The struggle for the buyer or how to buy loyalty?
Now many specialized Internet resources, conferences and trainings just say that classic marketing tools in retail such as direct discounts, savings and bonus programs are a thing of the past. Phrases: “you can’t keep the buyer at discounts”, “soon no one will carry discount cards” and questions like “you do not have CRM and digital marketing? And are buyers still coming to you? ”Sound experts everywhere.
There is a grain of truth in these statements, but is everything categorical? I do not dare to judge experts, but I will try to describe the classical and modern methods of struggle for the buyer and consider their strengths and weaknesses.
For a long time, the Russian retail market (retail) in almost all of its segments developed very rapidly and grew without requiring any unusual and complex tools for individual work with customers. A wide assortment in stores, “low” prices, convenient working hours and walking distance, attractive advertising on TV and billboards. It worked flawlessly and paid off one hundred percent.
However, over time, ever-increasing competition and market saturation required retailers to develop new tools for marketing communication with customers.
I want to note right away - I will talk about tools for working with customer loyalty in the segment of the sale of consumer goods (products, mid-price clothes, electronics stores, building materials, FMCG (Fast Moving Consumer Goods) - consumer goods), that is, those stores , which make up the heart of modern retail in Russia.
They will not deal in detail with the topic of specialized stores (types of selling clothes for the military), as well as luxury segment stores, in which they deal with customer issues in a completely different way, I will give only a small comment.
Luxury stores use the eternal truth from David Ogilvy: “The higher the price, the more desirable the product becomes in the eyes of the buyer.” In such stores, buyers almost no longer look at the price tags, do not consider bonuses at all and will disdain discount coupons. But these buyers use purchases to emphasize their social status, to raise their own level of self-esteem, well, and, of course, to show off to friends. That is why luxury segment stores often do not even issue cards, do not give discounts, but they have the highest level of service, limited (often unique) products and high prices.
Here you can use the metaphor with the Maslow pyramid, in which the customers of luxury stores are at the very highest steps, where they no longer have problems with money, but there are many "highly spiritual" needs for which the client is willing to pay generously.
Life Stories:
From Timberland History. In the early 1980s, Timberland was in a tough time. She produced high-quality pumps, the price of which was lower than that of the industry leader, Topsiders. It seemed that a good product and a low price should have worked for them, but things were going badly. Then Timberland made a very simple decision: they raised their prices so that they began to far exceed the prices offered by Topsiders. Sales soared.
So back to the stores selling consumer goods and the goals of marketers of these retail chains.
Let me remind you that even marketers of retail chains themselves often forget: any business sets itself the final task of making a profit, and working with a buyer is just a means leading to this goal, and you should not forget about it. One way or another, marketing tools are aimed at working with a buyer, and, to put it more simply, a marketer has 4 goals, arranged in a certain order:
- Attraction of the buyer (enticement from competitors including);
- Customer retention (make a regular customer);
- Getting additional benefits from working with the buyer;
- Return the departed buyer (put it in a separate article).
STEP 1. Attracting new customers
At this step, everything is “very simple", you need to lure the buyer to the store by any means, and there the tools of the next stage will come into play. In fact, everything is much more complicated. The most important task here is to find the offer that will distinguish you from competitors and bring the buyer exactly As for the offer, valuable to the potential buyer, everything is individual and depends on the portrait of the buyer and the price policy of the store (this can be a discount, a gift on the first purchase, welcome bonuses, an invitation to meet with people bim writer, and so on.)
It’s also important how you get your offer across. Buyers tend to point blank to not notice your efforts and ignore all the channels you use. Try it!
Classic
The use of any external non-targeted visual and audio advertising. This is an advertisement on TV, radio, billboards, transport, and even porch doors.
Distribution or putting in catalogs of catalogs or coupons with special offers.
