Customer experience Archives - Page 2 of 4 - Omnichannel Personalization SaaS Solution

09 Feb
2017

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.

03 Feb
2017

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.

25 Jan
2017

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.

16 Jan
2017

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.

26 Dec
2016

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.

19 Dec
2016

Serving Up Omnichannel Success

Lessons Learned From Omnichannel Dynamo Chili’s

With different mediums of shopping, companies have to create a seamless shopping experience across the board. As a result, every aspect of the consumer journey, from browsing to purchasing, has to be a smooth transition, both online and offline. People demand an omnichannel experience that is social, quick, easy to use, and valuable to the consumer.

Technological creativity seems to have more of an impact than a brand name. Customers are no longer impressed by a shiny new app of their name being personalized in an email. The 21st-century customer expects brands to create an omnichannel shopping experience that encompasses all online and offline interactions.

Let’s take a look at how Chili’s is using omnichannel and a little technical creativity to create the ultimate dining experience

Wait in line….from home

Gone are the days of waiting in line at Chili’s to get a table. The casual dining restaurant has partnered with NoWait to power their new mobile waitlisting feature on the Chili’s app. Through the use of the app, Chili’s can provide an enhanced dining experience. For diners who wish to enjoy their favorite menu items during peak hours. With the waitlisting feature, diners can reserve a spot in line and check up on wait times from any location or mobile device.

The waitlisting capability has given Chili’s an advantage in restaurant-diner relations. By combining the mobile and in-restaurant experience, diners have convenience and speed at their fingertips. The wait listing feature allows Chili’s to have faster table turnover and accurate estimates for wait times. Guests can not only check up on wait times but can also go ahead and order what they would like while still “waiting in line” while in the app. With combo offers and other special menu offers, Chili’s now gives diners a way to get their food without waiting in line and with little preparation time. Chili’s use of the waitlisting feature creativity uses mobile to optimizing the in-store dining experience.

Embrace Social Media

Across social media platforms, food and beverage mentions are the most popular. The way customers review restaurants on social media fundamentally changes the way restaurants are approaching social media. According to a Netbase report , Chili’s is one of the most popular brands on social media.

So what did Chili’s do right to make them among the top 15 most popular social media brands?

Chili’s embraces the way food and beverages are consumed from a social media perspective. It is no longer enough for a restaurant to have great written reviews. Presentation and picture quality is the new buzz in food reviews. Because of this shift, Chili’s has made changes to the brick and mortar restaurant to garner positivity on the digital landscape. Even the way food is prepared is being changed to be more appealing in photos. For example, French fries are served in stainless steel bins, ribs are neatly placed on plates, and even the plates themselves have been revamped to be prettier in photos.

The goal is to make menu items look more tempting in pictures, increasing the number of mentions and shares online. This improves Chili’s online presence and visibility on high traffic platforms like Instagram.

Tabletop tablets

Smartphones and tablets have made access to information and services available at our fingertips. The demand for convenience and speed has started shaping the way restaurants are tackling food service. While online ordering and delivery have made the eating-out experience easier, customers lose the dining experience. As a result, sit down restaurants are now introducing the tabletop tablet. This system allows diners to place food and drink orders through a provided tablet. Diners now have control of their dining experience. These tablets streamline food service without replacing the personal interactions with servers. With the tap of the finger, dinner guests can now input orders and requests such as waiter service, beverage refills, and chats with the chef.

This year, Chili’s implemented over 70,000 tablets across its restaurants to provide a smooth, reliable dining experience. The smart table top option is tightly integrated with the Chili’s ordering system, ensuring that everything is up to date. The tablet displays the most relevant and updated menu items, prices, and descriptions and can even show customized consumer reviews of the items that you have ordered.

The ability to omnichannel approach to ordering and paying for food through a tablet has boosted the volume of orders. The speed with which customers can pay with the tablet has also increased table turnover. As a result, Chili’s can seat more customers than before.

