Posts Tagged retail consultancy
Google have recently published a new book by Lecinski, The Zero Moment of Truth, which attempts to redefine the way in which retailers are talking to consumers. The Zero Moment of Truth replaces the First Moment of Truth, a marketing concept originally coined by Proctor and Gamble, where customers would react to stimulus in store and then make their choice in store. Their experience of the product would then happen after purchase.
Times have changed and now the customer works in the zero moment. Purchases are often planned way ahead of time, reviews are searched and read and both the internet and smart phones play a highly significant part of the process. This does not just relate to large, expensive, important purchases, but it is also how many customers now shop for small, everyday products. They want to know what others think of them; they want make a far more considered, informed purchase.
Think about book purchases, for example. Hardly anyone buys a book on the strength of the back cover any longer. Reviews are read or listened to and the opinions of others weighed before purchase.
Hence, those retailers who show reviews on their websites do well. In fact, those who encourage customers to submit product reviews and are willing to get as much feedback as possible, do even better. People trust reviews when it comes to choosing a product and the more reviews there are, the better it is. The use of ‘how to’ videos is highly effective; how do they wear it or use it? Is it the right choice for me?
So how can retailers adopt the concept of the zero moment to their own advantage?
Firstly, make videos, which show the product and give consumers as much detail as possible. Lecinski found that between the point of the initial traditional advertising stimulus and the customer’s first interaction with the product, online activity often plays a vital role through search engines and social networking sites. Testimonials and product demonstrations really work.
Use keyword searches and other Google tools to help your customers find your products and the information you put around them. Make sure that your product description and the reviews answer the right questions your consumers are likely to ask.
Test what works for you and do not be afraid to try different concepts.
Make sure that someone in your marketing team is concentrating on this area. If it is incorporated into your marketing strategy effectively, it will give retailers more selling power and more influence over customer decisions.
Ultimately, this is about interacting with your customers on a more personal level and extending your CRM strategy into these interactive areas to show the customer that you are confident about your product, you are happy for others to review it, you will help them understand how to use it and that it is for them.
Retail figures out this week have served to highlight the winners and losers of the retail sector in the current depressed market. Those with the right product, marketing mix and customer service do better than those who do not get it right. It sounds like a glib remark, but when consumer money is tight and credit no longer easy to come by, customers will no longer support those stores who were on the edges of their repertoire.
So what seem to be the golden rules:
The right product goes without saying: know your market and make sure both the quality and price levels meet with the expectations and needs of your target audience.
The right sales channels are key. Retailers are learning, some the hard way, that they can no longer rely on customers coming into store. Some don’t have time, some don’t live in the right places and some don’t have the inclination to come to the high street, so an on-line shopping option and correct online strategy is a must. It allows customers to shop when it suits them and allows the retailer effectively to remain open 24/7.
The right marketing channels are crucial, but even before that, knowing your customer is critical. Who are they, what are they buying, when are they buying, where are they buying, are they multi-channel customers, how important are they as individuals to your business? Did they used to spend and have stopped? Can you bring them back? Market research and customer relationship management enable retailers to target their marketing activity as closely as they can to reap the returns on the bottom line.
Customer service is an area which can never be over-estimated. Whether it is the person on the sales floor, at the till or on the phone, they represent your brand to the customer. Good service will bring the customer back and encourage them recommend you to friends. Poor service will encourage them to do neither.
Finally, it’s important to remain positive. The media paint a picture of doom and gloom and this can be self-perpetuating to an extent. Retailers who really believe in their business and take the right steps to reach their target market will thrive and come out stronger on the other side.
It’s all change on the high street and not for the good. This is what we hear constantly in the media. The high street is dying, so much so that the government commissioned Mary Portas to come up with key recommendations for reviving it. The change has been driven almost exclusively by the internet.
Some shoppers adopted on-line shopping early, the majority took a little longer to trust it, but trust it they now do and it is a hassle-free, time-saving way to shop. We live in a world where time constraints are ever increasing and the internet provides the opportunity to help us in our daily lives by bringing the high street into our homes.
