customer loyalty Archives - Omnichannel Personalization SaaS Solution

27 Apr
2017

Get Ready: 3 Customer Personalization Trends to Look Out For

When it comes to a brand’s relationship with its audience, it’s all about customer personalization. Customer personalization allows companies to better relate to their customer’s needs and give them a deeper connection to a company. Customer personalization bridges the gap between online experiences and in-person interactions with customers.

Consumers are looking for more ways to connect with a brand, and companies are looking for more ways to increase revenue and track marketing efforts. This makes 2017 the year to focus on personalization. Here are a few customer personalization trends guiding the online experience in 2017:

Enhancing Online Brand Experience

Online shopping is by no means a new concept, but brands are currently working to better connect with consumers online. Common ways to personalize, and therefore enhance, the online brand experience include dynamic content and personalized recommendations. By tracking what consumers look for on a site, companies can personalize the way their site interacts with each customer. This gives everyone a unique experience and encourages them to come back.

One prime example of a personalized online consumer experience is Amazon. Each time a shopper looks at one product, they are then showed similar products, things people have bought, and more. This is all done with the intent of guiding a customer to make a more informed decision.

Optimized Messaging with Customer Data

The average person spends just a few seconds on a page before they decide whether or not to stay. This short attention span makes the content you show them that much more crucial. It’s in those few milliseconds that personalization can make a huge impact.

To do this, companies need to gather the right information about each person who visits their site, so they can better target their efforts to catch that person’s eye. There are multiple methods companies can use to gather data to help with customer personalization. This includes proprietary scoring, targeting algorithms, and more. These processes can help track a person’s every interaction with your brand other similar online brands to provide a personalized experience. Even if someone is a new user to a site, companies with the proper algorithms in place can look at their personal history to improve the content it shows.

Companies such as NectarOM simplify the data collection process to help companies better target messaging and in turn see higher customer engagement that increases overall sales.

Geo-Targeting Marketing

We as a culture are constantly sharing information online, and brands need to take advantage of it. More and more people are becoming comfortable sharing their location online. This allows companies to target content based on a person’s location. Geo-targeted marketing – also referred to as proximity marketing – allows companies to combine online and offline for an improved, cohesive customer experience.

Proximity marketing allows a company to feed the customer their message at a time when they are most likely to take action, based on their location. Proximity marketing uses technology such as chips in products, enabled location services on a smartphone, and in-store WiFi to better reach its customers.

Personalization is imperative for any company that wants to reach its customers online. People aren’t looking for a company that just shows them what they have to offer. Instead, people want to buy from brands that pay attention to them and provide them with custom-tailored content. When it comes to personalization across all channels, companies like NectarOM make simpler to reach customers and increase revenue.

24 Feb
2017

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.

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.

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.

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.

17 Feb
2017

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.

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.

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.

13 Jun
2016

How Marketing Personalization Increases Customer Loyalty

What Kind Of Data Do You Need To Be Tracking To Meet Your Conversion Goals?

Who are the best kind of customers? The ones that never complain and keep buying from you and tell everyone they love you. You know the type.

They’re the loyal ones.

If you’re trying to grow a solid brand, loyalty should be on your radar. There are multiple definitions of what loyalty means to businesses. While loyalty programs, such as points, miles, coupons, are great, the type of loyalty you want from your customers is blind devotion, and refusal to look elsewhere. The problem is: loyalty is hard to obtain. It takes a lot of work and effort to gain trust, and along the way one slip-up could negatively impact all that hard work. It’s a very delicate process, there’s no question about it, but if done right the benefits far outweigh the drawback.

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Take Apple fanboys for example. There weren’t nearly as many of them around 20 years ago, but now there are tons, and Apple is the most profitable company in the world.

Coincidence?

