Clienteling

Last updated

Clienteling is a technique used by retail sales associates to establish long-term relationships with key customers based on data about their preferences, behaviors and purchases. [1] Clienteling is intended to guide associates to provide more personal and informed customer service [2] that may influence customer behavior related to shopping frequency, lift in average transaction value, and other retail key performance indicators. [3] From the customer's perspective, clienteling "could add a layer of personal touch" [4] to the shopping experience.

Contents

Clienteling software

While at its core, clienteling is a sales technique, the term is commonly used today to describe the related assisted selling software tools used to support relationship-building activities between store associates and their customers. [5] Software-based clienteling has been said to have the advantage of collecting data about clients across different interaction channels in a searchable and retrievable database for later use. [6] Clienteling software may also provide digital tools on mobile devices or fixed workstations aimed at enabling retailers to establish long-lasting learning relationships with their customers. [7] [8] While sales history collected in customer relationship management (CRM) platforms can provide some insight into a customer’s tendencies, this insight can be augmented by data collected by an associate working directly with a customer, who can improve the customer profile through each face-to-face interaction. [9] This information can then be used to further personalize future interactions. [10] [11] Capabilities such as notes, wish lists, preferences, alerts, and purchase history are sometimes used to enable associates to enhance client profiles in ways that purchase history and e-commerce activity alone could not. [2] [12] Clienteling can also be an effective means of selling excess inventory without resorting to discounting by pairing products with the right consumers, using their past purchases to predict what they are likely want to buy. [8]

Use in retail stores

In 2014, a software-based clienteling solution was deployed on iPad to over 3,500 associates at Saks Fifth Avenue. [7] Ralph Lauren has also used clienteling to invite select shoppers to special shopping events. [8]

See also

Related Research Articles

Customer relationship management (CRM) is a process in which a business or other organization administers its interactions with customers, typically using data analysis to study large amounts of information.

E-commerce is the activity of electronically buying or selling products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. E-commerce is the largest sector of the electronics industry and is in turn driven by the technological advances of the semiconductor industry.

<span class="mw-page-title-main">Shopping</span> Buying goods

Shopping is an activity in which a customer browses the available goods or services presented by one or more retailers with the potential intent to purchase a suitable selection of them. A typology of shopper types has been developed by scholars which identifies one group of shoppers as recreational shoppers, that is, those who enjoy shopping and view it as a leisure activity.

<span class="mw-page-title-main">Retail</span> Sale of goods and services

Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is the sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and then sells in smaller quantities to consumers for a profit. Retailers are the final link in the supply chain from producers to consumers.

<span class="mw-page-title-main">Point of sale</span> Time and place where a retail transaction is completed

The point of sale (POS) or point of purchase (POP) is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice for the customer, and indicates the options for the customer to make payment. It is also the point at which a customer makes a payment to the merchant in exchange for goods or after provision of a service. After receiving payment, the merchant may issue a receipt, as proof of transaction, which is usually printed but can also be dispensed with or sent electronically.

Sales promotion is one of the elements of the promotional mix. The primary elements in the promotional mix are advertising, personal selling, direct marketing and publicity/public relations. Sales promotion uses both media and non-media marketing communications for a predetermined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates.

Personalized marketing, also known as one-to-one marketing or individual marketing, is a marketing strategy by which companies leverage data analysis and digital technology to deliver individualized messages and product offerings to current or prospective customers. Advancements in data collection methods, analytics, digital electronics, and digital economics, have enabled marketers to deploy more effective real-time and prolonged customer experience personalization tactics.

<span class="mw-page-title-main">Best Buy</span> American multinational consumer electronics retailer

Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota. Originally founded by Richard M. Schulze and James Wheeler in 1966 as an audio specialty store called Sound of Music, it was rebranded under its current name with an emphasis on consumer electronics in 1983.

<span class="mw-page-title-main">Online shopping</span> Form of electronic commerce

Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product's availability and pricing at different e-retailers. As of 2020, customers can shop online using a range of different computers and devices, including desktop computers, laptops, tablet computers and smartphones.

<span class="mw-page-title-main">Brick and mortar</span> Class of organisations or businesses

Brick and mortar is an organization or business with a physical presence in a building or other structure. The term brick-and-mortar business is often used to refer to a company that possesses or leases retail shops, factory production facilities, or warehouses for its operations. More specifically, in the jargon of e-commerce businesses in the 2000s, brick-and-mortar businesses are companies that have a physical presence and offer face-to-face customer experiences.

The term mobile commerce was originally coined in 1997 by Kevin Duffey at the launch of the Global Mobile Commerce Forum, to mean "the delivery of electronic commerce capabilities directly into the consumer’s hand, anywhere, via wireless technology." Many choose to think of Mobile Commerce as meaning "a retail outlet in your customer’s pocket."

