Where Seconds Matter: Mobile Marketing for Quick-Serve Restaurants

May 10, 2013

Large retailers are used to dealing with big problems. Thousands of stores, millions of customers and billions of transactions. Dealing with that kind of order flow can be a logistics nightmare. How do I staff my stores? When are my peak hours? Do I have to add personnel at the store level to support my new marketing campaign? The problem is exacerbated exponentially when it applies to quick service restaurants (QSR). Not only do you have to manage an influx of customers, they are expecting to be served in less then 5 minutes.

The most forward thinking QSRs are using mobile to manage their transactions. Starbucks is currently handling over 2.1 million mobile payments each week. They added over 1.4 million new members to their loyalty program in the first quarter of 2013. Further, by combining loyalty with tender Starbucks has outpaced their competitors by miles. Customers rewarded Starbucks for making life easier, and loaded over $1B onto gift cards in the most recent holiday quarter.

History has told us that once a bar has been set, consumers expect the competition to rise to the occasion. Coupling location data with mobile payments allows QSRs to do just this.

Integrating location-based marketing and analytics into their mobile application gives QSRs a leg up on managing order flow. Timing is everything in the restaurant world. Make an order too soon and it sits, giving customers a cold experience. Custom orders create more work, creating even longer lines.

Location-based marketing allows QSRs to understand where a customer is in relation to the store. Thus, a customer places an order on a mobile device. Once the patron breaches a 1-mile radius geofence, the order is prepared. Within 5 minutes the customer is in the store, picks up the order and is acknowledged with a “Thank You for Your Business” notification on the way out. In today’s time compressed society, a customer who knows they can patronize a certain store and have their custom order waiting for them, is a repeat customer.

Time saving is just the beginning. QSRs are constantly looking for innovative ways to drive store traffic in off-peak hours. Why not target customers within a 5-mile radius of the store to come in for a 3 p.m. treat on a hot day? Location-based marketing allows QSRs to understand who received the offer, who opened it and what store they went to.

Streamlining order flow, maximizing off-peak hours revenue and tracking marketing campaigns are just a few of the benefits QSRs can receive with Location-based marketing. Get a leg up on the competition, start marketing today.

Thanks to the mobile retail blog


Customer Decision & Big Data: A possible Journey

April 26, 2013

Customer is king. Always. Whether in B2B or B2C settings. With much writing this week on the importance of a Customer Centric approach where B2B organizations need to develop a much deeper understanding of the modern Customer Decision Journey.

Questions have been raised as per whether Multichannel Marketing Mix approaches have been based on the right models and research to measure results.

With the hype of a report to be issued by the Council for Researchcurrently investigating measurement issues related to digital video advertising, report that in turn will form the basis of an Advertising Research Foundation inquiry into the quality of the models.

We believe it’s important to bring a combination of modeling, information and expertise to decisions “a P&G spokesman said in a statement to AdAge “We have clear evidence that marketing-mix modeling, combined with other information and expertise, has helped to improve return on investment of our marketing spending and media buying.

Beside, measurements what remains key is to reach the customer with a message which will limit the risk of ad avoidance, a phenomenon which has been noticed to be on the increase lately.

Can big data really improve the customer experience with personalized ads, products and service offerings?

For certain big data can say a lot about preferences and even location. But with constantly increasing terabytes of data, in structured, semi structured and unstructured formats. To make sense of it all is to say the least challenging.

The more so for businesses, which do not have their own platform from which to gather this data, nor the technical tools or analyst expertise to navigate and make sense of data gathered from their websites, blogs and external social platforms.

Some even ask the question whether Big Data is in reality an opportunity only for big players of the likes of Google.

What do you think?

Thanks to http://moniagalardi.com/2013/04/25/customer-decision-big-data-a-possible-journey/

 


Changes Big Data And Technology Have Brought Into The Retail Industry

April 3, 2013

There was once a time when retailers relied on large spreadsheets to keep track of things. Critical employees had to fly around in order to find the best products and maintain the best inventory. Today, the scenario is totally different. Big Data has played a large part in the changes witnessed in the retail industry.

Some have adapted well to the changes (some have even taken advantage of the changes) and some have struggled with them. Marianne Bickle (Contributor, Forbes.com), looks at some of the changes that Big Data and technology have brought about…

1. Retailers are finding it more difficult to make predictions. This might actually come as a surprise to many considering that Big Data actually empowers retailers to pinpoint what a particular customer wants. What many people do NOT realize is that it is “a two-edged sword.”

A consumer group might be lost simply because they have moved to a different mobile device which isn’t supported by their current retailer. In this case, it might be difficult to predict how many customers you’ll lose (or have lost).

