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OMNICHANNEL OMNICHANNEL Follow the Customer. How to build a connected and customer-centric platform for your omnichannel experience.

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Page 1: How to build a connected and customer-centric platform for ...Deliver a connected experience across physical stores and digital channels. Chapter 4: Next-gen Customer Loyalty ... The

OMNICHANNELOMNICHANNEL

Follow the Customer.How to build a connected and customer-centric platform for your omnichannel experience.

Page 2: How to build a connected and customer-centric platform for ...Deliver a connected experience across physical stores and digital channels. Chapter 4: Next-gen Customer Loyalty ... The

2FOLLOW THE CUSTOMER

Table of Contents

Introduction to Omnichannel

Chapter 1: Product Information ManagementImprove conversions with product information tailored for every channel.

Chapter 2: Personalized Email MarketingA purposeful, personalized approach can double email revenue.

Chapter 3: A Bridge Between Offline and OnlineDeliver a connected experience across physical stores and digital channels.

Chapter 4: Next-gen Customer LoyaltyA modern approach to customer loyalty is proven to drive revenue.

Chapter 5: Flexible PaymentsFlexible payment options deliver more sales.

Chapter 6: Delivery Experience ManagementKeep your customers happy, even when things go wrong.

3

8

14

18

24

28

34.

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A great omnichannel experience starts and ends with the customer. It learns from customers and understands what they want. It has a consistent look, feel, and language everywhere they shop. It’s also profitable. Omnichannel consumers who shop through four or more channels spend nine percent more than those who use only one.1

But a great omnichannel experience isn’t easy to create. Today’s proliferation of touchpoints makes managing customer relationships more complex. To get it right, you have to work with multiple advanced

technologies and figure out how to put them together. It can take a long time—and it can be very expensive. But there is another way.

Using Magento Commerce as a foundation, you can quickly build a connected omnichannel experience for all your customers. This eBook introduces the essential features that power this experience and describes what they can do for you and your customers.

1 HBR, 2017.

than those who use only one.1

Omnichannel consumers who shop through four

or more channels spend

3

MORE9%

FOLLOW THE CUSTOMER | INTRODUCTION TO OMNICHANNEL

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4FOLLOW THE CUSTOMER | INTRODUCTION TO OMNICHANNEL

WHAT A GREAT OMNICHANNEL EXPERIENCE LOOKS LIKE

An omnichannel experience follows your customers wherever they go. It doesn’t feel like a series of stops but rather like a continuous journey. It’s personal but not intrusive, and it fits into customers’ lives.

Mobile Customers use your mobile app to engage with your brand whenever and wherever works best for them.

Contextually relevant Customers easily find what they need to know, whether they’re shopping online or in your store.

Personalized Customers get only the emails and offers they really want to receive.

Transparent Customers can always see what’s happening with their orders, shipments, and returns.

Responsive Issues get fixed fast, whether customers are reporting a damaged product or making a report.

Flexible No matter where they shop, customers can choose between many options for payment, shipping, and delivery.

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The omnichannel journey is complex and nonlinear. Customers may shop online and then visit your store. They may buy online, pick up their order at the store, and buy more products when they check out. Or they may follow your brand on social media but not buy anything at all. Capturing all of this behavioral data is a challenge—and analyzing it is another.

Additionally, omnichannel commerce is typically powered by a collection of standalone platforms that don’t talk to each other. This makes it very easy

for the customer experience to become fragmented. Retail sales reps may not know what customers are doing online. Email marketers may not see customer data. And everyone may be frustrated by inconsistent product descriptions and a lack of real-time delivery data.

In other words, a great omnichannel experience usually means a large-scale systems integration project. Unless you start with Magento.

Store

Buy

Old customer journey Omnichannel customer journey: more profitable—and more work

Need

Need

StoreAmazonWebsiteEmailSocial media

Google

Buy online Buy in store

5FOLLOW THE CUSTOMER | INTRODUCTION TO OMNICHANNEL

Why delivering a great omnichannel experience is so hard.

