Do you have your Christmas 2018 Strategy in place?

As we sit in a baking hot office in the middle of another heat wave, we long for cold winter nights, wrapped up by the fire, sipping mulled wine and snuggling under a thick duvet. You might think it’s too soon to start thinking about Christmas 2018, but it’s not, especially if you’re in retail. If you haven’t already it’s time to get your festive hat on………. or maybe a nice cool straw hat for the time being.

 

So what can the marketing teams be planning now, here are some tips to start future proofing your success for A/W 18:

Get your trend on

Look at the fashion, interior and Christmas trends predicted for Autumn/Winter 2018. Start pre-categorising your A/W product range into these trends. Re-write product & page copy ready to upload to dedicated pages, when the time comes, to maximise on natural search results.

Experiment with some of your paid search spend – what trend related search terms could you appropriately target to pull further traffic into your product pages?

Ensure your social team are incorporating relevant trend hashtags into their posts about your products, you could inspire engagement from a new audience if you’re visible.

Include nods to the trends that sit best with your products with any seasonal photography, to ensure your imagery stays fresh and ahead of the curve

Try product placement or developing a relationship with key influencers within each trend niche – featuring in their marketing and media not only positions you well within a trend, but is worth PR riches.

The top fashion trends as cited at Paris Fashion Week in March are:

1. Head to toe animal print
2. Leather dresses
3. Cape crusaders
4. Silver, holographic and Sci-Fi
5. Tweed
6. The 70’s – think shearling & crochet
7. Pleats
8. Silk
9. Obvious logo/brand placement
10. Layering coats

Interior design colour trends are:

Colour trends

1. Navy Blue
2. Autumn Maple
3. Neutral Gray
4. Toast
5. Scarlet Red
6. Tawny Port
7. Golden Lime
8. Shaded Spruce
9. Light Blue

Christmas 2018 trends as shown at Christmas World are:

Vivid heritage
A mixture of traditional handicraft skills from different cultures combined with strong colours similar to Golden Lime, Scarlet Red and Shaded Spruce. Think embroidered patterns inspired by folklore and ethnic tradition.

Eclectic Gathering
This trend includes reflective, shiny and sparkling materials such as crystal, foil, mirrored glass and mother of pearl incorporated with lively details, over the top shapes and patterns. Colour palette combines pink, lemon, mandarin, azure, rosé, black and gold.

Balanced Sobriety
A mixture of matt brass, light coloured wood and shiny black surfaces with a Japanese influence. Colours range from pure white to rose gold, a shiny but cool grey, a deep red and black.

Splendid History
Think historical treasures. Lace, feathers, semi-precious stones, pearls and marble combined with dark, saturated colours with accents of aquamarine and gold.

Plan ahead for big shopping days

Don’t get stung by Black Friday or Cyber Monday but embrace them and create a plan that works with your business. Also look back at last year’s data and see what your best shopping days were and use them as additional opportunities.

You don’t have to discount all your products to keep your head above the water but create exciting deals for your existing customer base, that could also entice new customers. This could include exclusive offers and enhanced loyalty offers.

Think cleverly around your content strategy on all your platforms. Create a content plan specifically for the run up to and including big shopping days which includes engaging content in partnership with key influencers.

For smaller brands, Black Friday or Cyber Monday can actually be an opportunity to catch the eyes of new customers. Yes they’re hunting for the best deal but remember they are also looking for a great experience so make sure that you have all your ducks in a row and the experience from pre purchase through to post purchase is seamless. A great returns policy goes a long way!

Not forgetting the importance of resource. Ensure you have enough staff clued up and your website and team can handle the high volume of customers and sales. Your customer service team need to be super charged and understand all the many things that could go wrong so they are fully prepared to diffuse any situation that might arise.

Connect with your customer

Get the customer involved by sending out a small survey to see what they want around Christmas, exclusive offers? Exclusive content? Tips and how to guides etc. This sort of priceless insight can help to shape your content plan as well as boosting your customer engagement by making an emotional connection.

Christmas can be a joyful experience for most but also very stressful for those that have big families entertaining large groups or those that just dislike Christmas! Think about how you can alleviate some of that stress for your customers. Try and tap into your customers’ needs and help solve their stressful shopping problems. This sort of insight can be gained by using the survey. Content can then be created around the specific pain points and drip fed across all your channels in the run up to Christmas.

