Technology for better customer knowledge
For retailers, it’s essential to know their customers very well, including their purchase behavior, purchase frequency, and lifestyle. It has been proven that technology is the best ally to collect customer insights efficiently, and retailers with the right technological tools can leverage customer data to connect with them in a personalized way.
Omnichannel experiences are transforming the retail sector
Consumers are changing their purchase behavior. Nowadays people shop through different channels, and retailers must meet their customers wherever they are. The big question is: How can retailers take advantage of omnichannel communications to target specific groups, and most importantly, how can they reach these?
It would be very predictable to say that with personalized promotions and exclusive discounts, it is possible to connect with customers and build loyalty. But the truth is that offering promotions have become so common that it has lost value for the customer.
The proper customer segmentation and the right channel
There is a great amount of creativity in the retail industry trying to capture the customer’s loyalty, which has become quite a challenge in today’s world. Segmenting customers is key to communicate with them.
Marketers usually create segments of customers in the following ways:
- Geographic: Where the customers are.
- Demographic: Gender, age, and income.
- Psychographic: Social class, personality type.
- Behavioral: Purchase frequency, money spent on the trip, and brand loyalties.
With segmentation in place, retailers have to get the customers’ attention not only by offering promotions but by personalizing the message you want to transmit.
Personalized communications are key
We’re not only talking about delivering promotions through different channels but about how retailers leverage channels to communicate what the customer really wants to hear, according to their shopping and lifestyle habits. In this way, retailers generate greater brand value and build loyalty.
For example for a food retailer, it’s common to offer personalized discounts to their customers through SMS, e-mail, push notifications, amongst other channels. But what if the supermarket announced their latest updates according to the customer’s interests and preferences in certain product categories? for example; sending text messages about their latest product to the customers who usually buy products of this category, or letting a frequent cosmetics customer know that the new portfolio of products is available now.
In the fashion industry, where loyalty plays an important role, communication channel is of the utmost importance. For example, Mango’s loyalty program connects with the customer through all channels, not only offering them special discounts but also encouraging customers who are concerned with the environment to follow responsible actions such as recycling clothes to win points, donating their points to NGOs, or picking up their purchase online. Through these kinds of actions, the brand not only makes the customers repeat purchases but also keeps customers engaged.
Choosing the right channel: last but not least
Once the retailer has established the segment of people they want to reach and what messages they want to communicate, the last step is to choose the channel through which they will communicate. For example, for a customer who always buys In-store, impacting them through a message on the payment receipt would be much more effective than doing it through an SMS.
In short, in order to connect with customers, it is essential to carry out appropriate segmentation, personalize communication and finally choose the right channel for each customer. And in an increasingly omnichannel world, technological tools are key to obtaining successful results.