The Retailer Autumn Edition 2022

AUTUMN 202 2

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3. Give your app the priority it deserves in driving loyalty Multiple studies show that app customers tend to shop more frequently, buymore items and spend more than non-app customers. Google’s recent behavioural research showed how consumers develop a more personal relationship with an app they choose to give “real estate” to on their phone, apps also being able to bring to life many loyalty scheme benefits. App features that make it easy to browse, and add fun or exclusivity to the shopping experience, grow value even further: customers who especially enjoyed using an app claimed to spend 30% more than a retailer’s other app customers, and had a net promoter score two and half times greater. Further, retailers don’t need to spend as much on reacquiring users who purchase through an app, leading to more effi ciency in overall acquisition costs. While retail leaders acknowledge the importance of apps in growing loyalty, in practice, businesses often struggle to measure how custom ers are using them, and marketing investment driving app engagement can be low relative to the app’s impact. To successfully build a holistic strategy, break down silos between e-commerce, app development and measurement teams, implement integrated technology to ensure this high value channel is measured effectively (for example GoogleAnalytics for Firebase) and allocate marketing investment to drive growth of your customer base and continued usage of the app. Modelling and research may reveal that a particular category, lifestage or mission drives higher customer value. For example, for a bed specialist, moving house might be the spur for greater customer value. One baby specialist found customers with the highest future potential were not the ones who had spent thousands of pounds on a cot and pram, but new customers spending under £30 on maternity jeans. How can you make sure customers consider you at the exact right time? Particularly if, like in the case of moving house or having a baby, it isn’t visible in your own sales data. Beyond big campaign bursts, companies can remain ‘always on’ for these moments by ensuring consumers actively shopping for a particular mission see the right message at the right moment, using the rich data available on channels such as YouTube. 4. Reach customers at the moments that drive value

If your own sales data can’t tell which customers will drive the most value, an always-on testing approach can be particularly valuable. ASOS used this approach, leveraging Google data to target audiences actively shopping in apparel categories. The results not only demonstrated a short term uplift in web visits and sales, but also showed a longer term impact on key brand metrics. Organising for growing customer value Growing customer value cannot only sit at the door of a loyalty team or within a data model. Instead, taking advantage of these wider opportu nities requires leaders to bring several teams together - for example the analytics, loyalty, performance marketing, brand, and development teams - to plan in an aligned way how to use data and a wide range of channels.

Sophie Birshan

Anna Sawbridge

References: (1) Source: Google / Trinity McQueen, March 2022, UK, Q43A. Have you bought from any new retailers or brands in the last 6 months that you weren’t previously using? (2) Source: BCG, “Responsible Marketing with First-Party Data”, 2020.

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