If you have a physical presence, connect online with offline by offering unique services instore to gain footfall like a free gift wrapping service, instore product demonstrations or personal shopping services. Try and make the shopping experience as enjoyable as possible as it can become quite the chore.

Listen to your customer

Did you get any bad reviews, feedback or complaints last year? Take a look back at what issues your customers voiced and make sure everything is fixed for 2018. This could be delivery problems, product information, site speed, checkout issues, the list can go on but ensure you have all of them ironed out and content updated so that your customers don’t face any of the same issues.

The key thing to remember is that a retailer’s main focus around Christmas is to inspire customers and take the stress out of the largest shopping event of the year which will lead to more revenue. Try and make it fun and interesting but most of all be prepared!

If you want any help or advice in putting together your 2018 Christmas marketing strategy give us a shout on enquiries@leapfrogg.co.uk.

Onwards and Upwards

And just like that January was over, we’re all eating pancakes and love is in the air!

It’s safe to say that it’s been a bit doom and gloom in the world of retail last month. Looking back at 2017 in a haze as many retailers (but not all!) report a disappointing end to the year.

 

It’s now February so let’s not let all that news bring us down! There’s also a great deal to look forward to as we continue to march into 2018 with arms wide open and prove that retail can overcome the many obstacles it faced in 2017.

Here’s what we’re excited about:

Artificial Intelligence for the marketeer

Proper Sci fi geekery alert! Yes we’re at that point in time, artificial intelligence is now becoming the norm and something retailers are going to have to open their minds to if they want to be competitive.

It’s a bit mind blowing really, there’s now too much data for the human brain to handle on a daily basis which means we’ve needed to bring in the big guns and ask for a little help from the robots.
Using technology such as machine learning and deep learning methods can be hugely beneficial to brands, it’s basically adding brain power to your business that doesn’t sleep.

Machine learning and deep learning methods can assist data analysts to help recommend optimisations to content to improve organic search as well as detecting patterns in real-time to give marketeers an advantage at understanding customers, competitors, or market changes – turning insights into action!

If you want to read more about AI we recommend the following:

“artificial-intelligence-and-machine-learning-what-are-the-opportunities-for-search-marketers”– Search Engine Watch
“innovation-how-can-brands-keep-up-with-unpredictable-audiences” – The Drum

Understanding the customer even MORE

It’s no secret that retailers, especially if they haven’t already, need to get to grips with their customer data to stay ahead of the curve. Many retailers out there still don’t understand their customer’s behavioural patterns, needs and desires and this needs to change.

It’s time to dig deep into the data and updates in Google Analytics are allowing marketer’s to do this on a daily basis. The standard report function now enables more insight into user-level behaviour within sessions, User Explorer has been re-vamped to include lifetime metrics and dimensions for individual users, marketers can create audiences and publish them for analysis within the platform which enables comparison between different audiences over a period of time and finally conversion probability – Google can now identify recent site visitors with the highest probability of a future conversion by analysing historical data and automatically identifying the patterns between variables within sets of high-value customer. We’re in analytics heaven!

#BFF

We read a great article from Econsultancy last month explaining how the ‘working backwards method is key to superior customer experience’. We’ve been thinking this for a long time now and working with our clients to better understand their customer profiles before implementing any kind of digital strategy. Addressing their customers’ needs/desires and problems using the insight provided by the data.

In 2018 brands should be able to predict their customer’s behaviour even before they can, getting to know them inside and out, essentially becoming their #BFF.

GDPR

Ok…this one isn’t as exciting BUT very important and ties in nicely with the necessity of customer data. It’s the talk of the town and we all need to get prepared for 25th May 2018.

The regulation is there to protect EU citizens from privacy and data breaches in an increasingly data-driven world. It isn’t new but it’s the latest evolution of regulations on data privacy and protection so if your business is already compliant with the Data Protection Act you should be most of the way there.

We will be dedicating one of our next posts to GDPR, so watch this space……

Let’s not put our heads in the sand after a tricky year, let’s keep them high and rise to the challenges that 2018 will bring.

