In the midst of the
extraordinary change being driven by online retailing, major retailers
worldwide are continually adjusting strategy to create value. But competing
priorities and distractions can lead retailers to forget perhaps the most
important underpinning of all strategic imperatives: customer empathy. The
irony of this, and the appeal, is that based on this simple frame of reference – putting yourself in your customers’ shoes
– most retailers already
know how to win.
In
the name of innovation, many retailers often implement new systems that are
intended to reduce cost, improve sales and be good for customers, but, in fact,
if they had listened to their customers the retailers would have learned they
wanted something different.
Although
all industries are still in the midst of digital transformation, other
industries, such as travel and banking, aren’t as fixated on channels and haven’t
fallen into this trap. They have learned to deliver seamless, convenient,
non-intrusive, enabling experiences. Retailers that do the same have the best
chance of balancing returns on investment and increasing share of wallet with
delighted, brand-loyal customers.
Bottom-line takeaways in six key
areas essential to any retailer’s transformation strategy: mobile, social
media, personalized marketing, cross-channel integration, loyalty, and digital
shopping.
- MOBILE - Mobility is perhaps the most important channel of all. Retailers
need to adopt a “mobile-first” model for deployment to shoppers and associates
given the inherent rapid change and ubiquity of mobile interaction. The vast
majority of shoppers are now connected almost every waking hour of their day.
But retailers haven’t caught up.
- SOCIAL MEDIA –
Although shoppers are very active on
social media, it’s their platform and they really don’t want the noise that
many retailers generate: more than 60% of surveyed shoppers said their purchases
are not influenced by social media.
- PERSONALIZED MARKETING – Personalisation
runs hot and cold. Retailers understand the power. Shoppers are hungry for more
relevant, customized experiences.
- CROSS-CHANNEL INTEGRATION – Customers want it all – the convenience of online shopping with
the comfort and immediacy of the in-store experience. And they want to use
their devices to research and price check while in stores. The tip of the Omni channel
spear is “buy online pickup in-store.” It’s the most tangible, proven way to
engage and identify customers across channels.
- LOYALTY –
Loyalty programs, when done well, are good
for retailers and their customers. But retailers are not leveraging loyalty
anywhere near as well as airlines and hospitality companies. Shopper satisfaction
with retail loyalty programs is generally low. Although retail loyalty programs
do create loyalty, and shoppers are enrolling (92%), impact could be
substantially increased by improving perceived value and ease of use.
- DIGITAL SHOPPING – Digital
shopping (Web and mobile) continues to be an important – and threatening –
channel both for transacting and influencing in-store purchases. More and more
shoppers are looking to brand Web sites, e- tailers and other online
competitors. With increased price transparency and expectations for faster,
lower-cost delivery also comes increased threat to the bottom line. What do shoppers
want? A collective experience online! No single feature is more important than
the rest.
Shoppers
want robust information, easy access to service, a variety of payment options,
stored profile information, and real-time offers. Retailers must rely on their
online experience, price and product selection to differentiate themselves from
the competition.
For more details visit us @www.urssystems.com
