tag:www.econsultancy.com,2008:/topics/ecrm Latest CRM & loyalty programs content from Econsultancy 2016-11-30T01:00:00+00:00 tag:www.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:www.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:www.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:www.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:www.econsultancy.com,2008:Report/3008 2016-11-23T09:45:00+00:00 2016-11-23T09:45:00+00:00 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 a B2B report) 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> <li><strong><a title="B2B Internet Statistics Compendium" href="http://econsultancy.com/reports/b2b-internet-statistics-compendium">B2B</a></strong></li> </ul> <p>Updated monthly, each document is a comprehensive compilation of internet, statistics and online 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, to help make your pitch or internal report up to date.</p> <p>There are all sorts of internet statistics which you can slot into your next presentation, report or client pitch.</p> <p><strong>Those looking for B2B-specific data should consult our <a title="B2B Internet Statistics Compendium" href="http://econsultancy.com/reports/b2b-internet-statistics-compendium">B2B Internet Statistics Compendium</a>.</strong></p> <p> <strong>Regions covered in each document (where 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:www.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> tag:www.econsultancy.com,2008:BlogPost/68326 2016-10-17T14:54:56+01:00 2016-10-17T14:54:56+01:00 Three brands succeeding in connecting online and offline experiences Ben Davis <h3>Topshop</h3> <p>Topshop's recent '<a href="https://econsultancy.com/blog/68305-runway-to-retail-how-fashion-brands-are-introducing-see-now-buy-now/">Retail to Runway</a>' initiative integrated London Fashion Week (LFW) with the retailer's stores and digital properties.</p> <p>For its young audience, Topshop is truly a multichannel experience (with <a href="https://econsultancy.com/blog/66389-what-does-the-ideal-click-and-collect-service-look-like/">click and collect</a>, free WiFi in store, a social-enabled ecommerce app with barcode scanner), but Retail to Runway took this a step further.</p> <p>The launch played out as follows: </p> <ul> <li>Consumers could watch the Topshop catwalk show livestreamed on Topshop.com and on playback thereafter.</li> <li>Pieces from the show were available to buy immediately in selected stores, online and a pop-up showspace.</li> <li>The Topshop website ran plenty of editorial about LFW and allowed consumers to sign up for updates via email.</li> <li>The Topshop app provided notifications to users of all the LFW news.</li> </ul> <p>The merging of online and offline continues apace at Topshop, with the identity of the website (with its quick turnover of content and integrated social) matching the feel of the Topshop stores.</p> <p>Topshop plans to debut a 100% shoppable range at the next Fashion Week in February 2017, as it makes fashion ever more accessible, both online and offline.</p> <p><img src="https://assets.econsultancy.com/images/0007/9496/Screen_Shot_2016-09-23_at_16.54.29.png" alt="topshop unique" width="615" height="304"></p> <h3>Hilton</h3> <p>Whilst <a href="https://econsultancy.com/blog/68375-airbnb-how-its-customer-experience-is-revolutionising-the-travel-industry/">Airbnb gets the plaudits in travel</a> for a unique UX including its peer review system, Hilton is fighting back.</p> <p>By adding functionality to the Hilton HHonors app, the hotelier is removing some of the more frustrating elements of using hotels.</p> <p>Users can choose a room in selected hotels and check in via the app, unlock rooms with their app's digital key, and book a cab via Uber.</p> <p>Customer service with a smile at the front desk can always be compromised in a busy period, but these app improvements help to empower customers to customise and control their own experiences, beyond the online booking journey.</p> <p><img src="https://assets.econsultancy.com/images/0007/9526/Screen_Shot_2016-09-23_at_17.33.24.png" alt="hilton app" width="615" height="622"> </p> <h3>Starbucks</h3> <p>It's easy to dismiss Starbucks as just another big brand example of great CX - don't they just have plenty of money to throw at digital technology?