Download Strategies to Simplify Retail Marketing

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6
Strategies to
Simplify Retail
Marketing
Consumers Shop Differently
The world of retail has become increasingly complex in recent years. Having to
cope with multiple geographies, segments, and channels is a real headache when
planning and executing marketing campaigns.
Of course, shoppers don’t see it that way. They love the freedom mobile and
Internet channels give them to seek out the best products, services, and deals,
which has changed the nature of how they shop.
Shoppers no longer move in straight lines. They meander through a number
of stages on their shopping journey. To attract and keep them loyal, it is vital to
deliver a great experience at each one. That is a complex and difficult task.
One Customer, One Journ ey, and Infinite Possibilities
Change
address
Print
Digital ads
Web
Support
portal
E-mail
Receive
offer
Want
Word of
mouth
Post
review
Web store
Contact
center
Social
TV
Contact
center
Social
Track
order
Retail store
Wear
jacket
Receive
package
Buy
Compare
Web store
Join
loyalty
scheme
Customer
survey
Branded
community
Look
Web store
Missing
item
Search
keywords/ads
Support
portal
Contact
center
Zipper
breaks
Retail store
Reviews
Contact
center
Web
Web store
Wrong
price
charged
Buy
shirt
Return
item
Retail store
Receive
offer
Word of
mouth
Refer
friends
Contact
center
Social
E-mail
Word of
mouth
Social
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Today’s Shop ping Journey
On their shopping journey, consumers will go through all the stages (see the table
below) at one time or another. But the stages will not necessarily be in sequence,
and shoppers may backtrack at any stage.
For example, they may cycle between looking and comparing if they can’t find
anything they really like. And they may share at any time, when they’re browsing,
at checkout, or after delivery.
Stages in the Customer’s Journey
Being able to market effectively at each stage of the shopper’s journey is a
complex task. But you can simplify it by following the six strategies on the
following pages.
Stage
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Customer’s Activity
Your Opportunity
An event triggers the desire to
shop. It could be a wedding,
dinner party, or a previous
purchase wearing out. It could
also be marketing activity from
your competitors or you.
Recognize life events and make
appropriate offers.
The search starts for items
that will fulfill the desire – often
through multiple channels.
Engage with shoppers where they
are looking, when they are looking.
Offer options based on previous
purchases and preferences.
COMPARE
Items from your assortments
and those of your competitors
are evaluated based on objective
criteria such as price, size, and
delivery, and subjective criteria
such as reputation, brand image,
or look and feel.
Make sure items are available and
easy to purchase no matter what
channel the shopper uses. Provide
third-party opinions, comparison
guides, and reviews.
COMPARE
LOOK
COMPARE
COMPARE
Stage
COMPARE
Customer’s Activity
Your Opportunity
A decision is made, the
transaction completed, and the
item taken home or delivered.
Make the checkout and delivery
experience as easy as possible.
Promote loyalty schemes.
The item is used.
Use surveys to gauge satisfaction.
Offer guides to improve usage.
Promote loyalty schemes. Resolve
issues quickly.
The levels of satisfaction with
the shopping process and item
purchased are shared.
Encourage advocates to share
widely. Address negative feedback
immediately.
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Six Strategies to Sim plify Retail Marketing
1
2
3
4
Strategy 1
Strategy 2
Strategy 3
Strategy 4
Collect, Consolidate,
and Analyze Data
Integrate Marketing
and Merchandising
Offer a Consistent
Omnichannel Experience
Deliver Real-Time,
Personalized
Customer
Engagements
5
6
Strategy 5
Strategy 6
Measure
Marketing ROI
Stimulate Loyalty
and Advocacy
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Strategy 1:
1
Collect, Consolidate,
and Analyze Data
Creating personalized experiences for shoppers requires retailers to have
accurate, complete information about them – in real time.
Armed with the right information and tools, you can gain previously unobtainable
insights into shopping trends to create more effective marketing strategies.
You can also deliver more exciting, compelling, and personalized customer
experiences based on each shopper’s preferences and tastes.
Create a single source of information
Enrich your understanding
• Collect, cleanse, and centralize all
customer-related and supply chain
data across all channels
• Integrate social media feedback,
enterprise data, and third-party data
for that elusive 360-degree view of
customers
• Make it ready for consumption by
other applications
• Provide data for analysis in real time
• Rapidly explore customer data
using interactive visualizations to
understand what is happening
Sponsored by
SAP® solutions bring together data from all your internal systems, as well as allow
data from social media and other external sources to be added. As a result, they
deliver a single, consistent view of shoppers. Plus they provide you with powerful
analytics and predictive tools.
