In today’s retail environment, competition for consumer attention is a challenge. Staying top of mind long-term, as a persistent, end-to-end solution for your consumers can be even more challenging. Consumers continue to adopt and abandon solutions, brands and retailers, at an increasingly faster pace. Consider some recent statistics from Accenture.1
- 71% of consumers say loyalty programs do not make them more loyal.
- 77% of consumers indicated they more easily retract their loyalty from a brand than they did in the past.
- 43% of loyalty program members spend the same or less with a specific brand to which they claim to be loyal to than they do with other brands.
- 23% of consumers respond negatively to a brand’s loyalty efforts. This is particularly the case for younger consumers (like Millennials).
- 61% of loyalty program members have switched from one brand to another in the last year.
So we can conclude that consumers are much more ‘volatile’ in their choices today. They easily adopt – but also abandon – a brand, a retailer or a loyalty program as they see fit.
The challenge: hyper-adoption & hyper-abandonment
In the era of hyper-adoption and hyper-abandonment, consumer stickiness is sought after by marketers, but often difficult to achieve. When Forrester2 asked marketers to identify their top challenges, they found that their biggest concerns are finding new customers and building an omnichannel shopping environment:
The themes of hyper-adoption and hyper-abandonment are related to nearly every response provided in the survey. At Diebold Nixdorf we have an exciting technology offering, Vynamic™ Demand, that when used standalone or in combination with other DN Vynamic™ products, including Vynamic™ Mobile Retail and Vynamic™ Engage, provides real solutions for nearly each point of concern on the list.
The answer: become hyper-relevant & hyper-personal
Through the use of proprietary audio technology integrated into broadcasts sent via television, radio, video, kiosks and live events, you are able to reach your consumer in a hyper-relevant setting and present offers to them that they can immediately add to their integrated digital wallet.
Additionally, location technologies such as geo-fenced triggers, and beacon technology allow for specific location targeting to reach your consumers near relevant purchase points to help draw them to or keep them at your store. Further, content and offers can be distributed to mobile devices in a game-like manner (e.g. scratchers, coupons, rewards) offering creative and sticky engagement on a more frequent basis. Attribute-based campaigns can be created and deployed quickly while capturing meaningful metrics on their effectiveness throughout the journey. Vynamic Demand offers a complementary solution as part of an overall connected commerce strategy and expands the boundaries and effectiveness of omnichannel.
Consider the following consumer journey adapted for a specialty retailer. In the path depicted in red, controlled by Vynamic Demand, the consumer has a sequence of measurable steps that are relevant, timely, personal, and mobile-centric. The circles with the letter ‘D’ show points where data is able to be collected for further attributing to create better future experiences for the consumer. We also show an adjacent path depicted in blue of possible but unknown touchpoints on the journey, including alternative product research and exposure to competitive advertising from other brands. Effort spent by the consumer jumping to this other path is undesirable as it adds time, risk and likelihood of a delayed decision, or worse yet, abandonment. The circles with the letter ‘U’ represent unknown touchpoints where the retailer is unable to gather meaningful data regarding the consumer journey.
Given the multitude of choices the consumer faces in the relatively simple purchasing journey described above, it is easy to see the points where both hyper-adoption and hyper-abandonment can occur. It should also be easier to see the possibilities where Vynamic Demand can help steer consumer decisions along defined purchasing journeys to align with your targeted marketing efforts and to further verify those results through data collected. Vynamic Demand can be effectively used to better define and streamline consumer purchasing journeys in order to minimize drift to other purchasing alternatives or substitute goods, and the data and results position your retail organization to remain hyper-relevant and provide the hyper-personal experience desired by today’s consumer.
We will be demonstrating Vynamic Demand’s capabilities at Shop.org, September 12-14 in Las Vegas. Please stop by booth #604 to discover how our solution could help transform the way you connect with your consumers. In the meantime, check out our recent podcast "Retail Technology - Stay Ahead of the Competition" for insights from our experts.
- Accenture, Seeing beyond the loyalty illusion
- Forrester Research Inc., The State Of Enterprise Marketing Technology, July 11, 2018