[Case Study] Successful Application Of Omnichannel Personalization To the Restaurant Industry

How can restaurants, which primarily offer an in-store service, extend the brand experience to digital media where customers are spending most of their time?

As your customers are inseparable from their smartphones and eCommerce has become an integral part of most people’s lives, what can restaurants do to drive brand awareness, cultivate customer relationships, and drive more sales?

To stay relevant, restaurants need to meet their customers where they’re at, using technology to bridge online with offline commerce by creating a personalized omnichannel customer experience.

In the casual dining segment, which saw a 4 percent drop in early 2017, TGI Fridays stood out with its many initiatives that aimed to increase sales through online channels.

Click here to download the TGI Fridays case study to learn how they increased their conversion rate by 35%. 

The restaurant chain is using mobile commerce to provide personalized service to guests online, just as they would in their physical locations.

Their strategy combines omnichannel personalization with mobile technology to bring together a seamless online and offline experience, turning the brand into both digital and in-store destinations:

Enhance Customer Experience Through Digital Channels

TGI Fridays is showing up in channels where their customers are already spending their time, delivering targeted messages in the right place at the right time.

Open Table

In February 2017, the company joined Open Table to allow consumers who use the app to look for dining options to make a reservation with just a few taps on their phones.

Twitter

TGI Fridays implemented a chatbot technology that allows guests to have one-on-one interactions, get information on nearby restaurant locations, place orders for takeouts, and more via Twitter.

FandangoNOW

The restaurant chain has partnered with FandangoNOW to offer a dinner and movie deal, a promotion through which consumers can get one free HD movie rental when they place an order online.

Create Deals And Promotions To Encourage Omnichannel Interactions

TGI Fridays also launched a series of promotions that encourage customers to interact with the brand both online and offline.

Some of these promotions include a $30 Valentine’s Day dinner deal in conjunction with their partnership with Open Table, Endless Appetizers and March Madness promotions to encourage customers to stick around (which help them cultivate customer relationships and brand loyalty), the Twitter promotion during Super Bowl, and takeout options that help customers recreate the restaurant or bar experience at home.

Use Omnichannel Personalization To Augment Customer Experience

To further enhance consumers’ experience with the brand, TGI Fridays introduced an omnichannel personalization strategy that turns disparate customer data collected from different channels into one master guest profile.

The information allows the brand to serve individual customers personalized offers most relevant to their preferences and locations via multiple channels. This approach encourages not only in-store consumption but also online orders.

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Using an onmichannel marketing and personalization platform, TGI Fridays is able to leverage customer data from digital, social, mobile, paid, traditional, and other sources to deliver personalized online, in-app, in-person, and take-home experiences.

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But TGI Fridays is not the only one! Restaurants everywhere are benefiting from integrating online and offline channels to augment their brand experience and increase their conversion rate while lowering cost.

Find out how to make omnichannel personalization work for your business.

Hyper-Personalization — the Catalyst In Revolutionalizating the Grocery Industry

Even though eGrocery is growing in popularity, 97% of groceries are still purchased in-store.

Still, digital channels allow consumers to research and gather information during the pre-shopping and planning stages. They also offer tremendous opportunities for grocery retailers to attract customers and increase loyalty.

To get the most out of these digital channels, grocery retailers need to become aware of customers’ expectations as they interact with brands.

Consumers are looking for relevance and personalization everywhere. They don’t have the patience for one-size-fits-all messages that don’t speak to their needs or their relationship with the brand.

The trends that are driving the grocery industry, which include the convergence of online and offline channels, the increase use of social media to connect with customers, the focus on customer experience over price, the empowerment of frontline employees, and the increasing availability of big data — all point to the need for providing a highly-personalized shopping experience.

Grocery retail chains, such as Walmart and Albertson, have been implementing personalization strategies to successfully generate growth and revenue.

In order to stay ahead of your competitors, you need to implement a hyper-personalization strategy that delivers personalized content and offers to your customers as part of a omnichannel marketing strategy.

Single Customer View – The Foundation of Omnichannel Marketing

Many grocery chains already have loyalty programs which allow them to collect a large amount of customer data.

The challenge is to integrate this information with other customer data collected from other channels and compile it all into a 360° customer profile that will allow retailers to deliver targeted messaging and relevant offers.

With this single customer view, technologies, such as machine learning, can be further utilized to analyze the data and apply the insights to inform marketing strategies.

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Hyper-Personalization Will Drive Grocery Retailing

Grocery retailers can augment the power of single customer view with hyper-personalization.

