To involve the customer in the customer journey of the future, it's essential to have customer insights and utilize machine learning/AI to provide a better customer experience. A customer experience that fosters loyalty and encourages customers to make purchases more frequently.
Amazon, the world's largest online retail company, has been gradually adjusting its business model since 2015 by opening physical stores. The biggest news in the fall of 2018 was the plans for up to 3,000 kiosks called AmazonGo. Amazon CEO Jeff Bezos has stated that the key to success is offering something more than just new products or an exciting menu.
"If we offer the same shopping experience as others, it will never work," Bezos recently said at an event in Washington DC.
The key here is customer insight and offering customers more than what they expect while continuously adjusting this over time. Let's take an example with a fictional customer, Petter, who is 45 years old.
Petter is 45 years old and from Trondheim. He works full-time as a salesperson in the grocery retail industry. He lives in a detached house just outside the city center with his wife, who runs an underwear store in the city center. They have two children, aged 12 and 16. Petter is active in the local football club and owns a bird dog that he takes on hunting trips and daily walks in the forest. When they go on vacation, they often travel to Crete. Petter values high quality while also not wanting to stand out too much.
Normally, Petter tends to go to one of the large discount store chains 1-2 times a month. When he's there, he always buys dog food.
At the checkout counter
When Petter reaches the checkout counter, he is asked if he wants to become a member by the cashier. He is asked this question because his debit card is not registered. Petter can now choose to become a member and receive electronic receipts, a 100 kr gift card, and a 100-day return policy on all his purchases. The cashier asks for his mobile number and proceeds to process the payment for the items.
Registering his membership
Petter receives an SMS, and when he comes out of the store, he completes the registration of his membership by filling in his email and password. The purchase history is collected from now on, linked to Petter's purchases, providing a "profile" of his interests. His payment card is now automatically linked to Petter, and he receives digital receipts and redeems his personal discounts/coupons the next time he shops.
Digital loyalty cards
Since Petter frequently purchases dog food, a digital loyalty card is created for him where he receives the 5th item for free. This encourages Petter to start shopping on the chain's website as well, as the loyalty card automatically works both in-store and online.
Electronic receipt
Petter no longer needs to handle paper receipts and can, with the 100-day return policy, go to the store and swipe his card at the card terminal. The item to be returned is scanned by store staff, and the product is linked to the correct receipt.
Store Credit
Now that Petter is a member, he receives a store credit when he returns an item. He can easily check his balance on "My Account" and the store credit can be used both in-store and online.
Check-Out
As a member, Petter no longer needs to go to a traditional checkout counter in the store. He can complete the checkout process for his items directly on his mobile phone. This means that he pays in the same way whether he shops in-store or online.
Personalized offers
Through SMS, email, and other channels, Petter now receives personalized offers based on the customer insights derived from his purchase history. He also receives personalized offers to entice him back if he hasn't shopped in-store or online for a certain period of time. Since Petter's purchase history indicates that he is not price-sensitive and purchases most items at regular price, he receives the majority of such offers.
What can Mediaset offer?
Mediaset's platform, powered by CakeBox and Dintero, offers e-receipts, digital offers and coupons, e-gift cards, digital loyalty and punch cards, and a data hub that collects and processes customer purchase history using machine learning/AI. The platform includes open APIs for easy and seamless integrations with multiple systems in the market.