</p> <p>Such an attitude would do an immense disservice to a brand that has been at the forefront of online/offline experiences for a number of years.</p> <p>Starbucks was the first store to widely offer free Wi-Fi and is, of course, known for letting customers dwell (which has become the default for all coffee shops).</p> <p>The coffee giant nailed mobile payment &amp; loyalty early, with its app that uses a barcode system launching in 2009.</p> <p>A staggering 21% of US transactions take place via the app and in 2015 the brand launched <a href="https://econsultancy.com/blog/66997-starbucks-new-click-collect-app-is-it-any-good/">click-and-collect coffee</a> for those that don't want to wait in line.</p> <p><em><a href="http://www.bloomberg.com/news/articles/2016-03-30/starbucks-takes-its-pioneering-mobile-phone-app-to-grande-level">Chart via Bloomberg</a></em></p> <p><img src="https://assets.econsultancy.com/images/0007/9527/Screen_Shot_2016-09-23_at_18.31.18.png" alt="starbucks mobile sales at 21%" width="615" height="414"></p> <p>Starbucks' digital marketing reaches into stores, too. Just a few initiatives include: </p> <ul> <li>The brand has used location-based app notifications (seen below),</li> <li>Starbucks' famous music playlists are available exclusively to rewards members on Spotify, where users can suggest their own tracks for in-store.</li> <li>An active <a href="https://econsultancy.com/training/courses/topics/email-ecrm/">email marketing</a> and social media programme pushes seasonal specialities and offers to rewards members.</li> </ul> <p><img src="https://assets.econsultancy.com/images/0007/0789/Location-Based-Mobile-Marketing-Example.jpg" alt="starbucks notification" width="350"></p> <p>Overall, Starbucks' investment in stores (<a href="https://econsultancy.com/blog/67085-starbucks-new-london-digital-concept-store-puts-focus-on-customer-experience/">including concept stores</a>) is just as impressive as its investment in its digital capabilities, making it a truly multichannel brand.</p> tag:www.econsultancy.com,2008:BlogPost/68341 2016-09-30T11:45:00+01:00 2016-09-30T11:45:00+01:00 Reimagining customer loyalty: Why it's about more than just a store card Ben Pask <p>It comes as no surprise, as macro-economic forces drive customers to seek better value in some of the more considered purchases they make each day.</p> <p>However there are indications that the market for loyalty scheme membership, is reaching <a href="http://www.telegraph.co.uk/finance/personalfinance/money-saving-tips/11912823/Shoppers-waste-6bn-of-loyalty-reward-points.html">saturation</a>.</p> <p>How can it be the case that one person can amass 16 loyalty cards, and not redeem any points?</p> <p>Both halves of that sentence seem a little bonkers to me, but perhaps the way that the marketing industry imagines loyalty to be, isn’t solving the problem it’s trying to fix.</p> <p>Before going into detail on whether loyalty schemes work or not, it’s worth defining what we mean when we say loyalty.</p> <p>True loyalty considers two important elements: A positive attitude and repeat patronage towards a brand.</p> <p> <img src="https://assets.econsultancy.com/images/0007/9587/Dick_and_Basu.png" alt="Dick and Basu on Loyalty" width="359" height="218"></p> <p>To understand how to create loyalty, we need to understand where it comes from.</p> <p>In a recent piece of research, it was identified that the drivers of customer loyalty are ‘brand likeability’, ‘delivering on brand promise’, ‘product quality’ and ‘ease of use’.</p> <p>Four in five customers <a href="https://www.marketingweek.com/2016/07/13/are-loyalty-schemes-broken/">identified these elements</a> as important in driving customer devotion.</p> <p><img src="https://assets.econsultancy.com/images/0007/9586/Chart_-_drivers_of_customer_loyalty.png" alt="Drivers of customer loyalty" width="549" height="326"></p> <p>A good example of creating customer loyalty through these drivers <a href="https://erply.com/case-study-how-you-can-copy-nordstroms-secrets-to-massive-retail-success/">comes from Nordstrom</a>. The retailer is synonymous with excellent customer service.</p> <p>The culture of a customer-first approach to loyalty is apparent through the company's DNA - with all staff embodying the three core standards:</p> <ol> <li>Why the service is of value (why we’re doing this in the first place).</li> <li>The emotional response the customer should feel.