Showing posts with label multi-channel marketing. Show all posts
Showing posts with label multi-channel marketing. Show all posts

Tuesday, May 6, 2014

Retail Marketers: Underestimate the Effects of “Showrooming” and Miss a Significant Opportunity

For marketing professionals, an understanding of the multi-channel shopper is crucial to the way in which consumers are targeted along the path to purchase.  As a graduate student in Northwestern University’s Integrated Marketing Communications (IMC) program specializing in both brand strategy and marketing analytics, I am intrigued by the opportunity that showrooming has presented to retailers and how marketers can incorporate consumer data into their shopper marketing strategies.

In the article “Retailers Are Using Data-Based Approaches to Fight Showrooming, A 'call, click or come over' strategy” (Adweek) Janet Stilson analyzes the effects of technology and the rise of the multi-channel shopper in this opportunistic overview of the retailer battle against showrooming.  Stilson discusses how retailers such as The Home Depot and Anthropologie have embraced multichannel shopping by inviting consumers to shop online and pick-up in-store, or by shipping an item to a consumer’s home for no additional cost.  Stilson also discusses how retailers have begun to use big data to learn more about their customers in-store.  By targeting consumer behavior in-store Stilson argues retailers will be in a better position to connect with the same consumers online.  As such, retailers must embrace multi-channel marketing and ensure a consistent brand experience across all channels.

Image Source: Forbes.com

In the article “'Showrooming' Hits Luxury Fashion, Late to Establish an E-Commerce Presence, Fashion Houses Lose Out as Clients Buy Elsewhere Online” (WSJ) Suzanne Kapner, Manuela Mesco, and Christina Passariello illustrate the effects of showrooming on retailers who have yet to acknowledge this shift in consumer behavior, citing the luxury fashion industry as a specific example.  The luxury fashion industry has been resistant to ecommerce where, they would argue, the brand’s in-store experience cannot be effectively replicated.  The authors point out that retailers with a strong ecommerce offering, such as Barney’s, are proving profitable by engaging with the luxury consumer during this transition.  In an industry where consumers previously used the Internet to research luxury goods before purchasing in-store, luxury fashion brands are having difficulty finding the right formula to bring the brand’s in-store experience online.

After reviewing these articles and drawing on my experiences in the Northwestern IMC program, there are three action items you need to consider addressing the practice of showrooming and its impact on your high value customers.

1)   Keep Brand Essence Consistent.  Maintain a brand presence online that is representative of the brand experience in-store. Understand what it is that drives your consumer in-store and replicate this experience online.
2)   Engage Consumers Across Channels. Consumer shopping habits differ online and in-store.  Customize messaging to communicate differently with your online and in-store customers.  Each channel should offer the consumer a unique experience that corresponds to their different needs.
3)   Facilitate Multi-Channel Shopping. Determine the method of delivery most appropriate for your customer.  Consumers may prefer to have the product shipped from the store to their home or to reserve their items online and have them waiting in-store.

Today, your markets are moving online.  You need to align your brand image, brand essence, and company with the changing habits of the consumer.  Brands that maintain presence both in the physical world and online will be better positioned to adapt alongside the changing habits of the consumer.




Catherine Maki is a Master of Science candidate in Integrated Marketing Communications at Medill Northwestern University specializing in Brand Strategy and Marketing Analytics.  Prior to the program she worked in Media Planning in Toronto, Canada.  Catherine has a passion for uncovering insights from quantitative and qualitative data, and translating data into strategic brand stories. Continue the conversation via Twitter at @CatherineMaki or LinkedIn.

Monday, October 21, 2013

Want to Deepen Your Customer Engagement? Gamification is the key.


According to “The State of Loyalty Programs 2013”, a report from Forrester Research, more than half of companies value their loyalty programs as strategic priorities but the bottom line is that only 16% of their customer bases are motivated by loyalty rewards. For senior executives in the marketing field, the focus of loyalty programs should be shifting from offers and discounts to engagement and emotion. As a graduate student in Northwestern University’s Medill IMC program, I have been exploring the values and strategies of integrating “Gamification” concept into loyalty programs. I found two interesting articles about the “Gamification” concept and made three suggestions for executives who want to gamify your loyalty programs strategically.

Perka post: Five factors that turn your loyalty program into a successful game

Recently, Perka post posted a great article by Zach Grossman: How to “Gamify” Your Customer Loyalty Program. It gave a definition to the “Gamification” concept and also examined the five psychological motivations that made the concept compelling: 1) the social communal factor; 2) the recognition factor; 3) the time factor; 4) the challenge factor; 5) the fun factor. Adding “game mechanics” to the loyalty programs means deeper engagement and measurable changes in customer behavior that impact the bottom line.

Loyalty360TM: Too many loyalty programs look alike and there needs to be differentiation spearheaded by engaging experiences.

Loyalty 360TM recently put up an article: Gamification Isn’t About “Slapping Badges on Everything”, about the inspirational speech given by Kirk, Senior Director Digital Strategy, for Bunchball, at the 6th annual Loyalty Expo. “Gamification” should be a fun thing, Kirk said. He also gave a definition to the economics of fun. According to him, a fun thing should have five key elements: a certain level of difficulty, a certain amount of friends, a certain amount of interesting strangers, a certain amount of reward, and a certain amount of opportunity.

Three Suggestions for Marketing Executives to Gamify Your Loyalty Programs Strategically
 As I digged into these two articles and analyzed other industry “Gamification” practices, I come up with three actionable suggestions that marketing executives need to consider while integrating the concept into your loyalty programs in a strategy way.

1.     It’s not about a game. It’s about engagement.
“Gamification” does not replace your content with a game like Candy Crush. It is about leveraging the psychological motivations of “game mechanics” to engage people with your product in a way that highlights the product’s benefits and adds real value. It just refines the way people interact with your content.

2.     “Gamification” cannot come stand-alone. The “reward” offers should be personalized to reflect customer’s real interest.
To a company, having a loyalty program is just like sitting on the gold line of consumer data. “Reward” offer is not just about transactions and discounts but also presents an opportunity for consumers to experience what they want.

3.     Engagement Measurement and Optimization
The final step is to measure the performance through selected KPIs and identify the areas that could be further refined. Does the game-like interface trigger more responses or viral spread of messages among consumers? Does the personalized offer create real values for the consumers? By answering these questions, you can further maximize your customer engagement.

Engagement is the currency of a digital world. Gamification + loyalty program = maximum engagement. So why still wait? Take actions now and gain an edge over your competitors.


Jessie Guo is a MS candidate in Northwestern’s Integrated Marketing Communications program and anticipates receiving her degree in December 2013. She is passionate about crafting stories based on data analysis and is now seeking job opportunities in marketing analytics and research, especially database marketing/CRM, loyalty marketing, multi-channel marketing/E-commerce and email marketing. Follow her on twitter @jesieguoxiaoxi.