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Think Tank: Fixated on Data? OK, but Don’t Forget the Customer

WWD – Sam Kliger, founder and chief executive officer of KWI, explains. I love shopping. Yes, it’s my business, but personally it’s my passion, too. For example, I recently felt the need to write a letter to the owner of a high-profile fashion brand. I walked into the store, expecting to come out with a few new things as I enjoy the clothes — the quality, the minimalist look. Instead, I walked out with conviction for what companies such as KWI are doing for the retail business.

There’s a lot of talk about unified commerce, the move toward omnichannel retail that integrates your online and in-store platforms (and full disclosure, we’re talking a lot about it, too). Boston Retail Partners estimate that 81 percent of retailers plan to have unified commerce within three years. There’s a lot of talk about unified commerce, the move toward omnichannel retail that integrates your online and in-store platforms (and full disclosure, we’re talking a lot about it, too). Boston Retail Partners estimate that 81 percent of retailers plan to have unified commerce within three years. In its 2018 POS/Customer Engagement Benchmarking Survey, BRP noted that retailers are putting a laser focus on these priorities:

  • Customer identification/personalization of the customer experience (62 percent)
  • Alignment of the customer experience across mobile apps and the web (54 percent)
  • Empowering associates with mobile tools (51 percent)

By unifying your retail systems, you’re actually building a state-of-the art customer service vehicle. Yes, the data may indicate that customers in St. Louis buy jeans at 4 p.m. on Fridays. And that’s great for your inventory. But how can you better service your customer and build brand loyalty? The real ROI here is a repeat customer. Retailers agree: According to the BRP study, 62 percent of retailers indicate customer identification is their top customer engagement priority and 83 percent will use suggestive selling based on previous purchases within three years.

Read full article: Think Tank: Fixated on Data? OK, but Don’t Forget the Customer

The Future of Smart Packaging in the Retail Industry

TotalRetail – Nowadays, 90 percent of smartphone owners use their devices in-store to research products, meaning brand owners and retailers face tough competition. Shoppers can be tempted not only by other retail store competitors, but by online stores as well. It’s not enough to offer a good in-store experience or competitive price; consumers are looking for detailed information and personalized offers at their fingertips. Younger generations especially want active engagements with brand owners.

A number of fast-moving consumer goods (FMCG) brands are exploring NFC-enabled smart packaging as an innovative way to connect directly with customers, improve engagement and understand purchase decisions. There was an early buzz around this, and now Markets and Marketing predict that the smart packaging industry will reach $39.7 billion by 2020. So, what’s driving this resurgence in interest and how will it help brand owners and retailers connect with customers in fresh, engaging and creative ways?

NFC tags can contain unique identifiers by item, not just product type, allowing retailers to connect with shoppers personally. Brands can build customer loyalty by delivering exclusive content such as relevant cross-sell and upsell opportunities and discounts for regular purchases. In fact, 4info research shows that campaigns offering a promotion outperform others by up to 80 percent. If customers can access that discount while next to the item, they’re more likely to make a purchase.

To enable this personalized experience, customer identification is critical, as noted by BRP Consulting in its 2018 POS Survey. By using NFC to engage directly with customers and build information on their behavior and likes, the brand owner or retailer can be sure that in the future specific offers are perfectly targeted to increase the chances for conversion.

Read Full Article: The Future of Smart Packaging in the Retail Industry

Retailers Must Become More Customer-Centric

CRM Magazine – Although customer-centricity is the top strategic initiative for 47 percent of retailers, customer demand is making it essential for all retailers to become more customer-centric, Boston Retail Partners (BRP) concludes in a recent report.

The report then lays out five key practices for retailers to become more customer-centric: align the organization, integrate planning processes, implement the right technology, prioritize customer insight, and take action.

This first step, which involves shifting internal culture and organizational mind-sets to a view of the enterprise as a whole rather than as a collection of separate divisions, is one of the major challenges facing retailers because most of them still operate within functional siloes, the report notes. With this in mind, BRP analysts urge companies to establish cross-functional teams equipped to work collaboratively to plan, manage, and execute the functions necessary to run omnichannel organizations and deliver seamless customer experiences.

“For retailers to start making profits, especially with the increase in demand for omnichannel, buy-anywhere-sell-anywhere-pick-it-up-anywhere [mind-sets], retailers really have to get the right product in the place where the customer wants it so that they only have to touch it once,” says Perry Kramer, senior vice president and practice lead at BRP. “The challenge for retailers is that quite often they break even at best on omnichannel sales. When you put in the labor, transportation cost, shipping fees, and all of that, they generally have a much more profitable sale when they have it in the store. If they actually have to touch the product more than once to move it to a place to get it shipped, it really becomes very unprofitable.”

Good customer service today means having the right product in the right place, “and to do that, you have to understand your customer and you have to anticipate where they’re going to be, where they’re going to want it, and you have to have that right product mix close,” Kramer says.

