CUSTOMER! ENGAGEMENT SURVEY RESULTS

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1 CUSTOMER! ENGAGEMENT SURVEY RESULTS July 2011

2 Table of Contents Introduction Respondent Info 3 6 QUESTIONS: How would you rank an overall customer engagement strategy in comparison to other current priorities in your organization? What is the primary purpose of your customer engagement strategy? How are you measuring CEM initiatives to ensure they are delivering on your goals? Please rank the following customer engagement strategies in order of current importance to your organization: Does your organization utilize a social media strategy to engage new and existing customers? If Yes or Plan to Implement (a social media strategy), what are the priorities for your organization s social strategy? Does your organization use social channels to sell products directly to consumers (via a Facebook storefront or another online shopping community/social channel)? Retail TouchPoints Customer Engagement Survey, July

3 Table of Contents (continued) Are your organization s social tools integrated with other engagement platforms (such as , company web site or store POS)? Does your organization utilize location-based technology to reward shoppers? If Yes or Plan to Implement, what types of location-based technology offers does your organization provide? Do you have a branded mobile application for the purpose of marketing and promotional activity via smart phones? Does your organization operate a branded mobile storefront with the ability to conduct transactions? Do you have an enterprise mobility strategy in place to improve shopper engagement in the store? If Yes or Plan to Implement, what types of mobile technology is your company utilizing or planning to utilize? Do you currently use QR codes to provide shoppers with enhanced information? 21 Which software solutions do you currently use or plan to add to help improve your organization s ongoing customer engagement initiatives? 22 Retail TouchPoints Customer Engagement Survey, July

4 Introduction Retailers are developing innovative strategies through all channels, including an increasing emphasis on mobile and social media, to effectively engage shoppers and convert them into lifelong brand ambassadors. In the 2011 Customer Engagement Survey, Retail TouchPoints surveyed retailers to determine which tactics and technologies are being pursued to increase foot traffic and optimize the multichannel shopping experience. Although retailers face a multitude of challenges in creating a seamless operation including cost reductions, supply chain optimization, domestic expansion and brand recognition 64% of respondents agreed that customer engagement and satisfaction is the top priority. Developing a customer engagement strategy also is vital for companies seeking to develop effective strategies to retain existing customers (64%), and is a greater priority over acquiring new customers (44%). Overall, retailers are embracing social media platforms to engage shoppers, and find it critical to analyze platform conversations (39.5%) and respond to customer questions or complaints (60.5%). Despite the increased discussion around creating a seamless brand experience across all channels, 44% of respondents found cross-channel consistency important, but not vital, in engaging customers. While a majority of respondents (64%) already have employed a social media strategy, a minimum number of retailers are actively pursuing social and mobile commerce to increase brand awareness across multiple platforms. More than 60% of respondents claimed they had no plans to adopt a branded mobile storefront, and nearly 55% said they were not considering a Facebook storefront or social shopping channel in the future. Location-based technology also was a minor player, with only 23.8% of retailers implementing a strategy. Retail TouchPoints Customer Engagement Survey, July

5 Introduction (continued) Tablet devices and mobile POS systems are developing trends helping to optimize the in-store experience. Although retailers including Sprint and JCPenney have adopted the technology, almost 61% of respondents note they don t anticipate using tablets, handheld computers, mobile POS, kiosks or smart phones for in-store strategies in the near term. A majority of survey respondents track and measure CEM initiatives through customer analytics (66%) and social media monitoring (40%), and find social media (50%), mobile technology (44%), and marketing (50%) to be imperative engagement channels. As new technology developments and marketing tactics continue to come to fruition, retailers are seeking which tactics will lure customers in-store, and increase brand loyalty and engagement. Retail TouchPoints Customer Engagement Survey, July

