Three Reasons Why Email Marketing Really Works

Benefits of Email Marketing

In a world where social media, blogging, and SEO take precedence, email seems like it would be on its way out the door. However, with the business world obsessed with acquiring consumer data, email marketing is not only useful but essential to companies.

Email marketing is one of the most effective and reliable channels for marketers to interact with customers. Here are three reasons why email marketing really works.

1.Easy Way to Reach Mobile Customers

Email marketing is an easy way to reach consumers on mobile without investing in new technology or software. Email channels already exist and are a traditional medium of connection, making it simple to reach consumers. According to a report by Pew Research Center, 52% of cellphone users in the U.S. access their emails via mobile phones. With many consumers constantly on the go, email marketing offers companies a way to send a greater volume of content to consumers in a quick and efficient manner.

Email is also accessible on devices other than mobile phones. According to a study done by Forrester Research, consumers opened 42% of retailers’ emails on smartphones and 17% on tablets. Essentially, nearly 60% of email marketing messages also double as mobile marketing messages. This versatility puts email at an advantage in comparison to text messages and SMS messaging. Consumers are more inclined to open email messages because emails are more accessible. Texting, on the other hand, is only available on mobile devices. Email is also free for the consumer and company while texting risks the chance of an incurred charge on the customer’s end. This diminishes the satisfaction of customer experience and can drive customers away. Also, email marketing is an easier access point for consumers and conveys more content that is useful to consumers.

2. Email is a Transactional Medium

Consumers see emails as a way to get offers, coupons, promotions, and in-stores sales. Email marketing deals drive in-store sales, making product emails key to getting consumers to engage with a product. A study performed by Nielsen found that 27% of online shoppers subscribe to emails in order to save money. 64% of consumers have printed out coupons found on email marketing campaigns.

Since customers expect to see offers and promotions in product emails, they are more likely to be in a buying state of mind. In turn, this can turn into increased revenue opportunity for companies. E-coupons are becoming a huge business with the growth of online sales, and email marketing is at the heart of it. Email marketing reaches out to online bargain hunters and provides consumers with a way to save online and in store. The transactional framework that email marketing provides also allows companies to personalize more toward consumers, engaging them more and further increasing sales opportunities.  

3. Tells You What Works

Email marketing allows companies to see what works and what doesn’t. The data obtained from email marketing provides metrics to see how emails are performing and what companies can do to improve email strategies. These insights allow companies to market their products smarter and better. Learning what works because of email marketing also gives companies a better understanding of the needs, interests, and desires of the consumer base. Companies can see the clickthrough rate of an email, which can then provide data as to how shoppers interact with the online shopping platform. Companies use the information provided by email marketing to not only cater to what consumers are looking for, but to better improve the interaction between consumer and company. By using email marketing, companies can track customer activity and better serve their interests.

Some say email marketing is dead. However, email marketing works. It keeps customers engaged and opens channels of communication between the company and its customers. With email marketing, companies can be in the right place at the right time.

Engaging High-Value Customers for High-Value Results

Many companies are shifting their focus to engage customers with higher value and profitability. The goal of engaging high-value customers (HVCs) is to nurture them into becoming loyal power shoppers. Increasing loyalty to a brand this way ensures retention and lifetime value of customers.

HVCs drive a significant portion of a company’s revenues. These customers are not only intensely loyal to a brand, but help promote the brand and its influence as well. Engaging and satisfying these high-value customers will put a company on a path toward greater success.

What Is a High-Value Customer?

Confusing high volume and high-value customers can be easy. However, high volume customers and high-value customers are two different target markets.

High volume customers are those who interact with a brand frequently. Although they may engage with the brand often, it doesn’t necessarily mean that these customers are the most valuable. Often with high volume customers, a brand will see a surge in activity for short periods of time. However, once the excitement fades, so does customer engagement.

High-value customers are those who buy for a reason. These customers look at products, services, and brands as a way to meet a need and satisfy a drive such as status, health or lifestyle. HVCs are customers who are loyal to a brand or company, even in times of financial duress. They will return to a brand and product even when a cheaper alternative is available. For HVCs, the cost is not a priority, and are more focused on having their unique needs addressed. HVCs are also brand promoters and influencers. These are the customers who will share the brand within their social networks.

Focusing specifically on high VALUE customers reflects an understanding of the power that these consumers have. Identifying who the high value customers are and tailoring marketing schemes to satiate these consumers, keeps them happy and ensures the brands’ profit margins.

  1. Evolve With Customers

Customer habits change and evolve. In turn, the way consumers interact with brands has evolved as well. Instead of fighting this evolution, brands should adapt and keep up with their customers. Part of this evolution includes the introduction of new goods and services and outlets, like online shopping. This development means customers are interested in a wide variety of items at all times. A shift towards items outside a consumer’s regular purchase pattern can indicate consumers are turning into HVCs. Dramatic changes in how customers buy items and spend money can also indicate greater trust and loyalty with a brand. Once the customer has extended the olive branch toward a brand, it is very likely they will shift into the high-value customer category.

  1. Pay Attention

The data provided by a customer’s recent activity can predict if a customer is high value or becoming high value. Data points such as high clickthrough rate, frequent site visits, and large purchases can indicate a customer as a high-value customer. One way to monitor customer involvement and identify high-value customers is through a  triggered marketing campaign. Triggered marketing includes a continuous stream of messages sent to customers based on their shopping activity, browsing history, purchases, etc. Triggered marketing indicates to customers that a brand knows its customers.

  1. Loyalty Rewards

Loyalty programs are teeming with information about members. Everything from brand preferences and item category to price sensitivity can be found in loyalty member data. Harnessing loyalty data helps brands personalize more towards HVCs. Knowing where, when, why, and how customers engage with a brand, can empower companies to create personalized experiences across multiple channels.

Loyalty programs also remove the barrier between customers and their next purchase. These loyalty programs make customers feel like “power users.” Their actions directly correlate to the experience found with a brand and company.

High-value customers make up the untapped bread and butter for many businesses. Understanding the behavior patterns of high-value customers enables brands to engage and target this niche group of customers. Providing high-value customers with the attention they desire keeps them engaged with the brand and propels companies to further success.

 

How 3 Top Brands are Using Personalization

These days, customers want to feel that they’re being heard and understood by their favorite brands. In fact, 73% of consumers want a more personalized shopping experience. Personalization allows brands to create a unique experience for their customers — in turn, demonstrating that they are being heard, and hopefully contribute to increased sales volume.

And, it is working. According to a study done by Infosys, 86% of consumers are influenced by personalization when making shopping decisions. Consumers are motivated to purchase more when they are made to feel relevant.

Thus, personalization has become increasingly important for brands and their success. Let’s take a look at three brands that are succeeding by bringing personalization into the consumer journey.

Burberry

This 156-year-old brand has pioneered a different kind of personalization for customers. Partnering up with Pinterest, Burberry has given customers a way to build personalized boards with product content provided by Burberry.

The “Cat Lashes” promo initiative offers a personalized experience for customers based on their makeup preferences. Users take a quick questionnaire and get personalized makeup looks and tips through a personalized Pinterest board. Burberry promotes their Cat Lashes Mascara through the Pinterest boards. The personalized boards also offer tips on how to create relevant looks for each customer while also using the Cat Lashes Mascara.

According to an internal study, 42% of consumers have bought products based on promoted pins they saw on Pinterest. Burberry’s “Cat Lashes” initiative is, therefore, capitalizing on Pinterest’s broad consumer base. The personalized boards serve as a promotional hub for the Cat Lashes Mascara, as well as related and relevant Burberry products.

GILT

Gilt.com was listed in Fast Company’s Top 25 Innovative Companies in 2010and ranked first in fashion that year. How did a company, which launched in 2007, garner so much success in just five years? The reason is that the online retailer personalizes sales and promotions for each customer and app user.