</li> <li>The expected method for accomplishing the service in question.</li> </ol> <p>With these three standards in place, employees are empowered to create great customer experience, by any means possible.</p> <p>This helps achieve some of the main components that drive loyalty - ‘quality’, ‘ease of use’, ‘likeability’ and ‘delivering on brand promise’.</p> <p>Nordstrom is successful because every decision is about encouraging an emotional response from the customer, simply to make them feel good.</p> <p><iframe src="https://www.youtube.com/embed/NTqBhdUnisI?wmode=transparent" width="640" height="360"></iframe></p> <p>This is a key differentiator compared to many of the traditional rewards programs we see today, with their points and discounts providing benefits that are easy to rationalise.</p> <p>By focusing on the emotional reaction and feeling of the customer Nordstrom makes loyalty a culture, not a route to market.</p> <p>There is a case for reimagining what loyalty means in categories that are associated with low involvement. Take Insurance as an example.</p> <p>David Moth’s <a href="https://econsultancy.com/blog/68273-is-customer-loyalty-extinct-in-financial-services">assessment of the Insurance category</a> presented some anecdotal evidence of a category struggling to get to grips with market forces beyond their control, leading to the commoditization of service through price comparison sites and new apps on the market.</p> <p>In such categories, brands need to consider the value they create, as opposed to the value they offer.</p> <p>One powerful example of this comes in the form of Oscar, a health insurance provider in the US. Oscar promises its customer hassle free insurance with personalised tariffs.</p> <p><iframe src="https://www.youtube.com/embed/eBNEKu-dH3Q?wmode=transparent" width="640" height="360"></iframe></p> <p>By issuing out wearable tech Oscar incentivises healthy behaviours and adjusts the insurance premiums it offers to customers based on their behaviours.</p> <p>Oscar has gained a name for itself by focusing on the implicit drivers that create loyalty.</p> <p>As highlighted in a recent <a href="https://econsultancy.com/reports/understanding-the-customer-journey/">Econsultancy report</a>, one of the biggest barriers to CX success is a lack of understanding of the customer journey.</p> <p>To understand what loyalty means, brands need to go back to understanding their customers' needs (“what is most important to me”), motivations (“why is this important”), and finally behaviours (“what am I doing when…”).</p> <p>Again perhaps one of the pitfalls of the way loyalty is imagined in many marketing departments is the lack of psychographic and attitudinal data to augment behavioural data such as customer lifetime value, frequency of purchase, etc.</p> <p>Don’t get me wrong, loyalty schemes have their role and have proven to be effective for some brands.</p> <p>The problem with brand behaviour around loyalty schemes is that there is often an assumption that ‘doing a loyalty’ scheme will magically paper the cracks of a poor brand experience.</p> <p>This, coupled with the idea that many marketing departments attempt to copy-paste the approach of others, leads to market filled with ‘me too' propositions.</p> <p>To do loyalty right requires a customer-first culture that flows through the business, which requires more than a store card.</p> <p>As people, we are only limited by our own imaginations when we think about loyalty, and perhaps the industry needs to readdress what loyalty means to them.</p> tag:www.econsultancy.com,2008:BlogPost/68132 2016-08-16T15:15:10+01:00 2016-08-16T15:15:10+01:00 10 key challenges facing CRM marketers Ben Davis <h3>1. Too much data, not enough action? </h3> <p>In 2015, Econsultancy's <a href="https://econsultancy.com/reports/measurement-and-analytics-report/">Measurement and Analytics report</a> showed that 40% of executives found more than half of their collated analytics data was useful for decision-making.</p> <p>That proportion of marketers dropped to 33% in the recent 2016 survey, due perhaps to an increase in complexity, particularly in advertising, with new technology hitting the market.</p> <p><img src="https://assets.econsultancy.com/images/0007/8066/Screen_Shot_2016-08-16_at_10.48.02.png" alt="how much data do analysts use?" width="615"></p> <p>One other explanation could be that mid-tier organisations are getting more of their data in order, but haven't quite worked out what to do with it yet.