Hyper-personalization refers to the use of data to serve up customized content, products, or promotions based on the preferences and shopping behaviors of individual customers. It helps grocery retailers deliver the right message or offers to their customers in the right place, and at the right time.

With hyper-personalization, you can deliver a seamless shopping experience–whether a customer is shopping online or in-store, looking for a particular list of items or hunting for deals–to increase the relevance and timeliness of your marketing message and promotions.

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How Grocery Retailers Can Use Hyper-Personalization

Grocery retailers can now use omnichannel marketing software to tap into the power of hyper-personalization.

Here’s how to get the most out of your customer data:

1. Create Nimble Personalized Campaigns Backed By Analytics

Replace large-scale, one-size-fits-all marketing campaigns with more frequent small-scale ones to deliver a personal touch. You can analyze customer data to optimize the timing of the messages, offers, and product recommendations for each customer segment.

2. Leverage Real-Time Data

Shorter campaigns allow retailers to react faster to real-time information gathered from customers’ responses to the content and promotions.

By using omnichannel marketing software to gather customer information in real-time, you can personalize customers’ experiences to involve multiple platforms and digital channels. For example, you can use customers’ real-time location and response to pricing to determine the best promotion and offer.

3. Target Advertising Message And Track Results

With the help of omnichannel marketing and personalization software, we may be able to retire the famous saying by John Wanamaker, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

You can now tailor marketing messages to mirror the key elements in the acquisition funnel and create advertising messages that speak to individual customers to move them toward purchasing.

In turn, the effectiveness of these offers and messages can be measured so you can determine what’s working for your audience and make improvements to increase sales for your grocery business and increase ROI.

To fully utilize your customer data and deliver a hyper-personalized customer experience, you need an omnichannel marketing software that brings all the pieces together in one centralized location.

Doing so will help you design a 360-degree customer experience and meet customer expectation so you can tap into the opportunity offered by digital channels to collect and collate relevant data, enhance customer relationships, and increase sales.

Three Reasons Why Email Marketing Really Works

Benefits of Email Marketing

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

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

1.Easy Way to Reach Mobile Customers

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

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

2. Email is a Transactional Medium

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

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

3. Tells You What Works

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

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

Engaging High-Value Customers for High-Value Results

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

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

What Is a High-Value Customer?

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

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

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

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

  1. Evolve With Customers

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

  1. Pay Attention

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

  1. Loyalty Rewards

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

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

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

 

How 3 Top Brands are Using Personalization

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

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

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

Burberry

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

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

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

GILT

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

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

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

Spotify

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

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

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

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

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

Kohl’s is Winning With Omnichannel Strategies  

combining digital and in-store

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

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

MOBILE APP

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

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

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

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

STORES AS WAREHOUSES

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

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

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

 

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.

 

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.

 

Social Media 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.

How Personal Is Your Personalized Marketing?

Discover how automation can put the “personal” back in personalization

Is your personalized marketing really that personal?

The overwhelming majority of consumers prefer personalized experiences when engaging with their favorite brands (more than 70% of consumers in the US and UK!). Personalized experiences are not only very gratifying, but they satisfy two very important, and absolutely necessary, digital age value points: the consumer need for control, and information overload prevention.

The personalization trend has picked up steam in recent years as marketers and brands now recognize the great benefits of providing consumers a personalized experience, including: faster response times, improved engagement rates, and higher conversion rates. Yet, as the digital age has continued to advance, a troubling trend has developed… personalization no longer appears to be personal.

Contrary to what appears to be popular opinion, “Hello, <Insert Name>, we have a special offer!” is not personalization. Remember, today’s consumers are tech savvy, and well versed in the methods of digital marketing. They understand that the more times their name and contact information appears on a promotion or ad, the more likely it is that the engagement was anything but personal.

There are two pertinent questions that we must ask:

  1. How does this affect consumers?
  2. How have marketers arrived to this point?

Answering the first question is easy – they don’t like it.

While advances in data mining and analysis have granted marketers the ability to track consumer behaviors and preferences like never before, personalization doesn’t necessary equate to relevancy. For example, using a consumer’s name 10 times in the two paragraphs of a welcome email does not demonstrate that you know anything about them… it in fact conveys the opposite. Another important point to remember: digital age consumers want to know that brands and marketers understand them.

Moving on the to second question, in order to understand the current state of personalized marketing, and how marketers can develop a more “personal” relationship with consumers, we need to take a more indepth look at how our digital age reliance on technology has detrimentally influenced our creative ability to market.

Let’s quickly review!