Chili’s has done a fantastic job of leveraging technological creativity to create omnichannel success. Have you seen other restaurant brands using omnichannel to enhance their customer experience? Let me know in the comment section below.

07 Dec
2016

How Omnichannel Retailers Are Changing the Marketing Game

Starbucks, Sephora, and Disney’s Omnichannel Approach

The good old days of customers coming from one channel are over. With the rapid rise of social and mobile channels as valuable marketing platforms, omnichannel business strategy has become necessary approach for a successful brand. While it is easy to understand “Why?” the “How?” is less clear.

Before we can discuss what techniques are being used to optimize omnichannel marketing, we need to take a look at what omnichannel marketing really means. Omnichannel is an approach to sales that utilizes multiple channels and outlets of shopping. The primary goal is to create a seamless customer shopping experience, whether the individual is shopping on a mobile device, desktop, or in a physical store.

Now that we have established a what omnichannel is, let’s take a look at how three companies use it to their advantage.

Starbucks

The Starbucks Rewards program is a perfect example of omnichannel marketing in practice. Starbucks is one of the biggest coffee retailers in the world. Their market reach is incredible, and they have harnessed the power of omnichannel to leverage that huge customer base. The Starbucks Rewards system uses an omnichannel approach to make the coffee buying experience more convenient for customers. Customers can use the rewards card to make purchases without taking out their wallets and to also reload the rewards balance online, in-store, by telephone, or by mobile app. All changes to rewards accounts immediately update across all channels. Thanks to the omnichannel approach, Starbucks customers can satisfy their caffeine cravings at any time, on any channel.

Sephora

The makeup retailer has also changed the way consumers interact with products. Sephora utilizes the omnichannel shopping process to create an enjoyable experience for customers. Sephora has implemented the “My Beauty Bag” program to allow customers to manage their beauty products and see purchase history. The “My Beauty Bag” program makes it easy and accessible for Sephora customers to add items to their shopping carts, peruse their browsing history, make savings on purchases, and re-order items. Sephora’s rewards program also allows members to use their Beauty Bags on their mobile device, computer, and send digital gifts.

While making in-store purchases, customers can use the Sephora app to complement the brick and mortar shopping experience. Sephora is also changing the in-store experience as well, by introducing the Beauty Tip Workshop. Customers now have the opportunity to access their Beauty Bags, see recommended items and looks, and make purchases based on the items shown in the store. Sephora is expertly using omnichannel to revolutionize the cosmetic shopping experience.

Disney

Disney brings omnichannel to the world on tourism and retail. The magic of Disney is brought to multiple channels thanks to their approach. Disney’s process pays attention to even the smallest of details to make a flawless and consistent shopping environment across channels. When booking a trip through Disney’s website or app, customers have access to the My Disney Experience tool to help plan the logistics of the trip. From dining options, to park attractions, to securing passes, the My Disney tool helps customers plan for the entire trip. Once customers get to the amusement park, the Disney mobile app can locate the attractions and performances across the park and gives an estimated waiting time for each attraction and show.

Disney takes the magic even further with the implementation of the Magic Band program. These wristbands not only act as theme park entrance passes, but also act as hotel room keys, Fast Pass check in, food ordering tools, and photo storage devices. These wristbands also include personalized surprises for each band holder. Disney uses omnichannel to make traveling a connected, all-in-one experience.

Omnichannel initiatives like these enable brands to create the ideal customer experience across all channels. Starbucks, Sephora, and Disney approaches are great examples of brand’s solving for the ever-evolving needs of the digital age.

02 Aug
2016

Personalization In Every Industry: Big Box Retail

Big box stores, supercenters, megastores. It doesn’t matter what you call them, the massive size of these retail giants is enough to send people into awe.

Their space isn’t limited to storefronts and warehouses either, which is good since foot traffic is constantly getting lower. To their benefit, the ever expanding digital marketplace has allowed these businesses to grow on another level, leading to new opportunities for marketing and personalization.

