INDUSTRY WATCH
International research shows that more
than a third of consumers rank in-store
browsing as their main product discovery
tool. This is in stark contrast to five years
ago when a quarter of shoppers said
television ads were their main source
of product discovery. So, even though
digital (in the online sense) is important,
brands must not ignore the opportunities
provided by the retail setting.
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In-store promotions form a key part of this.
Yes, digital displays are great, but there is
something to be said for the simplicity of
ensuring branding is done at all relevant
touch points of the customer journey.
From co-branded store windows to security
barrier sleeves, the process starts long before
a customer walks into a store and is finalised
at point-of-purchase.
Despite the branding opportunities available
to retailers, the reality is that the industry
is changing, and technology has made
solutions more innovative to combat jaded
customers who ignore marketing messages.
A strategic approach incorporating a
dynamic media mix is critical for brands
wanting to reach their consumers, they need
to partner with media companies who have
customer engagement top of mind. n
Why mobile is the gatekeeper
of brand loyalty
Gareth Hawkes Group CEO
at redPanda Software,
says mobile represents an
unparalleled opportunity
for savvy retailers to
reach customers in more
personalised, efficient and
powerful ways – paving
the way for a new era of
data-driven brand loyalty.
I
n the local market, non-digital
promotions and brand loyalty
initiatives are beginning to fall flat.
Recent scratch card promotions that
promise cash prizes and airtime for winners
have all but failed – arguably doing more
harm to the brand than good.
“New ‘languages of loyalty’ have emerged,
driven by brands experimenting with creative
digital experiences, which have changed the
dynamics of customer loyalty today,” said
Robert Wollan, Senior Managing Director,
Global Lead of Advanced Customer Strategy
at Accenture Strategy.
“Every consumer has a natural instinct
around what makes them ‘stick’ to a brand.
The traditional ‘low price’ and ‘reliable
service’ mechanics are no longer as effective
at driving loyalty.”
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INTELLIGENTCIO
Data-driven loyalty Smarter cost equation, smarter loyalty
For savvy brands and retailers, mastering
the new ‘languages of loyalty’ may in fact
be easier than in years past. It all depends
on how effectively retailers can harness
the reams of data now at their fingertips
to create smart, highly personalised
promotions and offers that consumers can
access via mobile. For retailers, the cost equation of
embracing a mobile-first digital strategy in
favour of traditional brand promotions is
almost a no-brainer. Unlike the expensive
logistics involved with running physical
brand outreach initiatives, developing a
mobile app represents far more effective
economies of scale.
For example, by tracking every customer
engagement with a brand, retailers can now
harness Artificial Intelligence and Machine
Learning to understand where, when, and
why a customer will choose one product over
another. By leveraging this information, in
real-time, retailers can develop mobile apps
that push highly personalised promotions
and offers to customers in-store. For example, a retailer can develop one
app that can be rolled out to 100 or 1,000
customers, at much the same cost – with the
flexibility to scale up or down as required.
Moreover, there are countless opportunities
to provide add-on services to every app –
such as mobile wallets and online games
– that increase valuable touchpoints with
customers at very little added expense.
This personalised approach undoubtedly
leads to higher engagement with
customers and far greater uptake of
promotional offers. There are also
countless opportunities to leverage
gamification and reward consumers for
different behaviours, in a way that benefits
their own shopping preferences. Notably, mobile makes integration with
non-competing brands far simpler, faster and
cheaper. For example, retailers can create
loyalty apps that allow customers to redeem
points at petrol stations, simply by scanning QR
codes or logging in. With mobile connectivity
now influencing consumer behaviour at every
step (more than half of South Africans now
own a smartphone), loyalty programmes must
harness digital technology to remain relevant –
and to retain customers.
Importantly, the use of mobile apps for
promotions and loyalty programmes also
creates a vital feedback loop for retailers.
Armed with their mobile devices, customers
can provide feedback or submit queries in
an instant, providing brands with key data to
improve the overall customer experience.
For retailers, the message is clear. Consumers
need to be reached in a more personalised
way, and any promotions or loyalty
programmes need to be easy, seamless and
quick to redeem. n
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