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Magento Commerce connects all the channels that make up your customer experience. It automates commerce workflows, captures real-time customer data, and works seamlessly with technologies built by our partners.

6FOLLOW THE CUSTOMER | INTRODUCTION TO OMNICHANNEL

Magento can connect all your channels for one cohesive experience.

Cross-channel experience management You deliver a more cohesive customer experience by bridging the gap between your digital and physical stores. This means that retail sales reps can provide more personalized service, and customers can use their mobile apps to get help in store or take advantage of in-store returns. Learn more >

Product information management Instead of multiple spreadsheets or small data marts, you have one source of product data for all your touchpoints. Customers get the right information no matter where they shop. Learn more >

Delivery experience management You and your customers can see what’s happening right now with shipments and deliveries. And you can fix delivery problems fast. Learn more >

Personalized email marketing Instead of email blasts, you can send precision communications based on customer interests and actions. Personalized email can convert twice as well as “normal” email. Learn more >

One-to-one loyalty incentives You can create targeted offers based on each individual customer’s likes and dislikes. Learn more >

Flexible payments Flexible payment schedules give customers extra time to pay. And when customers pay on their terms, they usually buy more. Learn more >

Intelligent fulfillment Magento Order Management automates fulfillment across channels for faster delivery and lower costs. Learn more >

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Reduce time to market. You can cut systems selection and integration time in half.

Dramatically improve all aspects of the customer experience.

Every phase of the customer experience, from research through delivery, gets better and more personalized.

Grow revenues and margins. A personalized customer experience boosts revenues

and improves retention while reducing customer acquisition costs.

Improve efficiency and reduce costs. Automation spanning the entire

customer journey makes your commerce operation more efficient and less expensive to run.

7FOLLOW THE CUSTOMER | INTRODUCTION TO OMNICHANNEL

How you win.

The benefits of using Magento Commerce with partner technologies.

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The omnichannel commerce experience begins and ends with the product experience. It’s why your customers buy—and why they keep coming back. The product information in your catalogs, stores, and website is how customers find and learn about your products. And the richer and more accurate it is, the more likely your customers are to buy and be satisfied.

How can you make sure your product information is just right for every channel you sell in? Product information management (PIM) solutions create standardized and enriched product data and contextualize it for all your physical, digital, and cross-border channels.

Product information management solutions create standardized and enriched product data to keep your customers satisfied and more likely to buy.

8FOLLOW THE CUSTOMER | PRODUCT INFORMATION MANAGEMENT

Essential omnichannel feature: product information managementImprove conversions with product information tailored for every channel.

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2 ReadyCloud, 2018. 3 Narvar Consumer Report, June 2017. 4 ReadyCloud, 2018.

of customers won’t buy from a retailer again after an inconvenient product return experience.4

of eCommerce returns are for products that didn’t match the description.2

If your customer doesn’t understand what your product does or how it’s used when they buy it, they’re much more likely to return it. And returns are bad for business. More than 20 percent of eCommerce returns can be traced to products that didn’t match the description.2 And up to 33 percent of shoppers have kept unwanted items because returns are a hassle.3

Even worse, 80 percent of customers won’t buy from a retailer again after an inconvenient product return experience.4 While an easy return policy can mitigate the damage, it’s better to prevent returns in the first place with complete and accurate product information.

FOLLOW THE CUSTOMER | PRODUCT INFORMATION MANAGEMENT 9

Poor and incomplete product information leads to costly returns.

MORE THAN

20% 80%

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10FOLLOW THE CUSTOMER | PRODUCT INFORMATION MANAGEMENT

With Magento and Akeneo, you keep all your product information in one place and get the right information to the right customers. Magento lets you create beautiful online product displays. And Akeneo supplies the product information, which can be tailored for different channels, locales, and storefronts.

With Akeneo, you have one master product catalog for your marketing and eCommerce teams to work with. Using the flexibility and efficiency of Akeneo, marketers can quickly structure, enrich, and provide the appropriate product information and images in context for eCommerce, paper catalogs, points of sale, mobile commerce, marketplaces, and more.

Magento & Akeneo: A great product experience delivered by more efficient operating costs.