2. Poor customer experience reports now spread like wild fire. It’s no longer the case of one unhappy customer telling ten other people. With social media, it could be a few millions before your company prepares an official position. There are instances of viral videos that have “hurt” businesses.

3. Trends are changing faster and businesses have many more tools that can help them gather vital information about the trends (Twitter, Facebook, email, etc).

4. It is now critical that the analysis of data provides insight into why and how consumers buy a particular product. Such analysis should also provide their demographics and psycho-graphics. Otherwise, money spent on advertisement will be a waste.

To read the rest of this article, go here…


How Big data transforms customer relations

April 3, 2013

I ended my last blog post with the statement “We are entering the age of smart computing and Big data which totally will change the social contract and the customer-relation.” I will in this post make some comments on why I think that the customer-relation will indeed change during the new era of Big Data.

Over time since the industrial revolution in the late 18th century we have passed basically four different ages as illustrated by a blog post from Forrester.

The change in the relation between the seller and buyer can be understood by looking on the main difference in these four ages as illustrated in the picture below:

 

 

The main difference in the fourth step is that the relationship needs to be based upon mutual trust. This since, to keep the relationship in a perfect 1-to-1 relation, the seller needs to send back valuable information to the customer to be able to get even more information from the customer to include in the next iteration of the Big Data analytics. This in order to shift from a traditional campaign-centric view of the world to one of continuous customer engagement. Here Forrester sees the possibility of a new type of class of providers “customer engagement agencies” (CEAs) and define them as:

“Agencies that focus on defining customer-oriented business strategies and mapping them to tactics and execution. They help clients maximize customer profitability and optimize customer experiences by applying data and analytics to every interaction.”

For the organizations that succeed in this they may start to focus on high-resolution management. As prof. Biran Subirana stated

High-resolution management is the next evolutionary step after lean manufacturing. High-resolution management is based on vastly lowering the scale at which you analyze space, time, products and business models. As a result, we have already started to see how a few different sectors have started fragmenting their products and services all with the aim of improving quality and reducing cost. In the long-term, we can cast our imaginations forward and imagine a world without a supply chain, and in its place a packetized distribution network, where each product contains all of the necessary information to essentially become its own store. As the resolution of each item increases, we will see greater randomization, more customization and increased frequency of delivery directly to the end consumer.”

The technologies of today in the age of smart computing and in combination with cloud computing makes it possible to start to implement high resolution management in an affordable way. And this will not only be true for commercial relations, this will happen for the relation between patients with health care systems, student with universities and citizens with governments. From that perspective the seller is coming to the customer – not the other way around.

So, as I stated in the previous blog post, in order to take the steps into mass personalization and an 1-to-1 relation that is based upon mutual trust organizations need to start establish strategies for

  • becoming more user-centric in dialog and offerings, i.e. mass personalization
  • handle privacy and ownership of data, i.e. to establish trust
  • handle governance around data itself, i.e. high-resolution management and the possibility for sustainable innovations
  • handle ethics related to Big Data, i.e. to avoid reputation risks

If your organization has not yet started to think how to adopt and take advantage of this you better do this. We are entering the age of smart computing and Big data which totally will change the social contract and the customer-relation.

Thanks to http://mathiasekman.wordpress.com/

 


10 Things Your Customers Wish You Knew About Them [Infographic]

February 13, 2013

Earlier this week I shared an infographic that outlined the 6 Keys to Branding your Small Business. One of the components was related to knowing who your target audience – or customers are. You can never know too much about your customers. Understanding their likes and dislikes, shopping behavior, etc. can help you make better business decisions.

Surprisingly, there are still things that customers say they wish businesses understood about them better. Help Scout, a customer service software company has put together this infographic that highlights research related to the topic.

Here are some key takeaways:

Customers prefer knowledgeable and thought-out service, rather than having a rushed experience.
Loyalty customers are bound to stay if get them started with the program.
Consumers would rather connect with a brand emotionally than with “savings” type messages.
Everyone loves pleasant surprises!

10 things you should know about your customers infographic 10 Things Your Customers Wish You Knew About Them [Infographic]

BY ANITA PUBLISHED SEPTEMBER 19, 2012


Controlling consumer touchpoints by designing from outside-in

January 21, 2013

Designing from outside-in has been on top of my mind these days and I’ve decided to write about it. If you are in Singapore, this is the Lean UX week! Do catch it if you can.

I’ve decided to cover something a little bit more traditional that I feel people kinda forgot. We talk a lot about user experience (UX), be it a device, website, let alone a service. But I found myself lost about what it really is. So I’m figuring out how to be able to, in baby-steps, design experience in a way that is simple yet effective.

