Information‐hungry, price‐savvy and mobile‐empowered, today’s marketers are being forced to adapt to a new type of consumer category. Unlike traditional multichannel shoppers, this consumer uses all channels – store, catalogue, call centre, web and mobile – simultaneously. Say hello to the omnichannel consumer.
Driven by the ubiquity of social, mobile and traditional technology, the omnichannel consumer has the ability browse anywhere, buy anywhere, and receive products in the manner and time of their choosing. They expect a one-screen, one-store experience that is consistent across all retail channels and touchpoints. In other words, omnichannel is about giving the customer what they want, when they want it, how they want it.
For today’s marketer this presents a unique challenge. Merchandise and promotions can no longer be channel specific, but instead must be consistent across all touchpoints. To ensure relevancy, these communications must also be custom-made to the individual – determined by purchase patterns, either with the brand or its competitors, social network affinities, website visits, loyalty programmes, and other data sources in real-time.
Marketers are subsequently being asked to gather, analyse, interpret and act upon millions of data strands of customer interaction from countless touchpoints, channels and data sources – essentially cracking the DNA code of each individual customer.
Those marketers able to translate analysis into actionable insights will have an opportunity to connect with their customers in a seamless and relevant manner that frees the consumer from the feeling of being sold to. This will in turn help build long term relationships that extend beyond a single transaction and create bonds between a single customer and the brand that generate long-term value for both parties.
Imagine if a hotel could leverage consumer data not only from both their own databases but also partner airlines and retailers to formulate their engagement strategy. Hilton Hotels does just that. Utilising sophisticated modelling to identify small subsets of consumers, they offer a tailored and consistent experience to their customers across touchpoints. The result? Hilton HHonors, a global loyalty programme, has over 25 million members and the group has achieved $8.5bn in incremental revenue over 12 years.
As technologies continue to evolve – becoming faster, more versatile and more cost-effective than ever before – big data’s role will continue to grow and consumers and retailers will begin interacting across an even wider array of channels. Those companies that invest in understanding their customers today will benefit from improved conversion rates and marketing ROI, outpacing their customers, and ultimately establishing long-term customer loyalty.
Sana Dubarry is director of strategic consulting & advanced analytics, EMEA, at Epsilon International
Charlie says: “Wise words from Sana – the issue is, with the current squeeze on budgets, will companies be committed enough to invest heavily in customer marketing?”