Strategies to Simplify Retail Marketing

Transcription

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2 Consumers Shop Differently The world of retail has become increasingly complex in recent years. Having to cope with multiple geographies, segments, and channels is a real headache when planning and executing marketing campaigns. Of course, shoppers don t see it that way. They love the freedom mobile and Internet channels give them to seek out the best products, services, and deals, which has changed the nature of how they shop. Shoppers no longer move in straight lines. They meander through a number of stages on their shopping journey. To attract and keep them loyal, it is vital to deliver a great experience at each one. That is a complex and difficult task.

3 One Customer, One Journ ey, and Infinite Possibilities Change address Print Social Contact center Web TV Web store Want Word of mouth Digital ads Social Compare Receive offer Retail store Contact center Buy Web store Track order Receive package Post review Wear jacket Join loyalty scheme Branded community Customer survey Support portal Search keywords/ads Look Web Reviews Web store Missing item Support portal Contact center Zipper breaks Return item Contact center Buy shirt Retail store Web store Wrong price charged Retail store Social Word of mouth Contact center Receive offer Refer friends Word of mouth Social

4 Today s Shop ping Journey On their shopping journey, consumers will go through all the stages (see the table below) at one time or another. But the stages will not necessarily be in sequence, and shoppers may backtrack at any stage. Stages in the Customer s Journey For example, they may cycle between looking and comparing if they can t find anything they really like. And they may share at any time, when they re browsing, at checkout, or after delivery. Being able to market effectively at each stage of the shopper s journey is a complex task. But you can simplify it by following the six strategies on the following pages. Stage Customer s Activity Your Opportunity Stage Customer s Activity Your Opportunity WANT An event triggers the desire to shop. It could be a wedding, dinner party, or a previous purchase wearing out. It could also be marketing activity from your competitors or you. Recognize life events and make appropriate offers. BUY A decision is made, the transaction completed, and the item taken home or delivered. Make the checkout and delivery experience as easy as possible. Promote loyalty schemes. LOOK The search starts for items that will fulfill the desire often through multiple channels. Engage with shoppers where they are looking, when they are looking. Offer options based on previous purchases and preferences. USE The item is used. Use surveys to gauge satisfaction. Offer guides to improve usage. Promote loyalty schemes. Resolve issues quickly. Items from your assortments and those of your competitors are evaluated based on objective criteria such as price, size, and delivery, and subjective criteria such as reputation, brand image, or look and feel. Make sure items are available and easy to purchase no matter what channel the shopper uses. Provide third-party opinions, comparison guides, and reviews. SHARE The levels of satisfaction with the shopping process and item purchased are shared. Encourage advocates to share widely. Address negative feedback immediately.

5 Six Strategies to Sim plify Retail Marketing Strategy 1 Collect, Consolidate, and Analyze Data Strategy 2 Integrate Marketing and Merchandising Strategy 3 Offer a Consistent Omnichannel Experience Strategy 4 Deliver Real-Time, Personalized Customer Engagements 5 6 Strategy 5 Measure Marketing ROI Strategy 6 Stimulate Loyalty and Advocacy

6 1 Strategy 1: Collect, Consolidate, and Analyze Data Creating personalized experiences for shoppers requires retailers to have accurate, complete information about them in real time. Armed with the right information and tools, you can gain previously unobtainable insights into shopping trends to create more effective marketing strategies. You can also deliver more exciting, compelling, and personalized customer experiences based on each shopper s preferences and tastes. Create a single source of information Collect, cleanse, and centralize all customer-related and supply chain data across all channels Make it ready for consumption by other applications Provide data for analysis in real time Enrich your understanding Integrate social media feedback, enterprise data, and third-party data for that elusive 360-degree view of customers Rapidly explore customer data using interactive visualizations to understand what is happening SAP solutions bring together data from all your internal systems, as well as allow data from social media and other external sources to be added. As a result, they deliver a single, consistent view of shoppers. Plus they provide you with powerful analytics and predictive tools. We actually use the customer relationship management tool within [the] hybris [solution], and the beauty of that is, because of this tight integration with SAP [ERP], we are able to pull very rich data about our customers and the transactions they have made on our Web site. Patrick Kerr, Head of Innovation Technology, kalahari.com

