Howin-store,omni-channel engagement increases customerloyaltyanddrivesmorepurchases
PremCouture,CEO,ShareMyInsightwww.sharemyinsight.com
IntroducingSMI’sOmni-Channel CRMforBricksandMortarStores
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Currentomni-channelsolutionsdon’tconnecttocustomersatthephysicalstorelocationandduringtheshoppingjourney
Thebarriersbetweentheofflineandonlineworlds
…andloosetheopportunityforcreatingprofitablecustomerinteractions
WhatifyouhadaCRMsystemthatcouldpersonalizetheshopperexperiencefromanylocation,touchpoint andcomm channel?
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Itdeliverstargeted,consistentandpersonalizedcommunicationsbefore,afterandduringtheshopperjourney
Whatatrueomni-channelCRMsolutionlookslike
Personalizationacrosslocationsandchannelscreatesamoresatisfactoryshoppingexperiencewithincreasedpurchasing
…anddoesitinaneffortlessmanner,withoutcustomerintervention
WhatisSMI’sOmniChannelCRM?• Unique,proprietary technology forbricksandmortarstores• Solutionsthatareunfulfilled bycurrent,legacyvendors• CRMthatcollects, consolidatesdatafromanydatapoints• BIplatformthatshowsandhelpsyouwhere toimprove
merchandisingandcustomerservices• Omni-channelmarketingenginethattriggersengagement
opportunities anddeliversrealtimemarketingduringtheshopper journey
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Aninnovativetechnologythatbringsdigitalandphysicalworldstogether,enablingnewmarketingservicesandsolutions….
WhatisSMI?
SMIworksdiscoverswhoyourcustomersare,whatinfluencestheirshoppingbehaviorandhowtoactivateshopping
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Insights, Engagement Strategy and Execution
Behavioral Shopping,Merchandising Analytics1 2 Real Time, Personal
and Relevant Comms3
…andprovidessolutionsforRetailOperations,CRM-Loyaltyandanin-storeMediaChanneltotalktoyourcustomersbefore,during andaftertheshopperjourney
OPERATIONS CRM-LOYALTY MEDIACHANNEL
WhatisSMI?
Thebenefitsvs.otherapproaches• Solutionsdelivered asaservice (notatechsale)• Flexible,lowentrycostswithlowrisk• Solutionsthataremodular,outoftheboxandespecially
designedforretailcustomerinsightsandengagement• Plugandplay,self-serve deployment• Platformforpartnerstodevelop theirownapps
8KEY:=notavailable
All-in-one: hardware+cloudBIanalytics+realtimemarketing
=partiallyavailable =fullyavailable
CRM Omni Channel Vendor ComparisonBusiness Criteria SALESFORCE MS DYNAMICS SHAREMYINSIGHTCost, time to implement, scalablity to thousands of physical locationsReady solution for Retail merchandising and customer engagementCloud delivery, SaaS pricing model (platform, stores, users)Plug & Play installation & configurationLocation positioning SALESFORCE MS DYNAMICS SHAREMYINSIGHTPositioning without an app and cross client device o/sSupports triangulation, linear distance, fingerprintingBI & Statistical modelling SALESFORCE MS DYNAMICS SHAREMYINSIGHTBig Data Platform infrastructure, HPC analytical data processingData Mining, Segmentation, Clustering, DB ScriptsBuying Decision Trees, Influence-Predictive ModellingCustomize analytical models, Data management/integration w connectorsBasic shopper visit metrics and analyticsAdvanced analytics, interactive visualization, heat maps, 'What- If' queriesAnalytical Capabilities SALESFORCE MS DYNAMICS SHAREMYINSIGHTShopping Path flow analytics, Merchandising Insights, Shppper Segments, Spend…Create your own/customize dashboards and chart controlsAuto-triggered alerts and tasks on change in analytical resultsCollaboration