</p> <p>This seems to be the story when I speak to Ivan Mazour, CEO and founder of Ometria.</p> <p>The company started out in data and analytics, combining data for clients to create <a href="https://econsultancy.com/blog/65425-what-is-the-single-customer-view-and-why-do-you-need-it/">a single customer view</a> (from ecommerce purchase data, to website data, marketing data, offline data etc.).</p> <p>However, Ometria changed direction a couple of years back, realising that when many of its customers got their data in order, they weren't entirely confident how to act on it.</p> <p>In Ivan's words: "Just getting the data didn't solve any of their problems, they wanted to take the next step."</p> <p>So, Ometria developed a cross-channel platform aiming to create unified customer communication journeys (through email, web, social) based on customer data, with a focus on retention and lifetime value.</p> <p>This data-driven CRM retention strategy is what many brands are currently working towards.</p> <h3>2. Avoiding short termism</h3> <p>As any CRM expert will tell you, some customers are worth more than others, and that's something that has to be borne in mind when creating a contact strategy.</p> <p>Jill Brittlebank, senior director of strategy and analytics at Zeta Interactive (a big data and analytics company) sums up the challenge of short termism:</p> <p>"There can be a lot of focus on day-by-day trading metrics, so if trading's down, marketers might send a message or create a campaign, rather than asking themselves 'are we growing our overall customer value?'</p> <p>"'Are we increasing frequency of purchase, basket size, certain category purchases, etc.?' These are the things that grow sustained performance.</p> <p>"Yes, you have to keep the funnel fed, but understanding your acquisition - what is driving the highest value customers as well as highest volume - is really important.</p> <p>"As attribution becomes more accessible to the mid tier, they understand better the value of each contact"</p> <p>Brittlebank's comment on attribution echoes some findings from our Measurement and Analytics report, which shows the proportion of marketers who state that they are using an attribution model has risen by 16% in 2016.</p> <p><img src="https://assets.econsultancy.com/images/0007/8072/Screen_Shot_2016-08-16_at_11.31.55.png" alt="attribution model usage" width="615"></p> <h3>3. Bridging the gap between acquisition and retention</h3> <p>Acquisition strategies have become more complex, particularly when it comes to programmatic advertising, now available across major social channels.</p> <p>Jill Brittlebank, Zeta Interactive, points out that there's a disconnect between acquisition and retention strategy, which mirrors the disconnect between sales and marketing in many organisations:</p> <p>"Typically customers are most likely to buy when they first engage with your company, and that's when you know least about them.</p> <p>"The challenge is to pull through the data from acquisition (cookie pools etc.) to influence growth and retention.</p> <p>"Many companies are using DMPs and have the ability to be targeted at a prospect level; the next win is to bring that through into your customer marketing. </p> <p>"There's a break - you have really rich targeting, but then the slate is wiped clean once the customer lands." </p> <h3>4. Behaviour-based personalisation</h3> <p>Targeting is becoming a much-debated topic in advertising and marketing.</p> <p>Only recently, <a href="https://econsultancy.com/blog/68182-what-can-p-g-and-facebook-teach-us-about-the-reality-of-targeting-and-the-future-of-tv-ads/">P&amp;G admitted it had gone too broad</a> with its Facebook advertising, and many creatives argue that the big idea trumps poorly created micro-segmented content.</p> <p>There's another consideration when it comes to retail in particular, and that's the <a href="https://econsultancy.com/blog/67250-seven-avoidable-marketing-automation-mistakes/">inadequacy of broad persona-based marketing</a> - assumptions about a particular age or sex of customer are always going to be just that, assumptions.</p> <p>Jill Brittlebank says that much of what companies need to do is "removing dissonance."