Read Full Article: Retailers Must Become More Customer-Centric

Unified Commerce Solutions Booming; A Third of Smartphone Users Will Pay via Mobile by 2018

ExchangeWire – RetailTechNews’ weekly roundup brings you up-to-date research findings from around the world. In this week’s edition: Unified commerce solutions booming; A third of smartphone users will pay via mobile by 2018; and Mobile email marketing draws level with desktop as m-commerce grows.

Unified commerce solutions booming

By the end of 2020, 81% of retailers will deploy unified commerce platforms, to support commerce across the enterprise’s stores, mobile users and the web, according to a survey by Boston Retail Partners (BRP). This is seen as essential to competing in the omnichannel environment.

The survey finds that 28% of respondents have implemented unified commerce, compared to 9% the previous year. Retailers are making progress on implementing unified commerce platforms. Last year, BRP predicted 73% of retailers would have such a platform in place by 2019, and 22% already had one deployed.

Moving forward, the top three priorities of retailers for the year ahead are:

– Customer identification and personalisation of the customer experience (62%)

– Alignment of the customer experience across mobile apps the web (54%)

– Empowering associates with mobile tools (51%)

Retailers are modifying the technology used to identify customers in their stores by decreasing their use of mobile websites, which declined from 40% in 2017 to 28% in 2018, and increasing the use of Media Access Control (MAC) addresses as unique identifiers by 26%. Also on the rise are beacons (19%), and Bluetooth (16%).

Read full article: Unified Commerce Solutions Booming; A Third of Smartphone Users Will Pay via Mobile by 2018

Retail shows power of personalisation

Bangkok Post – Most retailers are looking for ways to improve the consumer  experience with their brand, but few are equipped to apply one of the most obvious and powerful approaches available, which is personalisation, says Diebold Nixdorf, a multinational provider of comnected commerce and cash-handling products and services.

In a survey to gauge retailers’ customer experience priorities last year, the US-based retail and restaurant specialists BRP Consulting found 55% of respondents said that optimising the customer experience was their top priority. Increasing customer loyalty was a close second (50%) and improving the mobile shopping experience (45%) came third.

However, only 24% of respondents indicated that providing personalised promotions, recommendations and/or offerings was a top priority.

How to get personal?

Mr Holterman offers some advice from Jeffrey Neville, a BRP vice-president who once said: “Personalisation may be the most powerful way for retailers to differentiate their brand and enhance the customer experience. The challenge is to identify the best method to customise the experience for each customer.”

Read Full Article: Retail shows power of personalisation

Retail Industry Adapts To Rapid Change

Retail TouchPoints – Headlines screamed about a “Retail Apocalypse” in 2017, but what was really happening was a highly accelerated period of retail transformation. The 17 retail industry experts contributing to the Retail TouchPoints 2018 Outlook Guide paint a collective portrait of an industry undergoing seismic shifts in multiple areas:

  • Stores are emphatically not dead
  • Voice could radically alter the existing product search paradigm, giving a huge first mention advantage to the top result;
  • Mobile devices for store associates will become the new must-have business accessory;
  • Technologies including AIIoTbots, AR and even connected carswill start to prove their worth; and
  • Customer engagement, via advanced analytics and what one contributor called “right-sized personalization,” will continue to be the ultimate competitive battleground.

 “While it might be an “apocalyptic” outlook for some, the reality is that it is just the ever-evolving nature of retail and consumers.” said Brian Brunk Principal, BRP.

To Download the full report visit: 2018 Outlook Guide: Retail Industry Adapts To Rapid Change

 

Customer Experience Journey

Retail Personalization: Attracting & Keeping Your Customers

Customer Experience Journey

Engaging the customer through personalization and relevant messaging is the key to attracting and keeping customers. Customers want to shop wherever and whenever with the benefits of both the digital and physical retail environments. Personalization plays a critical role in optimizing the customer’s shopping experience. Retailers need to know whom the customer is to create a meaningful experience based on what they want and when they want it. Each step along the customer journey offers retailers another opportunity to engage with the customer and strengthen that personal relationship to drive sales and customer loyalty.

Customer Identification

With 62% of retailers indicating that customer identification is their top customer engagement priority (2018 POS/Customer Engagement Survey), stores are still identifying customers at the point of checkout. Many fail to realize it is too late to empower the associate to influence the current purchase decision at the checkout phase of the journey. Even though associates’ ability to custom tailor shopping experiences is currently limited the Survey shows that these capabilities are increasing.

Watch the Video Now

In a recent Retail Touch Points Video BRP Senior Vice President Gene Bornac talks about how customizing experiences around expectations is how retailers can attract and keep customers. Bornac points out that the fundamental challenge for retailers is understanding customer motivations for buying. Bornac also discusses how retailers should consider what’s relevant to the conversation regarding using personal information versus shopping trends.

Changing the Shopping Experience

Retailers should work on the transition from product-focused sales to experience-focused sales, looking to technology and customer journey planning to help move them forward. Some retailers are expanding the personalization aspect of retail into a “make shopping fun and engaging” experience. This includes gamification – where game-like interactions, rewards and incentives are offered for visiting a web site. The key to this personalization  is to tailor the interaction based on the customer’s habits. We are also seeing this augmented by artificial intelligence to keep the customer engaged and encourage further visits and interactions.

