When majority of customers are moving towards digital platforms much more frequently than ever before, the retailers, to keep that pace, struggle with finding groundbreaking alternatives to new technologies to cut the gap between in-store and online shopping to create for their customers an omni-channel experience and make them truly loyal to their brand. The best way out to achieve this combination is to integrate a CRM. Most of us agree that CRM in retail is much more effective when you know the right features1:

1) The potential to capture customer trends and needs – filtering that data and analyzing it accurately gives you a clear detailed view of who is exactly your customer.That means that you can predict in advance your customers’ desires and make for themthose offers, which they exactly want – for example, beauty brand Sephora doesn’t justsell make up, this brand has also an online forum (once you finish creating your profile), where you can discuss beauty products and share advice.2

2) Customer capture – which can be possible by gathering information from existing customer profiles. Retailers will be capable of accessing a comprehensive real-time customer profile, regarding interactions with their brand, from contact information to order history and past purchases. Therefore, brand can use this information to differentiate their clients and create much more personalized offer for them.

3) Data-driven dashboards – this feature can reassess product and sales performance, connected to the product, and to make a plan of action to adjust to consumer trends.

For instance, this feature of customer capture and being aware of sales helps a data- driven supply-chain system of a well-known fast-fashion brand, called Zara, which first orders only small amount of orders for merchandise and only then, after gathering salesdata and analyzing performance each of SKU’s sales, it starts to proceed with further orders to meet customers’ demand.3

4) Loyalty rewards programs – today “omni-channel” experience makes even morecrucial to capture all the information and engage customers in the way to make a lifetime value of customers as long as possible. CRM can keep track of customers to indicate those, who bring the highest value and trigger true loyalty, by sustaining it and engage customers in the best possible way. More than that, this feature again represents another form of personalization and allows to have insights of purchasing behavior of loyalty card holders.

For example, Sephora has a three level loyalty program, which empowers a brand to provide personalized gifts, based on this information. Creating a lot of buzz anexclusivity around the highest level, called “Rouge”, they make customers much more excited to retain them via loyalty program.


Sources:

  1. Ipsos Retail Perfomance. The importance of CRM (customer relationship management) in retail. 2018. https://www.ipsos-retailperformance.com/resources/blog/importance-customer-relationship-management-retail/
  2. SendinBlue. 3 CRM Examples to Inspire Your CRM Strategy. 2019. https://blog.sendinblue.com/crm-examples- to-inspire-crm-strategy/
  3. Data Initiative. Zara Leverages Data Analytics to Understand Consumer Tastes. 2015. https://digital.hbs.edu/platform-digit/submission/zara-leverages-data-analytics-to-understand-consumer-tastes/

7 комментариев

  1. Retail industry is changing rapidly. According to the article ‘Features of CRM in retail’ by Zarina Khasanova, retailers’ main goal now is to cut the gap between offline and online stores to provide omni-channel seamless shopping experience. To achieve this goal, they implement CRM, because the only way to cut the gap is to change the retail strategy to the data-driven one.

    Indeed, the importance of the data-driven marketing strategy in retail can be supported by the facts: according to StoryScience, 60% of GenZ would purchase a product online that was recommended based on a recent purchase history. They want more helpful personalization during their shopping journey.

    Zarina mentioned Zara’s data- driven supply-chain system which changes its in-store assortment in real-time while analyzing consumer preferences. This method can be applied in mass-market retail stores. Compared to that, lux has also its own approach how to benefit from constant consumer data collection, as well. For example, Louis Vuitton creates personalized looks for the consumers based on their previous purchase history and preferences before their next store visit.

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  2. I support the main idea of the article that CRM for retail is crucial to maintain customer loyalty and response. This is a rapidly developing field for which a high-quality dialogue with a client should always be a priority. The CRM system maintains responsible attention to everyone who interacts with the brand in retail. It is very important to track quantitative KPIs so that the CRM system works efficiently. Quantitative metrics in retail include:

    1. Attraction Metrics (Acquisition Rate, Acquisition Cost)
    2. Activity metrics (Average Inter-Purchase Time, Retention and Defection Rate, Average Lifetime Duration, Probability that a client will complete a transaction in the current period)
    3. Value metrics (Size of wallet, Share of Wallet, RFM: Recency, Frequency, Monetary value, Customer Lifetime Value, Customer Equity)
    Thus, using these indicators, you can manage the increase in loyalty and customer marketing.
    ______________________________________________________
    Source: https://procrmmarketing.ru/2019/06/14/crmstrategiya/

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  3. During last several years online shopping grows rapidly in developed and developing countries. the main examples are Amazon, eBay and AliExpress. In Russia, for instance, Ozon and Wildberries. Many people still have not used to online shopping choosing to offline visiting stores. That’s why it is important to provide correct CRM strategies by retailers such as loyalty programmes.

    In this article author describes how retailers may adopt offers (discounts, assortment, loyalties etc.) basing on customers’ activities. In online the reaction to changes may be much quicker than in offline.
    So, in future online shopping will be much ‘closer’ to shoppers due to data collection opportunity that gives a big advantage over classical retailers.

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  4. Thank for the post.
    Nowadays CRM helps gather information about each of your customers, including preferences and demographic data. Companies can use such information to segment market and customize approach to each group of customers.
    For example, if you find you have a large number of young families in a segment, you can create a family-friendly retail environment. If your data shows you have many seniors, you can install ramps for wheelchairs and make your store more easily accessible. The effect of segmentation based on CRM data is to adjust your retail strategies to better suit the customers you have. Also, the effect of segmentation based on CRM data is to adjust your retail strategies to better suit the customers you have.

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  5. In this artical we can see 4 the most common features of CRM in retail. But, in my opinion we lose there one of the most important for modern world. Nowadays there are a lot of technologies for communication of consumer and retail. Making purchasing online people want to ask question and quickly get answer for them, they are also want to share their opinion of the product, give their comments and offers to the company. Now consumers have more instrument then ever before to do it. So, I think that we should add one more features «well developed feedback chanel» to this list. This point enables company to collect consumers data, to build reltionship with a client, to increse their positive attitude or even loyalty, promote your brand and get new fresh ideas for improvement your product.

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  6. Мария Французова

    This post is not quite described the future of CRM rerailing rather described what is already there. In our CRM the data about the rerailing can say that today a large amount of databases serves as a barrier for managers. In the Future, CRM will be the possibility of rapid processing of databases, and provide at the output of the algorithms with which the client makes the decision. The development of artificial intelligence can realize its full potential of a CRM system.

    Sources:
    CRM in Data-Rich Multichannel Retailing Environments: A Review and Future Research Directions
    Journal of Interactive Marketing, Volume 24, Issue 2, May 2010, Pages 121-137
    Peter C. Verhoef, Rajkumar Venkatesan, Leigh McAlister, Edward C. Malthouse, Shankar Ganesan

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  7. Павел Сивов

    The most successful cases in retail for the implementation of CRM marketing within a competent loyalty program can be found among the giants of the level of TESCO, Walmart or Sainsbury’s. They possess sufficient technical capacities, human resources and capital to deploy a complex mechanism for segmenting consumers into thousands of different types. I know, for example, that the analytics team at Sainsbury’s employs more than 40 people. They try to get the most out of the detailed Nectar database, which aggregates information from participants’ loyalty cards, and provide recommendations on the strategy and implementation of targeted promotional campaigns. Offering coupons and other bonuses that are maximally adapted to the needs of a buyer, they significantly reduce unprofitable activities and maximize ROI (return on investment).

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