Experience has been especially relevant in this era of free information where it is much more difficult to earn loyalty or simply presence in the minds of consumers. As such, marketing strategies has moved from a one-way communication push to a 2-way conversation. Or better still, one that gets viral.

The big question I’m posing here is; how do we, with limited resources, provide the best experience for a consumer in a way that will translate to brand equity? I think that it is as important to slip in nuances of your identity system so people would link that experience you provide uniquely to your brand. What kind of experiences actually matter uniquely to your consumers? That’s how you earn loyalty. It’s when you OWN a good experience in your customers minds. So in simple terms, today’s formula is;

Customer needs + Brand Promise = Brand experience

As a cumulative process, we have to provide many mini good experiences at all stages of the consumer decision process; that is pre-purchase, purchase and post purchase

purchasedecision

 

In the pre-purchase stage, we are looking at making a good initial impression. Looking professional is the basic requirement for one to consider your product, and this applies to all, from low-cost to premium products. What’s more important here is to create an accurate impression. A visual designer would come handy here to know exactly the kind of visual that would best elicit the right impression to readers at a particular touchpoint. Give a misleading visual + copy; A consumer gets the wrong expectation of the product; He ends up disappointed in your store. Such a bad experience would actually backfire on your credibility simply because you’ve just broken what the audience has perceived as your brand promise.

A good pre-purchase experience would land the brand in the consumers’ consideration list, making them move on to the purchase stage. The idea in the purchase stage is to give the consumer a taste of the product. Common examples include free product samples, test-drives for cars and free trials for software. The challenge here, is making sure that the consumer gets a good experience as how you controlled it to be, even if the consumer did not end up buying it. One could come out from a automobile showroom tweeting either of this two;

1 – “Decided to drop the option of car XXX, doesn’t feel quite right.”

2 – “Car XXX a little too sporty for me. Nice to drive but just not my type I guess :) “

Do you see the difference? Not only is the consumer complimenting but also branding car XXX as sporty. That would probably attract sporty people from that particular consumer’s network. The potent for network marketing is probably the reason why companies invest so much in making stores look good and that the staff are well trained to preach the brand promise. Starbucks scores in this area I would say. For sure their coffee is not the best in my list. From their friendly staff that would remember your name to the lucky 100th customer that gets a free drink ( I got it twice already!). These are simply but well-thought experiences that are within the provider’s control.

brand_touchpoint_wheel

Controlling post-purchase touchpoints entails delivering on your brand promise. Exceed the customers’ expectation beyond usage and performance. A lot of companies under leverage post purchase touchpoints. Increase your brand loyalty through say, efficient after sale services, loyalty coupons, newsletters, or anything to delight your customers. Invest in your customers for they are a strong marketing tool. This will get you not only repeat purchases but also customers endorsing and recommending your brand to others. Such brand equity is key to sustainable and profitable growth to any company.

designoutside-in

To sum everything up, I conclude with the notion of designing from outside-in, something I’m still trying to fully grasp - a design process that is user-centered and focused on brand experience. Be in control of the important consumer touchpoints and slip in nuances of your brand promise to increase brand equity.

Source;

Harmonizing your ‘Touchpoints’ by Scott Davis and Tina Longoria

The consumer decision journey – McKinsey Quarterly


How Zappos became Zappos

December 7, 2012

Great video about Zappos, how their business model has changed over time and how they are continuing to develop.

Key areas:

  • Repeat customer
  • Word of mouth
  • Focus on customer satisfaction
  • Employee satisfaction
  • It is not business as usual

Enjoy…..


Big data: a retailer’s guide to likes, tweets, reviews, customer data, and basically everything else (infographic)

November 20, 2012

When it comes to retailers, big data is perhaps a little too big.

Half of retailers can’t aggregate all their data in one place to make detailed reports and conclusions. 45 percent don’t use available data to personalize marketing communications, and another 42 can’t link data together at the individual customer level.

That is perhaps understandable, because 90 percent of the data that’s ever been created has been created in the last two years, and it’s growing fast.

Read more at http://venturebeat.com/2012/11/19/big-data-a-retailers-guide-to-likes-tweets-reviews-customer-data-and-basically-everything-else-infographic/#DoJMDx85f3svhhPH.99

Thanks to http://www.venturebeat.com


Technology: The rise of interactive retailing

August 9, 2012

Retailers are increasingly enhancing the in-store experience through interactive technologies. Liz Morrell looks at what it takes to create a seamless customer journey.

The rise of online and multichannel retailing has brought the in-store customer experience sharply into focus. By tapping into customers’ shopping patterns, which are constantly evolving through the use of mobile and online platforms, retailers are working increasingly hard to entice customers into stores.

