Interview • 13.01.2020

Blind Date is so yesterday! Know your customers!

Customer loyalty: Personalizing your customer communications – across all channels

Woman with long hair smiles into the camera, globe in the background...
Source: Andreas Muhme

Is brand loyalty dead? These days, consumers no longer buy the same brand of goods for life. They want personalized offers for products that meet their specific needs. That’s why it is more important than ever for retailers to retain and reward customers through loyalty programs.

In this interview, Birgit Pankofer, Business Development & Marketing Manager, Consultix, explains how this works. And let’s start off by saying: Retailers must embrace the digital world.

Ms. Pankofer, what does Consultix do?

Birgit Pankofer: Our flagship product is ProCampaign, a customer engagement hub. Companies from various industries, primarily from the B2C sector, utilize our marketing automation to securely collect, cluster and enrich their customer information in a central database. ProCampaign offers integrated modules that support marketers in campaign planning and customer loyalty efforts which would otherwise require the use of various systems. Some modules are aimed directly at customer loyalty management. Their functions are particularly exciting for retailers as customer loyalty is in steady decline, making customer loyalty programs more important than ever in today’s competitive landscape.

Why is that?

Twenty or 30 years ago, when people bought a new washing machine in Germany, they highly preferred an appliance made by Miele or Siemens. However, the younger generation is less brand loyal and tends to buy products that meet their needs right now. They are likely to look for a washing machine that comes at a certain price point. I think that’s why companies must refocus on the brand’s value and equity and try to get to know and understand their customers, to retain them through personalized offers and to reward them for their continued loyalty.

Person starting a washing machine.
Brand affinity is no longer as important as it used to be - not only for washing machines.
Source: PantherMedia / EdZbarzhyvetsky

You serve both brick-and-mortar and online retailers. What are the differences and how do you address them?

We team up with our customers to try to connect both sides. We are currently launching a project with a supermarket chain that wants to freshen up its customer loyalty program, which hasn’t changed much in more than ten years, to make it more digital and more personalized. The goal here is to have both a physical loyalty card and an app. All of the relevant data from the various channels is stored in ProCampaign, allowing the company to really get to know the customers and connect and learn about their favorite products for example. Frequent customers can also earn points with the digital loyalty card via the app and receive personalized card-linked offers. This strategy focuses on individuality and celebrates the consumer behavior of each customer. Our loyalty concept embraces digitization that is convenient from a customer point of view. At the same time, we eliminate manual processes that slow down the retailer.

Needless to say, the implementation of loyalty programs is less complex for pure-play online retailers versus brick-and-mortar companies.

How do you run a successful campaign? What areas should retailers pay attention to?

They must keep communication consistent and deliver consistent messages across all channels, but they have to use the appropriate means for each channel. For example, you should not and cannot write a novel on Twitter. Customers must get the sense that they are communicating with one retailer and one brand across all channels.

How important is marketing automation in this setting?

It is crucial because B2C and the retail sector deal with vast amounts of customer data that can no longer be processed manually. This needs to happen in an automated manner but still must ensure targeted communications via the right channel at the right time. I believe that especially younger people like to receive personalized messages and – as a result - no longer respond to traditional television advertising. They prefer personalized and relevant product suggestions.

How has your work changed since the General Data Protection Regulation (GDPR) came into force?

We have always focused on data protection because our customers attach great importance to ensuring that all data processing is legally compliant. Rightly so as a data privacy breach can quickly cause immeasurable damage to a company's reputation and result in substantial financial loss. More than ever before, the introduction of the GDPR has shown that we offer our international customers the highest standard of data protection and data security. ProCampaign has been awarded the European EuroPriSe seal, confirming that data protection is already integrated by design. That’s why our work hasn’t really changed much, though data privacy and protection see a greater appreciation and emphasis more than ever.