The luxury flash sales site has installed a personalized user page online and on the mobile app. This personalization feature is called “Your Personal Sale,” and goes beyond the daily e-mails a shopper receives. The personalized sales, generated by an algorithm, takes into consideration a customer’s entire shopping experience. Based on factors such as purchase history, geographic location, browsing behavior, and personal preferences, “Your Personal Sale” finds fresh items and deals daily. Personalization goes one step further, with Gilt.com also considering size, categories, and brands that customers frequently engage with. Each personalized sale lasts 24 hours, after which a new set of deals and sales are presented. According to CIO Steve Jacobs, personalized sales are “the next phase of the flash sale model.” The company leverages the sense of discovery the app provides, “tailoring [the] shopping experience just for them.”

Gilt.com brings personalization to the online fashion and retail platform and makes a conscious effort to tailor products to its customers. According to  Jacobs, “people are coming back more frequently, and they’re excited to see what’s in their sale tomorrow.” Personalized sales pushed the online retailer to be valued at roughly $1 billion just after five years of launching. Gilt’s personalization strategy has propelled the e-commerce company to enormous success.

Spotify

The online music platform Spotify is the leading music streaming host, despite competitors like iTunes and Google Play.

The introduction of personalized playlists has distinguished Spotify from other streaming sources.

One of these personalized playlist functions is “Discover Weekly.” Discover Weekly is a service which personalizes to each listener’s taste across a variety of genres. A personal playlist of 30 songs is curated and released each Monday based on listening habits. The music streaming service has also launched the “Release Radar” feature. Every Friday, the two-hour playlist is updated with newly released music from artists and bands a listener frequents. In addition, listeners who curate their playlists receive personalized suggestions on their playlists as well. The streaming service learns from personal preferences, songs skipped and replayed, and even looks at micro-genre music preferences to curate the best suggestions for each listener.

Spotify’s lead engineer and algorithm creator Edward Newett says, “we’re trying to show that Spotify understands users better than anyone else.” Within the first 10 months of launching, Discover Weekly saw 5 billion song plays. Senior product owner Matt Ogle says Discover Weekly’s success has “completely changed” the way Spotify interacts with consumers. The great success with user personalization has also increased consumer loyalty. Spotify boasts 40 million paid subscribers, compared to Apple Music’s 20 million paid subscribers.

Personalization is key to a brand’s success and transforms the customer experience. The focus on personalization allows many of these companies to grow as customers engage with brands more and more. With personalization on the rise, it will be interesting to see how industries implement various personalization tactics into their customers’ experiences.

Kohl’s is Winning With Omnichannel Strategies  

combining digital and in-store

As the retail industry is changing, many brick-and-mortar retailers are employing omnichannel marketing strategies to fend off digital giants like Amazon. When it comes to successful omnichannel, a complementary relationship between brick-and-mortar and digital assures companies greater success.

In this third and final retail installment, let’s take a look at how Kohl’s is using omnichannel strategies to create a customer-centric approach.

MOBILE APP

According to STORES Media Editor Susan Reda, “retail’s balance of power resides firmly in the hands of the consumer.” With e-commerce gaining more momentum, many consumers have shifted toward online shopping. The Kohl’s Mobile app is playing a key role in helping the retailer keep up with tech-savvy consumers. Kohl’s effectively leverages the mobile app as an in-store partner and offers a customized shopping experience.

App users who walk into a Kohl’s store have the option of using a feature of the app that tailors to that specific store. The ‘Store Mode’ function personalizes to each customer’s store location and allows shoppers to search for store inventory and see in-store promotions while shopping. Customers can also check the price of store items and see other related goods. The Store Mode function gives Kohl’s a synthesized digital and in-store landscape.

Kohl’s also offers enhanced payment capabilities through the mobile app. Customers can pay with Apple Pay, a one-tap checkout option, in the brick-and-mortar stores and mobile app. Shoppers also have the choice of adding a Kohl’s credit card as a form of payment within Apple Pay. Consumers further have the option of scanning and saving gift cards to the Kohl’s mobile wallet.