</p> <p>"As consumers," she continues, "we get less and less tolerant of irrelevant messages. Younger users particularly.</p> <p>"So if I get a 'half term' style message when I've never shopped the kids category, I'm right to ask 'why?'</p> <p>"If I've shopped at Ocado for years, for example, they should know enough about me by now, what I'm buying etc., then talk to me like Arkwright from Open All Hours. The ultimate goal is to recreate that old retailer relationship."</p> <p>This difference between persona- and behaviour-based marketing is something Ivan Mazour, Ometria, sums up succintly:</p> <p>"It doesn't matter if the customer is a 45-year-old woman based in Clapham, we should be making decisions based on the fact that she only ever buys men's clothing with us.</p> <p>"Not random probabalistic hopes about what she wants, but actually knowing what she's looking at, how often she comes to the website, across all devices."</p> <p><em>A Shutterfly email faux pas - <a href="http://www.thehubcomms.com/news/shutterflys-email-faux-pas-when-marketing-automation-goes-wrong/article/347359/">wrongly assuming someone has given birth</a>.</em></p> <p><img src="https://assets.econsultancy.com/images/0005/5265/shutterfly_original_email_grap_594069.jpg" alt="shutterfly" width="553" height="663"></p> <h3>5. Optimising email content</h3> <p>Having decided to target customers based on their behaviours, the next question is what content to target them with and when.</p> <p>Retailers must set rules - how many times does a customer need to look at a category or product before we send an email?</p> <p>Mazour highlights two strategies for the content of these emails, either "templated around a category, which includes a browsed product, so it looks like it has been visually merchandised. Or a mix of categories."</p> <p>This is the type of content optimisation that any company can employ, using "unsubscribe and conversion rates to create an optimisation routine."</p> <p><strong>The 'nudge'</strong></p> <p>The skill in content creation is subtletly, according to Jill Brittlebank.</p> <p>She says its about maintaining "the thrill of discovery, like finding something in the boutique off the high street - the perception of value is higher."</p> <p>"So the challenge," she adds, "is using technology as a predictive tool but also nudging customers towards the next product with subtlety, without saying 'look, you're going to buy this next'."</p> <p>Brittlebank also points out how important content is in modern ecommerce:</p> <p>"[Editorial such as] 'Ways to style', 'one dress three ways', 'daytime to evening', all that sort of stuff, it drives engagement. It doesn't necessarily drive the next purchase, but if the customer isn't in active purchase, you're looking to inspire them."</p> <h3>6. Optimising email frequency</h3> <p><a href="https://econsultancy.com/blog/62997-send-more-email-make-more-money/">More email, more money</a> is an <a href="https://econsultancy.com/blog/63747-why-more-emails-at-christmas-almost-always-means-more-money/">oft-heard mantra</a>, and one <a href="https://econsultancy.com/blog/64165-email-frequency-how-much-is-too-much/">we've discussed plenty</a> on the Econsultancy blog.</p> <p>Ivan Mazour, Ometria, is straightforward on the issue: "We agree with that. All research shows that over one email a day is optimum, assuming they're quality."</p> <p>Of course, that doesn't mean that all retailers do this, and one contact frequency for all customers may not be desirable.</p> <p>Hannah Stacey, marketing manager at Ometria, points at that companies "can segment on top of email - leave out VIPs from basket abandoment for example. Or leave some segments out from incentives."</p> <p>Care is needed, particularly in some sectors. Mazour says that "the fallout for a luxury brand, for example, can be big when sales emails land after somebody has purchased."</p> <p>Frequency is something that can be tied to a number of factors - purchase patterns and engagement.</p> <p>Jill Brittlebank, Zeta Interactive, gives a very practical example:</p> <p>"Look at groups of customers who only buy in the lead up to the holiday period at the end of the year.</p> <p>"You could gently nudge these people to purchase something pre-summer holiday perhaps? But really you want to market to them during the time they traditionally purchase."