However, a focus on stores’ USP versus online-only retailers – namely physical interaction with the customer and superior in-store experiences – needs to go hand-in-hand with technology roll-out.

“Traditional retailers can compete with, and even beat, the online pure-plays, essentially because they offer the brands that shoppers want and the social contact that still defines shopping,” says Chris Donnelly, head of Accenture’s retail practice for the UK and Ireland.

Raising expectations

John Lewis has introduced self-service kiosks, Wi-Fi and QR codes, and is trying the use of iPads in shops. “Customers benefit from face-to-face customer service and the ability to feel the product, but they can also access our online channel to view products not available in store and arrange a delivery that suits them,” says John Lewis head of omnichannel Karen Dracou. “Customers are increasingly using a mix of shops, online and mobile and as a result we need to constantly adapt and evolve.”

Fashion group Aurora is also adapting rapidly. The use of iPads has been integral to the design of its new flagship stores for Oasis and Coast in London’s West End, and the devices are now being rolled out to further stores.

The iPads are being used as tills, customer service points or stock finders. “Using the iPad, we can offer a seamless and efficient shopping experience,” says Oasis retail director Bridget Lea. “We can open up our complete stock file on the sales floor for the customer to see, we can also search for a product in store or across the business and offer home delivery if an item isn’t available.”

A number of retailers are also using mobile devices to make the payment process more efficient, and for queue-busting – Aurora, Hamleys Regent Street and Beaverbrooks for example.

“IPads are considerably cheaper than traditional till points. Also, their mobility allows us to transact across all areas of the sales floor,” says Lea.

But sales are not the sole driver of in-store technologies – they can also smooth customer experience. “Sometimes our customers want to see how they look from the front and back in the fitting room and we take pictures for them or can even email it to their friends to get approval,” says Lea. “We also provide iPads at our seating areas allowing customers to browse the web or catch up with friends on Facebook and Twitter, bringing social media into the store environment.”

When retailers bank so significantly on in-store connectivity to boost customers’ experience, considering usability and the store’s design is vital. Lee Broom, the interior designer responsible for the look of the recently launched Coast, said the integration of iPads as payment devices was integral to the new store’s look. “As Coast is an occasionwear brand and offers a more high-end retail experience, it was about creating an experience that was more like checking out at a hotel. So things like cash desks were made to look as simple and clean as possible,” he says.

Video content

Apart from iPads, more traditional modes of in-store entertainment such as video still play a role but they too are evolving. Dharmendra Patel, managing director for Europe for PlayNetwork, is working on the UK launch of Victoria’s Secret. He says the retailer’s New Bond Street store will include customised video content such as streamed fashion shows, and that content for its sub-brand Pink will include QR codes to allow customers to engage. “That helps to develop the experience of a relatively new brand,” he says.

Opinions on the effectiveness of QR codes enhancing the customer experience are mixed. Tim Greenhalgh, chief creative officer of design consultancy Fitch, says they must be used in more innovative ways. “We are ready for the next generation. If I am going to take the time to scan a code, then don’t just send me off to your website,” he says.

For example, Marks & Spencer’s recently launched mobile app includes a QR code reader that allows customers to access additional content, from product reviews to suggested food-to-order menus, by scanning codes on in-store signage.

Kiosks have also moved on. For retailers such as Tesco andArgos they are used as stock finders and range extenders but other retailers use them to allow customers greater interactivity with products. M&S’s Style Online, for example, allows customers to browse, build and order outfits via in-store touchscreen ordering points or an iPad-armed style adviser. “The new technology provides a more inspirational shopping experience and helps bring a wider product offer to smaller stores too,” says a spokesman.

Customer inspiration

Makeover tools are also popular way in providing inspiration to customers. Homebase’s Create your Own Look tool – available online and in its Aylesford store – lets customers upload pictures of their rooms and virtually try out paint, flooring, tiles and wallpaper.

Nails Inc’s in-store touchscreen in Harvey Nichols in London takes such functionality one step further. As well as ‘try it on’ technology that allows customers to visualise applied nail polish, customers can create a personalised polish that can be produced and gift-boxed in half an hour. “With the revamp of Nail Inc’s ecommerce website, we wanted to bring the offline and online worlds closer,” says Helen McCall, account director at Tangent Snowball, which designed the system.

Getting the new approach to the in-store experience right is vital, stresses BT Expedite chief technology officer Steve Thomas, who is responsible for the iPad strategies of a number of leading retailers, including Aurora. “It’s about trying to take as much of the information you can get online into the store so that it’s more of a shared experience rather than simply staff standing behind a till,” he says.