The high street itself will inevitably suffer, if we continue to take the view that the high street should remain as it has always been. Change, however, will come, whatever anyone does to try to stop it and however much everyone moans about it. We can see that these days, traffic is driven primarily by offers and sales. Customers wait for the sales, which happen at the same time at key points in the year. They know that if they wait, they can by it for less. Retailers are tied into these sales events, locked into them by the sales spikes they create and unwilling to take them out of their marketing calendar as they guarantee a certain level of sales. Yet the same pattern of marketing year in, year out will mean that customers grow accustomed to this and alter their behaviour accordingly. Retailers need to act smarter if they are to drive traffic throughout the year and to excite customers in other ways.
Similarly, the internet and its on-line opportunities should be seen as a key sales channel to enhance overall sales, rather than as a rival to the high street stores. The priority for brand marketeers should be selling the brand through all channels, so that the customer can choose the one which is right for them. This brings the customer choice and levels of service which will lock them into the brand intrinsically. If this is done well, the high street presence of such brands will benefit as well as their on-line arm, which should effectively to seen as another store, albeit virtual.
To save the high street, retailers need to focus on three things: the right product, genuinely high levels of customer service and specifically targeted marketing programmes, where they can address certain segments of their audience at key times to improve their return on investment for every marketing programme they undertake. The right product speaks for itself, whilst not always being the easiest thing to achieve. Outstanding customer service is vital for brands to survive in the future. Look at John Lewis, one of the few retailers turning a genuine profit in the midst of retail recession and a large part of it is down to their service provided by motivated and well-informed staff. Customers trust the brand and keep coming back for more. Finally, an effective customer relationship marketing programme enables retailers to talk to segments of their customers in ways which genuinely engage those customers and their specific interests, regardless of which channel they use to shop the brand.
Change is inevitable. Instead of bemoaning the change, we must embrace it and listen to what the customer wants. After all, the customer is always right….. we just don’t always remember that!
Many were hoping that 2011 would be the year of global economic recovery. Sadly as the year comes to an end, it is quite clear that in 2011 the international financial picture failed to improve and as we head into 2012, there is significant uncertainty in financial markets and economies.
Looking back on the year and specifically on how retail businesses have improved their customer relationship management, we can see how business as we know it is changing. With the cost of living going up all the time, consumers are changing their spending habits and are becoming very savvy shoppers.
As a result, those retail businesses that are able to differentiate themselves through their service, or quality of customer experience are the more likely to succeed. For some organisations, this has led to dramatic changes to the way it interacts with its customers.
Those retail businesses who have invested in an effective CRM programme will lead the way. They know their customers, can communicate with them in a targeted, segmented way, which improves return on investment and allows them to maximise the customer experience. Customer interaction, both in and out of the store, becomes far more effective and profitable. Look at John Lewis, who have just bucked the trend and turned in successful growth figures for 2012. How do they do it? By offering first class service through their staff training and their marketing campaigns at all levels.
In 2011, businesses have not only seen customer spend drop, but also seen customer expectations grow. Customers are aware that businesses are fighting tooth and nail for their time and custom, which puts the customer in quite a powerful position. For businesses, this means offering something more than just a good deal to the customer. It means offering a great customer experience.
One such way which businesses have been able to nurture a better customer experience is to embrace social media. What was once perhaps viewed with mixed feelings now has much more widespread support due to the success many businesses have had using social media.
It is important to note that social media is constantly evolving and in such a dynamic environment making predications is a challenge. Utilising Facebook, Twitter and the like is crucial. The market in social media is crowded and retail businesses need to stand out.
So, what does 2012 have in store? The Institute of Customer Service has talked about 2012 being a ‘war for customers’ due to the intense competition in a difficult trading environment. With this in mind, the businesses which really understand their customers, can innovate and offer the right service both on and offline will be best placed in 2012. If you do not have an effective CRM programme in place, now is the time to consider it. Over time, retailers will reap the rewards.
Deborah Stone at The Stone Consultancy, a leading retail consultancy agency in CRM, comments: ‘Retailers are often deterred by the initial investment a CRM campaign requires, but it is false economy. They are essential to customer retention and increased spend over time and this will only become more important as we head into 2012.’