I don’t think so. They are the best kind of loyal customers, willing to pay a premium for products and line up for days before they’re even out. These aren’t exclusive models either, and, on paper, they’re comparable to ones can be bought for nearly half the price. But people continue to buy from them. Why? These are customers that are loyal because they like the entire process, from the lineup to unboxing.

Gaining this type of loyalty is hard, but with businesses having the ability to capture more data, personalizing content is an easy way to start fostering a loyal customer. Let’s explore three aspects of personalization that you shouldn’t ignore.

1 – Profiles & Behaviors

Data can reveal a lot about someone: where they are, what browser they’re using, what links they clicked and what kind of device they’re on. It’s a marketer’s dream, and this information can, and should be used to help you increase your conversion.

In general, there are two types of data: explicit or implicit.

Explicit signals are hard facts: This user was on an iPhone in Canada, and clicked three links and visited the site four times.

Implicit signals are what you can deduce from the hard facts: It looks like this user was browsing items. Since he’s from Canada, he’s less likely to purchase than an American; but, since he’s clicked three links and been to the site four times, he has a high chance of buying.

Turning implicit signals, which come in the form of data, into explicit signals and determining how you can initiate the sale can be a daunting task. NectarOM can simplify things and help automate this process in real time.

Customer profile

Once you have begun tracking your data, your next goal should be to create virtual profiles of your customers by combining data from multiple sources.

A profile describes a particular segment of customers with as much information as possible. This should include info like:

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These are just a few examples of points you can use to build your own persona. When you have a clearer picture of your ideal customer, the next step is to describe them and turn them into real people. Only once you have a profile of your customer can you start creating a plan to market to them. There’s no point wasting your time on strategies that might work.

How somebody is interacting with your content can tell you a lot about who they are and how they will interact with your brand. Generally speaking, mobile use accounts for a lot of search traffic as well as browsing, while computer/laptop traffic accounts for the majority of purchases.

2 – Test & Learn Strategies

What a simple world it would be if all leads came from the same place. You could focus all your marketing efforts on one thing and then clean up! But this is real life, and people are complicated. Different people hang out on various sites and can experience a brand in a variety of ways. One may prefer your Twitter feed, and another may frequent your site. Where they access your brand influences what they buy.

You can use this knowledge to your advantage by sending unique channel offers. For example, we all know Instagram is ideal for sharing images, so depending on what kind of images your audience’s feed is filled with, you could make something that blends in and barely looks like an ad. In this example from Qaloring, it’s not clear that they’re selling anything, and all you see is a woman in exercise clothes.

People on Twitter are usually looking for some interesting news, delivered in the iconic 140 characters or less and is a great place to promote your product with a catchy headline that gets people curious. Looking at the example from Ideapod; they play to people’s egos and drum up a bit of intrigue.
Am I smart? Heck yes! *click*

It can also be used to easily tag influencers in the industry to try and drum up some buzz for your product.

Facebook is a mix of the two, allowing more headlines but also a lot of space for an image. This ad from Jetsetter gets right to the point with a clear offer and beautiful picture.

Giving messages that relate to how people like to interact with a brand is the key to success. Make sure you’re not only thinking about the marketing campaign but how people will interact with your campaign over all sorts of channels and devices that you’re choosing to run it on. The more specific and targeted your campaign is, the better it will perform.

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3 – Automated Activation

Knowing all of this information is great, and any business owner should be doing everything they can to leverage this wealth of data that is at their disposal, but if you aren’t using or tracking this information, then you’re wasting your time. We here at NectarOM have an orientation toward action and apply marketing automation, predictive analytics and trigger based communications. Our system allows you to put this data to work. That way you can create detailed user profiles and implement laser precision campaigns.

No matter what your business model is, trigger based messages can help foster loyalty and increase your ROI. Making each customer feel special by delivering content based on their actions is a surefire way to keep them coming back.

With e-commerce, you’re always in the trenches, so to speak, looking forward to that sale and email notification coming through. Automated personalization has been proven to help with cart abandonment, by sending a follow-up email a day or so later. This can help bring people back to the state of mind where they were about to purchase, and could seal the deal.