What our customers say
“We actually use the customer relationship management tool within [the]
hybris [solution], and the beauty of that is, because of this tight integration
with SAP [ERP], we are able to pull very rich data about our customers and
the transactions they have made on our Web site.”
Patrick Kerr, Head of Innovation Technology, kalahari.com
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Strategy 2:
2
Integrate Marketing
and Merchandising
Integrating the modern marketer’s vast collection of customer insight into
merchants’ processes has long been an aspiration for retailers.
But according to a recent report from Retail Systems Research LLC (RSR)
(Bridging the Gap Between Merchandising and Marketing), retailers have two clear
information gaps: identifying consumers’ cross-channel paths to purchase and
understanding the impact of promotions on those paths.
Leverage insights into
merchandise plans
Create strategic
marketing plans
• Use predictive analytics to model
what-if scenarios
• Develop detailed marketing plans that
support and align with merchandising
and overall corporate strategy
• Plan assortments, sales, and
purchase quantities by product
group and location cluster
• Incorporate customer behavior data
into the planning process
• Coordinate marketing activities
that complement each other and
maximize results with a centralized
marketing calendar
• Understand variability in demand
across channels, segments, and
geographies
By enabling greater integration between marketing and merchandizing,
SAP solutions help you localize assortment planning and deliver hybrid
promotional campaigns that maintain consistent brand experiences, engender
greater customer loyalty, increase revenues, and maintain margins.
Sponsored by
What our customers say
“Our efficiency is soaring. We also have new powers to maximize our profits
by taking advantage of the differences among the markets we serve.”
Tally Weijl
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Strategy 3:
3
Offer a Consistent
Omnichannel Experience
Delivering a superior customer experience is a winning strategy for retailers.
From social media to brick-and-mortar stores, Web sites to call centers, the
number of channels through which consumers can interact with a retailer
seems to be perpetually growing.
But today’s consumers judge brands by evaluating the sum of their experiences,
not by their interactions with individual channels. Retailers must unite their brand
presence across every channel to distinguish themselves consistently wherever a
customer engages with them.
Optimize Web experiences
Embrace the power of mobile
• Create rich, immersive, and
personalized experiences
• Deliver a customized mobile brand
experience for the shopper
• Provide advanced search capabilities
that deliver product insights, reviews,
and other engagement tactics
• Build next-generation loyalty through
mobile interactions
• Build shopping relationships with
• Link with mobile and store
location-based promotions and offers
information to offer a seamless brand
experience across dimensions, such
Reinvent the store
as real-time inventory availability
• Prepare store associates with
information
contextual information about
shoppers and their needs
• Accelerate or eliminate conventional
checkouts with mobile technology
SAP solutions allow you to deliver a consistent customer experience across
all your touch points. Using them, you can provide emotional and engaging
digital experiences on desktops, tablets, and mobile devices, or through in-store
innovations like virtual reality, digital mirrors, or kiosks.
Sponsored by
What our customers say
“With SAP Fashion Management and SAP HANA, we will be able to greatly
improve our customers’ experience. Not only will these solutions help us
become a truly omnichannel organization, they give us the insight to better
anticipate customer demand both today and in the future.”
Kai Bienmüller, Head of IT Wholesale ERP, adidas Group
With SAP solutions, you can combine deep knowledge of a customer’s aspirations
and expectations with products and offers that appeal to them, helping to ensure
a great outcome for both you and your shoppers.
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Strategy 4:
4
Deliver Real-Time, Personalized
Customer Engagements
To successfully engage consumers and deliver truly personal experiences,
you have to be proactive at every stage of their shopping journey, tapping into
their emotional drivers and delivering relevant experiences in real time.
With a 360-degree view of each customer, powerful predictive analytics, and
omnichannel support, you can determine and act on the context behind customer
interactions. With laser-like insights, you can decide on and deliver the next-best
action – be it a promotion, reminder, or another offer that motivates them to buy
your products.
Understand shopper behavior
Segment by demand
• Track physical and digital activities
• Understand variability in demand
across channels, segments, and
geographies
• Predict consumption
Personalize the experience
• Analyze events and deliver the
next-best action
• Develop tailored pricing and
promotional strategies and offers
• Categorize customers dynamically
using the latest interactions
• Incorporate customer behavior in
multiple dimensions to achieve
one-to-one outcomes
• Offer one-to-one omnichannel
promotions based on each shopper’s
actions
• Plan and execute promotions
incorporating digital and physical
channels
With SAP solutions, you can segment and target your audience based on previous
buying history, abandoned shopping carts, Web forms, or recent online browsing
behavior. As a result, you can make it easy and compelling for consumers to
reengage at any step during the shopping journey.