Remember, the customer is always right!

Customer vs Content – Who is King?

In a world where marketers are being told day in, day out that “Content is King” we have noticed at Leapfrogg that many businesses have taken this mantra too far and are producing content for contents sake.

Our thoughts seem to be shared by many other marketers shown by the number of similar comments in this brilliant SEO Mythbusting piece we have come across this week.

In this article a number of digital marketing experts have commented that too many times they see businesses churning out a huge amount of un-engaging or useful content because they have been told that if you create lots of content, people will link to and visit your site, which will in turn increase rankings on Google.

This just isn’t true. Yes having interesting, useful and optimised content on your site is very important and forms a large foundation of Googles ranking algorithm BUT there is no point in creating that content if it isn’t going to engage with your customers and if no-one is going to know that is it there.

Likewise content isn’t “just” a load of blog posts housed in a particular area on your site. Content is the entire experience you give your customers and potential customers both on and off your website.

As we have been preaching for years (see our guide to “Customer First Digital Marketing”) putting your customer at the heart of everything you do in your business is the path to success.
Here are our 3 top tips for retailers to follow to make sure the content they are creating will achieve results.

1. Make sure you know who you are creating the content for? Have you really taken time to profile the type of people who might read this content and how useful and engaging it will be to them? What benefits will they get from consuming that content? Will it drive them to take a particular action? Would they want to share it? Remember its quality over quantity. A couple of bits of content that really engage and generate buzz is far better than dozens of pieces of static content that no-one interacts with.

2. Don’t just stick to blog posts. There are a huge number of different types of content that can be used as part of an effective engagement strategy across many different channels. Think Instastories, Interactive guides, Video, Pinterest boards, Facebook apps, Podcasts etc. Every content workshop we run with clients includes up to 30 different types of content! Again think of the type of content that works best for your brand AND your customers.

3. Amplify your content once you have created it. Don’t just create your content, upload it and keep your fingers crossed it works! Make sure you proactively promote it! Share it via email, social, influencers, link to it from other content. Better still get influencers to co-create content with you and share it with their community.

The above tips are only the tip of the iceberg when it comes to effective customer engagement that will also increase online visibility. However, remembering them when it comes to planning your content will start you off in the right direction.

Always remember content isn’t king, your customers are!! Make content for them, not the search engines.

For further advice on effective content & customer engagement please don’t hesitate to get in touch on 01273 322830 or email enquiries@leapfrogg.co.uk

3 Christmas marketing tips you still have time to action

Well folks now that Halloween is over all thoughts are now firmly with the approaching Christmas sales season. Most retailers are now heading into their busiest time of year whether that is pre-Christmas gift buying or post-Christmas sales.

 

 

We always recommend that the Christmas marketing wheels start turning in July but for those retailers who have left it late (I hope not many of you!!) there are still things you can action now to maximise Christmas sales over the coming weeks.

Here are our 3 top tips that can be easily implemented now.

1.Christmas gift curation

If you sell products that are suitable as a gift then tell your customers about it! Create a separate category on your site labelled Christmas and put in it a selection of products you think are most likely to sell at Christmas or you want to particularly push. Use your paid search and clear links on the home page to drive customers to it that may be looking for gifts. In our time pressured society many consumers want you to make recommendations of great gifts to buy and why, so make it easy for them. Create sub categories “gifts for him” “gifts for her” “gifts under £20” etc. and include in your product descriptions why those products make great gifts and how quickly you can deliver them.

2.Talk to your customers about giving your products as gifts

I know it sounds obvious but you have a whole load of customers who have bought from you before that may not be thinking of you when it comes to buying presents for others. Make sure as part of your ongoing email marketing program that you are sending emails with content related specifically to Christmas gifting, not just Christmas offers (hopefully linking through to the Christmas section on your site).

3.Don’t forget key seasonal dates

Yes of course everyone knows about Black Friday, Cyber Monday etc. but just make sure you have your ducks in a row on what you are going to offer and when. Amazon have moved the goal posts again only this week by announcing 52 days of Black Friday sales with discounts galore up until 22nd Dec. They have even created a Black Friday section of the site. Whatever your take on promotional activity around these dates make sure you know what you are offering, for how long and how you are going to promote that activity across all of your channels. One tip is make sure you up weight your paid budgets for key sellers and key discounted products as well as brand around those key events to make sure you don’t miss out on traffic.