This is the most familiar attraction toolkit for all, grandmother and schoolchild will understand TV ads. The advantage is the rather easy implementation of these tools, without complex and expensive IT investments. The main disadvantage is that with mass non-targeted mailings low conversion. The reasons are clear - sending out to everyone in a row is likely to be of no interest to these individuals specifically. Consequently, if used improperly, very high costs are emptied. However, with proper use (the right tools in the right place for the right people) it can become very effective, especially at the start, a tool.
Providing discounts on competitor cards (possibly with card exchange)
In my opinion, a great way to get new customers from competitors, if not afraid of retaliatory actions. Although for some reason it is considered unethical in the competition.
A simple coalition program with a provider of related services (from a costume store you are sent to a shoe store with a discount coupon in your teeth) An
agreement with serious partners is a very effective tool, it is definitely worth using. It is important that partners are not your competitors, and purchases in your stores complement each other perfectly (wine-cheese, costumes-boots, etc.)
Well, my favorite:
A real working tool with a well-composed proposal. Both the first buyer and the friend brought in, well, your store, of course, will benefit.
Modern
Address Email and SMS-mailings with personal offers on addresses and phones received from partners
Promotion in social networks.
The key here is the personalization of offers. That is, you know to whom you are sending the offer, and you must be sure that this offer is particularly interesting for this buyer. Well, or at least it will not cause him rejection (such as a nun sms about discounts on contraceptives). In this case, it will be a very effective tool. Control of the frequency of calls is also important: constant SMS of the same type or banners with social networks very quickly turn customers away from you.
A serious drawback is that the use of such tools costs tangible money. With stupid mass mailings it can not only not help, but also have a negative effect.
Connection as a partner to the coalition bonus programs “Thank you from Sberbank”, “Svyaznoy-club”, etc.
High entry threshold. For already serious retail chains, now this tool is on the rise, and, in my opinion, it will develop. Indeed, it can be a decisive choice for the buyer when choosing between you and a competitor.
Public workshops with hidden product advertising.
An increasingly popular tool that will allow you to get a real fan for many years. Expensive, but effective in highly competitive markets. Do not try to sell a cool cocktail blender or a sewing machine to a buyer; it’s better to teach him how to make and make these cocktails for free. He will come to you for a blender and machine, because your store is so cute.
Various flash mobs are gaining popularity.
I’m not describing an almost unclaimed tool on the Russian market, but I will give a couple of examples below.
Interesting examples of unusual actions to attract buyers
Interesting events to attract buyers are carried out by IKEA.
The IKEA company, before opening its new store in one of the Japanese cities, held an original promotion in the local metro. In the cars of the train, which was entirely rented for advertising, the interior was completely changed: standard seats were replaced with comfortable home sofas, hung bright curtains, the walls were decorated with photo frames. There was not much direct advertising in the cars - stickers with the IKEA company logo were placed on the glasses, and informative price tags were present on all interior items.
Another example:
In 2008, IKEA held a promotion in St. Petersburg to release a new store catalog. Subway passengers could watch in the carriages of promoters dressed in bright T-shirts with IKEA symbols. The promoters held in their hands the promoted new IKEA catalog and read it with interest. The action involved 144 promoters, which covered most metro stations.
And one more example:
in one of the major shopping centers in Shanghai, a colorful event called “Mona Lisa of 10 thousand people” was organized. The main idea of this event is simple, like all ingenious - to attract the maximum number of customers to the shopping center with an interesting action, in which everyone will participate. Visitors take selfies on the spot, and from these self-portraits famous paintings are formed - “Mona Lisa” by Leonardo da Vinci and “Girl with a Pearl Earring” by Jan Vermeer. Guests make self-portraits with their smartphones, here they are printed and pasted onto a large board (composition specialists help them in this). All these selfies become an integral part of a recognizable picture.
Well, another interesting action to attract buyers
Shortly before the opening of the Svyaznoy store in Novosibirsk, charming dogs appeared in the city’s streets dressed in branded overalls with the words “I know”.