McKinsey found that 17% of consumers value the customer experience compared to 24% who care most about the prices. With competition increasing steadily as companies find new ways to increase brand loyalty and strengthen the customer experience, personalization has become more important than ever.

Personalization Incorporated

The techniques for personalization in retail chains don’t differ significantly from other markets. Companies will find ways to increase subscriptions, social media activity, and web page interaction in order to raise brand awareness, collect information, and personalize the experience.

There are two trains of thought when it comes to personalization for these retailers. Both are acceptable focuses, but when prices are as low as they can get, the company that offers the better customer experience is the one that can integrate the two.

The first is the use of variables. Businesses will study marketing trends to see which ways they can capitalize. These can include purchase history, shopper behavior, and interests. Businesses can guess at what customers will buy next and tailor advertisements and deals towards that.

The second are the constants. Rather than focusing on the marketing trends, this style focuses on the guaranteed information collected from customers. This is personalization based off name, age, location, and other unchanging facts. They’re simple, but give a different insight into a customer’s potential purchases. This information lets companies highlight deals and events at specific locations that would meet their needs. A sixteen year old girl could get an email about a back to school sale at her local store.

Companies that correctly use the omni-channel personalization strategies are able to pull all of this information from different places and organize them into one cohesive plan.

Omni-channel Issues

Big box retailers have a lot of struggles when it comes to personalization. It’s difficult to track the purchases and preferences of individuals who enter the store. There’s no data that can be held. Compared to a mom and pop shop where the staff knows your name, it’s more harder to direct Jerry to the products he always buys.

Because in-store personalization is all but impossible, retailers focus on the digital side of marketing. Unfortunately, attempts at predicting recommended products falls short due to troublesome programming. The Harvard Business Review reports that predictions for products are becoming so absurd that companies are creating more generalized algorithms in order to reach customers.

When a customer purchases a sleeping bag through Amazon, they’re more likely to be recommended another sleeping bag rather than camping accessories. The algorithms can’t take into account that a person generally only purchases one at time.

Also, the data held isn’t used to it’s fullest. If a customer buys large t-shirts every month, he’s still getting recommendations for tank tops and sweatshirts, rather than capitalizing on the purchase he’s going to make. The customer doesn’t get a better experience through the purchase, he gets the same as everyone else.

Lastly, the Harvard Business Review also found that shoppers would appreciate the ability to customize rather than have the business personalize the experience for them. This is largely due to the failed attempts at personalization by big box retailers.

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Their poll showed that 42% of online shoppers claimed to have seen no benefits from site personalization. Nearly all claimed they would prefer to customize the experience themselves than let the business do it for them.

Against these facts, personalization is still a vital piece to creating a better user experience. The issue is that it needs to be done correctly, especially by businesses that are focused outside of the digital realm. For most of these companies, it means going mobile.

All of these companies have had their own issues but continue to provide better experiences due to personalization. By using omni-channel strategies, they can pull information seamlessly to engage customers. They all use social media and they all have websites that offer accounts. The piece that separates them is how else they get information and how well they can put it into play.

Walmart

In 2013, Walmart identified the need for a more personalized shopping experience. It took two years of development, but in 2015, they launched a new app, specifically designed for tablets and phones to surf through Walmart.com.

Bao, Nguyen, a spokesman for Walmart claimed, “During Black Friday we sold about 1,000 tablets a minute.”

Trusting that customers purchasing through them would do so again, Walmart focused on those users to create a personalized shopping experience.

On the application, customers are given recommendations based off their purchase history. They’re given discounts and notifications for deals, as well as advertisements that meet their interests.

Walmart also took the opportunity to integrate their actual stores by sharing local rollback deals and discounts. This benefited Walmart as a whole, but also helped the individuals stores maintain customers.

Walmart is also changing their focus to smaller stores. With Walmart Express, and Neighborhood Market Units, the shopping experience will be tailored more towards the customer’s requirements, personalizing the experience on a more general level.

Target

Target was also fast to jump on the mobile track in order to better their customers’ experience. In 2014, they acquired Powered Analytics, a start-up, in order to provide a more personalized manner of shopping.

