Incentive - February 2009 - (Page 42)

Success in Small Steps PAGE 44 Incentives and Promotional Products PAGE 47 Shorter sales contests can boost motivation In an economic downturn, merchandise has answers Channel Surf ing Consumers expect retailers to connect the dots for reward and loyalty programs By Alex Palmer A s retailers struggle to retain and get the most value from existing customers, research is showing the importance of connecting with consumers across channels—in customer service and loyalty programs. Last month, Sterling Commerce released its third annual consumer survey report, with results that show that, “Retailers who can deliver a seamless experience across channels are best positioned to gain increased customer loyalty and revenue per customer.” In the survey of 1,017 adults polled about their shopping habits, respondents indicated a desire to interact with a company across a variety of channels—in store, online and over mobile phones. For example, 57 percent feel it is important to be able to return merchandise to a store even if it was purchased via telephone or online (up from 41 percent last year). Additionally, 35 percent feel it is very important to be able to pick up merchandise at a store after ordering online, double last year’s 17 percent who answered the same way. This research suggests that individual consumers interact with a retailer in a number of ways, and to motivate them to keep coming back, the retailer must connect in a more holistic way, and this includes the company loyalty program, says James Salter, founder of the consultancy Customer Lifecycle. “Your loyalty program is more important than ever now,” says Salter. “They need to address the current requirements of the customer. Increasingly, companies that are successful, are managing the entire customer experience.” He cites Hewlett Packard’s “Total Customer Experience” program, which examines all the customer experiences at every stage of the product lifecycle, from researching the products online, picking up the merchandise or contacting service and support. “They must be tailored to what the customer wants.” The Sterling survey found quite a bit of “channel hopping” as consumers interacted with the retailers in a number of ways to complete their purchase. For example, 60 percent of in-store shoppers have gone online to do research on a product before purchasing, and 30 percent have taken an online coupon or rebate offer to the store (up from 24 percent). Those behind the survey see this as a particularly important point to understand during this economic downturn. “This survey shows [that] consumers are demanding new levels of convenience only found when retailers effectively bridge their cross-channel environments,” says Jim Bengier, global retail industry executive for Sterling Commerce. “As economic conditions worsen, retailers must make it as easy as possible for consumers to shop.” Salter urges that rewards programs must be similarly tailored as part of a larger customer engagement effort. “A lot of companies make the mistake of viewing their incentive program as a standalone thing,” says Salter. “It must be part of an integrated, strategic initiative to better serve the customer as part of the total customer experience.” 42 | Incentive | February 2009 | incentivemag.com http://www.incentivemag.com

Table of Contents for the Digital Edition of Incentive - February 2009

Incentive - February 2009
Contents
Editor's Note
Headlines
The Incentive Survival Guide to 2009
Strategies: Nature vs. Nurture
Strategies: Thank God for the Recession
Research: Industry Trends 2009
Travel News: Where To Go and What To Do
Travel Strategies: Make It Work
Las Vegas: Changing Fortunes
Potentials Here and Now
Merchandise Strategies: Success in Small Steps
The Economy's Down; You Don't Have to Be
Gift Cards Strategies: Flexibility Is the Word
Advertiser Index
On the Web

Incentive - February 2009