The Internet has evolved at full speed in recent years. In my opinion, one of the great pillars of this improvement, and especially of digital channels, has been personalization.
We have seen how:
Digital advertising has adapted by personalizing messages based on behavior.
The sales processes have been optimized and adapted to the different user segments .
Marketing automation has enabled increasingly effective purchase funnels, etc.
We are on track (at least that seems the way we are following), to make the neighborhood store experience scalable. In other words, to make our clients feel that they are unique to us.
Those of us who are dedicated to digital marketing have fallen into a kind of digital blindness (at least partial). And I would say something more extreme, we delude ourselves. We have been looking for any positive data for many years to justify its importance. It is already large enough to stop.
The spectacular growth of our world of ones and zeros has made us think that digital occupied everything, and that the future is totally digital Ivory-Coast Phone Number List
. We read a lot of articles talking about the disappearance of this and that, because it is going to be replaced by something digital, articles about the spectacular figures of X companies, etc.
And they really are spectacular. It is normal for us to be dazzled. If, for example, we see the data from Benedict Evans’ last presentation in Davos (January 2020), the growth of ecommerce in the United States leaves no doubt about it.
ecommerce in USA 2000 2019 Benedict Evans
The problem is that the data can be focused in a way that shows the side that suits us best.
But if we put this data in context, we see how this growth represents 15% of total retail. It is a very important percentage, but it is not even close to the impression that everything digital leaves.
ecommerce vs all retail in USA 2000 2019 Benedict EvansThe article I wrote about another presentation by the same author goes along the same lines: the internet has only just begun . Internet, its growth and possibilities are impressive. But let’s not fool ourselves into thinking that the world is digital.
The evolution of the Internet has taken us from end to end. From thinking that everything was going to be digital, and after the burst of the digital bubble, to avoiding everything that came from the Internet. Now we are trying to find the balance.
We have a wide margin for improvement, but the great challenge is in the offline world. The challenge is to find ways in which the internet adds value to traditional processes (in the article that I just linked you have several examples of what I am talking about).
The next challenge: onmichannel customization
The challenge in the evolution of digital personalization that I mentioned at the beginning is to make the leap to the offline world. It is in this leap that we are going to see even bigger changes.
Let’s start with the data to lay the foundation:
In retail, more than 80% of sales take place at physical points of sale.
Reduces acquisition costs by 50%.
Increase sales by 5-15%.
Increase your marketing investment efficiency by 10-30%.
Data source : Matt Ariker, Jason Heller, Alejandro Diaz, and Jesko Perrey, “How marketers can personalize at scale,” Harvard Business Review, November 23, 2015.
The improvement of the personalization of the experience has been a constant on the Internet, but we have not yet taken that step in the offline world.
As the Mckinsey image below shows, the differences between the two worlds are obvious.
Mckinsey digital vs offline personalizationThe barriers to making these changes are still high. Beyond cultural constraints (differences between management teams, tradition vs. “novelty”, etc.), the biggest obstacles are in:
The idea that it is difficult to amortize the technological investment: the reality is that you can start doing things without making large investments, and with an immediate return measurement.
This customization involves modifying the purchase processes of our customers, since it involves adding digital contact points (mobile application, giving information to store personnel (coupons), etc.). And this also involves training store personnel.
And all this means making organizational and cultural changes to make this transformation possible.
How to start omnichannel customization
1. Define the omnichannel personalization strategy
The first thing is to have 100% clear and defined in detail the customer’s customer journey . Understanding how it behaves and the objectives by stage of the business are the basis for defining the mechanisms to achieve them.
What problem do we have in our stores? The initial answer is usually always the same: “we need to sell more.” But after this answer come other questions that make us go deeper: what is the biggest problem? influx? Quality of the visit? (degree of interest) conversion to sale? Very long sales process? Difficulty conveying the value proposition ?
Based on the answers to these questions (each one tells us about a different phase of the customer journey ), we can consider what are the most appropriate actions to solve them.
Stock options to bring traffic to retail stores:
Local digital campaigns :
Local campaigns on the Google display network and Google Ads.
Drive to store campaigns on Facebook .
Lean on Google My Business cards to derive store traffic, calls, visits to the web, etc.
Geofencing: sending notifications based on entry into the store’s zone of influence.
Measurement of the effectiveness of our digital campaigns, by the number of visits whose mobile DE Phone Number contains our cookie (the process is more complex on a technical level, but this is the simple explanation!).
Notifications via mobile application.
Define digital lead generation processes, to which we send to stores to finalize the purchase: product reservation, coupons, digital configuration + offline purchase and test, product test in store …
Outdoor advertising campaigns in billboards, etc. to drive traffic to a specific store.
2. Define the contact points that we will use in the onmichannel customization
Depending on what we have defined, we must ground the strategy using the five contact points where on and off converge:
Mckinsey touchpoints where digital and offline convergeWith these approaches and what is defined in our strategy, we are prepared to define an omnichannel customer journey in which we are going to combine our objectives with the mixed points of contact that we have seen.
From this point comes another of the key moments: implementation.
From my point of view what we have to do is:
Define the metrics and measurement tools that allow us to optimize processes and measure the return from the first moment.
Training for all teams involved so that they understand the importance and role of each of the contact points.
Make a deployment in stages to optimize the process and verify that it is truly omnichannel. All this assembly is of no use to us if we are not able to define what is defined on paper to the real experience of the client in terms of information, treatment and processes.