With the app, customers can search for an items and get instant information on where to find it inside the store. It creates a faster way to shop and reduces the amount of time employees need to assist shoppers.

The app also offers personalized discounts and deals based off the items they’re searching for. This not only gives the customer more options before buying, but it lets Target push stock that isn’t moving as fast.

Target also has the option of customers using a loyalty card. The RedCard offers a 5% discount on all Target purchases and is directly tied to a debit card of the customer’s choosing.

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Customers who use the card are required to sign up on their website, providing their information for access and management of the card. Having them on the site, with the information, allows Target to personalize online shopping. Because purchases are made with the RedCard, they’re tracked through the transactions, giving insights to types of products and rate of activity.

Different from others, however, is the 5% discount that attracts more users of the card. Loyalty programs are offered by nearly every major business today, but very few offer such strong discounts.

Target is using the same tactic as Walmart, aiming at smaller niched stores.

Nordstrom

In 2011, Nordstrom purchased HauteLook, a website that centers on flash sales. With it, they were able to develop new techniques of getting people into the store. Customers could buy what they wanted off HauteLook and, should the product not be to their liking, they could return it to Nordstrom stores.

At the stores, the employees, who are all selected based off their ability to nurture relationships, take note of the item. They help the customer with the return and then recommend what items they think might interest them. If the customer shows interest, the employee will walk them directly to the item, giving them a personalized experience they’ll remember.

On the application side of the house, Nordstrom uses Beacon’s location based technology, to promote their products. Customers’ location is tracked, and when they near a store, the application sends recommendations and deals to the user.

Furthermore, the app lets customers shop on their phone and see exactly which products are in local stores, down to the size and color. This grants customers the ability to go into the store, try on the clothes, and potentially buy other items they weren’t planning on. It’s all possible because collection of their location.

The app also sends custom advertisements that are personalized to their interests. More impressive, though, is what they intend to do.

If the stars align, Nordstrom hopes that, through RFID, employees can be transmitted the interests and digital shopping cart of their customers. This would allow them to assist the customer on a truly personal level.

Nordstrom dives further into the application marketing trend with TextStyle. Customers can get recommendations from live representatives or personal shoppers that are sent to their phone. If they like the item, they return the word ‘buy’ and enter a code specific to them. The transaction is processed through their online account with Nordstrom and the product is delivered. This one-on-one personalization is another reason why Nordstrom is one of the market leaders in big box retail.

J.C. Penney

While J.C. Penney may not be able to live up to Nordstrom’s application personalization, they do add their own fixes.

The apps allow for wedding and baby registrations to link with their online account. Users will receive emails with other recommendations based off the products in the registry and, since they’re not paying for them, are more likely to add them to the list.

Through their location based services, J.C. Penney offers discounts for in-store check ins. Along with their store finder for over 1,100 locations, they’re offering a way to tailor discounts and recommendation to the customer.

These companies have found some different ways to capitalize on personalization and continue their growth. The usual marketing trends aren’t enough for these corporate giants and they’re forced to continue to develop new methods to gain and keep customers.

These are the companies leading the marketing world and their personalization of your shopping experience is going to continue to become better as they branch deeper into the field.

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26 Jul
2016

5 Insurance Companies Crushing It With Omni-Channel Personalization

As omni-channel personalization moves to center stage in the retail markets, insurance companies are forced to join them. The switch is less about staying afloat with the market trends, it’s become essential for remaining as a business.

Some insurance companies do this right, growing their consumer base through targeted advertisements, appeal of their support, and personalized interfaces. Others are still trying to play catch up in the fast paced digital market.

The Consumer Journey

The battle starts here. So many fronts have opened, thanks to an online world, that reach consumers at various levels. Social media, advertisements, and search engines all attract potential clients and start them on their journey.

Where many companies fail is guiding them through that trip. While customers view every interaction with a business as a collective path, leading them to their desired end-state, insurance companies continue to see each event as singular. The agent is in a different department than the IT team, so how would that affect the customer?

