Empower talents - give them the right tools
Business is about people, and empowering talents to achieve the goals that are set in common with management. Setting the right organization for multi-channel operations are breaking up traditional web departments and merging them into retail operations. The supportive functions needed are basically communication based marketing and customer intelligence functions. How to structure the organization will be covered in a later post.
“Monochannel” retailing are traditionally anchored and founded with physical retail stores. In the last 5-8 years there’s been a lot of online startups, and predictable a lot of them are suffering from a high ad spend and severe problems retaining their customers as loyal. Quite the same situations are daily challenging the physical retailers. The online ad spend is comparable with the physical worlds high prices on square meters – but both channels are suffering from low purchasing frequency because something is missing.
The answer is building a powerful multi-channel marketing supportive function – and anchoring it within each primary retail organization. With significant support from brand marketing and PR communication.
Customer clubs are for the multi-channel marketer the true path for being successful - both in terms of increasing basketsize, conversionsrate (especially online) and as a product getting more traffic into each sales channel; which means an increased purchase history.
True out the world many retailers are growing very successful customer clubs. If you’re seeking inspiration www.marketingsherpa.com is worth becoming a member of. They are pretty good analysts and covering both strategy, tactic and also methods for bringing the visions operational.
In my previously company (which my wife and I founded) 84% of total sales was generated from a loyal member base. We had a 110.000 member base of women with children in Denmark. Comparable Denmark is only populated with 5.5 million people – and 65.000 new children are born each year.Being a brand owner with a significant brand, well known over 90% knowledge rate) the loyal sales to members should optimally be around 60-70%.