Thus, paying for items in the brick-and-mortar stores blends seamlessly with mobile payment features, and customers are provided with a convenient shopping experience. Kohl’s gives shoppers more online and offline purchasing choices, thereby increasing the traffic to stores. The Kohl’s mobile app is a powerful tool which encourages online browsing and in-store sales. The app infuses digital into the in-store experience, creating a smooth customer experience.

STORES AS WAREHOUSES

Kohl’s continues to leverage its physical stores with the implementation of click-and-collect. Shoppers can make purchases online or through the mobile app, and pick them up at a convenient Kohl’s location. The company utilizes the brick-and-click concept, to make the brick-and-mortar stores act like warehouses for online orders. In turn, Click and Collect makes customer shopping more convenient. Click and Collect provides flexibility and ‘real time’ fulfillment for consumers. With consumers coming in store to pick up items, foot traffic to brick-and-mortar facilities is increasing.

The retailer is also using inventory at its brick-and-mortar stores to fulfill online shopping demands. Using local inventory, Kohl’s moves goods that are not selling in stores. Consequently, this speeds up fulfillment since the stores are closer to customers’ homes.
Kohl’s is creatively using its brick-and-mortar stores to make online and offline more connected. As consumers shop online, the retailer uses brick-and-mortar stores as makeshift warehouses, and in turn, makes the shopper’s experience easier and more convenient.

Kohl’s adapted the mobile and brick-and-mortar stores to become highly leveraged and synchronized units. The retailer has used the mobile app and brick-and-mortar adaptations to boost sales and create an inclusive customer experience. Previously, we looked at the successful omnichannel strategies implemented by Nordstrom and Neiman Marcus. We have finally rounded off our omnichannel trilogy by taking a look at Kohl’s and how this retailer has implemented omnichannel successfully. While these three retailers are ahead of the curve with omnichannel marketing, it will be exciting to see where other retailers take omnichannel.

 

Neiman Marcus: Omnichannel Strategies to Bridge the Gap

Integrating Brick-&-Mortar and Digital  

Technological advancements are redefining the way customers interact with retailers.

Customers now expect much more from brands they love, and omnichannel strategies are driving development within marketing departments to meet these expectations. A plethora of companies and retailers have introduced a seamless shopping experience across mediums by implementing omnichannel marketing strategies. From brick-and-mortar to website to mobile app, shopping has become a fully integrated experience, thanks to omnichannel.

Last week we dove into the Nordstrom’s world and reviewed the different ways the retailers use omnichannel to enhance the customer experience. Today, we are continuing this and looking at how luxury retailer Neiman Marcus is integrating brick-and-mortar with digital to create a heightened customer experience.

Mobile App

Despite having only 42 brick-and-mortar stores, compared to most luxury retailers with anywhere from 60 to 100 stores, Neiman Marcus is still the biggest luxury retailer in the world.The 42 brick-and-mortar stores play host to a large number of fashionable and high-end items. According to CEO Karen Katz, however, the luxury retailer has a “robust selection of products online that [they] don’t have room for in [the] brick-and-mortar store.” Consequently, Neiman Marcus’ efforts to bridge the gap between the products available virtually and physically, have given way to a successful mobile app. The mobile app serves as a larger commerce platform, as well as, a conduit for customer engagement with Neiman Marcus by making shopping easy and convenient for customers.

Customers have a way to shop on-the-go and find more products that cannot be found in Neiman Marcus stores. In-store associates are equipped with tablets featuring the app and help customers quickly find products online and offline. Sales associates are also encouraged to direct customers to browse through the online and mobile stores. Customers can access these same sales associates via text, email, phone call, or FaceTime while on the app. Neiman Marcus also has a solution for finding any item, from anywhere, within minutes. The mobile app has introduced a new feature called “Snap. Find. Shop.”. The feature allows shoppers to take photos of clothing and accessories they see at any store, and the app will find the exact or similar product on the Neiman Marcus mobile store. The mobile app provides customers with a smooth blend of online and brick-and-mortar services, heightening the customer experience.

