Blis | Retailers: Want to know why you’re losing customers?

Blis news from around the world.

Keep up to date with our latest press releases, market insights and media coverage.

Retailers: Want to know why you’re losing customers?
Blis

Retail marketing teams are given access to a great deal of data about their customers. This particularly applies to retailers who offer loyalty programs: in addition to the personal contact information, these programs allow marketers to track a wealth of data points, such as frequency of store visits, brand preferences, and amount spent per product category. All of this information is augmented by rich third-party data, which marketers use to create nuanced profiles of their shoppers for targeting.

Yet despite this plethora of data, retailers have a significant blind spot in their shoppers’ behavior, which costs them 6% of their revenue each year. Specifically, retailers often lose sight of their customers’ offline behaviors once they exit their doors. This is important, because if they maintained that line of sight, they’d be in a position to understand who they are truly competing against real competitors are, and why they lose their loyal shoppers to those businesses.

Just as I was getting home from work the other day, I remembered my husband and I needed milk for our morning coffee. I stopped at the convenience store next door to my apartment instead of the regular grocery store down the street to pick some up. As you’d imagine, that convenience comes at a cost but higher prices are easily overlooked when the store is so close to home. As a marketer though, this raised some questions. How many consumers behave like me–valuing convenience over price? If the grocery store understood how I behaved outside of its walls, what changes would it be willing to make to entice me away from the convenience store, and toward them?

The more I thought about it, the more I realized retailers were missing critical opportunities to pinpoint exactly where, when and why they were losing their shoppers, and what they could do to stem those losses.

That brings up a difficult challenge: How can retail marketing teams go about shining a light on their blind spots?

The answer may lie in smartphones.

Consumers interact with their phones on a continuous basis, leaving clues both to their likes and dislikes, and patterns of behavior. If harnessed, that data can tell retailer marketing teams when, where and how they’re failing shoppers. More than that, they can use this insight to inform product lines, identify optimum new store locations, and uncover previously unknown competitors and, importantly, how their target audience engages with them.

Let me give you another example. My cousin and her friends like to meet at Bloomingdales but they always come back with H&M bags. The rationale being that while they love looking at everything Bloomingdales has to offer, the clothes are out of their financial reach. They turn to nearby H&M to look for similar styles and the fast fashion neighbor benefits from the foot traffic its high-end competitors generate. Are my cousin and her friends unique? Or are they part of a much larger trend? If they’re the latter, consider how strategic that insight is to retailers. Data like this can be used to better target customers with more relevant messages, or to offer guidance about new store locations.

To obtain a deep understanding of consumer behavior, these brand marketers must have access to mobile data — looking at lat/long, demographic and app usage at scale as consumers go about their daily lives This isn’t an easy feat. Although mobile data is readily available, it’s highly susceptible to fraud. Once the fraud is removed, the data sets are a fraction of the size, and needs to be scaled up again in order to identify meaningful and actionable trends. As an industry, when we surmount the hurdle of fraudulent data and thoroughly understanding consumer thinking and behavior, the potential benefits to both retailers and consumers are endless. Consider that retailers are projected to spend over 15 billion in digital marketing, but how much can they track how their targeted users behave outside of their silos? Not only will this data shed light on consumer behavior, it will empower marketers to target consumers at the times and places they’re most likely to respond.

Consumers will benefit far beyond the usual industry claim of “getting better, more targeted ads.” They’ll benefit from the relevant incentives retailers will dream up to secure their business. Going back to my grocery store example, imagine if its marketing team, realizing how much revenue it loses to convenience stores, created a shopping list app that allowed me to add items by simply sending a text. And imagine if the store let me place an order online, and had it waiting for me at the retail outlet of my choice, the way Amazon shoppers can pick up orders from lockers at Whole Foods locations.

The future of mobile data is is win-win for retailers as they’re capturing lost revenue and gaining a thorough understanding of their total behavior. Even better, consumers will benefit from a renaissance in innovation designed to better meet their needs.

Click here to read the original article.

Tags: , , , ,

Blis Blis
Most recent blog posts
3 Ways Retailers Can Use Mobile for Effective One-to-one Marketing

Article

3 Ways Retailers Can Use Mobile for Effective One-to-one...

Today, mobile devices are like mini retail stores we carry around in our pockets: places where consumers can browse merchandise or place orders almost instantly.