This post is short and sharp but is probably all you have time to digest in this busy season. Combine these quick tips with those from Lucy and Gwen in our previous Christmas marketing posts and you should be in a much stronger position this festive season not only to gain new customers but maximise their value into 2017.

Boost your festive ROI
Using the Christmas rush to build 2017 sales

Making Christmas 2016 your best ever

We regret to inform you that we can no longer go ahead with the event scheduled on 19th October due to the RMT rail strikes. We hope to host another event soon, so please watch this space. Instead we shall be creating a series of blog posts aimed at giving top tips to independent retailers on how they can boost the festive trading period and make 2016 the best year ever!

 

The Leapfrogg team are continuing our crusade to help boutique and independent retailers learn the lessons of larger retailers and compete successfully online.

Christmas is an extremely important time of the year for all retailers so we are launching the first in a series of events for independent retailers to help you maximise your online results this festive season.

A three hour event to inspire, motivate and give you the tools to make this Christmas trading period – your best ever
19th October 2016
4.30 – 8.00pm The Froggbox, Central Brighton

The first part of the event will be an interactive workshop covering the following:

  • Learn from retailers who have been there and done it at Christmas. What worked, what didn’t. What they will be doing this year.
  • Delivering immediate, quick revenue wins. Turning the dial up on the activity you are doing already to boost ROI.
  • Increasing sales throughout the Christmas trading period. Promotional tips, navigating the big sales days, delivering the right customer experience.
  • Using the Christmas rush to build a database for customer engagement into 2017. Use a successful period of customer acquisition to boost sales for the rest of the year.
  • Networking with retailers facing the same challenges as you

After our interactive workshop on how to make the most of your Christmas sales, enjoy a glass of pre-festive bubbles while meeting the most influential bloggers in the South East who are keen to promote your products this season.

Our blogger showcase enables you to display either incoming Christmas stock, or existing ranges in an informal, relaxed setting with local, high profile bloggers looking for seasonal, gift guides and product review content.

£49.50 + VAT per retailer for workshop and blogger showcase space
The fee admits 2 attendees from each retailer

Go to www.leapfroggchristmasevent.eventbrite.co.uk to book your place now!

Why smaller retailers are perfectly placed to put the customer first

In the age of customer-first marketing – one might think that bigger retailers are at a clear advantage due to higher budgets, resource, and senior thinking.

Yes, of course, the larger retailers are able to throw money behind building customer experience teams and employing people to solely focus on uniting the business in putting the customer first. However, in our experience of working with all sizes of retailers – we actually think smaller retailers have the edge here.

In this post, I will explore three reasons why I think boutique retailers will find it easier to put the customer first:

Fewer customers

Most retailers would not view it as a benefit to having fewer customers than another, however, one of the main challenges larger retailers face in putting their customer first is having a huge number of customers that they have to understand and cater for.

To truly place the customer at the heart of their business, retailers must know who they are as people, how they shop with them now, how they shop with their competitors and how they can best engage with them in the future. This is a lot of data and insight to gather, analyse and take action from.

The fewer customers a retailer has, the less of a job it is to collect and organise data about them. The less time it will take to gather insight about them and what they want – the more simple it is to get inside the mind of the people who buy their products!

Flexibility

Smaller retailers have less complex business structures and processes that allow them to make change quicker.

We have worked with larger retailers who want to make change within their business to put more of a focus on the customer, but it requires huge resource and management to make those changes and put new processes in place.

We move in an extremely fast paced world and those retailers who can adapt and change first will give their customers the experience they want first.

Customer closeness

Smaller retailers are closer to their customers already and that’s a fact. In a small retail team, many will have direct contact with customers and therefore already have those direct relationships through which to get to know them better.

There is no excuse for boutique retailers not to be working hard to put their customers’ experience as a priority within their business.

Those that are not putting the customer first will be left behind by the competition who are already tailoring the experience they offer to create growth.

