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blog
The grocer’s philosophy when it comes to building loyalty is to encourage one more shopping trip or one more product purchase. Retailers and grocers use loyalty programmes to collect data from previous purchases, which is used to personalise offers for relevant products and drive footfall back to store. Whilst this technique has its successes, it’s difficult relying on the past to predict the future. It’s important to evolve beyond predicting, and actually engage with consumers, offering something truly compelling to change shopper behaviour. The best way to encourage engagement is through the smartphone. Thanks to increasingly sophisticated search engines, we can easily search for any product and instantly receive directions to the nearest store. However, once inside the store entrance, all mobile enablement ends and the consumer must either hunt for their product themselves or ask a customer advisor for help. Continue reading Tim’s article in The Grocer here, where he anticipates future scenarios of voice technology and smartphone enablement entering the food and beverage markets, allowing retailers to engage with customer’s movements, rather than simply predict them.
Whether Amazon, Uber or Alibaba, there's a lot written about these digital-only players and the impact they're having on the traditional high-street and more traditional businesses. But maybe they're missing the real challenge - customers just don't want what you sell. Or more specifically, how you sell it. You can argue about tax advantages, skirting existing regulations or the perceived benefit of not being tied to an existing estate of bricks and mortar stores. However, the real advantage these digital businesses have is simply a focus on the customer rather than the product.
Retailers understand that loyalty programs are crucial to their success, not only in terms of generating incremental purchases but for better understanding their customer behaviors, preferences and motivations. But what makes a loyalty program effective? Are there key pillars retailers must embrace to get loyalty right? And what happens when consumers – and the retail landscape itself – starts to evolve?
Marks & Spencer has just announced an exclusive joint venture UK partnership with startup accelerator Founders Factory to develop emerging retail technologies. The news follows barely a month after forging a partnership with Microsoft to integrate AI technologies into its customer experience, stores and wider operations, as highlighted by Eagle Eye CEO Tim Mason last month.