In a big splash article in AdAge, found here, P&G CEO announced a shift in strategy to focus more on sampling for many of its key brand franchises. He cited a loss in market share as well as a huge opportunity to increase the number of households that haven’t yet used many of P&G’s leading consumer brands. Sampling is a go-to strategy for most CPG marketers, and P&G has certainly done this for a long time. What’s new is that they are talking about spending less on traditional media and shifting that budget to digital channels and activities like sampling.
Archive for CRM
In a recent RevTrax blog post, found here, we spoke about the power of promotion CRM for brands and the implications of smarter coupons tracked at the household level for both better consumer research and insights as well as better retailer collaboration. If brands, for the first time, now know which offers specific households are redeeming at specific retailers, this data opens up a ton of additional marketing and targeting opportunities, as well as activation opportunities between brands and those key retailers. Read on…
I just read a really interesting article from The Retail Experience newsletter that covered the controversial and elusive concept of Value-Pricing. Many folks think about retail value-based pricing as charging different prices to different customers based on their perceived value of the same product. It’s great in theory but difficult in practice. Furthermore, issues around consumer privacy and misleading advertising could prevent value-based retail pricing from being put into practice. On the other hand, online retailers are adjusting prices all the time based on fluctuating inventories, time of day and how much the competition is charging. The big question is do you pay higher prices on Amazon than the next customer. If you found out, you might love Amazon a little less… Check out the entire article here.
The approach to building customer loyalty should be pretty simple. Many local merchants build loyalty with customers without fancy loyalty card, points programs or CRM systems. However, most large retailers spend so much time and money on loyalty schemes to attract and retain shoppers, and the programs aren’t wildly successful. In a recent post on Retail Customer Experience here, the author talks about how customer loyalty needs to start with the retailer demonstrating loyalty to the customer first before expecting the same from the customer. This is quite accurate. Think about all the times you’ve been in a retailer and can’t find a knowledgeable sales person, or you have difficulty returning merchandise. These are simple things from a customer perspective, but difficult aspects of retailing to get right. If all retailers abandoned loyalty programs and plowed the money and time into staff training and customer service, they’d have more customer loyalty than they could imagine.
A great article from Retail Customer Experience on where retailers are most likely to succeed first in the fight for the omni-channel customer experience. It seems like retailers are great at figuring out product, price and inventory. However, this has been optimized by channel, not across channels. Customers are more and more thinking across channels and devices (buying where/when/how they want), but retailers are ill-equipped to engage this type of customer until they figure out how to integrate their core systems to deliver a seamless customer experience regardless of device, in-store or online. Tons of investment needs to be made in both technology, organization restructurings and marketing efforts to deliver a customer-centric experience.
There are so many articles written on how to build retail customer loyalty. Furthermore, there are millions of dollars spent on generating and nurturing customer loyalty among retailers and service providers. I recently read this article on Retail Customer Experience that talks about 10-steps to customer loyalty. I love articles with 10-steps to success. Super simple and clear. Just follow the sage advice and watch the magic happen. Unfortunately, many retailers want to throw money at a problem without contemplating a much simpler solution. Equally as costly, retailers need to put the customer first and focus on demonstrating loyalty to the customer (easy returns, easy purchasing, great customer service and sales support) before hoping for loyalty in return. There was another article focused on the nuances around how a retailer can “be loyal” to customers first. I can’t object to this simple yet hard-to-execute approach. All the coupons and loyalty cards in the world can’t mitigate my frustration when sales people are unhelpful and customer service people are rude…