But mobile devices also give consumers something they can’t get in stores: personalized marketing. Collecting data like shopping histories and browsing patterns, mmobile devices provide retailers with detailed insight into individual consumers and a means of communicating with them directly.

How can retailers use mobile insights and capabilities to craft effective, one-to-one messaging?

1. Get personal.

Today, consumers want—and expect—ads to speak directly to them. In fact, 74% of customers feel frustrated when their online experiences aren’t personalized.

The easiest way for retailers to personalize content is by harnessing their first-party data. If a customer purchases a dress online, the brand can use what they know about her (her fashion interests, browsing history and email address) to customize subsequent content. For example, the brand can serve an ad via email that suggests a pair of shoes to go along with the new dress.

With CRM data, the retailer can see what the woman bought online, but do they know what she’s purchased elsewhere? Or what she does when she’s not shopping? This is where location data comes in. Retailers that layer location-based insights on to other sources of data can get to know where and when consumers shop at brick and mortar stores. They can also identify other behavioral patterns, including which day of the week and time of day they like to go shopping—data can enables greater levels of personalization.

Let’s say a CPG brand wants to reach out to a previous customer who hasn’t been seen in store lately. The marketers can use their knowledge of the consumer’s daily commute to deliver the ad just before he leaves work, suggesting he stop by on his way home. They may even offer him a discount on the product he previously purchased.

2. Market to individuals, not devices.

Once retailer marketers have identified their ideal audiences on mobile, they shouldn’t see phones as the only means of communication. Consumers own an average of 3.6 connected devices, so retailers should communicate with consumers across the devices they use, including tablets, laptops, desktops and addressable TV.

However, if a retailer sees a user reading political news on the tablet all day but watching cartoons in the evening, it might not be the same same person. With families and partners sharing devices at home, marketers need to make sure they are constructing nuanced consumer profiles across devices in order to reach out to individuals, not just devices.

3. Don’t be creepy.

Personalized, cross-device marketing is on the rise in part because consumers are increasingly willing to disclose their data to retailers. After all, purchase histories and location data are essential for useful or interesting ads.

But how retailers use that data is key. Consumers want to feel understood, but they don’t want to feel like ads are invasive or drawing on data that’s simply too personal and private. Marketers need to make sure they aren’t crossing any personal boundaries or making consumers feel uncomfortable.

If marketers want to turn heads or, more importantly, turn consumers into buyers, they’ll need to do more than blast out generic ads to the masses. When retailers personalize ads with these three tips, they’ll see huge improvements in campaign performance.

But how, exactly, do they measure these improvements? Find out next week when we assess the best metrics for retailers.

Read more

Embracing the Retailer’s Dream Metric: Cost Per Visit

Article

Embracing the Retailer’s Dream Metric: Cost Per Visit

The twentieth-century American engineer and statistician W. Edwards Deming once said, “Just because you can measure everything, doesn’t mean that you should.”

This applies to retailer struggles today as marketing executives need to decide what they should measure and how. Do they care about impressions, views or click-through rates? And once they figure that out, how can they make sure their ad dollars are really working? The Partnership predicts that ad fraud will cost brands over $16 billion this year alone, while Infectious Media suggests that over half of all digital ads aren’t seen at all.

Fortunately for retailers, there’s a new metric in town—one designed to eliminate waste and increase sales. With a cost-per-visit (CPV) model, retailers pay only when a consumer sees an ad and visits a specific location. Here are four ways retailers are benefiting from this cutting-edge new metric.

1) Increased Foot Traffic

With the National Retail Federation predicting eight to 12 percent e-commerce growth this year alone, no one can deny the rapid rise of online sales. However, 85 percent of consumers still prefer to shop in brick-and-mortar stores, where 94 percent of all sales are generated. That’s why it’s vital for retailers to keep their physical stores alive and continue to enhance their in-store experiences.

With the explicit goal of bringing visitors into physical store locations, CPV is a metric for retailers wanting to increase foot traffic—and pay only for successful conversions. While there are many ways to boost in-store visits, today’s leading location data solutions use predictive location modeling. With Blis Futures, we choose to charge on a CPV-basis because we are completely confident in this approach.