The insurance companies that are dominating the market and continue to grow understand how to integrate their different branches into a unified front. They see the IT guy as part of the journey rather than a separate road the consumer can travel.

More so, in a market where empathy can breed success, customers are starting that journey with well defined interests. Life insurance to help their family after a death. Vehicle insurance to get them back on the road after an accident. Whatever type of insurance they’re requesting is important to them. Identifying this and being able to track it through each of these departments can better assist the customer.

McKinsey reports that “more than 80 percent of shoppers now touch a digital channel at least once throughout their shopping journey”. Try to say the IT guy isn’t an important part of that path now.

More than 80 percent means it’s not only important to be segmenting the audience for personalization, it’s become vital. In the same report, McKinsey stated that, “satisfied customers are 80 percent more likely to renew their policies than unsatisfied customers.”

Through the collection of data points, insurance companies can personalize their approach to the individual, building a crucial sense of trust by tending specifically to the customer’s needs.

Personalization for Insurance

A study by Accenture found that “78 percent of customers say they would share personal information with their insurers to obtain personalized services.” Over a third also claimed they’d willingly pay more for those services.

Personalization isn’t the way in, it’s the way up.

Accenture accurately breaks down the method for personalized interaction with their “4 R’s of Personalization” .

Recognize, Remember, Reach, Relevance.

All personalization starts with the collection of data and insurance companies are no different. The hard part is turning the data into actionable content.

Insurance companies have the opportunity to easily acquire implicit and explicit data. Offering a free quote can be a window to more information than you can use at once, but it’s openly granted by the customer. Through social media engagement and web behavior, insurance companies can study interactions to further develop a marketing strategy and grow their reach.

What’s unique about the insurance market is the agent’s “face to face” interaction with the customer. Emails can be sent from the business’ distribution list to engage a customer, but an agent is able to follow through. They can collect information from the emails and store it under the individual account so any other agent can quickly treat the customer as though they’ve worked together all along.

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Other techniques involve custom 800 numbers that are specific to a page. When the customer uses that number, insurance companies can identify where the customer found it and tailor the interaction to fit their needs.

Personalization for Customer Service

The opportunity to create a more wholesome interaction with the customer is becoming the spear that many companies use to impale themselves. McKinsey saw that the leading insurance companies were the ones delivering better customer experiences and gaining clients who’d grown unhappy with their current provider.

Rapport with the customer grows more important every year as society moves towards a larger digital presence. It’s easier than ever for individuals to find better rates and promotions with other companies, forcing insurance agencies to monitor competition and focus a more direct approach to keeping the customer.

Through personalization, companies can increase brand loyalty and make it harder for other companies to sweep up their client base. Creating that awesome experience can pay for itself, sometimes more so than advertisements and events.

Emails should offer help to the customer’s specific problem, not generic sales. If a customer repeatedly calls rather than using messaging systems, an actual conversation should be held.

These are just a few examples, but when you link them together, they become even stronger.

Omni-channel Personalization

Every personalization technique is wasted if they’re not integrated into a single system. Knowing a customer’s name does nothing unless you track his issues and engage them. With tools like linked Facebook sign-ins, it’s easier to track customer likes and status updates.

Through requests for information or quotes, social media, or browsing history, insurance companies are able to develop a plan for each customer. As customers travel along their journey towards a purchase, companies are using all of these to collect information to engage with them.

With the data collected, they’re able to increase conversions, brand loyalty, and customer satisfaction, while lowering wasted quotes and negative feedback.

All of the companies listed below have an omni-channel personalization strategy. But additionally, they study market trends to see where advertisements and introductions to their business can be made. You’ll be surprised with how some of the companies collect data and put it to work.

Check out these other ways the top dogs in the insurance market have added channels to their business’s personalization.

1. State Farm Group

On their mission page, State Farm acknowledges their customers want a personalized experience. It’s not surprising they achieve it. Their collection of information is best seen through some well developed applications.

