Today we hosted a webinar focused on the benefits that a customer data platform has on store sales, and we provided five practical tips that retailers with stores can begin using today.
Store-driven revenue is of particular interest for omni-channel retailers. In today’s radically transforming environment where Amazon looms so large, retailers are leveraging stores to differentiate on experiences rather than price – and to stay competitive against Amazon. Here are a few stats we shared in the webinar:
- Retail is growing $200 billion YoY, will reach $5.5 trillion by 2020 (eMarketer)
- In the US, Amazon has:
- 45% of online retail sales (Business Insider)
- 9% of all retail sales (Business Insider)
- Close to 50% of customer interactions are on mobile (AgilOne client data)
- Jumps to 60% during Black Friday/Cyber Monday
- 90% of retail revenue still occurs in stores (eMarketer)
- Customers who shop in stores and online provide:
- 5-10% increase in loyal customers’ profitability (HBR)
- 30% higher lifetime value (than single-channel customers) (HBR)
- The more channels through which a customer engages with a brand, the more often they purchase and the higher their average order value (AgilOne client data)
Enter the Customer Data Platform
As noted in our recent press release, Customer Data Platforms (CDPs) are gaining traction with omni-channel brands because they unify online and offline data into a complete single customer profile. Brands with stores are using CDP intelligence to drive more impactful engagement in stores and across digital channels, and using CDP intelligence to better understand the influence of one channel over another.
A Customer Data Platform is defined as:
- A first-party, marketer-controlled system
- Unifying offline/online data
- Including machine learning & data models
- Cleansing, dedupes, and stitching siloed profile data into a master customer record
- Syndicating data across the entire ecosystem
How Your Stores Can Be a Competitive Advantage against Amazon: Five Winning Strategies
Strategy #1: Remarket to the store non-purchaser. For this use case, a customer visits the store but does not purchase. Data about the non-purchaser is captured via wifi, at POS, through clienteling, etc. Then, marketers deliver targeted abandon browse campaigns to these individuals. Based on research we’ve pulled from aggregate data across clients:
- 30-40% typically opt in to providing their info
- Of those, 14-18% are new to file
- 50% of those captured do not purchase during their visit
- On track to increase new-to-file customers by 75%
Here is one case study of a retailer running browse abandonment campaigns for people who visited a store but did not purchase:
Strategy #2: Create compelling geo-local campaigns. For this use case, marketers leverage a CDP to create store-specific segments based on criteria such as distance to store, preferred store, customer value, etc. Using this intelligence, marketers drive traffic to stores via digital and non-digital engagement (e.g., SMS, email, direct mail, etc.).
Here is an example of one AgilOne client success with hyper-targeted store campaigns:
Strategy #3: Enable lasting store relationships with enhanced clienteling. For this use case, the CDP intelligence is fed into the clienteling app. Store agents use this data to engage customers in the store, and store managers can send geo-local campaigns to targeted store clients.
Several AgilOne clients are leveraging CDP intelligence to power their clienteling apps. Although quantitative results are still being gathered, all clients using CDP-powered are enabling their store associates with the tools they need to more consistently use clienteling. Qualitatively, all retailers have noticed a huge time savings for their associates. Previously, associates were reviewing names manually & checking POS transactions to send thank you postcards, etc. Now, that intelligence is automatically fed into the system.
Strategy #4: Measure how online/offline influence each other. This use case is around gaining insight into exactly how stores and digital channels influence one another. Measurement is an important strategy to maximizing store effectiveness, and will help you turn one-channel buyers into multiple-channel buyers. Across AgilOne customers, we have noticed these trends:
- Customers browse on the web before they come into the store and purchase. On average, 10% of customers who made a purchase in a store browsed online within seven days of their store purchase.
- Customers are more engaged online after a store purchase. On average, we found that 15% of customers who purchased in the store visited the website within seven days after their purchase.
Strategy #5: Leverage in-store events to drive customer engagement. In this scenario, retailers deliver community classes, VIP events, parties, workshops, etc. in the store. Marketers capture registration and attendance data and send post-event follow-ups and campaigns.
Across AgilOne customers using this strategy, there is a consistent uptick in engagement and sales from class attendees. For one retailer, about half of the class attendees make a purchase while at the store.
Let Stores Be Your Secret Weapon
In today’s rapidly transforming retail environment, leveraging stores to create meaningful experiences with customers can be a key differentiator. To get more information on two clear examples of how AgilOne customers are using stores to stay competitive, watch our testimonial video from JOANN Stores and our webinar video from Tumi.