2) Greater In-store Sales

Driving consumers into brick-and-mortar locations may also encourage consumers to buy more than they anticipated. It gives retailers the opportunity to upsell consumers so they need to make sure they clearly advertise their promotional pricing, point-of-purchase displays and loyalty programs. Once you have a potential customer in the store, you can push tailored messaging in real-time and create personalized promotions. As anyone that has ever been into a Target retail location can attest – you may go in for one specific item but end up unable to leave the store for less than $100! So only paying when a consumer sees an ad and then visits a physical location reaps multiples rewards for a marketer.

3) Branding Opportunities

When retailers buy ads on a cost-per-visit basis, they don’t pay if the consumer sees the ad but doesn’t come into the store. That means the retailer also benefits from ad views and branding. In fact, a consumer may see the ad and make a purchase online rather than in-store, but the marketer still pays nothing for that conversion. At Blis, we are willing to take that risk and allow marketers “free” branding messages. Our confidence in the technology behind our CPV metric allows us to think of marketers first.

4) Risk-free Investing

CPV transfers the risk from buyer to partner, so retailers don’t have to worry about wasted ad spend: They’re making a completely risk-free investment. With free branding and zero downside, retailers have nothing to lose.

When Blis became one of the first tech partners to offer the CPV model earlier this year, we sent a critical message to both retailers and the wider industry: We’re ushering in a new era of transparency and accountability in advertising.

Check back again next week when we switch gears to discuss how retailers can use mobile to boost engagement, retention and acquisition.

Read more

Closing the Retailer Purchase Loop: Solving the Challenge of Attribution

Article

Closing the Retailer Purchase Loop: Solving the Challenge of...

You’re on your way to work when you pass a billboard featuring Nike’s newest running shoe. That reminds you: you just signed up for a half marathon, so you’ll need some new gear. You start googling top-of-the-line running shoes on your phone. You forget about the race until days later when looking at Facebook on your laptop, and there they are: the same shoes that caught your eye. Still, you won’t purchase them until you try them on. So what a pleasant surprise when, on your walk home, a banner ad appears across your phone: “You’re 3 minutes from a Nike store,” it says. Why not stop by?

If you go into that store and purchase those shoes, which ad was it that led to the conversion? Was it the original billboard, the social media ad, or the location-based banner? Perhaps a perfect combination of all three?

These questions reflect the challenges every marketer is currently facing when it comes to attribution. Today, a typical path to purchase is no longer a straight line to the point of sale. It looks more like a latticework of ads both online and offline, on our devices or in our neighborhoods.

Yet despite this added complexity, brands can begin to solve the mystery of attribution and determine the value of each marketing touchpoint. They just need to follow the footsteps.

Understanding Footsteps to Purchase

Brands can get a better understanding of which campaigns are boosting their ROI by taking a look at how digital ads directly relate to foot traffic.

First, advertisers can conduct an A/B test to determine which ads are bringing people into their brick-and-mortar retailers. By comparing how many devices were seen in store from an exposed group (devices that received an ad) to a control group (devices that didn’t receive an ad), brands can figure out what’s working and how well. This is the kind of study we conducted on a series of CPG brands earlier this year—where we found an astonishing 47 percent uplift in foot traffic for the exposed group.

Location data can also reveal more than just how many devices made it into stores. It can also tell advertisers the average time it takes for someone to enter a store after seeing an ad, or which locations are performing best. Brands can also layer this data with purchase histories and sales data for even more insightful stats and figures into how their customers are responding to ads.

So once brands have uncovered all these clues into what’s driving conversions and how, what do they do with it all?

Step Up Your Campaigns

Brands don’t strive for accurate attribution just for the sake of it. They want to know what’s causing conversions so they can do more of it—and cut out what might not be working at all.

An energy drink brand, for example, can use data about foot traffic and sales to make sure the next iteration of their campaign performs even better. Let’s say the brand discovers that people are 50 percent more likely to go into a store that stocks the energy drink when they receive an ad within 200 feet of the retailer. Rather than targeting everyone within 500 feet of the retailer, the brand can eliminate waste by just reaching out to those within a much smaller radius.

What if advertisers discover that no matter what distance, more people seem to be purchasing the energy drink from Walgreens than CVS? Perhaps next time, they can put a greater share of their ad budget into targeting those near Walgreens.

By solving some of the mysteries around attribution by finding which campaigns are driving sales, advertisers can continuously optimize their campaigns. And that means less waste and a greater bang for every marketing buck.

Read more

© Blis 2017 | Registration Number: 06455773 | Privacy