David le Douarin, co-founder of Advalo was a guest of the After Business program which took place last December 3 2019 on BFM Business, the first French channel for continuous economic and financial information.
The observation is clear: Consumers are now over-solicited and no longer respond to the marketing actions that are being carried out by retail chains, which is often perceived as pollutant and intrusive. Marketing departments are bearing witness to this: email opening rates are in decline, as are digital advertising performances.
As David Le Douarin explains, individualized marketing appears to be the essential strategy for moving from mass marketing, based on the promotional time of the brand, to marketing based on the time of each consumer. The detection and qualification of the consumer appetency are two essential techniques, in order to offer the consumer better buying conditions.
through data and customer knowledge, brands with points of sale will be able to detect purchase intention on the internet in order to generate traffic and turnover in stores.
Find the full interview below:
-Welcome back to Business Transformation, today we will talk about individualized marketing.
-Exactly Guillaume, At present consumers are over-solicited, and brands are well aware. Consumers receive intrusive ads and messages which fill their mailboxes to the brim. How, afte rall are brands adapting? We will see how it all falls into place with you, Good evening David Le Douarin, Good evening.
-You are the co-founder and Executive Director at Advalo, an individualized marketing platform. How can we directly speak to consumers and in an individualized way?
-As you said, today, we work mainly with retailers and automotive dealerships. Brands are experiencing significant drops in store traffic, and the reason for this drop in store traffic is due to excessive marketing pressure and perpetual promotions. We as consumers receive hundreds of emails a day. As soon as we go on a website, we see banner ads of what we previously searched for. If we finally end up buying a product in a store, the ads still continue for several weeks. Some time passes and we receive an email saying the product we recently bought is now 20% off.
-We have all experienced this as a consumer, but it is truly something consumers no longer want any part of. Today’s marketing is irritant and intrusive, consumers want nothing to do with it anymore, it doesn’t work. Brands continuing to use this method enter a downward spiral which leads them to continued use of marketing pressure and promotions which no longer function.
-And so the answer to this problem is individualized marketing ?
-Exactly, to be able to move from mass marketing to individualized marketing which will not necessarily be centered on the time or performance of the brand but rather on the time of each consumer.
-The challenge is to be able to know what is the best time to talk to each client, and to detect purchase intent for a product. At what time will I be able to stimulate or generate demand to make the client want to buy in the best possible conditions.
-Which tools are used to detect?
-Today we are able to collect a great deal of data. Brands ask consumers for unanimous consent to collect their checkout and loyalty card data. All behavioral data is collected on the website. We know that consumers prepare their purchases online before going to the store. These behavioral data allow us to know what they are interested in and therefore predict the consumers needs to be able to offer them a web to store purchasing path that is the most relevant and individualized.
-And that’s available for E-commerce retailers and traditional shop owners?
-Absolutely, if we look at the numbers of retail businesses: only 5% of purchases are made online, 95% are made in physical stores. So the key issue still remains to create paths and be able to detect online purchase intent in order to bring consumers to the store.
-For such purposes we use data collected by the brands and AI to identify purchase intent of each consumer and then decide on what to say to justify their point of view and create a relationship that is positive and encourage them to come to the store.
-Is the challenge bringing people back in the store, drive to store?
-Exactly being able to identify moments to which we can talk to them and that will make them want to come to the stores.
-What are the key moments to talk to consumers? How do we know, how do you sense this?
So, the challenge is bringing the brand back to its true role as a merchant. I’m going to make the connection between what is happening in a store. When you enter a store you do not know and start looking at their products, a salesperson comes over and what do you say to them usually?
S: I say that I’m looking.
D: You need time, what we like to call inspiration time. This is a moment that must be respected. The consumer is potentially interested but needs time to think. And then there is the moment of purchase intent, which is to say if the client wants to buy a certain item they are delighted when a salesperson comes to propose a size, a color,or a product, directs them to the changing room and eventually proposes a shirt to try a jacket.
So this all becomes possible through navigation, real-time analysis of consumer website browsing habits, being able to ensure that a client is in their moment of inspiration, if this is the case they shouldn't be bothered. If a client is intending to buy, the consumer is notified about the possibility of reserving their product in the nearest store. By way of refined real time moment detection, we are able to help the retailer find their true role as a merchant. Helping them build an individual relationship that is sustainable and that will generate brand loyalty.
You work with retail brands, you also work within the automotive sector, with brands like SEAT With brands as diverse as Grand Malice, BUT and SEAT, how do you help these brands adapt. Do you have examples ?
We have two types of expertise in the company. Technological expertise, which allows us to use different technologies such as AI. Also business expertise, car experts, retail experts, they pose the right questions concerning the data.
If I buy a car tomorrow, in the near future I won’t have cause to buy one, so what's the point of sending me more ads by mail?
Indeed, the primary issue is to one, understand who the consumers of tomorrow are. In terms of preparation we know that a shopping journey has a duration of 30 to 60 days. Consumers who are still in the inspiration process will receive information about technology, design. Consumers who are still deciding will hear about financing. This information helps brands to understand which consumer it must currently concentrate it’s marketing on. This then allows for recurrence, the business model of the car dealer is their pre-sale margin generating capacity, and therefore we must be able to predict mileage, predict the end of a guarantee, in order to finally be able to recontact the correct consumer and bring them to the dealership at a moment which is most relevant for the consumer.
Thank you David.