7 2 Strategy 2: Integrate Marketing and Merchandising Integrating the modern marketer s vast collection of customer insight into merchants processes has long been an aspiration for retailers. But according to a recent report from Retail Systems Research LLC (RSR) (Bridging the Gap Between Merchandising and Marketing), retailers have two clear information gaps: identifying consumers cross-channel paths to purchase and understanding the impact of promotions on those paths. Leverage insights into merchandise plans Use predictive analytics to model what-if scenarios Plan assortments, sales, and purchase quantities by product group and location cluster Incorporate customer behavior data into the planning process Understand variability in demand across channels, segments, and geographies Create strategic marketing plans Develop detailed marketing plans that support and align with merchandising and overall corporate strategy Coordinate marketing activities that complement each other and maximize results with a centralized marketing calendar By enabling greater integration between marketing and merchandizing, SAP solutions help you localize assortment planning and deliver hybrid promotional campaigns that maintain consistent brand experiences, engender greater customer loyalty, increase revenues, and maintain margins. Our efficiency is soaring. We also have new powers to maximize our profits by taking advantage of the differences among the markets we serve. Tally Weijl

8 3 Strategy 3: Offer a Consistent Omnichannel Experience Delivering a superior customer experience is a winning strategy for retailers. From social media to brick-and-mortar stores, Web sites to call centers, the number of channels through which consumers can interact with a retailer seems to be perpetually growing. But today s consumers judge brands by evaluating the sum of their experiences, not by their interactions with individual channels. Retailers must unite their brand presence across every channel to distinguish themselves consistently wherever a customer engages with them. Optimize Web experiences Embrace the power of mobile Create rich, immersive, and Deliver a customized mobile brand personalized experiences experience for the shopper Provide advanced search capabilities Build next-generation loyalty through that deliver product insights, reviews, mobile interactions and other engagement tactics Build shopping relationships with Link with mobile and store location-based promotions and offers information to offer a seamless brand experience across dimensions, such Reinvent the store as real-time inventory availability Prepare store associates with information contextual information about shoppers and their needs Accelerate or eliminate conventional checkouts with mobile technology SAP solutions allow you to deliver a consistent customer experience across all your touch points. Using them, you can provide emotional and engaging digital experiences on desktops, tablets, and mobile devices, or through in-store innovations like virtual reality, digital mirrors, or kiosks. With SAP Fashion Management and SAP HANA, we will be able to greatly improve our customers experience. Not only will these solutions help us become a truly omnichannel organization, they give us the insight to better anticipate customer demand both today and in the future. Kai Bienmüller, Head of IT Wholesale ERP, adidas Group With SAP solutions, you can combine deep knowledge of a customer s aspirations and expectations with products and offers that appeal to them, helping to ensure a great outcome for both you and your shoppers.

9 4 Strategy 4: Deliver Real-Time, Personalized Customer Engagements To successfully engage consumers and deliver truly personal experiences, you have to be proactive at every stage of their shopping journey, tapping into their emotional drivers and delivering relevant experiences in real time. With a 360-degree view of each customer, powerful predictive analytics, and omnichannel support, you can determine and act on the context behind customer interactions. With laser-like insights, you can decide on and deliver the next-best action be it a promotion, reminder, or another offer that motivates them to buy your products. Understand shopper behavior Track physical and digital activities Predict consumption Personalize the experience Analyze events and deliver the next-best action Develop tailored pricing and promotional strategies and offers Offer one-to-one omnichannel promotions based on each shopper s actions Plan and execute promotions incorporating digital and physical channels Segment by demand Understand variability in demand across channels, segments, and geographies Categorize customers dynamically using the latest interactions Incorporate customer behavior in multiple dimensions to achieve one-to-one outcomes The system enables us to predict purchasing probability, and we can now speed up the decision-making process, which is highly useful. With SAP solutions, you can segment and target your audience based on previous buying history, abandoned shopping carts, Web forms, or recent online browsing behavior. As a result, you can make it easy and compelling for consumers to reengage at any step during the shopping journey. Hiroyuki Soeya, Unit Manager Marketing, Dinos Business Dinos Cecile Co. Ltd.

