Retailers Building with Data, not Brick and Mortar
2) A fashion retailer that has managed to integrate online and offline data into what it calls a single “repository of truth.” The company is achieving a much more robust understanding of how customers engage its brand, its products, and the broader fashion world. This retailer is then pairing these insights with powerful analytics to generate relevant communications. As a result, it is able to proactively counteract churn, re-engage lapsed customers, and deliver trigger communications in real time.
I have to admit that my privacy alarm was sounded by the real-time social media data collection gathered through a partnership with an old friend, Adobe. It knows where you are—in the store. It knows whether you’ve searched online prior to your visit, what items you viewed and how frequently, and your propensity to buy given various incentives to do so.
3) A massive pharmacy that’s late to the loyalty game, but is reshaping the in-store experience and believes that the latest technologies will allow it to leapfrog other competitors’ programs. When questioned how the tracking would take place, such as through use of a loyalty card, iris scanning, or fingerprinting, the speaker chose to remain “mum” and only share at the September launch. I’m guessing it’s not a card.
The unifying theme of the conference was that data is the key that can unlock customer lifetime value by enabling efficient and effective customer relationship management. In order to acquire this data, retailers must employ a loyalty program of some sort, and in doing so, they must adopt a singular view of the customer that understands their actions and their preferences, and delivers value back to them.
This value can be hard and tangible (e.g., cash back), or experiential (e.g., exclusive previews of new merchandise). Either way, effective programs treat customers differently based upon their contribution to the retailer. In the end, the companies that achieve this—well and authentically—will be the ones left in the brick-and-mortar category. And if they do so without betraying the privacy of their consumers, perhaps we’ll see trust levels rise from the current 19 percent in the future.
A third-generation printer, Dustin LeFebvre delivers his vision for Specialty Print Communications as EVP, Marketing through strategy, planning and new product development. With a rich background ranging from sales and marketing to operations, quality control and procurement, Dustin takes a wide-angle approach to SPC