Keep all your product information in one place and get the right information—tailored for different channels, locales, and storefronts—to the right customers.

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The better your product information, the more often your customers will buy. PIM can easily increase conversion rates by 400 percent.5

When customers get accurate information about products, returns go way down. PIM can cut returns by 40 percent or more.5

Without PIM, your team may spend hours each week maintaining multiple copies of the same product data. A single product catalog is a lot more efficient. It can boost team productivity by 50 percent or more.5

Improve conversion rates.

Minimize returns.

Increase efficiency and productivity.

Magento & Akeneo: How you win.

CONVERSION RATES

400%PRODUCTIVITY

50%RETURNS

40%

Learn more about product information management >

5 Akeneo customer statistics.

FOLLOW THE CUSTOMER | PRODUCT INFORMATION MANAGEMENT 11

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Putting their best foot forward with product information management (PIM)Europe’s largest luxury shoe retailer is providing better product information for more channels in a lot less time.

Company: Kurt Geiger

Industry: Luxury shoe retailer

Omnichannel solutions: Magento Commerce, Akeneo PIM

Read the full-length case study >

THE CHALLENGE: 700,000 SKUs, 20 partners, and one internal PIMKurt Geiger relied on an internal PIM system to get product information and updates to 21 web stores and roughly 20 retail partners each day. But it wasn’t a perfect fit. Challenges included:

• They couldn’t make mass updates when product names, descriptions, or other information changed.

• Seasonal changes to product information were hard for them to manage, because they had to make updates one product at a time.

• Adding new channels and product lines to their internal system was time-consuming and required custom development.

THE SOLUTION: Magento Commerce and Akeneo PIMKurt Geiger chose the Akeneo PIM platform and integrated it with their Magento Commerce platform. Now they can provide enriched product information to all their retail partners in much less time.

Kurt Geiger

Customer Spotlight

12FOLLOW THE CUSTOMER | PRODUCT INFORMATION MANAGEMENT

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Business benefits: more, better, fasterWith Magento Commerce and Akeneo PIM, Kurt Geiger can deliver consistent and accurate product information across all their channels. They also benefit from:

• Increased productivity— Because Akeneo is easier to use and allows “mass” updates, it’s faster and simpler to make changes affecting hundreds of products, and to find and enrich all kinds of product information.

• Faster growth—Akeneo’s ease of use and integration with Magento Commerce make adding new products and new sales channels a lot faster. For example, when Kurt Geiger started designing and selling children’s shoes, a large volume of new products, SKUs, and related product data had to be added quickly.

• Better management of seasonal changes—As a luxury retailer, Kurt Geiger has seasonal product launches and recurring events like Black Friday and Christmas. During these periods, product information changes a lot in a short window of time. With Akeneo PIM, they can make these changes faster and more accurately across channels.

Customer Spotlight

“We share our product data with about 20 partners on a daily basis, and we wanted something efficient and easy to use. We put all of our available product data into Akeneo, enriched it, and were able to share more product data with our partners. Our productivity has increased dramatically: tasks that used to take a day to complete are now reduced to a couple of hours.”Read the full story >

Kurt Geiger (continued)

Kurt Geiger

13FOLLOW THE CUSTOMER | PRODUCT INFORMATION MANAGEMENT

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Email is a powerful way to reach your customers. By 2022, it will be used by approximately 20 percent more of the population than social media.2 It identifies customers far more accurately than cookies.2 And it’s a proven and trusted way to let customers know about the products, content, and offers they care most about, whether they prefer to shop online or in store.

But the legacy technology many retailers use for email today is flawed. As a result, customers often receive irrelevant communications that can feel like spam, causing retailers to lose billions of dollars each year. A single unsubscribe can cost your business $40. With an email list of 100,000 and an average unsubscribe rate of 0.3 percent per email, you could easily lose $2 million annually.2

MORE20%

14FOLLOW THE CUSTOMER | PERSONALIZED EMAIL MARKETING

Essential omnichannel feature: personalized email marketingA purposeful, personalized approach can double email revenue. customers will use email

than social media.2

By 2022,

2 Bluecore.

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3 Boston Consulting Group, 2017. 4 Accenture and Retail Industry Leaders Association, 2018. 5 HubSpot, 2017.