As a corporate marketer, you’re more concerned with activating users because it’s necessary for continued subscription and a long term relationship. Sending a series of tips during a trial period, and capping it off with a ‘last chance, the trial is expiring’ email is a great place to start, and sure to get a conversation going with customers looking for an extension.

In a brick-and-mortar setting, clienteling, or providing a personal touch to shoppers can go a long way to building loyalty. This is usually achieved by using software to learn about customers preferences, behaviors, and purchases, and then having sales reps connect with customers in meaningful ways.

The Loyalty Effect In Action

At the highest level, getting all these systems in place can create machine-learning recommendations, which, if you can attain, mean a constant stream of business. Just look at what Netflix is up to:

“A study from Wharton cited that Netflix reported 60% of its sales came from machine-learning recommendations, and 35% of Amazon sales came from system-generated suggestions. Regarding increasing engagement, Venture Beat reports that personalized email subject lines can increase open rates by up to 41%.”

With industry leaders like Netflix heavily pursuing customization and machine-learning, it needs to be on your radar of things to implement. By keeping your messages relevant and personalize, you’ll be able to not only see the benefits in the form of increased revenue but will be able to keep your customers loyal – and more importantly, coming back.

This stuff can get complicated, and there are a lot of plates spinning in the air. But by focusing on your ideal customers and giving them personal attention, you’ll be able to keep them around. For businesses looking to deliver automated personalized omni channel experience book a free consultation with us here at NectarOM to discuss a strategy for your business.

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05 Jan
2015

A Brief History of Omnichannel Marketing

In less than five years, one marketing strategy has evolved from an unfamiliar concept, to a trendy buzzword, to a crucial component for successful marketing. Omnichannel marketing is one of the fastest-growing concepts for retailers and consumers alike.

Omnichannel is about continuing a consumer’s shopping experience across multiple platforms. Retailers must integrate every available channel to create a seamless shopping experience for customers. Omnichannel aims to encourage evaluation and interaction between a customer and the retailer.

The concept of omnichannel was first introduced to the marketing world in 2010. The term was devised to describe a shopping experience that extends beyond multi-channel retailing. An ideal omnichannel shopping experience would be accessible to customers on all platforms, from traditional brick-and-mortars to the digital world of text message, emails, and online shopping.

In September 2010, a report from IDC Retail Insights predicted a strong reliance on omnichannel for successful marketers in years to come. According to the report, retailers utilizing multichannel strategies in 2010 saw a 15-35% increase in average transaction size, along with a 5-10% increase in loyalty customers’ profitability. IDC cited the growing ecommerce market as the key reason retailers needed to implement omnichannel strategies.

Despite its introduction nearly 5 years ago, omnichannel didn’t receive much attention until a few years later. In 2013, “omnichannel” became a buzzword for marketers and consumers alike.

A 2013 article in Huffington Post attributed the rise of omnichannel to the increase of smartphones. Shoppers with smartphones are showrooming, or using their mobile devices to research competitive pricing while in a store and purchasing a cheaper option later on a laptop or tablet. As Smartphone sales continue to completely overshadow traditional cell phone sales, showrooming continues to increase, promoting more retailers to implement omnichannel practices.

This past year, the concept has further evolved. Omnichannel has morphed from a “buzzword” into a necessity for retailers that want to stay competitive.

In early 2014, Marketing Land called omnichannel a “must” for brands and retailers. Citing a report by MIT, they argued that omnichannel consumers are the “central force shaping the future of e-commerce and brick-and-mortar stores alike.”

Similar to the IDC and Huffington Post, Marketing Land attributes the rise of omnichannel marketing to the digital age. The MIT report found that $12 billion retail sales were made on Smartphones, and $1.1 trillion store sales were influenced by the web. These findings show that consumers are using multiple platforms to enhance their shopping experiences.

