Customers are like wild herds of terrible-twos. They want what they want, when they want it, and are fickle enough to simply walk over you to get to the next retailer that will give it to them their way. After all, we are in the Age of the Customer. Customers are demanding! Not your first time hearing this, I presume.
Retailers and customers are symbiotically stuck with each other. Since divorce is out of the question, understanding consumer behavior is paramount in cultivating harmonious, personalized communication that will harvest loyalty. What do we need to know for 2014?
The Foundation…
Convergence was the hot topic in 2013 and converge we did and we continue to do so. Web, big data, social media, analytics, mobile and all things digital must come together to provide a clear picture of consumers’ behavior. Retailers need to comprehend how behavior deviates based on outside influences. In addition, it is necessary to recognize how these outside influences impact the navigation of the different channels of commerce. For example, according to Experian Marketing Services, the serendipitous interaction between brands and consumers on social media has taken share away from search engines to connect consumers with desired brands online. The understanding brought about by broadening the scope to include all of the elements mentioned above is vital for retailers to quickly react to inevitable changes in consumers’ activities.
Circle Back to the Roots
While at the NRF Conference this past January, I had the opportunity to listen to many learned and successful individuals – a literal smorgasbord of delicious bits of knowledge. On the topic of convergence, Bill Tancer, GM, Global Research at Experian Marketing Services, brought the antithesis to the forefront, “de-convergence”.
Convergence brings an abundance of information together to provide an accurate and predictive overview of the consumer landscape; however, to truly reap the benefits of convergence, retailers must also embrace “de-convergence”. Tancer described that through research, the needs and motivators of different segments within the consumer population are uncovered. It is then that retailers can serve up personalized content, product information, promotions, etc. via vehicles that are fueled by convergence – loyalty programs, mobile apps, etc. Personalization spawned from “de-convergence” is a crucial component to nurturing the consumer, increasing the overall customer experience and driving loyalty.
An example of de-convergence that was showcased during the “Customer-Centric Convergence” break-out session outlined the dollars being left on the table when retailers discount deeply across the board. Half of consumers are not actively looking for a deal, are deal-indifferent or will take convenience over any promotion. The aggressive discounting that seems to be more commonplace than not at retail could be hurting their bottom line. The upside to this unveiling is on the shoulders of the leader of the pack – mobile. Wouldn't it be great to be able to promote on a very large-scale while understanding the differences among the pool of consumers and increase margins?!
Mobile Spiced Perfectly with Personalization → Loyalty
What we have learned so far:
- Convergence provides the foundation necessary for retailers to be nimble and react to ever-changing consumer behavior
- De-convergence is instrumental in dissecting the individualities of consumer wants, needs and motivators, which are necessary to provide consumer-specific information and promotions leading to an increased customer experience
What’s next? Personalization via MOBILE. The increased usage of mobile devices is staggering. Digby’s Mobile Industry Statistics are eye-opening. Retailers are melding online, mobile and in-store into a single cohesive experience. Mobile is a huge piece in retail’s communication with its consumers. Through the personalization that is available via mobile, retailers are able to offer product information, reviews, relevant promotions, etc. that are all about the individual…but, only possible via convergence.
In this age of convergence, there is a huge opportunity to test and learn as retailers engage with their customers based on the data that they are gathering from them. Particular promotions or engagements may not have the anticipated effect. Retailers can then go back and reconstruct something more in sync with their customers. One thing is for sure: retailers are better positioned than ever before to cement loyalty via personalized mobile interaction.