$800 BILLIONover the next 5 years.3

Companies that do personalization best will gain

202%

better than generic CTAs.5

Personalized CTAs convert

63% of customers say they want more

personalized recommendations.4

15FOLLOW THE CUSTOMER | PERSONALIZED EMAIL MARKETING

Personalized email works. So why aren’t all emails personalized?

Over the next five years, the 15 percent of companies that do personalization best will steal $800 billion of revenue from the rest of the market.3 Why? Because it’s what customers want. 63 percent of customers say they want more personalized recommendations.4 And personalized calls to action convert 202 percent better than generic CTAs.5

So why isn’t everybody doing it? While most retailers want to create more highly personalized emails, they don’t have the right technology. Most legacy email service providers (ESPs) have software that’s more

than a decade old and is focused primarily on volume. This causes a variety of issues, including marketers not having bandwidth to focus on personalization, an inability to scale, and a reliance on other teams, such as IT, to execute campaigns. This in turn leads to customer fatigue, increased unsubscribe rates, and most devastatingly, a decrease in revenue.

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16FOLLOW THE CUSTOMER | PERSONALIZED EMAIL MARKETING

With Magento and Bluecore, you can make scalable personalized email campaigns a reality for your business. Magento captures real-time customer and behavioral data, and Bluecore can immediately harness that data to deliver engaging, contextually relevant communications.

Bluecore tracks customer engagement with products to understand their affinities, behavioral patterns, and intent. It gives you the tools you need to create dynamic, high-performing email campaigns that drive more revenue with less time and resources.

Magento captures real-time customer data, and Bluecore immediately harnesses that data to deliver engaging, contextually relevant communications.

Magento & Bluecore: Make the switch to personalized emails.

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Revenue per email increases 140 percent over static batch emails that are generic and only minimally personalized.6

Models such as Bluecore’s “next predicted purchase” and “predictive replenishment” can increase second-purchase rates by 37 percent—and triple traditional replenishment program conversion rates.6

Omnichannel shoppers spend nearly 500 percent more than single-channel shoppers. Personalized emails that factor in omnichannel behavior can help you bring online shoppers in store and engage with in-store shoppers online.

Sell more.

Increase repeat purchases.

Encourage omnichannel shopping.

Magento & Bluecore: How you win.

REVENUE

140%SPENDING

500%2ND-PURCHASE RATES

37%

Learn more about personalized email marketing >

6 Bluecore.

17FOLLOW THE CUSTOMER | PERSONALIZED EMAIL MARKETING

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of consumers say they shop both online and in store.2

73%

Omnichannel isn’t optional anymore. 73 percent of consumers say they shop both online and in store.2 And almost all consumers want a consistent experience that unites all of the brand’s channels. They want a personalized experience both online and in the store. They want mobile apps that help them shop when,

where, and how they want. And they want the option to pick up and return products in stores or get at-home delivery, whichever is most convenient.

But a cohesive retail experience isn’t easy to create. According to Periscope Research, 78 percent of retailers admit they can’t do it.3

18FOLLOW THE CUSTOMER | A BRIDGE BETWEEN OFFLINE AND ONLINE

Essential omnichannel feature: a bridge between offline and onlineDeliver a connected experience across physical stores and digital channels.

2 Harvard Business Review, 2017. 3 Periscope Research, 2016.

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Because today’s retail experience is powered by fragmented technologies, it is difficult for retailers to get a single, unified view of their customers and their preferences.

19FOLLOW THE CUSTOMER | A BRIDGE BETWEEN OFFLINE AND ONLINE

Today’s retail experience is powered by fragmented technologies. This makes it difficult for retailers to get a single, unified view of their customers and their preferences. Retail sales reps have neither visibility into customers’ online purchase history nor the tools needed to accept returns from customers who purchased online. In these cases, customers can end up leaving the store frustrated with your brand.