Several articles by Forbes also indicate that omnichannel is more than a fad or trendy phrase. The publication has recently called omnichannel, “More than a digital transformation buzzword,” and have dubbed it the “future of digital commerce.”

Retailers are also proving that omnichannel marketing is imperative for survival in the competitive free market. A look at J.C. Penney’s marketing strategy from 2011-2014 is a prime example of omnichannel’s impact on sales.

Originally hoping to keep online sales strategies separate from in-store sales strategies in 2011, J.C. Penney experienced a massive 32% decline in sales. In 2013, the company evaluated their business strategy, recognizing that separating online from in-store sales was detrimental to their success. Upon implementing an omnichannel strategy merging the two platforms, J.C. Penney saw a 6% increase in e-commerce sales in 2013 and a 26% increase in the beginning of 2014.

Omnichannel marketing is likely to remain relevant in years to come. A Forrester Research report predicts mobile commerce to grow 33% annually for the next three years, fueled by thee rise of Smartphone sales and usage. The report also expects an 89% increase in retailers that integrate mobile technology in-store. As omnichannel has become essential for retailers, it is imperative to understand the concept and its implications. In doing so, businesses will be able to reach their full potential and achieve success in today’s competitive marketing world.

03 Feb
2014

3 Tips for Gaining Brand Power

Customers are the base of any successful business. Without customers, you have no sales. While this is the most obvious tenet of having a business, customer experience and brand loyalty are often overlooked. Consider an example of a retail clothing brand that is known for its superior quality at the least expensive prices in the industry. They have achieved superiority to other brands, and in theory should hold a monopoly in the retail clothing industry, but strangely, their sales are not as high as projected and are even losing customers to competitors. There are 3 main issues with this retail clothier, and they are all related to customer experience.

1. First Issue: High product quality, low customer service.

Just because the product is higher quality and more reasonably price doesn’t mean everyone will purchase it. If a customer comes in the shop, questions the quality or price, and is met with a rude sales clerk, the unpleasant experience will lead the customer to spend extra money at a different store and spread negative word of mouth for the company. This reason alone explains why a superior store might be languishing with poor sales and loyalty.

2. Second Issue: Know your customer better than the competition

Even if a company has great customer service in addition to quality and price, another obstacle for achieving a loyal customer base is to simply know your customer. If Jane Smith likes to wait to buy sweaters on sale, the next time she is browsing the store online, it is up to the retailer to target an e-mail to her with this specific information. It will connect the consumer with the brand while simultaneously promoting positive word of mouth press.

3. Third Issue: Stay in touch with customers often

One tactic of growing brand awareness and customer loyalty is by acquiring their personal information; whether by signing up for newsletters, collecting it through surveys, or asking for information during checkout. By taking these approaches a company can strongly increase brand loyalty and stimulate sales by informing customers of when and what is on sale, prompting a call of action. While it is a commonly known that this type of communication push may be considered bothersome, a survey by Adobe showed that 75% of customers want companies to use their personal data to improve shopper experience.

Having superior quality and price is only one piece of the puzzle to having a successful company. You must evaluate your customers and value their tastes, opinions, and most importantly their word of mouth. If used properly it can be leveraged into a powerful free marketing campaign to boost brand awareness but if utilized incorrectly it can be harmful.

27 Jan
2014

3 Ways to Improve Mobile Personalization

Mobile Personalization is one of the hottest new trends in marketing in 2014. Mobile purchases make up about 20% of all eCommerce transactions and mobile sales are projected to increase from $139 Billion to $400 Billion in the next couple years alone. It is apparent that mobile presence is growing rapidly, but the real question is “What is the best way to improve mobile presence and interaction?”

