Retail : Prepare your 2020 strategy to develop customer value and ensure growth in 2020

Written by Zoé Baillieux on Mar 3, 2020 1:53:15 PM

In a context where margins are reduced each day a bit more and faced with customers who are less and less reactive and who generate less and less value, retailers have become aware of the need to develop their marketing strategy and rethink their action plans that will allow them to retain their customers and seek maximum value by individually influencing the purchasing behavior of each customer.

This is a major issue because brands today have a large amount of data relating to their customers. A form of capital that they must exploit as quickly as possible if they wish to remain competitive and profitable. Individualized marketing capitalizes on AI to leverage this data and appears to be a crucial growth driver.

Brands must build a solid understanding of each client (What are their needs? Their interests? How to recognize the brands value and value of products?), concretely activated within the campaigns intended for them. (in short, which type of product or theme should be used to reach and accompany each customer so that they are encouraged to continue to consume at a "fair price" while leaving a margin for the retailer).

To assist you in fine-tuning your 2020 strategy, we have summarized in the following article the steps store marketing teams must go through in order to develop customer value and regain sustainable growth.

Build your strategy, by capitalizing on AI to predict potential value to look for within your customer base. 

Create and enrich real customer DNA 

Do you really know your customers ? 

Artificial intelligence represents a unique opportunity for retailers who wish to acquire reliable and operational customer knowledge. 

Demonstrated by the data, the profile of each individual present in the database can be enriched with multiple criteria to ultimately constitute their client DNA.

Socio-demographic profile, purchasing behaviors and motivations, basket composition, product appetency ... these insights help give retailers all the keys to better understand it and to deploy relevant strategies to meet their needs and interests.

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It sheds new light on the classic RFM segmentation methods by being able to draw an accurate portrait of the individuals who make up each segment and to be able to understand why they are part of it and how they got there.


Identify priorities to build the best strategy  

How to build the most sustainable value-generating strategies ? 

The analytical capabilities of artificial intelligence also allow a clear and detailed understanding of the base activity.

By applying transfer matrices, it leverages data to explain customer movements from one segment to another over time. Bringing to light global trends and highlights possible blocking points and major issues that marketers must focus on.

By projecting the result of the hypotheses on the identified issues, strategic priorities that will generate the most value are determined.

Activate your action plan, by launching the most relevant campaigns, at the right times.

On the strength of this this data-driven strategy, the marketer will be able to capitalize on customer knowledge to build a real action plan, that is rich, informed and will be able to imagine the most relevant marketing scenarios to meet these challenges.

To maximize the impact of the campaigns deployed, the marketer must ensure their ability to lead the largest number of its customers and identify which communication pretenses will make them react and offer the products and offers that will help trigger the customer to make a  purchase.

Get volume by increasing contactability with your customers

Do you know the volume of customers you can actually contact and activate?

Despite efforts made by sales teams to enrich the base during customer visits to physical store locations.  The act of contacting customers and customer reactivity have decreased more and more (after emails and/or sms campaigns.)

By finding their customers at the points of contact that punctuate their digital journey, brands are offering themselves new opportunities to communicate with customers in contexts where marketing pressure is less perceived.

Marketers can circumvent the barrier of opt-in email and low contactability on social networks or on search engines by pushing each targeted customer messages on Facebook, Instagram or Google.

Contacting an average of 4 times more people than with a simple email campaign.

Identify the best communication pretenses to make your customers react

Do you know how to really personalize the relationship with your customers? 

To respond to the decline in email campaign responsiveness,  marketers must be able to identify the various communication pretenses relevant to the client for whom it is intended. It is in the identification of these pretenses that lies the concrete activation of customer knowledge constituted with the help of artificial intelligence.

Thanks to qualification models, predictive targeting and product recommendations, artificial intelligence leverage all the data available in the CRM database and navigation behaviors to identify the pretenses and products that will spark interest because they really correspond to the customers’ desires, needs and context of their latest search.

These pretenses can be of a different nature and will have only one goal: to encourage the individual to click and go to the website to plan and prepare a purchase.

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Go further and discover the replay of our webinar ‘Retailers: prepare your 2020 strategy to develop customer value and ensure growth 

Based on many concrete use cases implemented by our client brands such as BUT, Gémo, Bocage, Un Jour Ailleurs, Cache-Cache, Bonobo, Catimini ... David Le Douarin, the co-founder of Advalo, gives more detail about all these issues and gives you all the keys to take full advantage of your data:

  • By building your strategy through a detailed understanding of your base and the identification of priorities and levers to activate

  • By launching personalized campaigns at the right times and on all points of contact that generate the most value for your brand

Voir le replay

 

Topics: Retail, Predictive Marketing, individualized marketing

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