Even the online experience suffers from fragmentation. Web stores that look and behave great on the desktop may not work so well with your mobile browser. Or brands may offer a mobile app that doesn’t let consumers contact a live sales rep when they’re in your store.

The challenges of connecting the omnichannel experience.

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With Magento and Shopgate, you can deliver a consistent experience across all of your digital channels and your physical locations.

Shopgate is designed to integrate into your existing Magento account for a superior customer experience.

Go mobile.Engage consumers and lift customer loyalty with a mobile app that offers personalized, direct communication through push notifications and streamlined payment options.

Empower your sales reps.Equip store associates to deliver a personalized in-store customer experience that increases upsell and cross-sell opportunities.

Turn stores into fulfillment centers.Improve delivery by offering ship-from-store and buy-online/pick-up-in-store options.

20FOLLOW THE CUSTOMER | A BRIDGE BETWEEN OFFLINE AND ONLINE

Magento & Shopgate: Connected commerce that makes consumers want to buy.

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A better omnichannel experience means your customers will buy more wherever they shop. In fact, 49 percent of consumers say they purchase additional items when picking up an item they bought online.4

Remove fulfillment errors with associate notifications every time an order is received and a real- time view into order status. Notify consumers via email, SMS, or push notification when their order is ready for pickup, and get their order in their hands faster.

When retail sales reps can see customer profiles and send in-app messages and texts to customers browsing in store, they can deliver ultra-personalized service.

Increase sales and average order values.

Improve fulfillment, remove errors.

Deliver an amazing in-store experience.

Magento & Shopgate: How you win.

Learn more about creating a connected omnichannel experience >

4 Bell and Howell, 2017.

49% buy extra itemsin store while

picking up an online purchase.4

21FOLLOW THE CUSTOMER | A BRIDGE BETWEEN OFFLINE AND ONLINE

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Company: City Gear

Industry: Urban footwear and apparel retailer

Claim to fame: City Gear is known for high-profile shoe releases from brands like Nike, Air Jordan, and Adidas.

Omnichannel solutions: Magento Commerce, Shopgate

Learn more >

THE CHALLENGE: Lots of mobile traffic, lagging conversionsCity Gear is a true omnichannel retailer, offering online commerce and 130 brick-and-mortar stores. But one of their biggest challenges was mastering mobile channel. After the launch of their mobile website, they noticed lots of new mobile traffic—but it wasn’t converting to sales. This was because their new responsive site:

• Felt like a “lite” version of the desktop site

• Couldn’t access native phone capabilities like push notifications

• Didn’t offer a truly unique branded experience

THE SOLUTION: Magento Commerce and ShopgateMobile apps that can access native smartphone features like push notifications let brands deliver a more personal and relevant experience than responsive websites. Because so many of their customers rely on their smartphones, City Gear decided to make the switch. They chose Shopgate to help them build a mobile app and integrate it with their Magento Commerce.

Customer Spotlight

Turning mobile traffic into mobile salesA popular urban footwear and apparel retailer transformed its mobile shopping experience— and its mobile sales.

City Gear

22FOLLOW THE CUSTOMER | A BRIDGE BETWEEN OFFLINE AND ONLINE

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“With a dedicated app, we're able to create and promote a space free from issues lost in translation between desktop and mobile browsers. Furthermore, an app creates a new environment for the user to feel submerged in and catered to that mobile sites rarely can inspire.”–Charles Gray, Digital Marketing Manager

of City Gear’s mobile app users have enabled push notifications.

City Gear (continued)

City GearBusiness benefits: a great mobile experience = more mobile conversionsWith Magento Commerce and their Shopgate mobile app, City Gear can deliver a great experience to their customer base of college students, athletes, and even parents who are always on the go. Business benefits include:

• Better seasonal sales with “push” notifications—With their mobile app, City Gear can send push notifications to customers when sales are happening in their neighborhood. These push notifications support both online and in-store sales.

• Higher mobile conversions— After switching from a responsive web site to a mobile app, City Gear was able to run mobile ad campaigns with conversion rates of up to 62 percent.