Capabilities SALESFORCE MS DYNAMICS SHAREMYINSIGHTBI workflow triggered events, tasks, alertsPortal, User Permissions, LibrariesPublishing, insight sharing, export to iPad, office appsMarketing Events, Loyalty SALESFORCE MS DYNAMICS SHAREMYINSIGHTIN-STORE Product Category (Zone) location marketing eventsIN-STORE personalized ads targeted by shopping & spend segment, path…IN-STORE, real time marketing engine based on triggered conditionsIN-STORE & ONLINE Omni Channel Messaging (browser, email, SMS, FB…)Ease and low barriers for adoption (e.g. no client app)Closed Loop Marketing Analytics by segment, comm channel, productsCustomizable Access & Promo PagesIn-store Sensor Hardware SALESFORCE MS DYNAMICS SHAREMYINSIGHTWireless Sensors with WIFI supplyOwns device h/w and platform (firmware)Mesh Networks & Load Balancing
SMI usesubiquitoustechnologiestoreachallsmartphoneusers
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SMI usesWIFI,itsownbespokesensor-routers,BIinthecloudandtriggeredeventstospeaktocustomersviatheirsmartphones
SMIusesWIFItoreachallsmartphoneusers
HowSMIbreaksdownthebarriers
EquipmentPriceBarriers§ SMIsensor routers=$50to$1,000/store2000sq.m§ Option: freetoretailerwithbrandsponsorshipCAPEXINVEST/STORE=≅ $50-$1,000(10Xlessthancompetition)
DeploymentBarriers§ 1application, 1integrateddatabase§BIplatform:servicemodel startingat$50/month§Marketing application:performance, CostPerClickmodelNOINVESTMENTINTOINFRASTRUCTURE:$0
CapabilitiesBarriers§Managed,expertservicesonsubscription§ Flexibility: startwithoperations, CRMorRetailerstrategylevelNOINVESTMENTINTOBUILDINGATEAM
StrategicBarriers§ Loyaltyprogramsandmarketing tacticsoutofdatewithtoday’sshopper interestsandneeds§ Highentryandmanagementcostsoftraditionalapproach toloyaltyprograms§ Lowabilitytocommunicateduring shopper journey withrelevanceNOINVESTMENTINTORE-ENGINEERINGNEWLOYALTYPROGRAM
Wedeliversolutionsonariskfreebasisinordertofasttrackretailclientacquisitionandonboardstores
HowSMIworks
TheWPP-Geometryoffer:PATHFINDERSTORE
• LocationservicesappsthatuseWIFI,withnoclients/w• Automateddataprocessingwithanalyticalandpredictive
modelsdesigned forretailstores• StoreLike4Like performance diagnosticsbystore/category• Shopper journey behaviorinsightsandmerchandising
efficiency
MobilephoneMACaddressisidentifiedandtrackedTrafficanalyticsinsideandoutsideretailenvironments(mall,highstreet),bystoreandbyzones(categories,departments).
SMIidentifies,tracksshoppersusingitsownsensors
Data Collection and Customer Tracking
SMI’sownWIFIsensor-routersarePlug&Playtodeliverultrafastimplementationandhighlocationaccuracyof1-3meters
SMIdataminesandpredictsshopperbehavior
Shopping and Retailing Insights
Over200shopperbehaviormetricsacrossstorelocationsonsatisfaction,loyalty,salesvelocity,crossshopping,zoneefficiency,profitability
Shoppingbehaviorandcustomerinsightsbystoreandzones.Withpredictivemodellingandbenchmarkingperformanceindicatorsonbouncerate,salesconversions,timefriction,engagementscoring,demandforecasting,shoppersegmentation,purchasedecisiontriggers….
SMIconsolidates shopper dataforomni-channel marketing
Shopping + spend+ personal data insights
Bycombiningofflineandonlinedata,opportunitiesarerevealedfortargetingcustomersnotpurchasingacategorythatwasshoppedinthestore
Shoppingbehaviorandcustomerinsightsbyconsolidatingmultipledatasources:- POStransactions- Personaldata- E- shop- Clientapp- SocialmediapagesTargetingopportunitiesarerevealedforex.‘Businessman’segmentisn’tshoppingPreparedFoodsdept.