Digital Age Tech & The “Personalization” Problem

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Across the entire spectrum of the diverse digital age, products and services are being infused with cutting edge tech to streamline the purchasing process. Consumers have become dependent on tech to fuel their need for convenience, and marketers have come to rely heavily on tech-infused processes for delivering content and value to consumers. Some of the most recent marketing advancements owed to technology include:

  • Mobile Technology: The consumer value paradigm has shifted towards small screen optimization and responsiveness. Today’s consumers research, purchase and connect all via mobile devices. Tech-infused omni channel solutions now provide consumers the ability to move between mobile applications and websites with fast loading times and responsive content. The next step in omni channel mobile solutions, and one that is on the cusp of being fully adopted, is that of wearable technology. In the future, mobile will mean wearable, and the omni channel will become a fully integrated part of the consumer and their experience.
  • Big Data: Data collection for marketing in the digital age means producers have the ability to optimize content and marketing solutions based on consumer information. Data in the digital age has allowed marketers to share relevant  content with customers, and has provided the ability to adapt to consumer demand in real time. In turn, this data responsiveness has improved the overall consumer perception of brand value, because consumers receive a more personalized experience.
  • Global Reach: The digital world is a global world, and perhaps the most important contribution of technology from the last 20 years is its ability to connect diverse consumers from diverse cultures. As today’s technology has brought fast and affordable internet to most of the world, omni channel marketing strategies must now accommodate a global audience and implement methods for the global transfer of value.

As we can see, the technology of today has provided both consumers and marketers alike with a wealth of advancements. Yet, for all it has given, it has also dulled one very important aspect of digital marketing:

Our ability to deliver consumer intimacy and personalize.

Consumers have become lost in an endless sea of technological noise, wandering between a multitude of similar brands that provide similar products, services, and first name “personalization.” Digital marketers have fallen into a predictable marketing pattern, and as a result, they are losing their ability to transfer value.

Remember, the goal of any omni channel marketing campaign is to provide consumers with value. Value is defined by the Oxford English Dictionary as:

“The regard that something is held to deserve; the importance, worth, or usefulness of something.”

As Forrester details in its 2015 study, “The Power of Personalization,” not only do consumers find importance, worth, and usefulness in receiving personalized and practical information, but it has come to define their digital age relationships with brands. Omni channel marketing meets this consumer need through a mutually beneficial exchange of value. Consumers receive a personalized experience with quality goods and services, and producers receive consumer loyalty and business. If we no longer have the ability to build intimate relationships, it is hard to satisfy consumers.

Recognizing that successful brands provide their consumers intuitive and personalized experiences, the natural solution to meet the needs of those consumers expecting “The Internet of Me” is nothing more than a new take on an old trick – automated personalization.

Let’s take a look!

The Solution – Automated Personalization

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The digital age focus of marketers when it comes to automated personalization should the efficient extraction of consumer insight from data.

It is the key to putting the “personal” back in personalization, as automation technology can seamlessly adapt to changes in consumer behavior and preferences. It is important to remember that the notion of personalized marketing in the digital age was founded upon email marketing. Back in the early beginnings of the digital age (2006/2007), marketers discovered that the clickthrough rates for emails significantly increased when a potential consumer’s first name was placed in the subject line. With this new weapon of marketing warfare the email was brought back from the dead, and the modern digital age developed.

There was just one problem – consumers caught on.

Consumers quickly realized that the “Hello, <Insert Name>” email subject lines were not true personalization, and that brands didn’t know them any better than they originally thought. It was gimmick marketing at its worst. Recalling this lesson from the past, it is easy to understand the importance of marketing automation technology today. Automated personalization leaves the heavy lifting to technology. It adapts to consumer preferences, provides relevance, and allows marketing teams to focus on understanding the consumer experience. By studying the path that digital age consumers take, and creating targeted messages for each phase, automation software can then decide when, where and how to best apply personalized consumer experiences.

Yet, many digital marketers are often overwhelmed by the immense volume of data that is involved with automated marketing. According to a recent study by Monetate, even though 94% of marketers understand how valuable personalization is to digital age success, and 91% of marketers believe successful brands market with data, the study found 95% of all data remained “untapped,” while 26% of organizations do not use real-time on-site behavior to personalize experiences.

The reality of automated personalization is that it unlocks new visitor data, efficiently uses pre-existing data, and consistently improves to make sure that content is put in the best possible position to be seen! Combined with omni channel solutions, marketers can leverage consumer interactions and create personalized and intimate experiences across multiple channels of consumer communication.

What are some digital age examples of putting the “personal” back in personalization?

