CRM Delights the. Armchair Shopper
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- Juniper Wood
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1 CRM Delights the Armchair Shopper
2 Contents Contents Introduction...3 CRM - New Concepts in Retail...4 The Power of Mobile CRM...5 Integrated Data Delivering the New Retail Experience...6 Conclusion...7 About UXC Eclipse...8
3 Introduction Will you satisfy the educated, armchair shopper in-store? Online shopping hasn t killed the retail store, but it has changed it forever. Today s savvy customer is spoiled in terms of price, personalisation and overall shopping experience, and competitive retailers have to be ready to meet their customers expectations. Retailers must understand their customer and be in tune with their wants and needs. To encourage customers to buy, they need to offer a consistent user experience across all channels. In this new age of armchair competitive shopping, by the time they walk into a store, customers are likely to have extensively researched a product before they decide to buy. This puts an enormous amount of pressure on retailers to keep their sales staff as up-to-date on the latest products, prices and market trends as their well-informed customers. Retailers must understand their customers and be in tune with their wants and needs. To encourage customers to buy, they need to offer a consistent user experience across all channels. Customers also know companies gather extensive information about them. In return, they expect to receive personalised offers that are tailored to their needs and preferences. Many retailers have already waited too long to implement new customer relationship management (CRM) technology that will assist them in gathering and analysing customer data across the omnichannel. These retailers are making the best of disconnected systems where inventory, online, in-store and customer data are all kept in their own silos and unable to connect in real-time. The more time retailers take to upgrade to an integrated, single-data retail model, the further behind they will be in meeting their customers expectation. The key is to have the right CRM technology in place to deliver a seamless customer experience. This whitepaper explores the future of CRM within the retail technology context and outlines some of the solutions to consider within today s retail transformation. CRM Delights the Armchair Shopper 3
4 CRM - New Concepts in Retail When it comes to parting with their cash, most customers (61%) want to interact with a person in a store. Regardless of the popularity of online shopping, customers are still choosing to buy in-store but their expectations have changed and the role of the sales associate has also changed to that of facilitator rather than cashier. There are two emerging concepts for in-store retail: clienteling and self-service. Clienteling Clienteling sees the sales person combine extensive product knowledge with deep customer engagement. This can be delivered through mobile point of sale (POS) solutions that offer detailed product information as well as customer data (such as purchase history, loyalty data, delivery information and so on that is collected and managed within a CRM system). With POS data linked to the CRM in-store, the sales person has a full picture of the customer s preferences (based on the data and profiling held within the CRM) and can then tailor the shopping experience to suit their customer instore, in real-time. 61% of customers want to interact with a person in a store. Self-Service Customers have already demonstrated a willingness to self-serve instore via self-service checkouts and kiosks. For these technologies to be useful and valid, they must be intuitive and easy to use and they must also connect with the customer s own personal data. This means having access to CRM data via a self-service function, to ensure the customer receives the same quality of shopping experience even if they choose not to engage with a sales person. CRM Delights the Armchair Shopper 4
5 The Power of Mobile CRM Traditionally, customers would explore a store, choose items to buy, then proceed to a dedicated check-out area to complete their purchase. By combining mobile POS technology with inventory and product data, and associated customer data from the CRM, the sales person can deliver value-added service to the fitting room door. For a sales person, a mobile device featuring CRM data and social CRM lets them engage more deeply with the customer, increase the chances of making a sale and add value to the sales experience. This includes the ability to look up customer information and, based on purchase behaviour, suggest complementary items, offer discounts and provide purchasing and delivery options according to their preferences. Using this type of technology, the sales associate can focus on imparting information that is more likely to close the sale or increase the value of the sale, rather than asking the customer for information. For example, a customer may be browsing a certain section of a wine shop. Based on their location in the store and previous interactions, the sales representative can offer information such as bulk discounts, ability to home-deliver, suggestions for new brands to try from similar regions, etc. For example: A customer tries on clothes in the fitting room, they can hand their preferred items directly to the sales person. That sales person can then use the integrated mobile device to do any number of things, such as: check past preferences and offer suggestions based on in-store stock availability find complementary items in-store and offer them to the customer provide additional information about the provenance of the items offer advice on how to wear certain pieces, accompanied by images of models or celebrities demonstrating the look as connected to the latest social media ring up the sale and apply any discounts. CRM Delights the Armchair Shopper 5