SMICustomerEngagement
TheWPP-Geometryoffer:PATHFINDERSTORE
• Designedandproventacticsforcustomerstoregister,opt-inandconnect
• Realtimecomms andpersonalized engagementwithhighconversionrates
• Omni-channelmarketingacrossallcustomertouchpointswithconsistent,relevantmessages
SMIconnectsandengagescustomerswithoutApps
MultiplecontactpointsareutilizedtoregistercustomersandlinkthecustomerIDtotheMACaddress
Registration and Activation Tactics
Multiplepointsofregistrationandconnection:• SMIWIFInetworks• Storeloyaltyprogram• Socialmediachannels• Events,venues,stadiums• 3rd partydatabases• Ecommercesites• NewWIFIprotocolIPv6
identifiesMACaddressonwebsites
SMIdeliverscommunicationsatthepointofdecision
GREAT! I WANT TO TRY THAT
JOHN, JUST FOR YOU RIGHT NOW I AM 25% OFF
ActivationToolkitsareconfigured triggers(storezone,time,segment,product interest,purchase history,Facebook groups…) +personalizationtemplates+creativecontent
Real-Time, Personalized Marketing
Personalizedcommunicationsispoweredbyaworkflowdriveneventsenginethattriggersengagementsandpersonalizedmarketing.‘Activationtoolkits’usemultiplecommunicationchannels(withoutclientapps)areusedtotargetshopperswithrelevantoffersbefore,duringandaftertheshopperjourney.
Activation ‘Toolkits’ influence shoppers
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SMIOmni-Channeldeliverstargeted,consistentandpersonalizedcommunicationsbefore,duringand aftertheshopperjourney
SMIcommunicatesacrosschannelsduringtheshopperjourney
Nomatterthelocation(onlineorin-store)orthepointofcontact(storeemployees,E-shop,Facebook...), customersareengaged withrelevantcomms
Strategy toExecution Brief: ‘Customer Retention &Satisfaction’Step2
Tacticalplan
Step3
Tacticalbriefs
Step4
Program creation
Step5
Channeldifferentiation
Step1
Activation brief
ActionPlanandTacticsMarketingTacticsandActivationToolkits:registeringandactivatingcustomers
RetentionandSatisfactionBrief:engagecustomerstoadddroppedoutzonesbacktojourneyandaddnewones
Zoneswithnegativeengagementscoresareprioritizedandengagementstrategydeveloped
Customersareselectedtoengagebasedonnegativescoresandsegment
Creativecontenttargetedtosegmentandzones
StorePersonnelChannelresults
In-storeMediaChannelresults
CustomeractivationfromStrategyTOPlanningTOExecution
CustomerActivationandPlanning
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Splashandregistrationspagesarefullycustomizabletomeetaretailer’smarketingneedsandcustomerengagementpractices,forexampletosign
upcustomersinaloyaltyprogram
InteractiveCustomerFacingPages
CustomerActivationandPlanning
Creative Content and Assets
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Promoandadpagesincludeanumberofpersonalizationoptionstocreaterelevantmessage,forexamplecustomername,locationofproducts,numberofstorevisits,productinterest
Personalized CommunicationsandContent
PERSONALIZATIONOPTIONS
DELIVERY CHANNELS
CustomerActivationandPlanning
Creative Content and Assets
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Campaignsaresetupwithmachinegenerated,personalizedadssenttoshoppers…
thataretriggeredwhenconditionsaremet(e.g.storezone,demographics,buyersegment…)
Targeted,machinegeneratedmessaging
CustomerActivationandPlanning
Targeting Engine
CustomeractivationfromStrategyTOPlanningTOExecution
• LOYALTY:introducea‘tieredrewards program’basedoncustomers performingcertainGAMEactions toinchtheirwaytowardsreachingaspecificmilestone: newtiersbringsnewrewards– e.g.offermorerewardspoints forthehighertiers
• MARKETING: improveretailer’sbrandpositioning withuniquecharactersandgamerulesthatchangeovertime
• ENGAGEMENT: testnewproducts,newpromotions, newchallenges andadapt,tokeepcustomers spendingandlovingtheoverallexperience morethanever
ActivationExample:GAMIFICATION
SMI’suniqueproposition:NOCLIENTAPPSREQUIREDtobedownloaded
SolutionImplementation• Fulfillmentacrossbusinesslinesforacompletesolution• Appsapproach forfastdeploymentandlowcostsolutions• Developmentplatformforcustomizationandprivatelabel
PathfinderStoredeliveryandsolutions
‘Appification’approachfordeliveringreadysolutions
8modular,self-serveappswithlocationservicesarefullyintegrated,startingfrombasicShopperTrackingandendingwithOmniChannelMarketing
ApplicationNameShopperTracking ShopperJourney
RealTimeMarketing CustomerEngagement
SmartMerchandising CustomerInsight
StaffOptimization OmniChannelMarketing
Appsarekeytofast,lowcostdeployment:norequirementformanualconfiguration
SMI’sDevPlatform‘Bit-Store’forcreatingyourownappsBit-Storeisauniqueplatformforbringingrealtimedigitalinteractionswithinretailenvironments.– whoeverthepartneriswecan‘appify'
Bit-Storecomeswithover200readymetricswithdashboardsandworkflow.