• A more connected experience—The mobile app helps customers find products and local stores. It also includes a dedicated culture page, shoe release calendar, and brand inspiration page. As a result of this connected experience, customers buy more overall, no matter where and how they shop.

Customer Spotlight

2323

79%

FOLLOW THE CUSTOMER | A BRIDGE BETWEEN OFFLINE AND ONLINE

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Competitive brands are embracing the next generation of intelligent loyalty platforms to increase the lifetime value of each customer relationship.

The purpose of loyalty programs is to change customer behavior. Ideally, they should prompt customers to shop more often, buy higher-margin products, or try something new. But most loyalty programs don’t work. They rely on outdated or limited data sets, which makes it almost impossible to predict which incentives will inspire change.

Some omnichannel retailers are trying a new approach. A growing number of competitive brands have embraced the next generation of intelligent loyalty platforms. They use real-time data to understand individual customer behaviors and develop ultra-personalized rewards strategies that increase the lifetime value of each customer relationship.

24FOLLOW THE CUSTOMER | NEXT-GEN CUSTOMER LOYALTY

Essential omnichannel feature: next-gen customer loyaltyThis modern approach to customer loyalty is proven to drive revenue.

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Many loyalty programs group customers based on demographic information and generalized personas. Marketers must make big assumptions about what the customers in each segment want and need. And they’re often wrong.

Market segmentation isn’t enough.

25

In the early days of customer loyalty programs, all customers would get the same reward for making repeat purchases. But this approach didn’t motivate customers to change their behavior. Merchants actually lost money by rewarding customers for buying products they would have purchased anyway.

Now, many loyalty programs group customers into broad market segments based on demographic information and generalized personas. This approach is better than one-size-fits-all efforts, but it’s still flawed.

Marketers must make big assumptions about what the customers in each segment want and need, usually with no way to measure or validate those assumptions. And they’re often wrong.

For example, even when two customers share similar demographic traits and recent purchase history, they don’t necessarily expect or want the same things from a brand. One shopper might spend more with VIP access to a new line of products, while the other might be motivated by an in-store weekday discount.

FOLLOW THE CUSTOMER | NEXT-GEN CUSTOMER LOYALTY

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26

To increase the lifetime value (LTV) of each customer, you must understand why customers behave as they do. You need to identify and analyze those data points and use them to motivate positive behaviors that benefit your brand.

With Magento and Clutch, you will accelerate performance with technology built to do exactly that.

Every customer data point from your commerce and marketing systems is captured and analyzed in Clutch’s customer data platform (CDP), where it is used to create, automate, and optimize personalized, one-to-one loyalty campaigns that drive revenue without eroding margin.

Magento & Clutch: One-to-one loyalty is the journey.

Every customer data point from your commerce and marketing systems is captured, analyzed, and used to create personalized, one-to-one loyalty campaigns.

FOLLOW THE CUSTOMER | NEXT-GEN CUSTOMER LOYALTY

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You can increase annual customer spending by 26 percent and average order value by 15 percent. In other words, your customers buy more.2

You can increase brand engagement by 15 percent. And more engagement leads to more sales.2

Omnichannel shoppers comprise 7 percent of all consumers, but they make 27 percent of retail buys.3

The good news? With 1:1 loyalty programs, you can encourage more of your customers to shop across channels.

Sell more.

Improve engagement.

Encourage omnichannel shopping.

CUSTOMER SPENDING

26%RETAIL BUYS

27%BRAND ENGAGEMENT

15%

Learn more about one-to-one customer loyalty >

2 Clutch. 3 Criteo, November 2017.

of retail buys are made by omnichannel shoppers.3

27

Magento & Clutch: How you win.

FOLLOW THE CUSTOMER | NEXT-GEN CUSTOMER LOYALTY

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Flexible payments are a hallmark of a high-quality omnichannel experience. Today’s shoppers crave options. They want to pay with their favorite credit card. They want in-store payments to be as easy as paying online. And they want to pay on their timetable, not yours.

With flexible payment options, consumers are more likely to buy. In fact, 44 percent of shoppers who chose a flexible payment option at checkout would not have made a purchase otherwise.