If you are a smaller or more boutique retailer the biggest challenge you will likely be facing is the fact that you are so busy running the day to day of your operations that taking time out to develop insight, analyse data and think strategically can be very hard to come by.

Luckily Leapfrogg are now able to help! We are now able to focus our experience with working with over 100 retailers on helping smaller and boutique retailers achieve their strategic goals. Our senior consultants act as board level advisors and in-house change makers to enable business owners or managers to take the time out to think strategically, start to work in an agile manner and take action to focus on the customer first.

Speak to us now about how we can help you start making a change in your business.

Leapfrogg shifts into strategic retail consultancy

I’m delighted to announce some exciting changes here at Leapfrogg. We’ve evolved into a full strategic retail consultancy and merged with the well respected digital agency, Cobb Digital.

Whilst Leapfrogg’s core has always been in digital marketing for the premium and luxury retail sector, recent years have seen us take on a more strategic and consultative role to cater to the ever-changing needs of our clients. More and more of our clients, such as Rockett St George and Tocris, have been leaning on Leapfrogg’s years’ of retail expertise for customer insight and retail strategy to help guide them on their online journey and further support their in-house digital teams.

In order to accelerate our niche consultancy offering further, we have merged with our friends at Cobb Digital. Our team of highly skilled digital marketing consultants and portfolio of wonderful clients will continue to carry out and receive the fantastic quality and level of service they are used to as part of a wider exciting team led by James Dempster MD of Cobb Digital. The delivery team will now be based at Cobb Digital’s brand new offices in New England House and our retail consultancy arm will remain based at Leapfrogg HQ.

The merger of our delivery teams has fast-tracked our ability to not only deliver a fantastic multi-channel offer to the combined portfolio of existing clients but also accelerate the growth of our Insight, Strategy and Consultancy team here at Leapfrogg.

Leapfrogg and Cobb Digital will both remain separate companies, but we will work closely together as a result of this deal. The merger means myself and other senior consultants at Leapfrogg are now able to work more flexibly with retailers of all shapes and sizes and focus our time and years of expertise on delivering game-changing customer insight, retail, and digital strategy.  We will be delivering ongoing board level advice and mentoring to help retailers across the board build their business for growth and develop a market-beating proposition and experience for their customers.

Exciting times to come!

Social selling: understanding the purchase cycle

Social media is a major part of the customer journey. A growing number of consumers are using social media to search for, discover, purchase and recommend products. This offers retailers a great opportunity to build a relationship with their customers and connect with them throughout their purchase cycle. But from our experience, few retailers are making the most of this opportunity.

 

The options

There is an almost dizzying array of ways that brands can sell direct to consumers through social platforms. For some time now, Facebook have been including a “Shop Now” call to action in adverts, which encourages users to click through directly to the brand’s website, and this feature has now been made available on Instagram as well. Facebook also offers the opportunity to embed a “Facebook Store” within your brand’s Facebook Page, to allow users to browse, like, share and initiate purchase within the platform:

Untitled design (2)

For the time being, these stores are integrated with your current ecommerce platform and transactions are processed through your existing website. However, Facebook is currently testing functionality that would allow users to pay and complete their purchase entirely within Facebook through a third party payment solution.

Facebook has also launched a suite of ad tools aimed at driving and measuring footfall to physical stores, as well as click-to-call ads to drive direct sales and enquiries. A number of brands have jumped on Facebook’s chatbot functionality to provide 24/7 customer service and process sales:

1800 Flowers Live chat

Combined with improvements to the Facebook pixel, allowing you to track website behaviour that is influenced by your Facebook ads, and new audience targeting options for dynamic product ads, Facebook is very much leading the way in social commerce opportunities.

However, Pinterest is still one of the most powerful forces in social commerce. 93% of Pinners are using the platform to plan purchases, and on average they spend 70% more than other online shoppers. While not yet available in the UK, Buyable Pins, which will let users purchase a product directly from a Pin that inspires them, are something that all online retailers should be watching closely.

Even Snapchat is getting in on the act, having recently launched Shoppable Snaps – ads that allow users to swipe down for purchase options. Snapchat has struggled to attract the hordes of advertisers that Facebook has bagged, given its expensive pricing structure, basic targeting options and limited analytics, but they are hoping that a partnership with Nielsen and renewed trust in the platform will turn that around. Another channel that has struggled to effectively monetise its platform, Twitter is testing its own “Buy Now” button for ads.

The purchase cycle

It’s not just the moment of purchase itself that is influenced by social media. Consumers involve social media at every point in their purchase cycle:

journey

According to research, 43% of UK consumers currently use social media to research products before making a purchase, and this number is growing. Many consumers now search on social media platforms without consulting a search engine at all. Making sure that your social channels are optimised for discovery and engagement will only continue to become more important.

Once a customer finds your brand on social media, the experience they encounter could have a major impact on their desire to purchase from you. Social media users expect brands to be extremely responsive on these platforms: 42% expect a response within an hour, and 32% expect a response within 30 minutes. Not providing distinctive, interactive content and communicating often with your followers could lead to customers feeling negative towards your brand – and 95% of customers say they are inclined to share negative brand experiences on social channels, which could impact your reputation amongst other potential customers.

When consumers are making their final decision about which brand to purchase from, 80% are influenced by reviews on social media platforms. Enabling and encouraging customers to leave reviews, and sharing customer feedback, can be incredibly valuable to your business – especially as research suggests even negative reviews have a more positive impact on customers than no reviews at all.

Once a customer has made a purchase, allowing them to connect their social accounts for a more personalised experience and communicating with them on social platforms not only gives them a better customer experience and therefore makes it more likely they will shop with you again, but also encourages them to share their experience for new researchers to see.

The halo effect

Social commerce doesn’t only drive social sales. When we launched a Facebook shop for one of our clients, we were pleased to see a 74% increase in revenue. However, we also saw a 160% increase in direct conversions and 133% increase in organic search conversions. We know that customers mostly use social media on their mobiles, but prefer to complete purchases, especially high-end purchases, on desktop. Customers discover the brand through the Facebook Shop or adverts on mobile, then return directly to the website or through organic search later on desktop. Social media advertising also creates “warm leads” – those who have seen an ad for a brand on a social platform are twice as likely to click on a PPC ad. True enough, PPC conversions for our client increased by 56% following our Facebook activity.

Think integrated

Customers are likely to come into contact with your brand on a multitude of channels before they make a purchase decision – the more seamless and integrated you can make their experience, the more likely they will purchase, continue to purchase, and influence their networks to do the same. Your social media channels aren’t just a place for you to advertise, they are an extension of your physical and online stores – a place where customers will browse, ask questions, make complaints, ask other customers’ opinions, and purchase. Rather than simply using social channels to promote your business, think about how you can use those channels to offer the best possible service to your customers. Then you know they’ll be back.

To find out how Leapfrogg can help you develop a social commerce and customer service strategy, please do get in touch.

 

The Insight Edit: How do consumers shop for food and drink online?

Here at Leapfrogg, we have a panel of over 1000 retail consumers that we engage with on a regular basis to help us understand customer needs and expectations from the brands and retailers they buy from.

Every month, we question them on a range of areas from buying behaviours and brand opinion, to emotional purchase triggers and their recent shopping experiences.

The Insight Edit is our weekly bite size edit of the insight we gain from our panel in our search to truly understand the mind of the premium customer.

Recently, we have seen a real emergence of great online food and drink brands and retailers, from niche food retailers such as Planet Organic to the booming sector of food subscription services such as Gousto.

To further understand online food & drink shoppers’ evolving behaviours and attitudes, we asked our Panel whether they purchased food and drink items online than and their motivations for doing so.

food and drink stats
63% of the panel stated they had bought food or drink online (excluding supermarket groceries). Although this figure may appear to be behind other sectors, it’s still a large percentage of consumers and it shows growth opportunities for the sector.

We then asked those who had bought food and drink online what types of retailers they had bought from:

40% had bought from speciality food websites (e.g. health foods, wine retailers)

27% had bought from an individual food/drink brand online (e.g. Nespresso, Twinnings)

24% had bought from food subscription sites (Abel & Cole, Graze)

We then asked them why…

10% purchase food and drink online because they receive a wider choice of products

31% purchase food and drink online because it’s more convenient

12.9% purchase food and drink products they cannot purchase elsewhere

11% purchase food and drink online because the prices are cheaper

With such a low percentage of our panel being driven by price, brands and retailers selling food and drink online do not need to be price driven to drive sales as long as they are offering seamless and easy path to purchase. Successful online food and drink brands will be those with a clear and engaging brand and a range of products that are not easily available in stores.