Virtual Dressing Room

Another way Neiman Marcus digitally transformed the in-store experience is by adding digital dressing rooms. The retailer deployed the “Memory Mirror,” a device which enables shoppers to digitally compare outfits and items of clothing while in the physical store. Acting as a large video screen and camera, the Memory Mirror allows customers to see outfits from 360 degrees. The mirror is password-protected and connected to shoppers’ Neiman Marcus account. Customers log into the mirror and can browse outfits they previously tried on and captured in 360-degree, eight-second videos. These “try-on videos” can be saved to the customer’s mobile device, emailed, and shared on social media. Shoppers can also compare clothing options side-by-side, as the mirror remembers what the customer has already tried on. This initiative enables customers to experience flawless digital integration and increased interaction with Neiman Marcus. The Memory Mirror is a complementary blend of brick-and-mortar and digital shopping.

Neiman Marcus relies equally on mobile and brick-and-mortar stores. The seamless incorporation of online and offline has kept customers highly engaged with the retailer. The customer-centric philosophy has propelled Neiman Marcus into implementing innovative and different omnichannel strategies. Neiman Marcus has truly made the digital shopping experience and physical shopping experience seamless. 

Tune in next week as we take a look at the third and final retailer in our omnichannel trilogy – Kohl’s.

Nordstrom’s Omnichannel Success

Culture of Innovation

Innovation is risky business, but not innovating is even riskier. In a world where technologies are rapidly changing, companies must be willing to evolve in stride. Several companies are doing so by shifting to an omnichannel marketing strategy. Omnichannel approaches are synchronizing the shopping experience across mediums for retailers.

Some retailers have successfully incorporated omnichannel strategy into their marketing strategy. Over the next few weeks, we will examine a trilogy of retailers and the wins they have achieved through an omnichannel approach.  Today, we are going to focus on one of the most popular luxury retailers- Nordstrom.

Part I: Nordstrom

Nordstrom worked to reinvent itself around the omnichannel shopper. According to the President of Stores, James Nordstrom, retailers need to focus more on the total experience than strategy for specific channels; “[At Nordstrom, we] don’t think the customer is loyal to channels. We don’t hear customers talk about channels very much. Customers value experiences.” Consequently, this belief is guiding Nordstrom’s omnichannel strategy towards creating a synchronized and seamless customer experience.

Rewards Program

The omnichannel focus of the Nordstrom Rewards loyalty program gives customers a chance to gain points regardless of which channel they purchase items.These loyalty members can also then track their activity from anywhere. Shoppers can use their mobile number as identification instead of memorizing a loyalty account number. An omnichannel approach to the rewards program has given Nordstrom a more open policy focus. The open policy focus allows shoppers to pay in whichever method they choose, shop whichever way suits them and still gain more loyalty points and rewards. Nordstrom shoppers are winning more, ensuring customer loyalty.

Social Media Influence

The luxury retailer is also approaching shopping from a multichannel perspective, and one of their innovative initiatives has been integrating with the mobile application, Instagram, and social media/organization platform, Pinterest. Nordstrom has made it possible to buy items from Instagram and find items based on Pinterest favorites. Instagram has been a modeling platform for retail items. However, a grievance shoppers have, is the inability to locate and buy the items presented on Nordstrom’s Instagram account. The retailer’s Instagram account now features a link which directs customers to Like2Buy, a platform that makes Instagram shopping easy. All of the items available for sale from the retailer’s feed are displayed as an elegant grid of photos. Shoppers can then scroll and “like” items, which are curated into a personal wishlist or shopping cart. 