6 Survey Respondent Information For the 2011 Customer Engagement Survey, Retail TouchPoints compiled survey results from 50 retailers across multiple verticals: Annual revenue numbers also vary among survey respondents: Grocery 14% Specialty 10% Sporting Goods / Outdoors 10% Apparel / Footwear / Accessories 7% Automotive 7% $0 to $50M 48% $51M to $250M 14% $251M to $500M 10% $501M to $1B 7% Over $1B 21% Home Center / Hardware 7% Consumer Electronics / Office Supply 3% ecommerce / Direct 3% Home Furnishings 3% Unnamed Verticals 34% Percentages were rounded up or down to the whole number, so the total does not equal 100%. Retail TouchPoints Customer Engagement Survey, July

7 How would you rank an overall customer engagement strategy in comparison to other current priorities in your organization? Customer Engagement/Satisfaction! 64% 8% 8% 10% 10% Cost Reductions/Creating Efficiencies! 12% 36% 24% 16% 12% Supply Chain Optimization! 8% 12% 24% 30% 26% Domestic Expansion! 6% 12% 14% 32% 36% Brand Recognition! 10% 32% 30% 12% 16% Percentages were rounded up or down to the whole number, so the total does not equal 100%. Retail TouchPoints Customer Engagement Survey, July

8 What is the primary purpose of your customer engagement strategy? Most Least Not N/A Retain Existing Customers! 64% 30% 2% 2% 2% Acquire New Customers! 44% 50% 4% 2% 0% Reactivate Dormant Customers/Re-attract From Competitors! 24% 34% 32% 8% 2% Increase Basket Size! 22% 38% 16% 20% 4% Increase Brand Loyalty! 44% 30% 14% 6% 6% Increase Store Visits! 28% 32% 14% 10% 16% Percentages were rounded up or down to the whole number, so the total does not equal 100%. Retail TouchPoints Customer Engagement Survey, July

9 How are you measuring CEM initiatives to ensure they are delivering on your goals? Customer Analytics Social Media Monitoring Social Media Analytics Video Analytics We're Not Currently Measuring the Success of our CEM Initiatives 0% 10% 20% 30% 40% 50% 60% 70% Retail TouchPoints Customer Engagement Survey, July

10 Please rank the following customer engagement strategies in order of current importance to your organization: Most Least Not N/A Social Media! 26% 50% 16% 4% 4% Mobile Technology! 30% 44% 22% 2% 2% More Empowered Store Associates! 40% 40% 8% 4% 8% In-Store Digital Signage 12% 30% 22% 24% 12% In-Store Kiosks! 20% 12% 34% 22% 12% Contact Center Efficiences! 16% 44% 26% 8% 6% Web Site Enhancement (SEO, Redesigns, etc.)! 36% 32% 22% 6% 4% Marketing! 18% 50% 18% 10% 4% Percentages were rounded up or down to the whole number, so the total does not equal 100%. Retail TouchPoints Customer Engagement Survey, July

11 Does your organization utilize a social media strategy to engage new and existing customers? Yes Plan to Implement Within the Next 3-6 Months Plan to Implement Within the Next 6-12 Months No Plans to Implement a Formal Strategy 0% 10% 20% 30% 40% 50% 60% 70% Retail TouchPoints Customer Engagement Survey, July

12 If Yes or Plan to Implement, what are the priorities for your organization's social strategy? Most Least Not N/A Analyzing Conversations in Social Sites! 15.8% 39.5% 34.2% 7.9% 2.6% Establishing Groups & Fans to Reinforce Brand Loyalty! 39.5% 44.7% 13.2% 2.6% 0% Responding to Customer Complaints/Questions! 31.6% 60.5% 7.9% 0% 0% Focus Groups 10.8% 40.5% 35.1% 8.1% 5.4% Offering Shopper Promotions! 18.4% 55.3% 18.4% 2.6% 5.3% Direct Selling / Commerce! 15.8% 47.4% 18.4% 13.2% 5.3% Acquiring New Customers! 60.5% 34.2% 5.3% 0% 0% Delivering Company / Brand News (PR)! 18.9% 54.1% 21.6% 2.7% 2.7% Retail TouchPoints Customer Engagement Survey, July