Let’s take a look.

Automation Example #1 – ZURB (Welcome Emails)

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Silicon Valley based design company ZURB is creatively using email automation to connect with their subscribers by transferring a mixture of design knowledge and intimacy.

According to Daniel Codella, a marketer at ZURB, the company has a variety of newsletter templates that can be modified and personalized for different segmented consumers and target audiences. ZURB has implemented a variety of different email templates that will automatically send subscribers a highly unique welcome email that includes reading suggestions based on previously noted interests. According to the company, these emails now have around a 70-75% open rate and a 40-45% click through rate.

In the words of Codella himself:

“ZURB’s mantra as a company is “design for people.” People are at the center of everything we do. We think about who the user is, and what they need. The emails we send are going out to thousands of people. We don’t think of the members of our lists as numbers — we think of our users as people, and constantly consider what value we can provide them.”

In an age where consumers question how well their favorite brands know them, this type of automation and personalization creates a competitive edge. While ZURB is not going to win any awards for their email design (see picture above), this type of personalized automation is highly effective in transferring value. This basic approach can, and should, be implemented and improved upon through personalized creativity.

Potential strategies for improvement include:

  • Sending product recommendations based on purchase history
  • Inviting interaction via social media buzz campaigns
  • Offering promotions and discounts based on interests
  • Providing access to valuable information via webinars/tutorial videos

All of these options offer a degree of personalized value; how much so will depend on the consumer/potential consumer and their prior interactions.

Automation Example #2 – BuzzFeed (Subscriber Engagement)

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Typically recognized for its “top ten” lists focusing on need to know Game of Thrones facts, digital media/news master BuzzFeed does a lot more than set the agenda for Millennial pop culture. Recently, the company has put together a growing email marketing campaign focused on delivering valuable content to its readers via automated processes.

BuzzFeed has created more than 20 unique email newsletters that are specifically designed to meet the personalization needs of readers. From politics, to health, to sports, BuzzFeed has studied what their readers want, and they have engineered their emails to deliver value. In fact, one of the top five referrers to their website is email, with each visitor spending three minutes or longer on their website!

The picture above is an example of a knowledge course that BuzzFeed automatically personalizes and sends to subscribers via email. By leveraging browsing history and other data, BuzzFeed is able to send along multi-lesson courses that deliver value to their readers. These courses not only provide knowledge, but they automatically keep readers engaged over a number of weeks. BuzzFeed segments their actual and target audiences by interest, as consumers are more likely to opt out of emails when the content they receive is irrelevant. As a mass media publisher, BuzzFeed recognizes the need to send their dedicated readers content that is unique to their interests, and at strategic intervals.

BuzzFeed is a great digital age example that even the largest media sites can use automation to drive engagement and keep readers engaged.

Example #3 – Caribou Coffee (Organic Customization)

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Caribou Coffee is the nation’s second largest specialty coffee company, with close to 500 coffeehouses. The company is a great example of the digital age balance needed to successfully provide an automated and personalized consumer experience. Caribou takes the “wait and see” approach of allowing their consumers to shop without overwhelming opt-in noise, while simultaneously (and subtly) encouraging consumer / brand interaction.

By implementing a mix of standard and creative capture points, Caribou is able to take note of consumer preferences without altering the organic nature of the consumer experience. While the website does include the standard registration and email opt-in form, ecommerce customization is where Caribou’s personalization truly shines. From roast varieties to syrup flavors, Caribou is able to capture consumer preferences, and in turn, use this data to provide homepage suggestions for the consumer’s next visit.

Take note of the homepage pictured above… it does not exaggerate the need for email opt-ins and gimmicky subscriptions. What the homepage is actually doing is providing unique coffee suggestions based on the previous search, customization, and purchase history of the consumer. The suggestions by their very nature are organic, and not at all overwhelming. Through personalized content, imagery, and promotions, Caribou can continuously update individual user content for a fresh look, and a more intimate consumer relationship. With richer options, deeper content, and organic personalization, Caribou is a great example of automated personalization in the digital age.

As Mike Tattersfield, president and CEO, recently told Forbes:

“Our guests are extremely loyal and passionate about our product offerings, and so we are thrilled to be able to reward them for simply being our fans.”

In Conclusion….

Marketers can no longer survive by focusing on single channels and single solutions… the consumer journey will not support it. Today’s marketers must creatively integrate multiple channels while simultaneously providing an intimate, personal, and relevant consumer experience. In other words, marketers must put the “personal” back in personalization. For this task, there is no better solution than automation.

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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.

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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.

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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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