The problem with tech advancements is that everybody tends to deploy it at the same time, and without a strategy. This can be seen with the unrolling of omnichannel customer experiences and the discussions on the disparities between Millennials and previous generations. A recent report released by Digital Surgeons takes a stab at giving marketers a leg up and describes necessary functions to draw and maintain customers in crowded markets.
Digital engagement is paramount. “Nearly 70 percent of U.S. online consumers use a smartphone to go online in retail stores, almost two-thirds use one in a restaurant or a coffee shop, and 43 percent use their phones while riding public transportation,” the report said. To successful execute digital engagement, omnichannel retail models need to blend digital and physical touch points. “The real differentiator for customers come from eliminating pain points by exposing physical inventory in retail stores so the trip is not a waste of time, providing help finding products on shelves with maps, geolocation and identifying the right product with image recognition and voice search on mobile devices,” said the report.
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What’s more, to provide enhanced digital engagement the report suggested using location-based targeting to support every stage of the customer journey. Virgin Airlines and British Airways were called out being champions in this effort — the airlines use beacon and location-based services to help travelers find their gate. The report suggested using mobile apps to facilitate measurable sales outcomes in physical interactions. Mobile devices provide quick checkout services and empower sales associates to check availability of inventory in warehouses should an item be out of stock.
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Retailers and brands would benefit to think beyond loyalty programs and rewards and instead focus on enhanced customer recognition. The report noted that if a customer can tap into feeling a sense of accomplishment or personal growth, loyalty is built innately.
“Mobile technology in particular gives marketers a platform to actively and frequently recognize their most loyal guests with benefits and experiences that go well beyond frequency points and rewards,” researchers in the report noted. It went on to state that more than 50 percent of the top 100 retailers implement loyalty programs like My Starbucks Rewards program that hosts 12 million active members who typically spend twice as much as nonmembers. Dovetail this with new loyalty currencies to enhance value of the programs.
Digital programs and loyalty apps are integral components of the customer’s journey, however these strategies will fall flat if the shopper’s human senses are ignored. “The best marketers are tapping into the full range of sensory experiences in combination with digital engagement, enhanced recognition, and proactive service are a powerful way to differentiate your brand,” said the report. This is where in-store experiences are imperative.
The research found that nearly two-thirds of the retailers examined during the study were experimenting with scent marketing. And for good reason — the study noted several case studies that brands such as Nike and Wyndham Hotels released that found that scent marketing achieved in increased customer comfort and product perceptions. Coupling scent with sound will bolster the consumer’s in-store experience as well.
Shoppers today are more visual than ever — and with that, visually captivating experiences are a must. The report called out Kenzo’s partnership with Samsung to extend Millennial shoppers an in-shop experience that complements its e-commerce with immersive video, interactive catalogues and personalized merchandising.
In a sea of options, providing a customized platform or product will not only resonate with consumers, it will improve the chances of loyalty. “These systems [CEM, CRM and Data Warehouse systems] allow marketers to improve the tracking of customer preferences and behavior at every touch point and every step of the customer journey,” the report said. The platforms allow for communication between brands and retailers and their customers. For example, Ritz-Carlton Hotel assembles preferences via their CRM system in order to meet customer expectations for future visits.
Top brands Best Western hotels and Home Depot have also introduced personalized content and offers based on shoppers’ locations. These initiatives range from 3-D visualization of rooms and kitchen designs. This begins the customer journey prior to in-store experiences and instills longevity of engagement.
Smart products are on the rise — customization demands cloud-based services to adapt to specific consumer needs. “Twenty-one percent of brick-and-mortar stores say they are using IoT to keep checkout lines as short as possible by monitoring premises,” the report said. Brands such as Disney monitor customers’ interaction with smart wristbands, the study noted.
In order to thrive, the report urged devising a success scorecard that compiles marketing, loyalty, branding and behavioral outcomes. “The marketers in the poll want their customer experience to yield happier and more loyal customers as a first priority — relative to more sales oriented goals such as spending more time shopping, paying higher prices and building share of wallet,” the report said.
The report was created from extensive research for defining, designing and transforming the customer experiences for marketing executives. The authors interviewed marketing executives regarding retail and travel and hospitality industries. The research also included deep analysis of more than 100 customer experience programs of leading hotel, travel, retail and restaurants and validated these programs with secondary research that included success stories, benchmarks and business impact results.