In order to thrive in today’s extremely competitive environment, retailers must deploy new technologies to create customer-centric culture and establish competitive advantage. Faced with fierce competition and new business models, retailers’ enhanced focus on customer experience becomes a must for sustaining growth and optimize revenue & profitability. A truly customer centric retailer is one that aligns its products and services around the wants and needs of its customers. Therefore, “knowing your customer” becomes an imperative for creating a customer-centric culture and positive shopping experience.
As Greg Van den Heuvel, the COO of the Pitney Bowes’s software division states: “Retailers are looking to create more powerful experiences, however they need more timely information about their customers, their location and their preferred channels of communication.”
Customer-centricity begins with an ability capture and analyzing consumers’ data bridging the gap between physical and digital identities to create a 360 degree view of the customer. This is about understanding customers’ buying preferences, not just what they buy, but how and when they like to do it. Once this data analyzed, retailers can purposefully use this information to engage and interact with their customers in a more personalize way that leads to improved satisfaction and increased customer life value (CLV).
Deployment of interactive video and mobile first strategy transform customer experience even more. “It’s not any longer the message content but rather the preferred delivery channel that improves customer satisfaction and overall experience with a retailer, “ Greg notes.
Interacting with mobile customers proactively and providing personalized product or service messages at the moment of impact can enhance the retail experience and guide its outcome. When customers enter a store, relevant offers and coupons pushed to their smartphones at exactly the right time can dramatically increase sales. Social media is increasingly influencing these purchase decisions. Retailers’ ability to capitalize on customers’ increasing penchant for mobile and social technologies and to deliver personalized messages in real time based on customers’ proximity to a particular retail location relies on sophisticated reverse geocoding capabilities.
Focus on customer experience transformation is critical to be able to compete in today’s retail environment. According to Forrester, one-point improvement in Retail Customer Experience Index™ score results in $2.44 annual incremental revenue per customer. A retailer with 100 million customers could optimize revenue by $244 million. (Source: “Drive Revenue with Great Customer Experience”, Forrester, 2017)
Retailers that leverage Customer Information Management, Location Intelligence and Customer Engagement solutions are more likely to create positive customer experience and establish competitive advantage.
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