6 Integrated Data Delivering the New Retail Experience This type of fulfilling customer engagement on the spot in-stores is only possible if the retail enterprise resource planning (ERP) and mobile POS solution is integrated with an effective customer relationship management (CRM) system. The CRM system gathers the customer information and can analyse it to generate specific marketing opportunities such as promotions. Customers know very well that companies gather their information this way, so they expect to be offered targeted campaigns. At the same time, the sales person should be aware of the campaigns and offers that have been sent to the customer and reference these while making the sale. These campaigns are even more effective when the sales associate becomes an active part of the marketing process. So instead of ing an event invitation from a centralised marketing contact, which can be perceived as impersonal, the company can enlist the sales associate to contact the customer to personally invite them. Because there is already a relationship in place, the invitation is more likely to be accepted. The key is to interact with the customer in the way that customer prefers, seamlessly and intuitively. If the customer prefers self-service, then that system should be easy to use. If they prefer to interact with a sales person then they should receive a high quality service engagement. By combining CRM with ERP, sales people gain visibility into critical data such as transactional history, preferences, and website activity including items in the wish list or abandoned shopping carts as well as whether items are in stock, estimated delivery times, and fulfilment options. By training the sales team on how to analyse and use this information, retailers can improve the customer experience and increase sales. Today s retailers need to control the customer experience. Now more than ever, the retail supply chain needs to be smart and integrated. From paperless warehouses to mobile POS solutions, an integrated solution will give retailers access to critical data that can provide trend analysis by mapping stock and buying trends from the warehouse to the point of sale. Retailers who have access to this data will be able to predict buying cycles, allowing stock to be available just in time to meet customer demand. CRM Delights the Armchair Shopper 6
7 Conclusion With so many technology options it can be daunting for retailers to understand exactly how to leverage the right solutions for their needs. Retailers should start by understanding their customers; their needs and their preferences. Any technology implementation should be driven by the customer and by their unique data. For many in the industry, mobile POS is less likely to replace traditional sales methods and more likely to enhance them by providing an additional in-store sales tool. Retailers who choose to leverage their CRM data and use it in conjunction with their ERP (inventory and supply chain data) alongside the new mobile POS technologies will be the most successful in winning the in-store customer. These customers will see the true benefit of the omni-channel experience delivered in-store. Retailers should start by understanding their customers; their needs and their preferences. Any technology implementation should be driven by the customer and by their unique data. Raising the bar in terms of customer expectation can be costly for many retailers. It involves a strong commitment and investment in continuous improvement as well as the latest technology. These investments will yield maximised returns as retailers are better able to understand their customers, deliver on their brand promises, and ultimately gain loyal customers in-store and online - resulting in increased sales and higher profit margins. CRM Delights the Armchair Shopper 7
8 About UXC Eclipse UXC Eclipse is a leading provider of intelligent business solutions to the enterprise and midmarkets. A member of the Microsoft Dynamics Inner Circle (top 1 per cent of global resellers) since 2002, UXC Eclipse is a member of the Microsoft Certified Partner Network: Gold Certified for ERP and CRM. Offering a range of solutions from leading software vendors, UXC Eclipse ensures that customers get the right solution tailored to their needs. The company also delivers industry-specific (vertical) solutions built on the Microsoft platform to meet ERP and CRM requirements. UXC Eclipse s offerings include applications business consulting and project management, applications development, corporate performance management, and business process management. Australia info@uxceclipse.com.au New Zealand info@uxceclipse.co.nz United States info@uxceclipse.com Canada info@uxceclipse.com CRM Delights the Armchair Shopper 8
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