Seven Facts In Retail That Demand Change
Customer loyalty is no longer the powerhouse that it once was. In the digital age, consumers expect top-notch customer service, and the ability to buy what they want, anywhere, and anytime, through various channels, offline and online. With brick-and-mortar stores seeing fewer and fewer purchases while online sales continue to enjoy meteoric rises, retailers must face the music, and it’s a whole new dance card.
Omnichannel, multi-channel, seamless integration, and outstanding, personalized customer experiences are critical to a retailer surviving today.
Here are seven facts in retail that must be addressed.
1. Retailers still do not provide a seamless omnichannel experience
Only 17 percent of retailers indicate that their current omnichannel selection provides seamless integration for an optimal customer experience. Of the retailers that do offer omnichannel, many noted that each channel still provides their own customer experience, primarily due to a lack of integration in the back office. The facts are clear: A seamless omnichannel experience is essential as today’s demanding customers expect a personalized customer journey, regardless of where they interact with the brand. Retailers can only meet those expectations by integrating all channels.
2. Retailers do not have a central customer profile
Only 8 percent of retailers have a single customer profile, though the importance of a central customer profile is endorsed by virtually all retailers. Organizational silos, which cannot be accessed by the marketing department, prohibit critical access to the data necessary to compile a clear customer profile from the various details that are already being collected. By analyzing customer data, retailers can better understand customer behavior and gain valuable insights regarding how, where, and why the customer chooses their product. Based on those insights, retailers can develop business strategies and marketing campaigns.
3. Retailers have difficulty securing all contact points
The customer journey consists of a multitude of touchpoints which can be approached in a random order. That is great for the customer experience, but more contact points mean more data access points need to be secured. The more data access points there are, the greater the chance of data leaks. The new General Data Protection Regulation (GDPR) compels retailers to keep their data maintenance in order based on EU law.
4. Loyalty programs are not dead, they just need restructuring
Marketers talk amongst themselves about a shift from macro to micro customer segmentation. In these discussions, they challenge the importance of loyalty programs. Surveys show, however, that customers actually do value such programs. 66 percent of customers actively participate in one or more loyalty programs. Although such loyalty programs are popular, they are in need of restructuring. By focusing these programs on individual tastes and preferences, the customers receive the unique and personal attention they enjoy so much.
5. In retail, social media is increasingly acknowledged as a review platform
Over 50 percent of consumers use social media to submit complaints to companies, or post reviews and responses. Social media is a quick and easy way to announce customer dissatisfaction to the rest of the world. Due to the increased use of social media, the time-honored principle of word-of-mouth advertising has grown into an enormously influential factor in the world of retail. For retailers, it is important to find out what customers are sharing on social media about their brand, and to try and have a positive influence on it.
6. CEOs feel the need for new KPIs that are focused on customer-centricity
Over 60% of CEOs critically assess the way their company uses data for promotional events, primarily because each department only focuses on its own KPIs. This needs to change dramatically. Instead of using the perspective of isolated company silos, KPIs must be based on a clear focus on the customer. Only then will everyone pursue the same ultimate objective: Excellent customer experiences.
7. Only a handful have an effective road map in place for the digital age
These next twelve months, organizations will focus on increasing profits, building customer trust, and providing excellent customer experiences. However, they usually lack an effective road map to achieve these objectives. In order to retain and improve customer loyalty, it is essential that these objectives remain top priority. A plan for making that happen is the basis for effective action. Technology offers a supporting tool to execute this plan.
Putting the customer on a pedestal
If the retail world is a flat landscape, the customer is the one who rises above them all. Customers like to have personal attention, anywhere, and at any time. It is up to retailers to answer that call and adapt to the digital age.