Interview: Katja Laska

related articles:

popular articles:

Thumbnail-Photo: Launch: SBA’s paycheck protection program for small businesses...
09.04.2020   #personnel management #coronavirus

Launch: SBA’s paycheck protection program for small businesses

Economic relief provision to protect workers and businesses affected by the coronavirus pandemic

The U.S. Small Business Administration Administrator Jovita Carranza launched the Paycheck Protection Program, a 349 billion dollars emergency loan program created last week with the President’s signing of the Coronavirus Aid, Relief, and ...

Thumbnail-Photo: E-Commerce Day 2020 made by real.de
13.01.2020   #online trading #e-commerce

E-Commerce Day 2020 made by real.de

11 years e-Commerce Day in Cologne!

The e-Commerce Day - made by real.de, offers online retailers, manufacturers and interested parties the opportunity to learn about the latest trends, the latest developments and interesting features in e-commerce and to exchange information with ...

Thumbnail-Photo: Worst year on record for retail
20.01.2020   #brick and mortar retail #retail

Worst year on record for retail

Facts and figures about Black Friday and the Christmas sale 2019

The December figures are positively distorted by the late timing of Black Friday, which occurred in December 2019 as opposed to November in 2018. The 3-month and 12-month averages are not distorted. Total sales for 2019 decreased by 0.1 ...

Thumbnail-Photo: What you want is what you need!
07.02.2020   #e-commerce #customer satisfaction

What you want is what you need!

Retail experience – What shoppers want and how to implement

E-commerce has significantly changed how people shop, and push retailers to rethink the role of their stores. With change being a constant and continually accelerating, there is truly only one way to learn what shoppers want and expect their ...

Thumbnail-Photo: Customer-centered, digital and adaptive
23.03.2020   #brick and mortar retail #digitization

Customer-centered, digital and adaptive

Bonprix’s Fashion Connect Store in Hamburg

In-store shopping via app – the fashion connect store in downtown Hamburg makes it happen. Daniel Füchtenschnieder, chief executive officer of Bonprix retail, is one of the creative minds behind the new retail concept. An interview about ...

Thumbnail-Photo: Study on firms return policies offline and online...
06.05.2020   #online trading #brick and mortar retail

Study on firms' return policies offline and online

Guidance on pricing, returns, refunds

Because customers who shop online cannot try on their purchases, a third of all Internet sales get returned. But handling these returns is costly, giving retailers that have both physical stores and digital sales a clear advantage over retailers ...

Thumbnail-Photo: Basics of how to merchandise your store
27.02.2020   #product presentation #goods illumination

Basics of how to merchandise your store

Retail Consultant Hans Günter Lemke reveals key elements of successful visual merchandising

Retailers face increasing pressure from online competitors. Although brick-and-mortar businesses take in the lion’s share of sales revenues, online shopping will play an increasingly important role in the future. That’s why it is ...

Thumbnail-Photo: Want to stop consumer hoarding in times of crisis?...
06.04.2020   #customer analysis #coronavirus

Want to stop consumer hoarding in times of crisis?

New research may provide the answer

Consumer stockpiling and hoarding took center stage in recent months as the COVID-19 virus has spread around the world, and with it, panic buying on the part of millions. News broadcasts and social media feeds have been filled with examples of the ...

Thumbnail-Photo: LED: optical illusion at the airport
16.04.2020   #digital signage #brick and mortar retail

LED: optical illusion at the airport

‘The Fashion Gallery’ concept in Vienna International Airport Shopping Plaza

BrightSign, LLC® announced  that Lagardère Travel Retail has recently opened its new ‘The Fashion Gallery’ concept, an 800m² shop in Vienna International Airport Shopping Plaza Terminal 2 Departure under customs ...

Thumbnail-Photo: As pandemic spreads, most consumers retreat
12.05.2020   #customer analysis #coronavirus

As pandemic spreads, most consumers retreat

How will today’s uncertain times affect consumer behavior?

As a global health crisis potentially morphs into an economic one, Deloitte is conducting a series of biweekly surveys around the globe to better understand the interplay between personal safety and economic vulnerability as a driver of purchase ...

Supplier

iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn