Multichannel Retail and Customer Retention

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MultichannelRetail and Customer Retention

• Kieron Smith

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Agenda

1. Consistency, Price and Personalisation
2. Personalise or customise
3. Integration, integration, integration
4. Why is the customer never happy?
5. The 360 experience
6. Different channels for different folks
7. Dont be lazy
8. Conclusions

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Consistency

• Within a commodity market, price often becomes
  the determining factor of whether a relationship
  will continue.

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Your price is
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Getting value from contact
Nunes and Kimbal where by personalisation
online consisted of a poor recommendation of a
book, whereas customisation involved asking the
customer to approve any suggested customisations
e.g. we notice you visit this page often, would
you like to have a direct here on the homepage
when you return next?
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IntegrationIntegrationIntegration
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Why the customer is never happy

• The famous 1967 Stanley Milgram study which
  showed there were at most six degrees of
  separation between any two people in America
• Despite the increase in population the number
  has now fallen to 4.6
• Customers bad experiences spread faster than ever
  before

The Economist 21 01 06
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Bombarded, cynical informed
We now have a far more informed but far more
cynical consumer. Siemon Scamell-Katz Average
of 3,500 daily messages 99 have no impact
The Guardian 19 11 05
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Expose your guts

• or the customers will
• Hack-Your-Own
• Our experience of the informed customer on a
  mission

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Different channels still work better for
different purchase experiences
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CRM is not an excuse to be lazy
"The problem is that companies are trying to
avoid the risks of creating new markets in a more
dynamic sense...Rather than really develop
exciting new products and services, and pumping
more resources into radical innovation, there is
an attempt to get the customer excited about a
better quality service, a re-branding initiative,
or a bland brand extension." The Timid
Corporation Benjamin Hunt
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Conclusion

• Leverage internal tools and relationships to
  mitigate commoditisation price effects.
• Customisation that works involves asking the
  customer to approve personalisation
• Integrate promotions, relations EVERYTHING!
• The networked customer is cynical and bombarded
  target well and work with them or they will work
  around you.
• CRM is not an excuse to be lazy