Creating the best customer experience
Harry Horn, general manager EMEA of Scala, the digital communication solutions specialist, has penned an article discussing how retailers can use technology to build customer loyalty and boost sales in the run up to Christmas.
Monday, 11 Dec 2017 16:49 GMT
Harry Horn, general manager EMEA of Scala, says the Golden Quarter is an opportunity for retailers to maximise profits and data collection
Now that the clocks have changed, days are getting darker, and fairy lights are starting to appear, Christmas is just around the corner.
This last quarter of the year is often referred to as the ‘Golden Quarter’. Sales start appearing and a retail frenzy begins at the very sight of the words ‘Black Friday’ and ‘Cyber Monday’, a UK phenomenon adopted from America. With the Golden Quarter culminating in Christmas, it is an opportune time for retailers, and can take a business from loss to profit.
Research by Bazaarvoice showed that the first big spike in online retail traffic starts with Halloween, with 260 percent more online traffic in 2017 than normal. This peaks with Christmas, as online traffic increases 800 percent on off peak times.
One of the key aspects that retailers need to tap into when hoping to make the most of this valuable time of year is customer service. Research by KPMG has shown a correlation between positive customer experience and revenue. It found that economic value is maximised when customer expectations and experience are in alignment.
Retailers have therefore come to realise that they need to do more to entice customers into stores to make the most of the Golden Quarter. For example, the UK supermarket Morrisons used the Halloween hype to get customers to visit by hosting pumpkin carving workshops in-store.
However, some companies are taking customer engagement further. Many companies are exploring how technology can deliver a more personalised and eye-catching customer experience.
Retailers have therefore come to realise that they need to do more to entice customers into stores”
So how are they achieving this?
In the midst of the sales and holiday season, consumers have a buying mindset. This means there are many more shoppers vying for bargains, and that stock often runs out faster. Retailers risk losing sales when items are not in stock, or if the customer has a negative and stressful in-store experience. This is the point where we see the innovative use of technology come into play.
An example of this innovation comes in the form of interactive fitting rooms. These can bypass the problem through the use of RFID tags and an integrated screen within the room’s mirror. If an item does not fit or the colour is not quite right, the customer can use the screen to order new items to the dressing room to try on instead, without even having to leave.
The screen can also then be used to show complementary purchases for each product. All of this allows for a much smoother and pleasant shopping experience for the customer, and will guarantee they leave the store happier, and are more likely to purchase more.
Not only is the Golden Quarter an opportunity for retailers to maximise profits, but also to maximise data collection. With this spike in online traffic, sign-ups to loyalty schemes are seen to shoot up. From this, retailers can maximise their customer databases to tailor more last minute sales and offers in the run up to Christmas.
Many retailers are yet to harness the power of customer data. Through innovation in digital signage, the information collected through this shopping period can go towards the creation of a hyper-personalised environment. Forbes cited that personalisation creates a better customer experience as it caters to a customer’s individual needs.
As consumers, we have become more used to the style of marketing integrated within online shopping environments, where retailers have instant access to customer information through account log-in, which can provide tailored suggestions and discounts. Through advancements in signage innovation, it is now possible to use the information from a customer’s phone or loyalty card to detect their presence in store. In order to achieve this, a unique combination of Bluetooth and NFC beacon technology is employed to create this hyper-personalised environment for consumers.
This information provides digital signage with the ability to market directly to customers using their unique consumer profile. This is compiled using either a database of information or a customer relationship management (CRM) system. Therefore, retailers are able to display relevant promotions and items of clothing, tailored to the individual consumer.
The possibilities that the Christmas shopping season presents retailers with are phenomenal. With a newfound ability to gather important customer data and personalise the in-store experience, retailers can take advantage of these opportunities to boost revenue, build customer loyalty, and leave customers with a positive retail experience.
