OF CUSTOMER-CENTRICRETAILING

COMMANDMENTS10

As our physical and online environments continue to come together, consumer behaviorkeeps changing and retailers need to react. Today’s consumers are extremely connectedand live a digital lifestyle. They are educated, expect speed and have become extremelydemanding. With an overload of mass marketing, some customers have lost trust inretailers and have become less loyal.

In this guide, we will take you through the 10 commandments that every customer-centric retailer needs to follow in order to increase loyalty, new customer acquisition,visit conversion, transaction value and to optimize marketing and customer engagementcosts.

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Thou shalt KNOW thy customer

Thou shalt AUTOMATE customer engagements

Thou shalt PERSONALIZE the customer experience at every channel

Thou shalt EMPOWER sales associates and improve the store experience

Thou shalt SURRENDER to self-service

Thou shalt EMBRACE online communities, social media, and customer-to-customer relationships

Thou shalt LISTEN to and NURTURE thy best customers

Thou shalt ADAPT branding to customer segments

Thou shalt INTEGRATE systems, channels, supply chain, and organization as a whole

Thou shalt JOIN the mobile revolution

01 Thou shalt KNOW thy customer

Retail KPIs• Average transaction value• Average transaction size• Customer gross prof it• Point of purchase• Campaign response• Social media presence

Customers are interacting with brands from many different touch points, whether itis in store, on social media or e-commerce platforms and it is critical for retailersto capture this information wherever they may be.

Collecting business intelligence empowers retailers in many ways, such as beingable to better understand consumer behavior and preferences, profiling andsegmenting customers, measuring performance by channel, forecasting sales andidentifying trends in category performance.

Convert these insights into action (campaigns, tactics, and engagementworkflows) and optimize marketing and customer service investments.

02 Thou shalt AUTOMATE customerengagement

Capturing, processing, and analyzing critical customer data allows retailers toimprove customer loyalty by engaging customers in ways that really interest themand at the right time. Create a sense of exclusivity and urgency by providing time-limited offers or follow up on abandoned e-commerce carts by sending targetedmessages.

Monitor transactions at thePOS, capture sale of BrandX jeans

Trigger 10% of f emailcoupon to customer forBrand X shirts and otheraccessories

Track response and sale

Sample Workflow

03

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Thou shalt PERSONALIZE thecustomer experience at every channel

Establish one-to-one relationships that are highly personalized in product, serviceand outreach at every channel. Whether in store or online, retailers should be ableto access a complete history of the customer’s purchases and should be collectingvaluable data such as customer preferences, contact information, lifestyleinformation, wish lists, and more. Sales associates can advise a customer when anew collection from their favorite designer has arrived in store or head office cansend a coupon for an item found in the customer's online wishlist. Theopportunities are endless!

A multi-channel customer spends 3 to 4 times morethan a single-channel customer.SOURCE: Wome n’s We ar Daily , Re taile rs Pursue Mob ile with Conviction, 2010

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04Thou shalt EMPOWER salesassociates and IMPROVE the storeexperience

Store experience, customer service, and sales associate education are important inincreasing store traffic, conversion, average transactions value and gross margin.

Empower your sales associates with mobile technology and the right set of tools sothat they can provide outstanding customer service and employ best sellingpractices. Several capabilities to consider include inventory lookup, productbrowsing, accessible in-depth customer information (purchase history, preferences,wish lists) and mobile transactions.

Conversion rates increase as much as 9% when customers were assisted by associates whopossess a high degree of product knowledge and demonstrate strong interpersonal skills.SOURCE: De lo itte , The Changing Face o f Re tail, 2011

05 Thou shalt SURRENDER to self-service

Does the phrase “Thanks, I’m just looking” sound familiar? Every customer isunique and there are some that simply do not want to be served by a salesassociate. In this case, encouraging self-service is key and associates can reply byinforming the customer about their newest product or a current promotion andthen let the customer browse the store until they are ready to engage.

Several successful practices to consider in order to manage self-service includeproviding in store digital product browsing, way finding, ensuring consistencyacross all channels, personalized recommendations and offers and access toaccount information.