Pinterest is a social media platform which allows users to “pin” things they like or want to “boards” for later reference. It indexes all the different items, ideas, and interests we come across online. Pinterest gives Nordstrom insight of which items are popular among shoppers. Nordstrom has brought these “pinned” items to their physical stores. Stores display commonly tagged or “pinned” items from Pinterest. The luxury retailer also adopted that feature on their website. Shoppers can now see a “Top Pinned” landing page on the site. Nordstrom doesn’t limit themselves to a single channel. The retailer has effectively leveraged their social media user base to enhance the shoppers’ experience by including the favorite and trendy items on Instagram and Pinterest in their stores.  Not only do customers see more products, but they are buying more at one time and are coming back for more of the items they love.

Nordstrom had experienced success by understanding that customers value an enhanced experience. Nordstrom has provided its customers with a retail experience that spans online, offline, and social media outlets. Shopping has become a synchronized and seamless experience – Customers can easily find the products they love and find them from anywhere. Tune in next week as we take a closer look at Neiman Marcus and how they are using omnichannel marketing to benefit their shoppers.

 

The Best in Banking Personalization: USAA’S Innovative Customer Service

Legendary Service in the Digital Age

USAA is known for providing great service. Don’t believe it? The Temkin list of companies with the best customer service ranks USAA as No. 1 and has done so for the past five years. Why is USAA so highly ranked? USAA is passionate about providing the best in financial services to the men, women, and families involved with the military. According to the President of Property/Casualty insurance, Wayne Peacock, “that passion is what fuels our focus on delivering an exceptional member experience by listening to our members and constantly innovating to meet their needs.”

USAA’s goal is to bring the best customer service experience to each and every member. USAA has worked to create a heightened customer experience through enhancing services available in their mobile application as well as omnichannel customer service. Let’s explore how USAA is leading the way in using omnichannel personalization to create a better customer experience.

Mobile App

USAA has changed their mobile application to make it easy for members to navigate. Members can now easily access all features and functions within the mobile app; however, there is a focus on what each member does most frequently.

USAA begins the personalization from the moment a member opens the mobile app. The interface of the USAA app looks the same. However, the iteration per member differs. Personalized landing pages are a key feature of the app. These pages show the tasks each member does most frequently and their accounts. The products and services a member may see on the mobile app coincide with the products and services they have with USAA. If a member has a financial account with USAA, they will be able to see only relevant banking information on the account.

USAA has also made their app more user-friendly by integrating personalization and omnichannel interactions to the mobile app. Within the mobile application, customer context provides highly personalized information that the company and its members share between each other. This information is synced up across channels. For example, a member can make a payment online and see that same activity on the mobile application. By having the app customize to each member’s omnichannel interactions, USAA can better serve and help its members by highlighting that which matters to each member.

Functionality

Sharing information across channels has given USAA a way to effectively provide omnichannel customer service to its members as well. Members can now get immediate service anywhere, at any time, and from any device.

USAA has implemented a contact handoff system. When a member clicks “Contact Us” in the mobile app, they are connected to a service representative. These service representatives are provided information about the member and what they were looking for, before actually speaking to the member. Service representatives greet members by name and can immediately start helping without having members reiterate their questions.  Having this knowledge of the member’s information gives USAA the ability to create an experience that demonstrates to the member that USAA knows them.

USAA works to be aware of its members’ daily lives. Personalized customer service drives efforts to increase the service efficiency a member gets. Members no longer have to wait to speak with someone, nor are they bombarded with unnecessary questions. The assistance they need is at their fingertips.
USAA’s dedication to providing legendary service has allowed them to provide highly personalized support over multiple mediums. Sharing context about members across channels is enhancing the member experience. Members save time and get the assistance they need when they need it. USAA serves its members well by providing a better experience based on their personal needs. As an innovative leader in technology within banking, it will be exciting to see where USAA decides to explore next within the technology landscape.