State Farm constantly pulls data through their personalized mobile app. The app offers driving routes, weather reports, and reminders for things like A/C filter changes. When it is time for a filter to be swapped, they’ll provide you with a list of the closest stores to purchase one.

When a customer opens the app, they’re seeing a page unique to them, but still connected with the State Farm name.

They also maintain a website called ChaosInYourTown.com where users can enter their actual home address and watch a robot destroy it. This was done as a different way to demonstrate that they’ll always be there for you.

Both of these gather data and put it to immediate use, improving the customer’s experience. Although the latter is more entertaining, it’s a unique technique that has paid off, driving them traffic to other sources and increasing brand awareness. It’s helped to assist them in leading the insurance market by billions of dollars.

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2. Allstate Insurance Group

Allstate uses applications in their own way. Using their mobile app can use the geo-location feature to request assistance after having car trouble. They can also log all of their maintenance requirements and details which can help diagnose the problem.

Along with the geo-location features, if you’re waiting for a flight at an airport, you may get an offer for travel insurance.

While the location data is essential to a lot of their market, they still use other points to recommend different products. Their ‘Personalized Insurance Proposal’ uses and collects data on customers in order to give them a plan that meets the needs unique to them.

These tactics have helped with customer satisfaction overall, allowing Allstate to maintain their enormous client base.

3. Progressive Insurance Group

In 2007, Progressive was proud to offer a personalized experience for their customers. They identified early that treating each customer individually would take them far.

In the same manner, they’re well known for their ’Name Your Price’ program. It pioneered the idea, giving customers a personalized plan based solely off what they wanted to pay.

If leading the way on those fronts wasn’t enough, Progressive, was one of the first to use telematics. This long distance digital information allowed them to see actual driver behavior and reward customers based off their proven records. Discounts were granted for safe driving and, according the a case study by J.D. Power it increased customer satisfaction as a whole.

These, along with their ’Snapshot’, have kept the company growing at a significant rate and it continues to look for ways to improve.

4. Farmers Insurance Group

Farmers Insurance took a very different approach to omni-channel personalization. They partnered with the developers of the FarmVille Facebook game. Through this method, they were able to increase brand awareness and prove they could reach out to customers in various ways.

The strategy allowed them to collect data that users offered by having open social media accounts and connect on a different level. Because they were trying to engage those specific people, it was easy for them to interact. Through a sweepstakes, they were able to show people from the game to their website, offering more chances for conversions.

By coupling the game with a sweepstakes, Farmers more than doubled the amount of likes on their page and was able to gather beneficial information about their fans.

Farmers also became the first company to put a hashtag on a vehicle in a NASCAR race, branching out in a very different way.

5. GEICO

If anyone isn’t familiar with the company that in “15 minutes could save you 15% or more on car insurance” hasn’t turned on a television or radio for years. GEICO, through more than a descriptive slogan, has become a frontrunner in the auto insurance market.

GEICO quickly understood that personalization was the key to their marketing strategy. Through systems within their app, they are able to maintain user information and cut the undesirable wait times from customer interactions.

With their Quick Messaging addition, customers can leave messages for representatives and leave the app. When an agent has a reply, they receive an app push notification. This allows customers to take care of the things they want to, rather than acknowledging hour waits.

More prominently, GEICO’s spokes-character was spawned from their data collection and became one of the best known characters in advertising. After running an initial series of ads, they were able to correlate a growth in customers.

All of these businesses use omni-channel personalization in similar and different ways. The goal for insurance companies is to create a better experience for their customers. Because rates can only drop so low, the best way do this is with exceptional service. Using data, they can tailor interactions to specific individuals and do just that.

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19 Jul
2016

6 Types of Data To Collect From Customers And How to Grow Your Marketing Strategy With It

Personalization has hit the mainstream as the best marketing strategy for growing your business. It’s used by niche companies and conglomerates alike in order to create an experience that entices customers to buy. There’s no denying it’s power.

