A couple of weeks ago a comedian, who’s name I can’t remember, said that he loves the recession because he’s been getting so much attention when he goes shopping — he can’t believe it. Retailers are so happy to see him coming, they’re just falling over themselves to accommodate him. In that respect, the economy is bittersweet. Sales are down but retailers are waking up to the importance of connecting with their customers. It’s really do or die. So BusinessWeek ran an article on how British researcher dunnhumby is gaining popularity among US retailers for their uncanny ability to get into the minds of consumers. Kroger hired dunnhumby in 2003 and since then has seen sales increase by an average of 5%. The article does note, however, that dunnhumby can’t take all the credit. Because, while research is important, it doesn’t stop there.
After the research is done, data collected, and numbers crunched, somebody has to translate that information into actionable tactics that produce lift. On the passive end of things, this information can be used to better manage inventory — keep the shelves stocked with stuff the customers want. But in this economy, you have to be more aggressive than that. You really have to reach out to the shopper and tell them more about what they want to buy.
Let’s say you find out that they’re coming to buy their favorite bread, like dunnhumby discovered for Tesco several years ago. Well what goes with the bread? How will you remind them about the bread as soon as they come in the store? When is the next time that bread will be on sale? Remind them to come back in a week and they’re sure to buy more than the bread on the next trip. Constantly thinking of ways to engage the shopper throughout the store experience in ways that matter to them is key.
Has a store recently made you feel like they knew what you needed or wanted? How did they do that?