Combining the Art and Science of Retail: JC Penney’s Digital Evolution

Omnichannel Evolution: From Magazine Catalog to Online Catalog

JCPenney was once one of the most influential catalog retailers and an original omnichannel retailer. JCPenney’s efforts to evolve the brick and mortar business has the company advancing omnichannel execution.The introduction of the digital age has provided JCPenney an incentive to create a more sophisticated and modern view of this catalog.  The evolution of the catalog is connecting with customers on how, when, and where they prefer to shop.  

According to JCPenney CEO Marvin Ellison, the company has “developed true omnichannel capabilities” by advancing the brick and mortar store. JCPenney’s omnichannel strategy focuses around the creation of a successful mobile app and the implementation of a buy-online-pick-up-in-store method. Let’s look at each part of JCPenney’s strategy and how these elements are helping JCPenney’s digital expansion.

Mobile App

As part of JCPenney’s evolution, the company has focused largely on created a user-friendly mobile application, taking advantage of the massive growth of mobile channels. The JCPenney app features a sleek design and easy to navigate interface which connects to each shopper’s personal account. The JCPenney app is designed to connect the digital and in-store experience, as seen in the image above. Consequently, the user base rates the app at 4.5 stars, with over one million users. 

The app is a single mobile hub, facilitating online shopping at the customers’ fingertips. As a result, JCPenney creation of a mobile app has allowed them to connect with digitally savvy customers. JCPenney’s app helps shoppers locate items in stores, apply coupons, and also access their JCPenney Rewards. The app customizes to each shopper’s account, personalizing the app based on browsing history, purchase history, and even location. Customers can also make purchases based on what is available in nearby store locations and can even check available inventory.   Consequently, the user base rates the app at 4.5 stars, with over one million users. The evolution of the brick and mortar store to include a mobile platform maintains a personalized omnichannel experience. 

Buy Online pick up in store

JCPenney is also powering their omnichannel experience with the introduction of buy-online-pick-up-in-store option, also known as BOPUS. BOPUS allows shoppers to complete online and mobile purchases with a variety of pick-up options. BOPUS is available in all 1,000 physical locations and synchronizes with the location capability on the mobile app and online platform. Shoppers can make purchases based on the online catalog or available inventory in select locations. The shoppers can even choose which kind of pick up option they would like.

The shipping options include shipping to any location, same day pickup, and fast home delivery. JCPenney has a history of operating through catalog service desks. The direction towards digital catalog enhancement makes JCPenney is one of the biggest retailers to offer online orders to be shipped to any of its 1,000 locations. JCPenney’s successful blend of online retail and in-store pick up has evolved the purpose and functionality of the brick and mortar store.

The BOPUS option that JCPenney provides has also expanded the consumer market. Shoppers who come in to pick up orders have a higher attachment rate. A high attachment rate means shoppers are more likely to buy an additional item in-store when picking up an online order. Because of the integration of the digital and physical market through omnichannel, JCPenney is seeing greater returns .

JCPenney has implemented new omnichannel tactics to bring their catalog into the digital age. By marrying the physical and online experience, they have successfully rejuvenated their customer journey. JCPenney plans to continue their evolution through next year with the replacement of point-of-sale units with mobile devices. It will be exciting to see how JCPenney further develops through 2017.

 

The Business Imperative: Personalization

This Wednesday, the DFW-Retail Executives Association ended its season on a timely topic for retailers: Personalization.  If you missed out on this panel or are one of the 77 percent of companies saying, “In 2016 we need to be doing personalization,” have no fear we have the panel highlights for you.

Cover Photo Amrit Speaking at REA Personalization Panel
DFW REA Personalization Panel

The panel consisted of three experts,

  • Jeff Rosenfeld-Vice President of Customer Insights & Analytics at The Neiman Marcus Group
  •  Veeral Rathod- Chief Executive Officer & Co-Founder at J. Hilburn Clothiers
  • And NectarOM’s very own Chief Executive Officer & Founder Amrit Kirpalani.

Panel Moderator Steve Dennis kicked off the panel discussion setting the stage for why personalization is quickly becoming a business imperative.  Explaining that personalization is  “an imperative because the battle has shifted from market share to share of attention- and it’s increasingly difficult to be the signal amidst the noise.”