Read more about the food and drink retailers who are engaging successfully with their customers in our latest engagement report which looks into the growing food and drink subscription sector.

The level of customer intelligence within premium retail

Back in February, we launched the Customer Intelligence Index in partnership with our friends at rais.

With such a high level of competition amongst brands to deliver the right experience for their customers, we developed the index to help retailers understand their levels of customer intelligence against their competitors across the following areas:

  • Data: The ability to capture, manage and manipulate multiple forms of data about their customers
  • Knowledge: The ability to use data combined with customer research to develop a deep level of insight and understanding about their customers, who they are and their needs and expectations from the brands they shop with
  • Business readiness: Their internal structure, skill and resource to use customer data, insight and knowledge to make impactful changes across the business

Since the launch, more than 75 retailers have completed the index which has yielded some interesting results.

Picture3

As you can see from the above graph so far, we have discovered the following trends:

Knowledge: Behavioural

Most retailers believe they understand how their customers are behaving when they shop online – from the products and offers that work for them to the channels and touchpoints that they shop through. This means that they are able to use their analytics to assess what is currently delivering good results and adjust marketing accordingly. This is a very tactical level of customer knowledge.

Knowledge: Holistic & qualitative

Approximately, half of the retailers believe they have a good understanding of the types of people who buy their products, what is important to them and why they buy the products they sell.

The lowest level of customer knowledge was found to be in the area of advanced and predictive knowledge. This means that although retailers believe they understand how their customers are currently shopping with them, they don’t have a deep enough understanding of them to predict how they might shop with them in the future. This means that they don’t have a view of the lifetime value of their customers, they don’t feel confident in suggesting products to them and are not sure how much they should, therefore, be spending to acquire customers through specific channels.

This would suggest that much of the scoring around holistic customer insight is based on assumption rather than deep knowledge.

This is further supported by the fact that across the board, retailers scored themselves the lowest across all areas of customer data.

Data: Manipulation

This is the lowest scoring area of intelligence. This means that retailers believe they can capture data and in most cases store and manage it, but lack the ability to analyse it effectively to turn it into useful insight.

A similar story is seen within the area of business readiness. Whilst retailers are scoring themselves ‘average’ for strategic readiness and their in-house skills, they fare worst in their level of in-house process that enables them to use data and insight effectively within the business.

It’s only by internal change led from within the business will fix many of these lowest scoring areas. Overall there is a great deal of work across all areas of customer intelligence to be done across retail.

So how do different sizes of business compare against each other?

Graph 2

As one might expect, the larger retailers with a turnover of more than £50,000,000 have the highest levels of customer intelligence in all areas bar one – customer data capture. We suspect, they have such a complex and wide customer base that it is harder for them to ensure they are capturing all customer data effectively.

The size of the retailer with the lowest scores across the board is those with a turnover of between £1,000,000 and £5,000,000. These companies need to view a larger customer base, but due to size are limited by structure and resource on how to effectively capture and develop insight on those customers.

These are companies most likely to be in phases of high growth where the need to acquire customers is overriding the ability to understand them and ensure they are being delivered the right experience.

So what does the picture look like if we compare sectors within retail?

Picture5

Currently, there is no real difference of note within the sectors bar the fact that the food and drink sector have some catching up to do.

This is likely to be because, compared to other sectors, food and drink retailers were late to take advantage of online opportunities as their customers still purchased in-store, so they still have a large pool of offline customers that they know little about. Their online and data teams are therefore smaller in comparison and they are less likely to be able to capture and manipulate data effectively. This presents a golden opportunity for the first in this sector to really grow their customer intelligence and deliver a relevant and personalised experience to their customers.

If you would like more information on any of our findings so far or need help improving the level of customer intelligence within your organisation please do contact us at Leapfrogg. You can see how you fare yourself and take The Customer Intelligence Index here.