13 Are your organization s social tools integrated with other engagement platforms (such as , company web site or store POS)? Yes, Our Social Tools are Integrated with Our System Yes, Our Social Tools are Integrated with Our Company Web Site Yes, Our Social Tools are Integrated with Our In-Store POS System Yes, Our Social Tools are Integrated with Our In-Store Kiosks Yes, Our Social Tools are Integrated with Our In-Store Digital Signage No, We Have Not Integrated Our Social Tools with Other Engagement Platforms, But Plan to Implement No Plans to Implement 0% 5% 10% 15% 20% 25% 30% 35% 40% Retail TouchPoints Customer Engagement Survey, July

14 Does your organization utilize location-based technology to reward shoppers? Yes No, But Plan to Implement Within the Next 3-6 Months No, But Plan to Implement Within the Next 6-12 Months Researching But No Firm Plans to Implement No Plans to Implement a Formal Strategy 0% 5% 10% 15% 20% 25% 30% 35% Retail TouchPoints Customer Engagement Survey, July

15 If Yes or Plan to Implement, what types of location-based technology offers does your organization provide? (Check all that Apply) Incentives Time Sensitive Offers Targeted Coupons Loyalty Points Product Information Complementary Products / Add On Offers 0% 10% 20% 30% 40% 50% 60% 70% 80% Retail TouchPoints Customer Engagement Survey, July

16 Do you have branded mobile application for the purpose of marketing and promotional activity via smartphones? Yes Plan to Implement Within the Next 3-6 Months Plan to Implement Within the Next 6-12 Months No Plans to Implement a Formal Strategy 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Retail TouchPoints Customer Engagement Survey, July

17 Do you have an enterprise mobility strategy in place to improve shopper engagement in the store? Yes, We Utilize Enterprise Mobility for Enhanced Store Efficiency & Customer Service Plan to Implement Within the Next 3-6 Months Plan to Implement Within the Next 6-12 Months No Plans to Implement a Formal Strategy 0% 10% 20% 30% 40% 50% 60% 70% Retail TouchPoints Customer Engagement Survey, July

18 If Yes or Plan to Implement, what types of mobile technology is your company utilizing or planning to utilize? Tablets Handheld Computers Smartphones Kiosks Mobile POS 0% 10% 20% 30% 40% 50% 60% 70% Retail TouchPoints Customer Engagement Survey, July

19 Do you currently use QR codes to provide shoppers with enhanced information? Yes, We Integrate QR Codes Into Our Print Advertising Yes, We Integrate QR Codes Into Product Labeling / Shelving Yes, We Are Delivering QR Codes Directly to Consumers' Mobile Devices No, But We Plan to Implement QR Codes Within the Next 3-6 Months No Plans To Implement 0% 10% 20% 30% 40% 50% 60% Retail TouchPoints Customer Engagement Survey, July

20 What type of analytics/optimization solutions is your organization using to evaluate customer engagement tactics? Currently Use Plan to Implement Within the Next Year No Plans To Implement Promotion Optimization! 56% 23% 21% Loyalty Management & Analytics! 47% 29% 23% Customer Analytics! 68% 23% 9% Social Media Analytics 38% 41% 21% Marketing Analytics 68% 18% 15% Cross-Channel Intelligence! 35% 41% 23% Business Intelligence Software! 53% 26% 21% Sales Analytics! 65% 26% 9% Predictive Analytics! 38% 35% 26% Percentages were rounded up or down to the whole number, so the total does not equal 100%. Retail TouchPoints Customer Engagement Survey, July

21 What types of software/solutions do you use in an effort to provide better customer service and interaction? Pricing Optimization Merchandise Planning Assortment Planning Workforce Management Space Planning Product Lifecycle Management Demand Forecasting & Replenishment 0% 10% 20% 30% 40% 50% 60% Retail TouchPoints Customer Engagement Survey, July

22 About Retail TouchPoints Retail TouchPoints is an online publishing network for retail executives, with content focused on optimizing the customer experience across all channels. Tapping into the power of the Web 2.0 environment, the Retail TouchPoints network is made up of a weekly e- newsletter, category-specific blogs, Special Reports, web seminars, benchmark research, virtual events, and a content rich web site at retailtouchpoints.com. Retail TouchPoints Customer Engagement Survey, July

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