28FOLLOW THE CUSTOMER | FLEXIBLE PAYMENTS

Essential omnichannel feature: flexible paymentsFlexible payment options deliver more sales. of shoppers using a flexible

payment option would not have otherwise made a purchase.

44%

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When consumers’ only option is to pay for their purchase up front, they simply buy less. And without flexible payments, you’re likely to see higher rates of cart abandonment.

29

When consumers’ only option is to pay for their purchase up front, they simply buy less. Sometimes they wait for their next paycheck to come in. Other times, they take more time to comparison shop and find a lower price. Either way, they’re less likely to convert.

In fact, without flexible payments, you’re likely to see higher rates of cart abandonment. This happens when consumers see the total price of the items they’ve chosen and get cold feet.

Rigid payment options can dampen conversion rates.

FOLLOW THE CUSTOMER | FLEXIBLE PAYMENTS

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With Magento and Klarna, you can give customers flexible payment options across all your channels. Magento delivers a user-friendly check out experience as well as “click and collect” options for customers who want to buy online and pick up in store. And Klarna allows customers to split their total purchase into smaller payments.

With Klarna, you can give customers deferred payment options while you, the merchant, receive your payment up front. Complete Klarna automatic on-boarding for seamless integration with Magento, which can be configured in as little as 15 minutes. Plus, Klarna makes it easy to standardize payment choices across channels, which could encourage some of your online-only shoppers to visit the store.

30

Magento & Klarna: Set up flexible payments in 15 minutes or less.

FOLLOW THE CUSTOMER | FLEXIBLE PAYMENTS

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With flexible payments you will sell more and reach customers who might otherwise have chosen not to buy.

Klarna absorbs 100 percent of the customer payment risk. Merchants get paid for products up front, while Klarna manages the customers’ installment payments.

Younger consumers overwhelmingly shop online, and also tend to be less affluent—for now. By offering flexible payment options, you can start building a relationship with the next generation that will pay dividends for years to come.

Sell more.

Minimize risk.

Reach a new generation of consumers.

Learn more about flexible payments >

100% of customerpayment

risk is absorbed by Klarna.$

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Magento & Klarna: How you win.

FOLLOW THE CUSTOMER | FLEXIBLE PAYMENTS

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Taking a giant leap (in fashion-forward shoes) with flexible paymentsEGO, a trend-led footwear brand, wins more repeat sales with flexible payment at checkout.

EGO

Customer Spotlight

Company: EGO

Industry: Fashionable shoe retailer

Omnichannel solutions: Magento Commerce, Klarna

Read the full-length case study >

THE CHALLENGE: Stand out from the competitionFashion is a tough business. Fresh new competitors arrive each year. That simple reality makes every part of the customer journey critical, including checkout and payment. (Payment options that boost purchasing power can accelerate sales.) Challenges for EGO included:

• A growing number of consumers want to pay with alternative payment methods (APMs).

• Online customers prefer to try on shoes before paying for them.

• Mobile users need a checkout experience that works for them.

THE SOLUTION: Magento Commerce and KlarnaEGO chose to integrate Klarna with their Magento Commerce platform. Now EGO customers can take advantage of Klarna’s pay later option, which allows customers to buy now and pay later. Their digital commerce site delivers a simple and intuitive mobile checkout experience. And they can process all forms of card payment and other APMs (such as PayPal) quickly and securely.

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Business benefits: easy checkout and flexible payment = higher salesWith Magento Commerce and Klarna, EGO delivers a fast and convenient checkout experience that makes customers want to buy. Key benefits include:

• Bigger average orders—Once EGO began offering pay later from Klarna, basket sizes grew significantly. This is because customers can try before they buy and pay for their shoes later, after they’ve had a chance to try them on at home.

• More repeat customers— Since EGO introduced pay later, repeat business has also increased. Customers appreciate the option to try on shoes before they pay, resulting in increased loyalty.

• More effective advertising—Promoting pay later with social advertising produced incredible ROI, sometimes as much as five times the amount invested.