Have you ever found yourself shopping for a new shirt online, only to be bombarded with matching ads later in the day. The ads may even be the exact products your were looking at from the same sites. They’re remarketing based off information you provided. Someone else who shopped for pants will see a completely different set of ads.

The idea is to use a one-on-one marketing strategy to develop a closer relationship with your customer. Omni-channel personalization, with a focus on these data points, can create a thorough approach to tailoring your recommendations based on what you know about the individual. Levels of use will vary, but the goal is clear:

Marketing is no longer about whose ad is seen the most. It’s about who can be more personal.

1. Name

Names have been called the ‘customer’s favorite word’ and for good reason. Would you rather I address you as “Appreciated Customer”, or can we take it to a more personal level? Well Greg, we’ve got a deal for you.

Businesses have been using customer names since people started peddling wares in Mesopotamian markets. When Greg bought that suit, the owner had already learned his name. The next time he walked in, he was welcomed with it. It made Greg feel more appreciated than when he visited other shops. It created a brand loyalty and he’s significantly less likely to take his business elsewhere.

Knowing your customer’s name is easy when you’re talking face to face with her, but how can you do it when thousands of people are browsing your digital store?

Web developers solved this problem long ago. Membership and e-mail sign ups require a name. Even websites that only share your username have begun using your real first name rather than the word ‘profile’ on your browser. It creates a more personalized experience when the web page displays your name in the corner, even if you know it’s an automated system.

By e-mail lists having this information, subject lines can be constructed to appear like personal messages. Seeing their own name elicits a reaction from the brain, forcing them to slow down and read the text. Campaign Monitor found that working personalization into an e-mail subject line increased open rates by 14.68%. With a list of 1,000, that translates to nearly 150 more people opening your message. That’s 150 more potential sales just because you directed the letter at Greg. Talk about a great ROI on personalization.

2. Location

Where using a name is great, MailChimp would argue that city names are even better.

Locations can be used to expose customers to events in a given area. Is there an expo or event that you want to share with your fans. Directed messages at their location can be the quickest way to do it.

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Sending e-mails about a race in Seattle to people who live in New York City will cause your open rate to drop drastically. Meanwhile, your audience in the greater Seattle area may now attend, increasing engagement with your brand.

Gathering this information can be done through two key methods. You can have customers provide their location when signing up for different features, or you can have them grant permission using a geo-location enabled app.

Marketing Land claims mobile brand ads are seeing a 20% increase in conversions when coupled with location data. Need more reasons? They also found that “69% of Google searches include a specific location.” That’s more data you can use in your marketing strategy.

A study by White Horse Productions, Inc. showed that 8% of the users of social apps running geo-location systems believe “savings in discounts and merchant rewards” are the most important benefit. Though this number seems low, given the sheer volume of traffic that social media receives on a daily basis, this number is astounding. Since 60% of that poll thinks the social aspects are most important, it could be argued that discounts and deals would play a larger secondary role for most.

Businesses like Yelp allow their customers to ‘check-in’ to different establishments. Later, they’re reminded to review the places they visited. This creates more interaction with their site and app, as well as customer pride because they’ve contributed to the product. The ‘check-in’ strategy also brings more engagement on social media, showing up on the newsfeeds for everyone to see.

The largest battle with tracking a customer’s location is the concern for privacy. Many smartphone users will disable the GPS feature because of a fear that the information will be used inappropriately. Unfortunately for the honorable business, this leaves the ability to track location to user sign ups and invoices. Still, it’s better than comprising your integrity.

3. Gender

The purple elephant in the room, gender, has become a touchy subject in today’s social climate. Still, for a business, knowing someone’s gender can translate into better targeting and profit.

A study by G+ proved that targeting genders can be more than efficient. They found that females make more of the buying decisions, including everything home furnishings to cars. They also saw that women are more likely to use a specific brand if it supports a cause.

Using this information alone, you could develop a strategy to target your female customers with ads. Select the cause you’re most affiliated with, expressing a cause, and have better luck at winning them over. Even better is that if it’s a large purchase, you know to focus more attention on that gender.