Michelle Du-Prât, insights director at Household Design, points out that the store is becoming a key service touchstone and staff will play “an increasingly important role” as services such as reserve-and-collect develop further. “Integrating innovative services as a valid part of the shopper journey and not an add-on is essential to store format development going forward,” she adds.

But Greenhalgh warns retailers not to go over the top. “Don’t focus on the technology – focus on the seamless experience rather than having lots of individual experiences,” he advises.

Those that do think of the bigger picture will get closer to omnichannel retailing in the true sense of the word – and their customers will thank them for it.

http://www.retail-week.com/technology/technology-the-rise-of-interactive-retailing/5039046.article


How to Retain Your Best Customers

May 1, 2012

Just spotted this blog reference retaining your best customers and thought it provided some good insight.
 
Most CPG marketing budgets allocate spending between  three “buckets”: Trade Marketing, Advertising (TV and  Print), and Consumer Promotion. But Michael Schiff, a loyalty marketing consultant, proposes an alternative viewpoint using just two categories: Acquisition and Retention. Acquisition is spending directly aimed at gaining trial of your brand by consumers who have never tried it before. Retention is spending directly aimed at stemming the inevitable attrition of current buyers.

“The simple act of recasting a budget can be a real eye-opener,” said Schiff, managing director of Partners In Loyalty Marketing (www.PartnersILM.com). “For most brands, it shows that upwards of 85% of their marketing spending is focused on Acquisition.”

Parsing retention spending into dollars focused against Heavy Buyers vs. Mediums and Lights also reveals valuable lessons. For most brands, Heavies (that is, the top 25% of buyers) control 60-75% of sales. In fact, the top 5% or the SuperHeavies can control 20-30% of dollars. In contrast, the bottom 50% of buyers typically account for 6-12% of sales. Many of these Lights are one-time buyers. Most brands spend just a tiny fraction, if at all, of their total budget on Heavy Buyer retention; the vast majority of retention spending is aimed at trying to “up-sell” Mediums and Lights, typically a very inefficient use of limited marketing dollars.

“For most brands, fully half of the franchise (that is, Lights) is MIA for most of the year,” says Schiff. “It makes us feel good to count them in the franchise, but the reality is they’re a distraction from the business of meeting the needs of consumers that count. Spending against retaining or up-selling Lights (and even Mediums) is generally very ineffective. When it does work, you’ve essentially ‘rented a share point’ and in many cases eroded brand equity by excessive dealing. Yet, almost every brand we’ve looked at is chasing new buyers and giving short-shrift to the Heavies that truly are the core of its business.”

While Schiff believes the balance between Retention and Acquisition spending can be narrowed, he doesn’t believe it should ever be 50/50. “Acquisition is an investment spend. It will always cost more to capture a new buyer than retain an existing one. Ignoring one comes at the expense of the other.”

According to Schiff, 10-20% of Heavy buyers of a brand on a year-over-year basis leave the franchise altogether. Another 15-30% “downsize” their buy-rate. Hence, rather than having a “lock” on its Heavy Buyers, most brands have a major retention issue.

“The reason brands give short-shrift to spending against Heavy buyer retention,” he explains, “is because they mistakenly believe their buyers – especially Heavies – are way more loyal than they really are. The truth is you’re in a daily hand-to-hand battle to hold on to the 25% of buyers that drive your business. Except in a few categories, even the SuperHeavies do not translate into SuperLoyals.”

Retention marketing is not easy. The skew of most budgets toward acquisition spending means that brand managers are primarily taught acquisition skills. Most “relationship marketing” programs fail because they try to build a closer relationship with the Heavies using the same messaging, offers and creative that the brand uses to acquire totally new consumers.

Schiff recommends employing some simple and effective strategies for building relationships. It’s key to understand that Heavies understand your brand benefits, point of difference and effectiveness. You have equity with them, so speaking to them in “acquisition mode” is both condescending and a waste of time. Instead, effective relationship communication focuses on allowing Heavy buyers to discover information that validates their pre-existing beliefs about the efficacy and good qualities of the brand.

“When you look at brand marketing budgets through the lens of Acquisition and Retention, what you see is that most brand spending is focused on the lowest yielding activities and consumer segments,” he says. “Brands winning in today’s marketplace are increasingly making Heavy Buyer retention an important and consistent part of their marketing mix, and growing their expertise at creating true relationship-building communications.”

This essay was written by Michael Schiff, managing partner of Partners In Loyalty Marketing, a Chicago-based consultancy that specializes in program strategy, optimization, and evaluation for CPG, Rx, and OTC companies. For more information: www.PartnersILM.com.

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