<span class="mw-page-title-main">Retail marketing</span> Economic concept

Once the strategic plan is in place, retail managers turn to the more managerial aspects of planning. A retail mix is devised for the purpose of coordinating day-to-day tactical decisions. The retail marketing mix typically consists of six broad decision layers including product decisions, place decisions, promotion, price, personnel and presentation. The retail mix is loosely based on the marketing mix, but has been expanded and modified in line with the unique needs of the retail context. A number of scholars have argued for an expanded marketing, mix with the inclusion of two new Ps, namely, Personnel and Presentation since these contribute to the customer's unique retail experience and are the principal basis for retail differentiation. Yet other scholars argue that the Retail Format should be included. The modified retail marketing mix that is most commonly cited in textbooks is often called the 6 Ps of retailing.

<span class="mw-page-title-main">Visual merchandising</span> Marketing technique emphasizing 3D model displays

Visual merchandising is the practice in the retail industry of optimizing the presentation of products and services to better highlight their features and benefits. The purpose of such visual merchandising is to attract, engage, and motivate the customer towards making a purchase.

A touchpoint can be defined as any way consumers can interact with a business organization, whether person-to-person, through a website, an app or any form of communication. When consumers connect with these touchpoints they can consider their perceptions of the business and form an opinion.

Customer analytics is a process by which data from customer behavior is used to help make key business decisions via market segmentation and predictive analytics. This information is used by businesses for direct marketing, site selection, and customer relationship management. Marketing provides services to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle at the consumer. Customer analytics plays an important role in the prediction of customer behavior.

Trade marketing is a discipline of marketing that relates to increasing the demand at the wholesaler, retailer, or distributor level rather than at the consumer level. However, there is a need to continue with Brand Management strategies to sustain the need at the consumer end. A shopper, who may or may not be the consumer themself, is the one who identifies and purchases a product from a retailer even though they might not purchase the goods at the end of the day. To ensure that a retailer promotes a company's product against competitors, that company must market its product to the retailers as well by offering steep discounts versus competitors. Trade marketing might also include offering various tangible/intangible benefits to retailers such as commissions made for sales.

Customer experience, sometimes abbreviated to CX, is the totality of cognitive, affective, sensory, and behavioral customer responses during all stages of the consumption process including pre-purchase, consumption, and post-purchase stages.

Retail leakage occurs when local people spend a larger amount of money on goods than local businesses report in sales, usually due to people traveling to a neighboring town to buy goods. Retail sales leakage occurs when there is unsatisfied demand within the trading area and that the locality should provide extra stores spaces for such type of businesses. After all, retail leakage does not necessarily translate into opportunity. For instance, there could be tough competition in a nearby locality that leads the market for same type of product. Many small - to medium-sized communities experience leakage of retail expenditures as local citizens drive to neighboring towns to shop at national retail chains or eat at national restaurant chains. Attracting such national retail chain stores and restaurants to a community can prevent this type of expenditure leakage and create local jobs.

Omnichannel is a neologism describing a business strategy. According to Frost & Sullivan, omnichannel is defined as "seamless and effortless, high-quality customer experiences that occur within and between contact channels".

Data-driven marketing is a process where marketers employ a process to gain insights into consumer behavior, including purchasing patterns, advert effectiveness, and browsing habits. Contemporary methods utilize big data strategies to collect and analyze information on consumer interactions and engagements, aiming to predict future behaviors. This analysis involves evaluating existing data, acquiring new data and systematically organizing and interpreting it to improve marketing strategies. The primary objective is to better understand and address customer needs. Market research provides a detailed understanding of consumer preferences

References

  1. "clienteling" . Retrieved 2 March 2015.
  2. 1 2 "How to Deliver Great Customer Service" . Retrieved 2 March 2015.
  3. Reda, Susan. "Making Mobile Happen". Archived from the original on 2 April 2015. Retrieved 2 March 2015.
  4. Joseph, Alex. "iPad Clienteling at Retail Stores: Cool or Creepy?" . Retrieved 2 March 2015.
  5. Ginsburg, Rachel. "Retail Evolution: Building a Tech Enabled Environment". Archived from the original on 24 March 2015. Retrieved 2 March 2015.
  6. Eisenberg, Lee (3 November 2009). Shoptimism: Why the American Consumer Will Keep on Buying No Matter What. Free Press. ISBN   978-0743296250.
  7. 1 2 Garry, Michael. "New Clienteling Tool Empowering Saks Associates" . Retrieved 2 March 2015.
  8. 1 2 3 Mahoney, Sarah. "Thanks To Mobile, More Retailers 'Clienteling'" . Retrieved 2 March 2015.
  9. Rhodus, Matt. "Clienteling Enriches the In-Store Experience" . Retrieved 16 March 2015.
  10. Richter, Nathan. "Making Excess Exclusive By Clienteling" . Retrieved 2 March 2015.
  11. Shanker, Martin C. "Pull—Don't Push—Your Way to Clienteling Success". Archived from the original on 2 April 2015. Retrieved 2 March 2015.
  12. Ritzer Ross, Julie. "Facing Fears in Omnichannel". Archived from the original on November 7, 2014. Retrieved 2 March 2015.