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Those experiences are becoming ever more important

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Unformatted text preview: sites the consumers’ favorites. Those experiences are becoming ever more important for store-based retailers as they seek differentiation from growing Internet competition. While traditional approaches have included exclusive events for particular segments and preferred checkout lines, winners are pushing these levers much further. Especially in upscale categories, retailers are enhancing customers’ in-store experiences with technology-enabled systems that support sales associates in providing the most personalized and informed client service to increase upselling, cross-selling, and visit frequency. For example, one upscale U.S. retailer used deep customer knowledge to change its in-store service to prevent downward migration among high-value customers. To do this, executives evaluated shopping patterns among at-risk customers, then conducted targeted quantitative research to assess each segment’s preferences for a range of service and merchandise benefits. Armed with these insights, the retailer created a proactive attrition-management program to maintain customers’ attention to key departments, including triggered one-to-one contacts with sales associates. These programs achieved sales lifts of 30 to 40 percent within target segments (Exhibit 4). On-line players have even greater opportunities to capture customer value by leveraging new interactive technologies to differentiate customer experience. For example, one leading on-line garden site develops extensive customer profiles based on sign-up survey information and its ability to track on-line browsing and shopping patterns. The site greets all customers personally when they log on to their home page and provides them with tailored content (e.g., product suggestions, events in Smart data, smart decisions, smart profits 13 MCKI29 - Ret. Smart Des.7 8/9/00 11:08 AM Page 14 Exhibit 4 Tightening the Bond with Top Customers: A High-End Retailer's Actions Top priority segments for action: One-on-one contacts triggered by predicted attrition "Professional shopper" High income • Provide individualized full service shopping support Fashion shopper • Meet specific fashion interests In-store events shopper • Recognize status with personalized "Best Customer Club" Across-store shopper Results: Tailored in-store service Sales lifts of 30-40% for top customer segments Special catalogs with merchandise not carried in store Spends over $3000 per year Access to exclusive store events their area, special offers). In addition, the site offers personal services such as on-line gift reminders, places to store shopping notes, and easy to access summaries of all pending orders. Beyond on-site tailoring, the marketer maintains customer contact through ongoing personalized e-mail communications with relevant reasons to visit and purchase more often. These interactive capabilities allow the marketer to achieve superior customer conversion, cross-sell, and retention, positioning it as one of the t...
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