As Yoyo Insight kicks off its new season of content, Yoyo CEO Michael Rolph reveals the nine questions all retailers should be asking themselves to find out if they really are taking proper care of their customers in an age of hyper-personalisation, data-led marketing and instant communications.
1. First of all, do you currently run a loyalty programme?
90 per cent of UK adults say they are part of a loyalty programme, but only 15 per cent of retailers offer one. What’s more, did you know half of 18 to 34-year-olds say retail loyalty schemes make them a more loyal customer?
2. Do you know your customers spending preferences and how often they tend to visit your store(s)?
It’s important to have real-time insight on these customers’ buying behaviour and preferences, so that you can understand and segment them based on their habits – i.e. what customers tend to buy before 8am, the type of person who is buying certain product groups, or what items tend to be bought together.
80 per cent of a business’ future revenue will come from just 20 per cent of their existing customers, so it’s also vital to know whether your customers’ experience with you has led to a return visit!
3. Do you know the value of the top 10 per cent of your customers who spend the most with you?
Your best customers drive a massive share of your revenue and this data can determine how you target campaign activity! For instance, Yoyo data found that the top 10 per cent of coffee shop customers in the UK account for 46 per cent of coffee purchases!
4. Do you know enough about your customers to run personalised marketing campaigns?
Personalisation is everything these days – 78 per cent of consumers say they will only engage with offers if they have been personalised to their previous engagement with a brand. But it’s still a tricky one to solve in bricks and mortar retail.
At Yoyo, we uniquely match an individual’s payment data with their basket data at the point-of-sale, enabling our retail partners to deliver a new level of personalised loyalty and campaign activity to their on-store customers.
5. Are you able to trigger instant comms based on your customers’ purchasing behaviour?
Well timed personalised notifications about deals, rewards and offers adds to a seamless customer experience – and the engagement rates are huge! Did you know the average time for a consumer to engage with a marketing campaign is just 15 minutes when sent via a push notifications compared to six and a half hours if it arrives by email.
Our retail partners run push notification campaigns, which trigger when their customers have shopped with them a chosen amount of times, reached a certain level of points or when an item they buy regularly is back in stock.
6. Are you able to spontaneously surprise your customers on special occasions?
When Caffè Nero surprised their customers with prize-filled Christmas Crackers when they bought drinks through the coffee chain’s Yoyo-powered loyalty app, sales went up 50 per cent!
Other retailers are using the customer insight gained from combined payment and basket data to instantly send bonus points, special offers or rewards when it’s their customer’s birthday or when it’s a year after they first made a purchase – the campaign possibilities here are endless!
7. Do you have a referral strategy in place to attract new customers?
It’s a great way to reward your customers – and if done right, will significantly boost customer acquisition. Several of Yoyo’s partners reward a free drink to existing customers, as well as the friend they refer, through their Yoyo-powered app.
We’ve found customers referred by friends are 4X more likely to go on to transact with a retailer compared to those acquired through other means!
8. What about customers who have slipped away? Do you have a strategy in place to win them back?
The average business lose between 20 and 40 percent of its customers every year – that’s a lot of revenue! Having a mechanism in place where you can personally reach out to customers who haven’t shopped with you for a while is essential.
Yoyo’s retailing partners run campaigns where by if a customer hasn’t transacted with them for a chosen period of time, push notifications with messages along the lines of: “We miss you! We’d love you to drop by sometime soon – and when you do, have a free sandwich on us!”
9. Finally, do you think your current in-store customer experience is meeting your customers’ expectations?
We recently ran a survey with YouGov, asking consumers what they wanted their retail experience to look like. Here’s what they said:
69% said they wanted personalised deals/discounts tailored to their past purchases
Nearly half (49%) said the ability to skip queues was a must
45% said they wanted notifications of and the chance to instantly reserve items they were likely to want that had become available in a nearby store
42% wanted the ability to order in advance
38% wanted digital itemised receipts
At Yoyo, we’re very proud to say that we provide all of these services and so much more through our award-winning loyalty marketing platform – and we’d love to talk to you about how you can improve your customer experience.
If you need any advice, drop me an email at firstname.lastname@example.org