50% off

06Thou shalt EMBRACE onlinecommunities, social media, andcustomer-to-customer relationships

Consumers are connected and more social than ever. They aretalking about your brand and products, and it critical to be present,to listen and to become part of the conversation.

78% of consumers said that companies’ socialmedia posts impact their purchases.

71% of consumers are more likely to make apurchase based on social media referrals. 

SOURCE: Forbe s, Are Brands Wie ld ing More Influe nce In Social Me dia Than We Thought?, 2012

SOURCE: Hubspot, 71% More Like ly to Purchase Base d on Social Me dia Re fe rrals, 2012

Have personalized conversationsAsk questionsBe open to suggestions and complaints (customer service)Recognize those that contribute to the conversationsGive offers and rewards Share compelling content (videos, images) that resonate withconsumers

Keep an eye on follower growth and engagementactivities such as likes, retweets, mentions, commentsand shares.

07 Thou shalt LISTEN to and NURTUREthy best customers

Customers know much more about your business than you maythink and there’s valuable information to learn from them. Listen totheir suggestions and don’t hesitate to solicit them for their ideas.

Ongoing engagement, whether it's before, during or after a sale, isalso important. Keep the associate-customer relationship active bysending thank you e-mails or letters, confirming deliveries, andfollowing up on replenishment items.

The goal is to enhance loyalty and convert customers into brandevangelists and advocates who will fuel viral word of mouth.Remember that brand evangelists have a high ROI.

Not only do brand evangelistshelp lower your costs byacquiring new customers foryou, they lower the cost of thatacquisition by up to 50%.

SOURCE: Zube rance , Brand Advocate s: Turning Enthusiastic Custome rs intoa Powe rful Marke ting Force , 2012

08 Thou shalt ADAPT branding tocustomer segments

The way customers interact with and buy from retailers has completely transformed. Customerloyalty still exists and is generally focused on the brand, much more than the sales channel. Thatbeing said, customers are being bombarded with thousands of brand messages every day and theonly way cut through the clutter is by delivering highly relevant messaging. In order to keep upwith customers, retailers must adapt brands, in-store and customer experiences to differentprofiles, emotional connections and cultures.

09Thou shalt INTEGRATE systems,channels, supply chain, andorganization as a whole

Customers are interacting with retailers across many channels andnot only do they want an omni-channel experience, they expect it. Itis also a way for them to differentiate one brand from another. Inorder to keep up with the changing retail landscape, retailers mustintegrate all touch points: stores, web, mobile, call centers,appointments/service, etc.

Websites Mobile Store Email Social Media Call Center Digital Print Search

67% of online shoppers have madepurchases in the past six monthsthat have involved multiplechannels.SOURCE: Ze nde sk, The omnichanne l custome r se rvice gap , 2013

10 Thou shalt JOIN the mobilerevolution

M-commerce friendly siteMobile couponing, promotions,and product recommendations(text messaging and/or richapps)Location-based services Personalized kiosks Proprietary apps Joining networked/communityapps (Facebook, Pinterest,Instagram)

The definition of in-store mobility israpidly expanding to consumer-facingsolutions which can be used in thestore as well. Here are severalexamples of consumer facingapplications:

Today’s customers are more and more connected through mobility in their daily lives. Theyhave access to information such as reviews and comparative prices when and where theywant it, and as a result it is not uncommon for a customer to actually have moreinformation about a product than the in-store associates themselves. Retailers have begunaddressing these new shopping habits by providing better tools to associates, morespecifically by empowering them with mobile solutions.

Several common mobilesolutions to consider include:

POSClienteling

Inventory Management Analytics

For 25 years, Raymark has been empowering retail with leading-edge enterprise sof twaresolutions that help the world’s most prestigious international retailers optimize stock turns,build customer loyalty, and increase sales. Raymark develops and markets the ultimate suite off lexible and interconnected applications deployed in a centralized environment and of fersprofessional turnkey solutions including implementation, training and customer support.

www.raymark.com

Raymark5460 Côte de LiesseMontréal, QuébecCanada H4P 1A5T: 1-800-346-7296F: 1-514-737-0014info@raymark.comwww.raymark.com