A while ago I blogged about threats and solutions in the retail industry that have their origin in rise of social media; with this post I would like to continue on this topic, focusing on possible solutions for retail companies.
This blog also ties in to a recent article by Mark Tamis on Social CRM in Retail. In his article Mark describes an interesting and elaborate scenario that showcases a technology enabled, consumer and network driven decision process, using the example of buying a party dress. This example is interesting because, although the process is entirely consumer driven, the involved companies use the technology to add value to the customer, thus achieving a win-win situation.
What the involved corporations (a store and a hairdresser) are doing is setting up patron loyalty with the aid of
- Engaging the customer
- Providing a superior shopping experience, combining online- and offline aspects
- Enabling the customer to get immediate feedback from their network
With this the two involved corporations control to align their hobbies with the patron?S pastimes.
In other phrases, they may be distinguishing themselves thru provider, in region of fee. Trying to gain loyalty via the provide of ?Least rate? Is a surefire manner to lack of lifestyles. To quote the 1986 Highlander movie: There can be only one.
Although the state of affairs defined via Mark sounds very superior it isn?T. The enabling technology exist and ?Just? Need to be tied collectively. We are not speaking Star Trek right right here. I definitely like this situation as it depicts what is probably. Still, integration is a tough commercial enterprise.
Because of this I would like to return again forward with another scenario that is sincerely an awful lot much less sexy, that includes me, my wife, and our three kids, and the achievement of a totally simple requirement: Food. I additionally positioned a few emphasis on integration proper right into a returned surrender CRM device (now this one can be an ERP gadget, however I happen to be a CRM man). It begins off quite simple and gets greater bells and whistles, which I blanketed into the state of affairs using a number of Marks thoughts that he came up with for the duration of our continued dialogue.
Assume a food retail chain is strolling a CRM device and has its product catalogue on line on their transactional net net page and on Facebook, in all likelihood moreover transactional there. Their CRM method includes a persevering with emblem experience and the provision of additional value to customers. This leads them to imparting a commented catalogue of receipts with customer commentary options and a news section approximately meals applicable subjects on their internet web sites and on Facebook. As part of their era strategy the retail chain also provides downloadable apps for e.G., iPad, iPhone and some Android gadgets, which is probably records-fed from their CRM system.
The retailer additionally offers a shopping for list utility - on Facebook, on their internet website online, and as apps for the equal devices. The shopping listing may be shared amongst me and my spouse and stays synchronized between the channels, due to the reality it's miles hosted on the retailer?S CRM system that drives the whole machine, or on a system this is linked to the CRM system. My partner and I, anything tool we use, anywhere we're, and every time we reflect onconsideration on it, can add gadgets to our purchasing list. We can add merchandise and absolutely product classes like bread, joghurt, ... From the catalogue or from the catalogue of receipts that deliver us notion.
In keep we get provided with matching merchandise, promotions and pass-/upselling possibilities. These are generated based totally upon the buying list, our preceding buying, explicitly said choices, our desire of meals, and derivations from our reactions to bypass- and upselling tries. Products which may be maintained as training simplest obtain tips with actual products primarily based upon statistics that the corporation has about us. Unavailable products are substituted in step with our profiles.
We might use our iPhones in location of iPads in the shop as it's far fairly bulky to address an iPad whilst pushing the cart and additionally dealing with our 3 little kids ? Despite the truth that the iPad is so clean to apply that we have to have our four twelve months antique manage the buying list in shop.
This is the bread-and-butter situation that only needs me to check in to the store. How approximately making it even more interesting?
The retailer?S stated intention is to distinguish itself by using providing rate to clients. To accomplish this they offer the capacity to construct nutritional plans for families. To help this the buying list app gives the advent of the shopping list primarily based upon the dietary plan, taking preferential standards, like ?Italian?, ?Rice?, ?Healthful?, ?Low calories?, ? Under attention. As we are presently pursuing a low fats, low carb weight loss program the device builds us the week?S menu for the family and builds our buying listing, thinking about our previous buying conduct and different said alternatives. Of route, every folks, my partner and I, do some adjustments to this generated listing. It moreover offers a dashboard that permits us to reveal our weight objectives in opposition to our plan.
For a similarly segment the retail chain is considering to team up with a fitness studio chain to plot and help a diet that enables our average physical health desires and and frequently establishes a health fame the use of the data that gets amassed at the health studio?S machines.
Still not enough? So permit?S additionally use the superior vicinity services of these days?S clever telephones.
As the shop
At the checkout we pay using the phone. Since the store is also offering Fuel Dockets (fuel vouchers giving a discount on the fuel price at a cooperating brand of stations) the docket gets loaded onto my phone for later usage at the filling station. As we are members of the store chain's loyalty club my account gets updated immediately and I get my new account balance displayed on my device, which is far more convenient and offers more privacy than using the customer facing screen of the checkout.
The checkout process is powered using near field technology.
This could be added upon further, just consider the groceries being delivered to my gym, so that I can pick them up after my training, if I wished so …
Why would a retail store that usually is short on margin go through these lengths, even the investment that is necessary for the bread-and-butter scenario? The answers are loyalty and identification of the customer. An implementation like this would greatly improve upon the shopping experience, and the perceived service level of the retailer. The chance of customers continuing to buy at “their” retailer instead of another one is greatly improving. Secondly: Retailers generally correlate purchases to target customer groups. Using the described scenario they can do this even better – they actually could identify their customers without a formal registration (e.g. using the phone identity). With this cross- and upselling attempts will be more successful, which adds to revenue and margin.
The fitness studio’s benefits would lie in increased sign-up rates, getting a better insight into their customers’ lifestyles and possibly in a more attractive supply contract for food items and drinks sold in studio.
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