• Less risk—Klarna takes all payment risk on behalf of the retailer, so EGO always gets paid, even when shoppers default.

Customer Spotlight

EGO (continued)

EGO

“Just one year on and we have experienced a significantly better level of repeat purchases because of Klarna, and we can measure a healthy increase in basket size. When you think that our customers can try on a number of purchases at home, only keep the ones they love, and then have 30 days to pay later, it’s no wonder Klarna is proving such a winner.”–Usman Riaz , founder of EGO

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A great delivery experience— a critical piece of the omnichannel commerce process—involves total transparency and proactive response.

The last-mile delivery experience is a critical piece of the omnichannel commerce puzzle. When customers order a product, they want to choose how and when to receive it. They want to know where their order is at all times—and to be notified if it’s delayed for any reason. If products are damaged or lost in transit, they need to know their retailer has their back with a quick fix.

In short, a great delivery experience is a combination of total transparency and proactive response that shows your brand is ready and willing to take decisive action when things go wrong. No matter where and how customers buy, it matters. In fact, it matters a lot.

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Essential omnichannel feature: delivery experience managementKeep your customers happy, even when things go wrong.

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2 Convey survey of 1,508 shoppers, 2017. 3 “The Impact of Technology on Call Center Performance,” BenchmarkPortal.

30%

of all customer service calls.3

WISMO calls make up nearly

$4–$7per call.3

WISMO calls can cost you

84% of consumers won’t buy from you again after just one poor delivery experience.2

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If your customer has a bad delivery experience, it can turn them off your brand. 84 percent of consumers won’t buy from you again after just one poor delivery experience.2 That means they won’t come back to your brick-and-mortar stores or your website.

A less-than-perfect delivery experience also increases costs. When customers don’t know where their order is, they call customer service. These “where is my order” or WISMO calls make up nearly 30 percent of all calls to customer service—and can cost you $4–7 per call.3

When the delivery experience fails, omnichannel fails.

FOLLOW THE CUSTOMER | DELIVERY EXPERIENCE MANAGEMENT

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With Magento and Convey, you can create a branded experience that’s consistent and reliable from cart to delivery. Through visibility and intelligent action, Convey ensures your customers’ orders are delivered how and when they’re expected.

With Convey’s Magento integration, full in-transit visibility and collaborative tools for all customer orders can be unlocked in as little as a month, allowing you to manage customer expectations effectively, with transparency and proactivity. Plus, users can quickly view shipment details from the Magento order details page, so your team is never caught off guard.

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Magento & Convey: A delivery experience your customers will love.

FOLLOW THE CUSTOMER | DELIVERY EXPERIENCE MANAGEMENT

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NPS SCORE

With real-time information about your orders and their status, you can fix issues up to 4x faster.4

When customers get proactive communications about their orders, you can reduce WISMO calls by up to 75 percent.4

By keeping customers informed when there are delivery issues, you give them confidence in the integrity of your brand. Your net promoter scores (NPS) and similar measures of customer satisfaction go up.

Resolve issues faster.

Slash WISMO calls and service costs.

Increase customer satisfaction.

RESOLUTION SPEED

4xWISMO CALLS

75%

Learn more about delivery experience management >

4 Convey customer research.

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Magento & Convey: How you win.

FOLLOW THE CUSTOMER | DELIVERY EXPERIENCE MANAGEMENT

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ABOUT MAGENTO COMMERCE

Magento Commerce, part of Adobe Experience Cloud, is the leading commerce solution for merchants and brands across B2C and B2B industries and was recently named a leader in the 2019 Gartner Magic Quadrant for Digital Commerce. Magento Commerce boasts a strong portfolio of cloud-based omnichannel solutions that empower merchants to successfully integrate digital and physical shopping experiences. Magento is the #1 provider

to the Internet Retailer Top 1000, the B2B 300 and the Top 500 Guides for Europe and Latin America. Magento is supported by a vast global network of solution and technology partners, a highly active global developer community and the largest eCommerce marketplace for extensions available for download on the Magento Marketplace.

More information can be found at www.magento.com

© 2020 Adobe. All Rights Reserved.

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