on the customer.</p> <h3><strong>Activation</strong></h3> <p>Probably the most important element. After collecting the data what are you going to send? Will it be personalised?</p> <p>What proposition will be used to encourage the customer provide more information.</p> <h3><strong>Personalisation</strong></h3> <p>Retailers should respect the data a customer gives them by personalising contact plans around the individual.</p> <p>Don't be tempted to over-communicate and spam the customer into unsubscribing. Stay relevant and engaging</p> <h3><strong>Staff rewards</strong></h3> <p>What incentives, if any, can be given to the team for identifying customers in-store?</p> <p>Also its important that stores don't feel threatened by the idea that capturing data will reduce stores sales and undermine them. </p> <h2>Activating and engaging the customer</h2> <p>I can't stress how important this next stage is. Once the customer has given you contact information how are you going to use it?</p> <p>Remember at this point the customer is giving you permission to have a post-transaction relationship with them. The data and consent granted needs to be respected.</p> <p>When will you send the first message? What will it say? What do you want them to do next? Which channel will you use?</p> <p><img src="https://assets.econsultancy.com/images/resized/0008/1733/american-golf-welcome-email-blog-flyer.png" alt="American Golf's welcome email - could do much better" width="421" height="368"></p> <p>The channel choice will be governed by the consent given with the possible exception of sending a transactional message such as a receipt.</p> <p>Also you may need to arbitrate between channel choices. For instance if the customer uses the mobile app and isn't responding to email, then a push message to the app will be the preference for messaging.</p> <p>Timing can be a critical; too soon and the customer will still be in-store completing their transaction. Delay the communication for too long and the moment will be lost.</p> <p>My recommendation is that you attempt to use a testing schedule to see which activation message timing works best.</p> <p>Next comes the message itself. This ideally will be personalised to the individual based on their purchase and any demographics you have on them. It should also contain clear calls to action to either provide further information, provide a review or make a second purchase.</p> <p>The call to action should link in with the loyalty/membership proposition.</p> <h2>Conclusion</h2> <p>Identifying customers in-store is a vital way of building up a complete profile of their spending patterns and multichannel shopping habits. This can then guide display advertising, CRM initiatives, web personalisation and overall buying strategy.</p> <p>The challenge is in getting the proposition, process and use of the data spot on.</p> <p>If you're proposition is wrong, people won't bother registering. If your method of identification is too time consuming or requires yet another plastic card in a wallet, forget it. If you just spam people with the same email over and over again, why did you even bother?</p> <p>What is needed then is a clear strategy, proposition, data collection process and personalised marketing campaign to make the most of the customer data you receive.</p> <p><a href="https://econsultancy.com/reports/website-personalisation-buyers-guide/">Personalised marketing tech </a>will help support the ambition of a single customer view. This approach should then be subject to rigorous testing and optimisation to ensure that it is achieving the original objectives.</p> <p><em><strong>Now read:</strong></em></p> <ul> <li> <a href="https://econsultancy.com/blog/68114-six-tips-for-loyalty-program-success/">Six tips for loyalty program sucess</a> </li> <li><a href="https://econsultancy.com/blog/68544-disrupting-loyalty-how-can-hotels-become-enablers-not-just-destinations/">Disrupting loyalty: How can hotels become enablers not just destinations </a></li> </ul> tag:econsultancy.com,2008:BlogPost/68544 2016-11-22T11:00:00+00:00 2016-11-22T11:00:00+00:00 Disrupting loyalty: How can hotels become enablers, not just destinations? Anton Schubert <h3>Power to the people</h3> <p>In recent months Futurice has created eight retail trends that focus on a 2020 vision for the retail and consumer markets.</p> <p>One of these trends is particularly important for hospitality and especially hotels in terms of how they engage with their guests to improve loyalty and re-booking.</p> <p>The trend is called <strong>“Power to the People”</strong> and has three aspects:</p> <ul> <li> <strong>1. Crowd-sourced: </strong>As services become increasingly powered by peers, what are the different implications for customers and companies? What does trust and loyalty look like in a crowd-sourced market?</li> <li> <strong>2. Be the enabler: </strong>How can brands flex their power and use their network better to enable engaging customer experiences far outside their core offer?</li> <li> <strong>3. Global localist: </strong>Customers trust traditional brands and are simultaneously excited by boutique / bespoke experiences. The future might bring a combination of the two. Can your company start preparing for this now?</li> </ul> <p>For this blog, I’d like to talk about the second aspect; Be the enabler.</p> <h3>Be the enabler</h3> <p>IKEA recently set up a space in Shoreditch, London called <a href="http://www.ikea.com/gb/en/ikea/campaigns/the-dining-club/">the Dining Club</a>.</p> <p>This is one really cool example of what we mean when we talk about brands enabling people to have an experience that is often outside the company’s core offer.</p> <p>IKEA built on the insight that there has been a 22% drop in social groups, especially families, spending time together eating.</p> <p>They have also understood that it’s becoming harder for people to afford the cost of eating out. But the real magic about this concept is that it enables a human moment, a shared experience.