10 5 Strategy 5: Measure Marketing ROI With the huge shift of advertising spend into digital marketing, campaigns today are executed using multiple tactics across multiple channels. Retail marketers are under increasing pressure to justify campaign spend and demonstrate returns. Having access to detailed, real-time, campaign performance data can help you quickly adapt tactics based on what s happening now. With the ability to perform deep-dive analysis of customer engagements, you can obtain results by numerous dimensions, such as tactics, channel, media, and target audience demographics. Campaign intelligence at your fingertips gives you not only the evidence to confidently report on marketing ROI, but also key insights as you plan your marketing strategy going forward. Pinpoint marketing ROI Analyze and measure the return on marketing investments across all media, including social media, promotions, and advertising Determine the effectiveness of marketing spend and promotions in real time Access reporting anywhere using mobile devices Optimize mixes and marketing spend Use predictive techniques to analyze the market and optimize mixes across media See real-time, detailed views of sales, inventory, and customer behavior Understand market baskets and product affinities Budget and plan more effectively Streamline budgeting and planning and automate marketing spend management with vendors Providing this kind of guidance requires a system that performs analyses in real time. This is why we decided to work with SAP. Guido Jaenisch, Managing Director, SportScheck SAP solutions give you the information you need to gauge marketing success in real time. You can drill down quickly to understand and correct marketing plans that are not achieving the intended objectives. As a result, you can proactively adapt to market trends, consumer feedback, and competitor positioning by adjusting factors such as competitive pricing and interactive promotions across your digital and physical channels.

11 6 Strategy 6: Stimulate Loyalty and Advocacy Engendering loyalty and advocacy involves combining sensational customer shopping experiences with superior products and great aftersales care. Implementing the previously discussed strategies will put you in a good position to do this. But there s still more to be done. The challenge is to motivate and incentivize shoppers to spread the word about your brand, shopping experiences, products, and services. Build loyalty Create meaningful loyalty programs Motivate shoppers with incentives and rewards without dropping prices Provide consistent customer experiences across channels Create highly personalized programs and promotions Encourage advocacy Monitor social sentiment to identify positive influencers and advocates Make advocacy a rewarded behavior and build incentives into loyalty programs Execute campaigns that make it easy to share information SAP solutions help you orchestrate omnichannel loyalty programs that deliver a premium customer experience. Using the solutions you can move beyond traditional card-based loyalty schemes to improve your relationship with customers, turn them into advocates, and increase their lifetime value to the company. When you look at how many customers buy from us a second, third, or fourth time, and how frequently they recommend us to others, it s very clear that service is a key part of our offering. And that makes us fairly unique in the marketplace. Hillarys

12 Get In Touch Let Us Help You Simplify Retail Marketing Retail success depends on delivering consistent, relevant, and enticing customer experiences at every touch point on the customer journey. Achieving this by optimizing your marketing mix moving away from traditional media to investing more in digital opportunities that deliver contextual brand messages, offers, and promotions is just part of the puzzle. Not surprisingly, technology has a major role to play in helping you achieve these objectives. Knowing the bits and bytes of today s marketing solutions may not be important, but understanding their potential and being confident that your supplier can deliver on it are essential. At SAP, we have an integrated portfolio of solutions for retail marketing and a history of helping retailers use them to improve their business. We would be delighted to show you how our solutions can benefit your company. Keep in touch with us: Visit our Web site: Follow us on Facebook: Follow us on As we look to the future, we think about products like hybris and CAR [SAP Customer Activity Repository] and how we can change that customer experience. So whenever a customer wants to come to Discount Tire, we meet them, and we meet their needs how they want to do it, not how we want to do it. Steve Fournier, Chief Customer Officer, Discount Tire