5 strategies retail brands will enforce to reach customers

September 29, 2021

What’s coming for retail brands to reach and make customers loyal?

In the last two years, the whole world has changed. We saw how we went from close interactions, smiles, closed spaces and nonchalance to social distance, masks, highlighting easy expressions from the eyes up and favouring plans in open places. With this global shift, the retail industry began to concentrate on direct interaction with the user, focusing on getting to know the customer and being able to give him what he needed where he felt most comfortable: his home.

For this, data analysis and product personalization began to be developed in order to build customer loyalty like never before!

See for instance what Nike is doing these days:

Customizing your shoes – Nike

Brands begin to try to know you, listen to you and connect with you, they try to approach you through digital channels and seek to make your interaction with them more and more pleasant. They are looking for you to develop loyalty, because they are aware of the value of their customer and know that the customer can go to the competition without any problem.

So, how have these characteristics been synthesized into strategies?

These are the 5 strategies that brands will prioritize to reach the customer:

1. Customer-centricity

Nothing is more important than the relationship with you!

2. Hyper Personalization 

They want to get to know you better than you know yourself. In fact, they’ve done studies that guarantee that a third (⅓) of people are willing to give their DNA to make personalized offers more accurate! The need for hyper-personalization is reciprocal.

3. Loyalty

Customer loyalty is never finished being earned, and personalization in loyalty is becoming more and more relevant.

4. Customer service

Companies with good customer service are 6 times more profitable! The compelling associate journey is born, which seeks to educate in understanding and empathy to favor the development of a connection between the customer and the brand, thus generating better results.

5. Adaptability

It is time to experiment and test. Brands have never had as much access to data as they do now and can afford data-driven experimentation. In addition, thanks to D2C, they can afford to make small quantities and test them in the market.

All these strategies involve both in-store and online work, but how will it evolve in physical spaces?

The physical store is developing in the direction of the experience. The store is no longer going to be that place that could be interpreted as an orderly deposit of products. Now stores are going to move towards the experience, towards supporting the company’s philosophy and being the point of interaction between the customer and the brand. To this end, a process of “boutification” of the stores is underway: fewer products, more trained staff ready to make your experience in the store as pleasant and interesting as possible.

One example is Rebecca Minkoff, who in her flagship store in New York introduced an interactive fitting room that allows you to change sizes and colors of garments, or even change the lighting in the fitting room so that you can try on clothes in the environment in which you intended to wear them. This has proved to be effective, as her sales grew by 200%!

Interactive fitting room – Rebecca Minkoff

 

After D2C and the modernization of the physical space, what lies ahead for retail?

From Byld we believe that the utilities that Blockchain technology can bring into the industry can bring a further turn in personalization, traceability, customer trust towards the brand and customer experience, but how can this happen?

NFTs are at the forefront of today’s crypto industry. They stand out for being unique and, therefore, they can prove who owns the piece and who created it at all times, tracing back all the owners it may have had. These come to awaken and incentivize a retail that is no longer oriented towards the physical person, but rather attacks the digital person – the avatars and the style they can wear in spaces like Decentraland, the digital world for avatars where you can have your land, build, design and even exchange resources for money.

These are not just for digital avatars. In addition, companies like Nike are starting to use them to link them to physical assets – cryptokicks – going so far as to patent the system by which Blockchain can be used to link digital assets with physical products. Anyway, we in this article are not going to develop in depth on the topic of crypto and the spaces within this industry.

In conclusion, retail is an industry that does not stop mutating and adapting to the ecosystem, making use of the genetic heritage of the human being and its historical past as a trader. Wherever humans go, in one way or another, retail will be present and ready to position itself through a possible universe within the internet if necessary.

What do you think, do you see a future for NFTs as a revolutionary actor in retail? What will happen with physical spaces? We would love to hear back from you.

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