</p> <p><img src="https://assets.econsultancy.com/images/0008/1678/Picture2.png" alt="ikea dinner club" width="550" height="310"></p> <p>An experience that is social and long lasting in the memories of the people involved. A moment much more compelling than a Sunday trip to IKEA to buy crockery and curtain rails.</p> <p>In essence <a href="https://econsultancy.com/blog/67694-10-examples-of-great-ikea-marketing-creative/">IKEA</a> is using its core products and brand to enable a more fulfilling experience that helps create robust brand loyalty.</p> <h3>So how could this apply to the hotel business?</h3> <p>Hotels are in a pretty good starting position, especially ones that are well networked and in great locations, be it city central or countryside.</p> <p>The hotel is a fantastic hub for the location it’s in and could be doing much more to help guests get the most out of their trip. Don’t get me wrong - I’m not talking lobby leaflets to local attractions or even the most helpful and knowledgeable front desk staff.</p> <p>I’m a business traveller, and a gold member of a large hotel chain that is affiliated with many travel and hospitality partners around the world. I get all the usual benefits.</p> <p>An upgrade here and there, free early check in, hotel restaurant vouchers, discounts from certain car rentals, a MasterCard with no annual fee, and last but not least a free bottle of water when I check in.</p> <p><img src="https://assets.econsultancy.com/images/0008/1679/Picture3.png" alt="mastercard fees" width="600" height="368"></p> <p>This is all well and good but honestly, I don’t want any of the above. I stay in so many hotels that the last thing I want is a benefit that makes me spend even more time in the hotel doing boring hotel stuff.</p> <p>I’d rather be given something exclusive that makes me feel special, something that I couldn’t do without the help of my hotel.</p> <p>My advice to hotel brands is to leverage their local networks and partners, allowing them to widen their offer. This includes connecting with locals who bring a different kind of value into the mix.</p> <p>I think a mindset change is needed <strong>from hotel as destination, to hotel as enabler</strong>.</p> <p><a href="https://econsultancy.com/blog/68541-all-the-digital-news-stories-you-missed-this-week-13/">Airbnb’s decision to add “whole trips” to its offer</a> in the form of curated local experiences is a great example of a travel brand leveraging its connections and reach to enable travellers to get more out of their trip.</p> <p>The experiences, which range from samurai sword-fighting to truffle hunting, see Airbnb move into the travel agency space, increasing pressure on hotel chains and travel websites like Trip Advisor and Last Minute.com in the process.</p> <h3>Local experiences</h3> <p>When it comes to hotels as enablers, the best example I have come across is <a href="http://conradhotels3.hilton.com/rs/stay-inspired/">Conrad Hotel’s 1/3/5 program</a>, part of the hotel chain’s Stay Inspired initiative.</p> <p>1/3/5 is a list of experiences based around the hotel group’s different destinations designed for guests who may only have 1, 3, or 5 hours to discover their new location.</p> <p>Curated by Conrad’s Director of Inspiration Peter Jon Lindberg, a former executive editor of Conde Nast Traveller, the 1/3/5 experiences range from edgy neighbourhood tours, reinvented icons and landmarks, to late-night cocktails.</p> <p>While I have yet to enjoy one myself, the 1/3/5 experiences are designed to give visitors a local perspective on culture, art, food, and adventure, so they can make the most of even a short trip. </p> <p><img src="https://assets.econsultancy.com/images/0008/1680/Picture4.png" alt="conrad hotel" width="600" height="333"></p> <h3>Disrupting loyalty</h3> <p>If hotel groups were prepared to disrupt their traditional loyalty programmes and give customers experiences that are more relevant and valuable, then I would expect my business trips to become much more enjoyable and rewarding going forward.</p> <p>Imagine, for example a future where my hotel secures me a table at Stockholm’s coolest new restaurant on its opening night? Maybe my designer hotel in London is hosting a fashion show of new London talent, and I get first chance to buy exclusive items not yet available to the public.</p> <p>Or my Berlin hotel enables an easy way for me to buy local goods from the trendy Hackescher Markt without having to rush around the town in the limited time I have outside business meetings. Maybe they even deliver those goods to my home address the next day so I don’t need to carry them through the airport chaos. </p> <p>How about instead of using my loyalty points on an upgrade, I could use them to secure a ticket to the top music event in the city that night? What if all the gold members in my hotel could chip in to a community reward scheme where we decide which rewards are relevant to us and how much we want to contribute?</p> <p>Maybe hotels could just scrap the traditional loyalty scheme altogether and give me any of the above as a gift every now and then just to say thank you?</p> <p>Hotels are in prime position to experiment with this kind of change. They have millions of guests walking through their doors every day.</p> <p>They may not yet feel they have strong loyalty within their customer base but the opportunity to create it is undoubtedly there and ready to be seized. After all, people who travel whether on business or leisure appreciate memorable experiences and AAA hotel locations are no longer the only differentiator. The hotel is the perfect springboard for the guest experience.</p> <p>It’s time to help your guests to spring a little higher.</p> <p><em><strong>Now read:</strong></em></p> <ul> <li><a href="https://econsultancy.com/blog/67658-how-hotels-can-personalize-the-customer-experience-to-compete-with-airbnb/">How hotels can personalize the customer experience to compete with Airbnb</a></li> </ul>