</p> <p><img src="https://assets.econsultancy.com/images/resized/0004/2084/unsubscribing-blog-full.jpg" alt="email frequency" width="615" height="325"></p> <h3>7. Integrating social into a contact strategy</h3> <p>Mazour discusses the effectivenes of using first-party data to target lookalike audiences on social media.</p> <p>However, email continues to be the main channel that customers want to interact with (more than 70% of consumers prefer email, accoring to an Ometria study).</p> <p>But "if someone is not opening emails and you want to reactivate them, you can target them in social," Hannah Stacey comments, "then as soon as they start opening emails, you can switch that social targeting off."</p> <h3>8. Creating mobile experiences </h3> <p>Mobile user experience is something that most people are now fully aware of when it comes to web and email design.</p> <p>However, Jill Brittlebank points out the potential of mobile for rich customer insight.</p> <p>That's because users are more likely to browse on mobile, and the functionality of the device (e.g. swiping) is something that could be utilised to greater effect, presenting users with experiences that can build out their profile for the retailer.</p> <p>We've already seen retailers like Missguided <a href="https://econsultancy.com/blog/67600-missguided-launches-tinder-inspired-app-experience-review/">integrate Tinder-style experiences</a> into apps, but there's perhaps more to be done here, to engage users on mobile web, particularly those that arrive from email.</p> <h2> <img src="https://assets.econsultancy.com/images/0007/2583/IMG_2661.PNG" alt="swipe to hype" width="300">  <img src="https://assets.econsultancy.com/images/0007/2584/IMG_2663.PNG" alt="swipe to hype" width="300"> </h2> <h3>9. Getting hold of in-store data</h3> <p>This is the holy grail for retailers. Though a select few do have a fantastic <a href="https://econsultancy.com/blog/64758-how-in-store-tech-improves-customer-service-for-schuh/">view of stock across stores</a>, customer data is another thing entirely.</p> <p>Ivan Mazour comments that "most of the challenge is how do you get hold of in-store data. Anything with delivery works well (e.g. furniture) because you need to ask for details, or anything with a warranty (e.g. Jewellery).</p> <p>"But it's difficult for low ticket items, even if it's as simple as asking for an email address for an e-receipt.</p> <p>"It's hard to incentivise the store associate to get that email address. And it's hard to persuade the consumer, because the value exchange of an e-receipt is okay if you're Apple and selling tech, but not for a £15 purchase."</p> <h3>10. Integrating with legacy infrastructure</h3> <p>A last point to consider and another mentioned by Ivan Mazour - lots of existing retail systems update overnight (e.g. store systems).</p> <p>However newer systems like CRM and ecommerce are closer to real-time, making the two harder to integrate.</p> <p>This perhaps isn't a pressing concern but may ultimately affect some parts of <a href="https://econsultancy.com/training/courses/creating-superior-customer-experiences/">customer experience</a> (e.g. the speed at which retailers can offer click and collect).</p> <h3>In conclusion...</h3> <p>Companies are now <a href="https://econsultancy.com/reports/the-role-of-crm-in-data-driven-marketing/">much more data-driven</a>, even fairly traditional retailers. The battle for boardroom approval is largely of the past.</p> <p>But there's still plenty of work that organisations need to do to optimise sophisticated contact strategies, particularly as technology in areas such as retargeting is still advancing.</p> <p>There are likely many more challenges to add to the 10 I have listed above. Please continue the conversation by adding a comment!</p> tag:www.econsultancy.com,2008:BlogPost/68114 2016-08-01T15:36:11+01:00 2016-08-01T15:36:11+01:00 Six tips for loyalty program success Patricio Robles <p>Here are six tips for brands looking to build successful loyalty programs.</p> <h3>Don't overplay the discount card</h3> <p>Discounts are a common part of loyalty programs and probably always will be. But just as discounting outside of loyalty programs isn't always effective, discounting inside loyalty programs isn't always effective either.</p> <p>For example, when a loyalty program provides a discount to a customer already likely to make a purchase, the program really isn't engendering loyalty and moving the needle.