Learning your customer’s gender also gives you the ability to tailor recommendations on page. If you’re a clothing company that sells to everyone, ads offering skirts will be better directed at women, while men’s products are better with them. This technique would still require a Facebook pixel or local account, but it could pay dividends in the long run.

4. Previous Purchases

Along with the gender focused advertising, many sites will tap your previous purchases to target you. Amazon is excellent at this strategy.

When you’re comparing items, say a sleeping bag, you can go through dozens of pages without making a purchase. Don’t worry, when you open your Facebook later, you’ll find that Amazon has a kindly reminder waiting for you. They’ll use sponsored posts to keep your mental shopping cart alive and even offer recommendations for some of the sleeping bags you were looking at earlier.

You can follow this same approach, or target on a finer scale. When a customer purchases a sleeping bag from your site, launch an automated email chain that offers them related products, like lamps or walking sticks. The odds of a customer buying from you again are higher than the chances of that initial purchase. It’s marketing done easy.

On the other side of the spectrum is the abandoned shopping cart. Maybe a customer became distracted. Maybe they found your prices too steep. By knowing that they didn’t make a purchase, but had intended to, you can attempt to reengage the customer. Remind them of the cart or make new offers. There are a lot of possibilities just by identifying their cart status and it can all be crafted into an automated system.

In the same sense, send emails when discounts appear on items they’ve expressed interest in, be it from a wishlist or deleted cart items. Study everything about a customer’s purchase history and you can learn some specific ways to target the individual.

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5. Interests

If interests aren’t part of your personalization marketing strategy, you’re doing it wrong. They can tell us everything we need to know in order to interact with customers.

Interest marketing is especially effective on social media platforms. Sites like Facebook and Twitter build profiles on all of their users, including everything they like. These likes translate into marketing channels.

By applying ads to social media, you can automatically engage those who prefer the niche you’re addressing without having to sort them out. A billboard is a shot in the dark. Social media advertising, thanks to the ability to target interests, is a point blank shot.

6. Web Behavior

A customer’s behavior on the web can lead to a lot of profitable information. Everything from web content to e-mail interaction can be tracked in order to improve your marketing strategy. Using omni-channel personalization with knowledge of their trends can be even better.

To start, figure out what the most popular key words for your business are. Once you have them, develop landing pages for each. Highlight those keywords as many times as you can in the page to be sure that’s the one they find and let the personalized experience begin. Depending on how many keywords you want, you can continue to develop new pages, offering a deeper connection to your audience.

Those keywords can say a lot in themselves by defining where the customer is in the purchasing stages. If they’re searching for a specific knife review, odds are that they’re looking to purchase that knife. If they’re looking for the 7 best survival knives, they may be a little further away. Through personalization, you can recommend products and advertisements based off where they are in that process.

Tracking behavior is where your content marketing can pay off. Everyone who has run a business with an online presence understands that cookies can be pivotal in your marketing strategy. By tracking which pages your customers are viewing, you can tailor content specifically to their interest. This can be a recommendation to other articles and products based off the category or focused bonus material.

Content upgrades that are directly related to the topic of the page can provide a great window for opportunity. If a customer is reading about repairing chainsaws, a guide to felling trees with one may be enough to get his e-mail. From there, he’s entered your sales funnel, leaving him open to more e-mails and potentially other personalization tactics from you.

Along with getting those messages out, you need to pay attention to how your customers interact with your e-mails. Spot which links are getting the most use and place the customers into a segmented list. Send them more emails that focus on the topic they’re interested in. Reduce the size of your segments if you can, creating various targeted sub-lists while still sending them e-mails from the main subscription.

Collecting data to grow your marketing strategy is as simple as opening a few analytics accounts and paying attention to customer behavior. Run as many tests as you can to learn what works and what doesn’t to maximize your potential.

The information you gather can be the difference between a year of growth or another twelve months of your peers passing you by. Develop a strategy for personalization and take the lead.

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