1. Push for increase in opt-ins: The first way to improve mobile presence is to push for an increase in opt-ins. Opt-ins range from customers signing up via mobile devices with their personal information, allowing push notifications to their phone, and cross-promoting mobile offers through their desktop site. By offering these opt-ins a company is able to gain more personal insight into customers that agree to this and personalize their mobile experience by including their name, deals and offers based on their geographic location, and more relevant product selection based on their previous transaction history. In short, having these opted-in customers allows a company to associate more personally with the customer and create an opportunity for them to evolve from being a simple customer to an evangelist for your brand.

2. Cross-channel Promotions: The second way to improve mobile presence is cross-channel promotions over mobile. Within the mobile realm there are multiple ways to reach customers: SMS texts, Apps, social media, passbook, and mobile website. There are various ways to get involved in this avenue of marketing and it can include text campaigns where potential customers can text a preset number for offers and rewards and thereby entering their phone numbers into a
database for a company. Another method is to have an app developed for a brand. This has the most flexibility as the app doesn’t have to serve any particular purpose other than collecting data. It could be a game, a coupon generator, or any other form of entertainment. As long as it gets downloaded then it is fulfilling its purpose and creating more personal contact with customers.

3. Geographic data: The final way to improve mobile presence is to tap into geographic data. This can be done very simply just by having a feature in an app or website that utilizes the phone’s location services to determine
where a customer is and if there are any promotions that would benefit them at their current location. One way to

capitalize on location information is to send geographically defined text messages or emails to customers based on where they are. If a customer in a shopping mall, for example, and then receive a text from a store offering a sale a clear call to action is created and it is more likely to be followed up with because of the proximity to the store.

As mobile presence increases and customers are more focused on their devices than ever before, marketers too must focus more on these devices. The ability to capture customer data and create a more engaged experience for them is available but it’s a matter of acting on it and creating the avenues to acquire this data in the first place. Once the mobile presence is improved, the results will be noticeable and by connecting with customers it can be expected that lifetime value and loyalty of those customers will be increased dramatically.

11 Jul
2013

Using Big Data to Micro-Target: Integrating Big Data for 1:1 Marketing

One of the things I love about my job at Nectar is sharing with our customers how we deliver value to their business by enabling them to micro-target messages to their customers. Recently, while reading McKinsey Quarterly articles on big data, I saw a couple of statements from McKinsey directors that really resonated with me, because it addresses the core of Nectar’s value proposition.

1) From David Court: “…the key is to focus on the big decisions for which if you had better data, if you had better predictive ability, if you had a better ability to optimize, you’d make more money.”
2) From Tim McGuire: “Analytics will define the difference between the losers and winners going forward.”

I believe that if you make your customers happy, they will be loyal to you, and loyalty generally translates into greater revenue (and less cost) for your company. How do you make your customers happy? By knowing them. Know how they interact with you, know what they buy from you, know what they like about you, know who they are. At an individual level. Of course, this is easier said than done. But with the right tools and data, it can be done.

When, where, what and how you communicate with your customer is one of those big decisions. Using the data you already have from your customer and combining it with other big data–online behavior, social, CRM, mobile, etc.–enables you to predict what that customer would want to hear from you. This predictive ability, in turn, allows you to optimize your relationship with that customer, which then helps you make more money. (I use the singular “customer” because that’s what a robust Digital Management Platform enables you to do: communicate with each of your customers as an individual, yet do it at scale.)

Technology exists today to bring all of your available big data together to build a foundation from which to make your big decisions. A company like Nectar can help you bring all this data together to enable you to build 360 degree profiles of each of your customers. But we don’t stop there; we then apply our proprietary algorithms to analyze your customer profiles to determine the most relevant communications to deliver to each customer–we call this hyper-personalization. To complete the circle, we then help you distribute consistent hyper-personalized messages across every digital channel your customer uses.

We like our perch at the intersection of big data, analytics and hyper-personalization because when we bring each of these tools to bear for our customers, big decisions not only become easy but they also make you money.

Want to learn more? Please email contact@nectarom.com for more information.