A few days later, the dogs suddenly disappeared from the streets of the city. Announcements about the loss of animals instantly appeared in the media. Residents of Novosibirsk called the hotline and excitedly talked about where and when they saw these dogs. At the end of the conversation, the girl thanked the callers, invited her to the opening of the Svyaznoy mobile communication center.
At the same time, in various parts of the city, residents found as if lost orange wallets. Inside the wallet - an invitation to open a store and a notification of receipt of gifts upon presentation of this wallet.
During the opening of the Svyaznoy mobile communications center, a sales record was set. In exchange for an invitation from an orange wallet - T-shirts “The most honest man of the city”.
STEP 2. Customer Retention
Well, the buyer came and even bought something from you. At this point, it is important for you to realize the BIG difference between the first purchase and the subsequent ones. So far, the freshly attracted buyer has just come in, there is no guarantee of his return, and you need to fight for him right now. We leave out the level of service, the lack of lines, clean floors and assortment - this is a topic for a separate article, assuming that you are on top in these matters.
Let's talk about marketing tools.
Classic
Providing discounts on products that are relevant to the buyer. A
game with a price is the most understandable and obvious criterion for choosing a store among competitors. Naturally, you do not need to give discounts on anything. But whatever one may say, this is a direct loss of margin. Often it doesn’t even affect purchasing power, since the discount is provided to everyone, even those who don’t even look at the price tags. Nevertheless, it is an eternal toolkit that will never go anywhere. A quick and easy way to attract and retain a buyer, but you need to understand that without additional tools this buyer will go to a competitor as soon as he gets a lower price from him.
Cumulative discount program
The essence of the program is simple: with an increase in the volume of purchases, the buyer receives an increasing discount (either bonuses or gifts), which ties him to the store. The nuance is the moment when the buyer reaches the highest level, then he has no incentive to make further purchases. Here various VIP-offers (special gifts, the right to be the first to buy exclusive goods, out of turn services, etc.) can be used.
Bonus program with accrual of bonuses for purchases.
Coupon program with discount coupons for the next purchase.
These tools are interesting in that the store does not provide a discount to customers directly on the current purchase, but only on a second visit, which, at a minimum, motivates the buyer to return at least once more. Using coupons is easier to implement, using bonus programs looks more solid and allows you to arrange more complex and interesting offers.
Collect stamps for purchases and get a dog, pots, smurfs.
Everyone knows. It works, for sure. The main thing is that the offer is interesting, and not a discount on knives. The ideal for me is the exchange of stamps for cute dogs in the Carousel, which caused an unprecedented boom.
Modern
Personal offers for goods interesting to the buyer based on previous purchases
Personal information on upcoming promotions and events
Current trend: now everyone wants to provide customers with offers based on the real interests of the buyer. Love and buy Czech beer - get a personal offer for a promotion from Krušovice. I bought a Canon printer - a discount once a month on a new cartridge.
Further more - the buyer buys spices in your store, but does not buy meat (read - buys somewhere else) - send a coupon with a discount on meat and a description of your wide meat assortment.
Everything sounds enchanting, but the cost of implementing such tools is very high and is available only to very large businesses.
Using the data of the buyer’s questionnaire when communicating with him
Congratulations and additional personal offers for customer’s memorable dates
Contact the buyer by name at the box office in the advertisement on the check, congratulate and give him a discount on his birthday.
It's simple, but the buyer will appreciate the personal attitude.
Implementation of game mechanics
A very interesting mechanic, turn the next visit of the buyer to the store into a game that you want to play again and again. Print puzzles, jokes, or sudoku on receipts. Arrange an instant lottery right in the cash receipt.
Life stories:
An interesting example from the American company Target!
A pregnant buyer is doubly valuable to the seller. A store that finds out about a woman’s pregnancy earlier than others will tie her to her store (with discounts, special offers, etc.), not only before delivery, but also for a considerable period after.
