Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: https://read.dmtmag.com/i/658171
www.beveragedynamics.com March/April 2016 • Beverage Dynamics 65 "According to Boston Retail Partners, 74% of U.S. retailers say that customer engagement is their number one con- cern," Ezra says. "Today, retailers spend so much time and effort optimizing what offer to make, but it's just as important— arguably more important—to fi gure out how to give out an offer and a reward to maximize engagement." For example, let's say you wanted to give customers $10 off their next pur- chase. That's all your marketing budget will allow you to give. That coupon or reward will have drastically different re- demption rates depending on how you distribute it. Now imagine you're a cus- tomer walking into two scenarios: In the fi rst scenario, an unenthusiastic cashier hands you a receipt and mum- bles something about a $10 coupon at the bottom of your receipt. Some people will look at it and use it, while some will shove it in their purse or wallet only to forget about it later, and most will throw it away without a glance. "In the second scenario, the cus- tomer gets to, say, play a game in the store or on their phone to win the $10 reward," Ezra says. "This is one of the things my team often creates for retail- ers, because the research and our own experience have repeatedly found that people respond much better to things they earn in a memorable way rather than things that are given for free. By creating a gamifi cation-driven engage- ment experience out of giving the cou- pon away, customers are more likely to remember it and more likely to value it. Ultimately, we'll see higher redemption rates and ROI from this identical $10 offer versus the one from the unenthu- siastic cashier." IN-STORE ENGAGEMENT One of the most effective ways to engage in-store staff is to connect the store's point-of-sale system to the custom- er-marketing platform. This reveals who the customer is, if they're a loyalty mem- ber, what level they are at, what their favorite products are and more. Store associates can use this wealth of data to engage the customer and enhance his experience in the store, like letting him DIGITAL ENGAGEMENT Today's digital environment creates multiple touch points to engage and connect with customers. Social media, for example, takes business awareness beyond just the storefront and exposes it to a wider audience. It also allows retailers to keep a close eye on universal customer trends and spe- cific shopping behaviors, which can be incorporated into overall digital marketing strategies. According to Lisotta, social media creates opportunities for customers to build their presence and promote your brand. "Whether it's sharing information or having customers share their interest in your brand, it is important to remain present on a digital platform," Lisotta says. "Customer expect constant communication with their brands despite location. Being not only available, but interesting via social media is important in retaining their loyalty." Thanks to social media platforms such as Facebook and Instagram, advertisers can now target more accurately than ever and are able to reach potential customers who haven't even stepped in the store. "With Facebook, once a retailer knows who its typical customer is, advertising the platform enables them to find more people like that customer, and reach them with a campaign that will pique their interest," Croswell says. Social media networks also enable retailers to have real-time conversations with customers who prefer using social platforms to communicate experiences and ask questions immediately in lieu of an inquiry email or contact form. Additionally, social media provides an opportunity for retailers to create a free flow of information to alert fans or potential fans about tastings, new products and more. "Retailers can take advantage of the fact that mobile has increasingly played an important role in purchasing behavior," Herian says. Customers can now easily turn to their phones or tablets to receive or look up various promotions or compare competitors' prices on the spot while in-store. Retailers can anticipate this and incorporate their business' most interesting traits, such as the abil- ity to match prices, promote sales or communicate products that are out of stock, and incorporate them into digital marketing efforts. Harrington says the key with digital is to get consistent with your frequency, message and channel and to focus on conveying engagements that provide value to the recipient, like best-sell- ing microbrews, five beers you haven't tried (but should) or best winter ales. It doesn't have to always be about a discount or coupon. "Effective digital engagements vary based on the business and customers," Harrington says. "While email often works for some brands, it may not for others. It's critical for the brand to talk to customers to understand how the channels they engage and to test elements of the engagement— messages, offers, channels, etc. There's no silver bullet, but the retailers that listen, learn and get consistent are typically the most successful with digital engagement." Retailers also should take advantage of everything that Facebook, Twitter, Instagram and other social platforms have to offer in order to effectively engage with and create meaningful bonds with their shoppers. Russell Zack, senior vice president of products and solutions at HelloWorld says a mobile app is an ideal way for a regular customer to track previous purchases, check balances on rewards, or look up specials and recommended brands to try based on previous purchases. "In-app messaging is especially effective for personalized offers to the consumer who is using the app, as it has the immediacy and context of time and place," Zack says. "Email is great to use to notify customers of promotions and offers that are going on for a specific timeframe. Social media can be used to find out about new available products, to power promotions via cooperation with different brands and find out how others are consuming and interacting with the product."