</p> <h3>Find ways to make members feel special</h3> <p><a href="https://econsultancy.com/blog/66128-consumers-demand-experiential-rewards-from-loyalty-programs">Consumers are increasingly demanding experiential rewards from loyalty programs</a>.</p> <p>As Director of Search Marketing at 17 Agency and Econsultancy contributor Andrew Broadbent explained, "Simple discounts do not give people an experience that touches their five senses."</p> <p>But emotional, memorable connections <em>can</em> be developed through experiences, such as access to exclusive offers and events.</p> <p>What's more: these experiential rewards are far more likely to be promoted by customers on social media.</p> <p><img src="https://assets.econsultancy.com/images/0006/0129/experiential-rewards-sparks-loyalty-program-engagement.png" alt="" width="470" height="429"></p> <h3>Understand the customer and personalise accordingly</h3> <p><a href="https://econsultancy.com/blog/67070-why-personalisation-is-the-key-to-gaining-customer-loyalty">Personalisation</a> is key to gaining customer loyalty, and savvy brands <a href="https://econsultancy.com/blog/67839-how-l-oreal-uses-personalisation-to-increase-brand-loyalty">like L’Oreal</a> take advantage of this.</p> <p>While personalisation should be employed broadly, brands often have the greatest opportunities to use it in loyalty programs because the data collected through the programs gives brands the ability to understand customer behavior in great detail.</p> <p>With that data, brands can implement effective, personalised discount strategies, as well as experiential rewards that really resonate with specific customer groups. </p> <h3>Avoid unnecessary complexity, but recognize your VIPs</h3> <p>Loyalty programs should offer a clear and compelling value proposition to customers, and that usually means that less complex is better than more complex. But customers aren't created equal and it's important to make sure that the most valuable customers feel valued. </p> <p>Numerous programs have tiers, and as customers establish their loyalty, they can move into tiers that provide greater rewards.</p> <p>For instance, beauty brand Sephora has a three-tiered program and members in the highest tier have access to free two-day shipping, custom makeovers and invitations to private events.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/7426/sephoratiers-blog-flyer.png" alt="" width="470" height="354"></p> <h3>Be thoughtful and careful about changes</h3> <p>As with any initiative, loyalty programs should be monitored closely and adjustments made when appropriate. Sometimes major changes are required, but it behooves brands to be thoughtful and careful about such changes. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Hey <a href="https://twitter.com/Starbucks">@Starbucks</a>, your new <a href="https://twitter.com/hashtag/starbucksrewards?src=hash">#starbucksrewards</a> is NOT about loyalty anymore, but gouging your loyal customers $62.50 for a free coffee. <a href="https://twitter.com/hashtag/GoodBye?src=hash">#GoodBye</a></p> — Jeff Johnston (@jeff_a_johnston) <a href="https://twitter.com/jeff_a_johnston/status/702189442006515712">February 23, 2016</a> </blockquote> <p>Case in point: <a href="https://econsultancy.com/blog/67568-starbucks-shows-perils-of-loyalty-program-changes">when Starbucks updated its rewards program</a> earlier this year, tying rewards to dollars spent instead of visits, it upset many of its customers, creating a backlash that the company had to weather.</p> <h3>Put a time limit on it</h3> <p>In some cases, brands with specific goals can consider implementing short-term loyalty initiatives <a href="https://econsultancy.com/blog/68015-chipotle-launches-a-loyalty-scheme-to-win-customers-back">like the one Chipotle recently announced</a>. </p> <p>Its Chiptopia scheme, which is running for three months only, was launched to help the restaurant chain recover foot traffic after E. coli outbreaks dented its business.</p> <p>Chiptopia offers members free entrées after a certain number of visits, and customers who visit Chipotle 11 times in three consecutive months even receive free catering for a party of 20. Such generous rewards are probably not warranted, or sustainable, over the long term, but if the brand has its way, Chiptopia will help it get customers back into its stores.</p>