WithBit-Storepartnershavetheabilitytocreatenewmetrics,customizedashboardsandbuildnewworkflowevents
Bit-Storeistheonlychoiceforpartnerswholooktorolloutbranded,locationbasedandrealtimeCRMsolutions
Bit-Store platform & apps
SMICostModel
Revenuemodelcombinesproducts+services
• Fixed,monthlypricesperstoreandsizeofcoveragearea• Service feesvariablebasedoncustomizedservices fordata
sourceintegration, loyalty-marketing activities,creativework• RetailerAdFeesbasedonperformance: numberofclicks,
couponsredeemed• BrandAdFeesbasedonmediachannelparticipationand
sharedrevenueswithretailer
Solution implementation by levels
Solutionpricingmodelandstrategy
Level1:outoftheboxsolutions• cloudappsonsubscriptionmodelformerchandise,shopperjourney
insightsandomni channelmarketing,fixedmonthlyprice
Level2&3:solutions+services• dataintegrationdatasourcesatfixedmonthlyservice fee• realtimemarketingservices basedoncostperclickorcostperorder• customization,marketingplans&creativework,workflowautomation,
CRMprogramintegration
Level4:mediachannel• brandcomms utilizedbycustomerinsightdatacollectedatretailstoresto
targetshoppers,basedoncostperclickor costperorder• Additionalconsultingservicessubscribedto
Enter at any 4 levels: out of the box apps, with customization services and a media channel
SolutionBenefits• Customercentric storeplanwithimprovedmerchandising• Betteremployeeschedulingandcustomerservice• Omnichannelmarketingbefore,during,aftertheshopper
journey• Abrandnewmediachannel thatmonetizesshopperdata
PathfinderStoredeliveryandsolutions
Example for General Merchandise store, 10 stores 2,000 sq. meters, 4,000,000 customers
Merchandising Efficiency
MerchandisingandShopperJourneyBenefits
• Engineeredstorelayoutplanstodrivetraffictoselectedunderperformingzones(nonvisitedshoppingareas)andincreasedvisitsby3%
• Improvedzone(dept.)ReturnonSpacebyupto2.5% withincreasedshoppingtime
• Betterresourceplanningwith 2% loweremployeecoststoensureoptimalnumberofsalesassistantsontheflooratdifferenttimes
• Increasedshoppervisitstospecificzonestargetedduringpromocampaignsbyupto50%
• Increasedvisitrepeatrate,shoppingfrequencyby1.5% ontargetedsegments• Decreasedbouncerate(zonesshoppedbutnotpurchased)by2% intargeted
zones• Increasedcross-shoppingbetweenzoneswithbundledpromooffersby8%-15%• Increasednumberofinteractionsbetweenstorepersonnelandcustomersby15%
Increased conversions & lower cost from retailer’s own media channel
MarketingEfficiency
CONVERSIONRATESConversionRatesare4-5timeshigherratesoveratraditionalmediachannelapproachduetohighrelevancyscoreandproximitytoproducts.
Metric SMS/Mail Outs In-Store DigitalReach* 125,000 250,000Number of Clicks 12,500 50,000Conversion Rate 2.0% 5.0%Number of Conversions 2,500 12,500*Assuming 125,000 registered customers
Conversions
MEDIACOST• In-storedigitalmediachannelcosts$.24perCPC,approx.6timeslessthanAdWords• Withhigherrateof5%to10%,theoverallcostofconversionis90%lessthanthe
costof3rdpartymediachannels.
Metric AdWords In-Store DigitalCost per click (CPC) $1.58 $0.24Click through rate (CTR) 0.80% 5.00%Cost per mile (CPM)* $12.07 $0.00Conversion Rate 3.60% 5.00%Cost per conversion $44.50 $4.80*In-store digital charges by click only
CostWebAdsvs.In-StoreDigital
Example for General Merchandise store, 10 stores 2,000 sq. meters, 4,000,000 customers
SalesEfficiency andROI
CustomerOpt-Ins
TotalVisits* TotalImpresssions TotalOpt-Ins TotalRegistered6,000,000 4,149,500 277,930 304,830
*(customers/smartphones)
TotalClicks TotalConversions TotalRevenues* TotalCost NetRevenues495,490 48,000 504,000 109,000 395,000
RevenuesfromConversions
*avg.salespriceofanitemcoupon€ 10.50
Year 1 results
Forecastedincreaseof20-30%YearonYearfornumberofopt-insandmarketingrevenuesDownloadthewhitepapertoreadmoreonimplementingaretaildigitalstrategy
Benefits• Increased traffic to specific zones from up to 50%• Increased sales for accessories department by 11%• Increased sales on promo items up to 4%• Decreased bounce rate by 2% in targeted zones
Extra(http://www.extrastores.com)isaleadingelectronicshypermarketchainof40storesacrosstheMiddleEastcompanysellingawiderangeofretailconsumerelectronicproducts
Challenges:• Merchandising and store plans
created ad-hoc, creating dead zones, poor product visibility
• High Bounce rate in zones (customers leaving zone without buying) caused by ‘show rooming’
• No loyalty program, customer analytics by product interests
• Poor cross-selling when customer is requesting product information on the floor from a sales assistant
Solution:• Path flow analytics and heat maps (% of each zone
shoppers, shopping elsewhere, from which zones did shopper come from, to which zones shopper go next) that show traffic patterns from zone to zone with traffic segmentation with result of creating planograms that direct traffic to poorly visited areas
• Registering customers via Free WIFI access to assign a loyalty ID number associated to the phone MAC address
• Data mining customer profiles with traffic patterns and purchases made (MAC address linked to loyalty ID)
• Provide store employees information on cross-selling opportunities for individual customers in their department
Testcaseforconsumerelectronics
AdidasGroupistagloballeaderinthesportinggoodsindustrywithbrandsbuiltonapassionforsportsandasportinglifestyle.
Testcaseforapparelretailer
Challenges:• Merchandising and department
layout plans are created ad-hoc in stores often creating congested areas in some departments and dead zones in others
• Lost sales in sales departments requiring a sales assistant to help the customer (e.g. footwear), with insufficient sales personnel during peak shopping hours
• No loyalty program, customer identification and knowledge of customer product interests
Solution:• Zone (department) shopping analytics (dwell time, visitor
count) by day/time to reveal which zones have high % of customers who left the store without buying
• Path flow analytics and heat maps on shopping activity at zone level
• Real time alerts to store managers when service areas become congested and there are with insufficient personnel
• Registering customers via Free WIFI access and data mining customer profiles with traffic patterns and purchases made (MAC address linked to loyalty ID)
Benefits Forecast & Gains• Reduction in lost sales in service areas by 2.5%• Engineered store layout plans to drive traffic to dead
zones (non visited shopping areas)• Better resource planning to ensure optimal number of
sales assistants on the floor at different times
MarksandSpencerisalandmarkdepartmentstorethathasbeensatisfyingcustomersinfashion,apparel,footwearandfoodforover100years
Testcasefordepartmentstore
Challenges:• Ad-hoc merchandising plans
with monthly changes without tracking effectiveness
• Low cross shopping between associated zones
• Inadequate resource demand planning and scheduling
• Ineffective loyalty program, low customer registration and interest knowledge
• High churn rate in specific customer segments
• Mass marketing tactics, without personalization and targeted messaging
Solution:• Customer and store centric planograms that adapt plan
to shopping interests• Path flow analytics and heat maps on shopping activity
at zone level• Real time alerts to store managers when service areas
become congested and there are with insufficient personnel
• Registering customers via Free WIFI access and data mining customer profiles with traffic patterns and purchases made (MAC address linked to loyalty ID)
Benefits Forecast & Gains• Increased visit repeat rate, shopping frequency by 1.5%• Engineered store layout plans to drive traffic to dead
zones (non visited shopping areas) – increase 3% traffic• Increased cross-shopping between zones by 8-15%• Better resource planning to ensure optimal number of
sales assistants on the floor at different times
Samplecustomers
Thanksforwatching!
Contacts: Prem Couture, [email protected]
Adrian Stewart, [email protected]
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