A current example of technology and customer journey combining is the launch of the Amazon Go store. With the use of multiple hardware and software technology advances the Amazon Go store is taking retail to the next level.

The Store of the Future

The store is not dead and focusing on the customer experience has never been more important. Consumers love the theater of shopping, which is why many pure-play online retailers are opening brick-and-mortar stores and store concepts continue to evolve. The in-store experience is paramount for apparel and other products that consumers want to touch, feel, demo or try on. Customers want a multi-dimensional or multi-sense purchase which leverages all their senses. For retailers selling commodity products, you could argue that the experience is the best way to differentiate their brand.

The time is now to innovate the customer experience by transforming your retail model for the new customer journey.

Download the 2018 POS/CUSTOMER ENGAGEMENT SURVEY

Watch the Using Personalization To Extend The Shopping Journey Video

 

 

 

Retailers Reveal Top Priorities for Customer Engagement

HFN – As the retail industry adjusts and embraces the merging of brick-and-mortar and digital experiences, BRP’s annual POS and Customer Engagement Survey said yesterday’s retail model is dead, and retailers must transform their customer engagement models to an omnichannel approach.

Unified commerce is the new retail imperative, according to the survey, which polled more than 500 top North American retailers about their planned initiatives and priorities for 2018. Unified commerce combines in-store point-of-sale (POS), mobile, Web, order management, call center and clienteling (fostering long-term relationships with customers based on their shopping habits and preferences) into one integrated platform.

“Retail and customer engagement models must transform,” said Brian Brunk, principal at BRP, a retail consulting firm. “However, the legacy retail applications and infrastructure still in place at many retail organizations are not properly equipped to support changing retail models and continuously evolving customer expectations. To meet the demands of their customer, the retail winners in 2018 and beyond need to accelerate the transformation to cloud-based unified commerce. Victory belongs to the agile.”

Top 2018 priorities for retailers include omnichannel integration, added capabilities to current POS system upgrades, payment security, a single commerce platform, mobile POS, and hardware upgrades, according to the survey.

While legacy retail has focused on POS, customers have come to expect a personalized, seamless, and secure experience in real-time, BRP said.

“Understanding the importance of personalization, 62 percent of retailers indicate customer identification is their top customer engagement priority as they transform the in-store customer experience,” said Perry Kramer, senior vice president and practice lead at BRP.

Read Full Article: Retailers Reveal Top Priorities for Customer Engagement

As retail transforms, luxury will be last to join the movement

Luxury Daily – Consumers today are more interested in the convenient services that automation can offer, but luxury brands will be the last to replace human interaction.

A new report on POS/Customer Engagement from Boston Retail Partners explains that the retail industry as a whole is moving towards technology-based personalized services that luxury brands are reluctant to offer. Shoppers are interested and willing to interact with automaton replacements for human counterparts in retail, as long as the experience still offers quality service.

“Retail and customer engagement models must transform,” said Brian Brunk, principal at BRP. “However, the legacy retail applications and infrastructure still in place at many retail organizations are not properly equipped to support changing retail models and continuously evolving customer expectations.

“To meet the demands of their customer, the retail winners in 2018 and beyond need to accelerate the transformation to cloud-based unified commerce. Victory belongs to the agile,” he said.

Read Full Article: As retail transforms, luxury will be last to join the movement

Amid Disruptive Technology, Retailers Transform Operations

Convenience Store Decisions – As technology continues to bring disruptions and customer expectations change, retailers are evolving to keep pace with the times.

Disruption and adaptation are changing the customer engagement model and blurring the lines among retailers, brands and wholesalers. Online pure-plays are opening brick-and-mortar stores and traditional retailers are experimenting with new store models: stores as showrooms, theatre, distribution centers or pop-ups. To enable the new customer experience and support its rapid evolution requires a different technology approach.

According to the Boston Retail Partners (BRP) 2018 POS/Customer Engagement Benchmarking Survey, retailers recognize the urgency to transform their operations and 81% plan to have unified commerce within three years.

“Retail and customer engagement models must transform,” said Brian Brunk, principal at BRP. “However, the legacy retail applications and infrastructure still in place at many retail organizations are not properly equipped to support changing retail models and continuously evolving customer expectations. To meet the demands of their customer, the retail winners in 2018 and beyond need to accelerate the transformation to cloud-based unified commerce. Victory belongs to the agile.”

“As customer expectations have been reshaped by the digital retail experience, successful retailers have shifted their focus in the physical store environment,” added Perry Kramer, senior vice president and practice lead at BRP. “Customers appreciate personalized offers and recommendations when shopping online or via mobile, and now they expect the same personalization, or better, when they shop in a store. Understanding the importance of personalization, 62% of retailers indicate customer identification is their top customer engagement priority as they transform the in-store customer experience.”

To download the complete 2018 POS/Customer Engagement Benchmarking Survey, visit: https://brpconsulting.com/download/2018-pos-survey/.

Read Full Article: Amid Disruptive Technology, Retailers Transform Operations