The rest of the discussion focused on how personalization is changing their marketing efforts, what challenges they faced when launching their personalization efforts, how it is changing marketing, and finally discussed how other companies could successfully launch their own personalization efforts.

Here are a few of our favorite topics from the panel,

Test and Learn

Don’t start off trying to personalize every message coming from every channel.  Amrit suggested that the clients with the most success started off small.  Start off testing a few channels and messages at a time, learn what worked and then test some more.

Be Prepared to Think About Marketing Differently

Personalization fundamentally changes how marketing has been done for years. Instead of a one size fits all strategy, personalization shifts the focus to marketing on a one-to-one level.  Jeff and Amrit agreed that culture change was one of the biggest challenges when companies started discussing personalization.

Not a One Size Fits All Solution.

Take the time to figure out how personalization fits into your company’s structure and into what your customers want.   The Neiman Marcus Group and  J. Hilburn Clothiers both used personalization in the retail space, however they each had a unique approach that fit their customer and business model’s needs.

Have the right partners in place

Not everyone can afford to have a team of data scientists creating custom algorithms.  However, personalization is something that is becoming more realistic for companies of all shapes and sizes to start adding to their marketing efforts. All you need to do is find the right partner.

If you are interested in learning more about sending tailored messages to your customers in real-time across all your owned channels let us know and schedule a demo to see the NectarSuite in action.

Omnichannel Today: Week of November 30th

Omnichannel Today – Black Friday Edition

Happy Thanksgiving from NectarOM! As we gear up for the eCommerce holidays of Black Friday and Cyber Monday these are the latest news articles we’ve been paying attention to:

JC Penney’s Retail Reinvention

Unlike Nordstrom’s and Macy’s, JCP is on course to exceed holiday expectations during a season where eCommerce and digital platforms are taking away business from retail. The secret, as CEO Marvin Ellison puts it, is finding the balance between the “art” and “science” of retail. JC Penney is taking a completely different approach to their in-store experience, developing attractive new features such as store-within-a-store kiosks for both younger shoppers and the upcoming cohort Millennial-age parents. Next up for the department store? Focusing on the science side of things by making improvements to their eCommerce, supply chain, and data processing abilities.

Amazon’s ingenious scheme to undermine Black Friday

Black Friday and its younger sibling Cyber Monday are a major source of income for the retail industry every year. Since this last Friday, web giant Amazon has taken advantage of the holiday shopping fervor to entice customers with constantly updated deals and featured items, hoping to sway buyers that won’t miss the authentic “Black Friday Experience” of elbowing through crowded stores. That said, certain stores such as Best Buy and Target have responded to Amazon by making their in-store discounts apply to their eCommerce platforms as well.

Facebook Says Nearly One Third of Online Shopping Transactions Are On Mobile Devices

New data from Facebook suggests that its users are becoming much more comfortable with using mobile devices to shop and make purchases. The social media titan expects a 30% increase in the percentage of users who buy on mobile by the end of the fourth quarter. Facebook researchers also observed that about 45% of all shopping occasions involve mobile devices in some fashion, such as during product research that results in a purchase on a desktop.

Retail enters third phase of digital evolution: ‘Emotional’ eCommerce

A new article from the Financial Times discusses how modern shoppers expect brands to develop a relationship with them over social media and other digital platforms. The thought leaders interviewed point to the success of apps like Instagram, Etsy, and Olapic, who offer businesses the ability to showcase their “human side” to potential customers by using memes, shareable posts, and conversation starters to promote fan engagement over social media.

Other stuff we read this week:

How James Murdoch thinks the ad industry should innovate: ‘Empower the Consumer.’
Here’s how advertisers will be able to target TV viewers who see competitors’ ads
Goodbye privacy, hello ‘Alexa’: Amazon Echo, the home robot who hears it all
Volvo Wants to Use Microsoft’s Sci-Fi Glasses to Sell Cars

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