Sponsored by
What our customers say
“The system enables us to predict purchasing probability, and we can now
speed up the decision-making process, which is highly useful.”
Hiroyuki Soeya, Unit Manager Marketing, Dinos Business Dinos Cecile Co. Ltd.
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Strategy 5:
5
Measure Marketing
ROI
With the huge shift of advertising spend into digital marketing, campaigns
today are executed using multiple tactics across multiple channels. Retail
marketers are under increasing pressure to justify campaign spend and
demonstrate returns.
Having access to detailed, real-time, campaign performance data can help you
quickly adapt tactics based on what’s happening now. With the ability to perform
deep-dive analysis of customer engagements, you can obtain results by numerous
dimensions, such as tactics, channel, media, and target audience demographics.
Campaign intelligence at your fingertips gives you not only the evidence to
confidently report on marketing ROI, but also key insights as you plan your
marketing strategy going forward.
Pinpoint marketing ROI
Optimize mixes and marketing spend
• Analyze and measure the return
on marketing investments across
all media, including social media,
promotions, and advertising
• Use predictive techniques to analyze
the market and optimize mixes across
media
• Determine the effectiveness of
marketing spend and promotions
in real time
• Access reporting anywhere using
mobile devices
Sponsored by
• See real-time, detailed views of sales,
inventory, and customer behavior
• Understand market baskets and
product affinities
Budget and plan more effectively
• Streamline budgeting and planning
and automate marketing spend
management with vendors
What our customers say
“Providing this kind of guidance requires a system that performs analyses in
real time. This is why we decided to work with SAP.”
Guido Jaenisch, Managing Director, SportScheck
SAP solutions give you the information you need to gauge marketing success in
real time. You can drill down quickly to understand and correct marketing plans that
are not achieving the intended objectives. As a result, you can proactively adapt
to market trends, consumer feedback, and competitor positioning by adjusting
factors such as competitive pricing and interactive promotions across your digital
and physical channels.
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Strategy 6:
6
Stimulate Loyalty
and Advocacy
Engendering loyalty and advocacy involves combining sensational customer
shopping experiences with superior products and great aftersales care.
Implementing the previously discussed strategies will put you in a good position
to do this. But there’s still more to be done. The challenge is to motivate and
incentivize shoppers to spread the word about your brand, shopping experiences,
products, and services.
Build loyalty
Encourage advocacy
• Create meaningful loyalty programs
• Monitor social sentiment to identify
positive influencers and advocates
• Motivate shoppers with incentives
and rewards without dropping prices
• Provide consistent customer
experiences across channels
• Make advocacy a rewarded behavior
and build incentives into loyalty
programs
• Create highly personalized programs
and promotions
• Execute campaigns that make it easy
to share information
SAP solutions help you orchestrate omnichannel loyalty programs that deliver
a premium customer experience. Using the solutions you can move beyond
traditional card-based loyalty schemes to improve your relationship with
customers, turn them into advocates, and increase their lifetime value to the
company.
Sponsored by
What our customers say
“When you look at how many customers buy from us a second, third, or
fourth time, and how frequently they recommend us to others, it’s very clear
that service is a key part of our offering. And that makes us fairly unique in
the marketplace.”
Hillarys
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Get In Touch
Let Us Help You
Simplify Retail Marketing
Retail success depends on delivering consistent, relevant, and enticing
customer experiences at every touch point on the customer journey.
Achieving this by optimizing your marketing mix – moving away from traditional
media to investing more in digital opportunities that deliver contextual brand
messages, offers, and promotions – is just part of the puzzle.
Not surprisingly, technology has a major role to play in helping you achieve these
objectives. Knowing the bits and bytes of today’s marketing solutions may not
be important, but understanding their potential and being confident that your
supplier can deliver on it are essential.
At SAP, we have an integrated portfolio of solutions for retail marketing and a
history of helping retailers use them to improve their business. We would be
delighted to show you how our solutions can benefit your company.
Keep in touch with us:
Sponsored by
Visit our Web site:
www.sap.com/retail
Follow us on Facebook:
www.facebook.com/SAPRetail
Follow us on Twitter:
@SAP_Retail
What our customers say
“As we look to the future, we think about products like hybris and CAR
[SAP Customer Activity Repository] and how we can change that customer
experience. So whenever a customer wants to come to Discount Tire, we
meet them, and we meet their needs how they want to do it, not how we
want to do it.”
Steve Fournier, Chief Customer Officer, Discount Tire
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