In Target, analyzing about a quarter of a hundred parameters (type of products purchased, volumes, frequency, etc.), expectant mothers were identified with a high degree of reliability, the date of birth and even the gender of the baby were predicted. And then they sent her coupons for special hygiene products, clothes for pregnant women, and, perhaps, for diapers. It was with this set of pieces of paper that the once angry man came to Target. Coupons were sent to his daughter, a schoolgirl, who seemed to be too early to think about motherhood. But a few days later, in a conversation with the manager, who called to apologize, the man apologized himself: Target computers learned about the schoolgirl’s pregnancy earlier than his father.
There are successful applications of personal offers already in Russia. One of the leaders of the Russian food retail chain Lenta successfully uses the distribution of personal offers to customers through various channels of interaction (sending printed coupons to mailing addresses, as well as electronic offers via SMS and e-mail). Coupons are targeted and provide discount and bonus offers based on purchase history, that is, relevant for this particular buyer. There is no need to mention that the action is popular among buyers.
Yet from complex to simple. It is possible to keep the buyer without complicated technical solutions.
An elite meat shop in St. Petersburg, when buying certain varieties, prints an additional “check” for the buyer with information on storage conditions and methods of preparing meat. The buyer is always pleased to see that they not only sell the goods, but also take care of his satisfaction with the purchase.
Another, this time comic example, implemented by our customers. To all male buyers, when buying candy in one check and any champagne, the cashier printed an additional “check” with a reminder of the purchase of contraceptives. The action, of course, is on the verge of a foul, but it worked! Few escaped a smile when receiving such a check, and word of mouth very quickly spread the word about this store around.
STEP 3. Getting additional benefits from working with the buyer
Let me remind you once again that the goal of any trading company is to obtain benefits, and previously attracted buyers can be used in mutual interests to achieve this holy goal. Retail has figured out the question of how to profit for a long time, so I will not divide the tools into classic and modern, but simply list and give an interesting example. To make the buyer spend more money, he can be motivated to buy more and / or come more often.
Increase in average purchase
- Sales promotions for certain goods
- Discount on the amount of purchased goods (3 for the price of 2, with a purchase of more than 5, etc.)
- Discount for each N-position in the check (naturally, the cheapest)
- Additional discount and / or bonuses when buying more than a certain amount (option with steps - 10 points for every 500 rubles)
Buyer motivation to return more often
- Limited time bonuses
- Issuing coupons and other short-term personal offers
Shopping basket extension
- Gifts or discounts when buying a specific set of products
- Offers to purchase related products
Great example from life. A very interesting action was organized by one of our customers, turning the buying process into a game. The action started under the defiantly intriguing name “The one with the longest win”, buyers received various gifts and discount coupons for the length ... of a check. A super prize to the one with the longest check. Ladies giggle, men with a smile buy everything, no matter what they get. The action was a success, the record for the length of a check in history has not been preserved.
Another example of an action that makes excellent use of customer psychology. Use of discounts with the restriction of "no more than X in hand." An interesting experiment was conducted by one of the regional retailers. A notice “no more than 3 hands” was posted on most of the goods being sold, although the goods were already sold below expectations, even taking into account the selling price. Customers, looking at the signs with restrictions, regarded this as a fact that the goods are quickly running out, there is a great demand for it, the price is excellent, and you need to buy. Sales of such products have increased significantly. Apparently, the Soviet past makes itself felt - "Take it while you have it."
Conclusion
It's time to take stock. I actually wanted to say the above that there is no good or bad marketing toolkit, and even more so outdated, just for each case there is a solution. Remember that any marketing activity should have a clearly defined goal and criteria for achieving it, then the results will come. Otherwise, any activity is wasted money. Discounts will not go anywhere for a long, long time. Good luck on the sidelines of the struggle for the buyer!
PS And of course, even Apple marketers will not save if everything in your store is like this:
