KFC China fast food restaurants accepted Alipay mobile payments since July 2015. McDonald’s China also adapted Alipay in September 2015. Consumers now can use unique Alipay QR code in their smartphones to pay for the orders, which transactions will take only two seconds or less. It will be more convenient and efficient for both customers and cashiers. All KFC restaurants in the country only accepted cash payments in the past 27 years. Though Alipay simplifies the payment process, yet the benefit of creating consumer behavior database has been the main reason to accelerate the cooperation of these two industry giants.
For retailers in food and beverage or FMCG industry, knowing consumer behavior and target customer segments for different trade zones is as important as improving product and service quality. Classify customers into different groups in terms of different needs and characteristics to optimize its products and marketing mix for store performance improvement.
Usually, brand owners could pull out consumer behavior data from CRM database. Yet it’s hard to attract people to sign up for the membership program without big incentives such as discounts or exclusive deals. Now collecting consumer data through mobile payment makes it easier. Using big data technology to build customer profiles, to forecast the spending potential from purchase orders. Specify demographics like age, gender and behaviors like product-purchase interests in local areas. Identify high potential customers regarding different trade zones to enhance sales promotion and market strategy planning for better store performance. Different target segments in different trade zones could also be a good reference for the new store location selection, sales forecast and lease negotiations.
Mobile payment not only provides superior customer shopping experience, but supports the demands of O2O commerce. Retailers could also use big data analysis to find out who are the most desirable customers, and then create personalized offers which they are likely to buy.
Since Double Eleven Shopping Festival is coming, most retail brands are so prepared to join this year’s event. Brand owners not only offer discounts in ecommerce sites to attract consumers, but also set up experience areas in physical stores where people can feel the products in hands and purchase online/offline at special prices set for the event. It’s big sales holiday for most famous ecommerce platforms in China.
Below is the ranking of top 10 ecommerce sites in China in 2015 published by China e-Business Research Center.(中国电子商务研究中心) The new study indicates that Tmall was number one among all Chinese B2C retail websites for 2013. The site accounts for a 50.4% share of the B2C online retail market in China, followed by 20.7% of JD and 5.7% of Suning. Following No.4 to No.10 are Tencent (5.4%)、Vip(2.6%)、Amazon China(2.3%)、Dangdang (1.9%)、Gome(1.7%)、YHD(1.6%)、Vancl(0.8%).
O2O is a very good concept for retailers to truly engage with customers. Whether consumers purchase online or offline, the buying journey is much more important for brand owners to profile customers and predict their next move. Retailers need to dig out who the customers are and what they want through bunches of data, then push the right messages that they wont’ignore.
Identify business problems and set up objectives
Nowadays data steam from consumer’s daily life: from browsers of websites, apps of mobiles and tablets, from credit cards and transactions of POS, and any other digital track from intelligence devices. Data collection is no longer as difficult as it was in old days. Before analyzing the data, marketers should be very clear about what’s the ultimate goal for pulling out so much data. Specify business problems the company try to solve, so that marketers can ask the right questions while looking at abundant numbers without getting lost.
Now we are talking about how data could be helpful in optimizing marketing campaign.
Find out most desirable customers and most valuable customers
Sometimes we will get into the trap of always finding new leads. Marketers held a lot of campaigns to acquire new customers. Yet, the point is not how big the customer base; the quality counts. Instead sleeping customers, people visit often and be willing to buy more expensive option are the main contribution and loyal members. Reevaluate your existing customers and use creative ways to activate them.
Customize messages to target more precise segment of audience
In addition to traditional broadcasting advertisement, create tailored messages to different target audiences. With the analysis of transaction data, CRM data, and market data, we can likely predict customer preference, not wild guess. Since we figure out what they probably like and their intent for next move, we can provide best offer for the right groups to maximize the campaign results.
Use location analysis to get actionable metrics
Consider “where” factor in customer behavior analysis. Ask questions like where the customer purchase the product, where they surf the internet, or where they use specific service/apps. Do some research on target customers and other key market drivers (key accessibility, business, lifestyle, residential, tourist points, competitors, ant etc.). Use demographics, business point data for market overview and better environment understanding. Visualize high potential trade zones that you haven’t taped in. Marketers can always know where to put ads, digitally or physically, in the clusters people will actually purchase.
Above all, brands need to embrace digital channel to grab each chance of engagement with customers. The more data collected from consumers, the more we can increase success rate of marketing activities.
With the omni-channel trend rising, retail and bank industries keep on looking for new ways to boost their competitiveness, and differentiate themselves with others remain traditional. Geofencing is one of key technologies practically utilized in Location Based Marketing. It is an application in a software program that uses the global positioning system (GPS) or radio frequency identification (RFID) to define geographical boundaries. Geofencing creates a virtual fence around a specific area= which could be flexibly defined based on the store catchment or ad campaign area.
How does it work? When marketing team decide to set up a campaign in high-foot traffic area for one or two months , to attract new potential customers to visit physical stores nearby. Traditionally, marketers would hire temporary interns to distribute hardcopy flyers during rush hours. Yet they never know whether the efforts are helpful or not. With geofencing approach, marketers can easily track events results.
Push discount favors when consumers walk into certain areas
Marketers can generate a defined-radius catchment around multiple stores all at once in the very beginning. They can even freehand draw boundaries within the territory of competitors in digital maps, and then schedule better daypart together or individually, to activate the digital marketing campaign in minutes systematically. While potential customers enter these defined geofencing boundaries at the right time, either near the stores of theirs or competitors, apps with embedded SDK installed in the smartphones will trigger the pop-up banner or message. These promotion ads notify customers e-coupon or discounted products, which would lure them to walk into stores. Additionally, marketers can further calculate redemption rate precisely in terms of visit counts of customers using these e-coupons in the back-end system.
On the basis of many authentic experiments and studies, geofencing LBS advertisement drives much more cost profit ratio than the traditional flyer distribution . Therefore, it is important to consider how to apply the application in your operation and marketing campaigns.
With the smartphone penetration rate rising, the customer shopping behavior in retail market has changed dramatically and impacted the traditional business model. According to a survey on online retail market in UK, mobile commerce has increased 254% between 2010 and 2011, and risen by a further 300% between 2011 and 2012. 69% of tablet owners make a purchase on their devices every month. The trend happens in emerging markets right now. Consumers have gradually adopted the new Omni-Channel shopping approaches, such as ordering from online shopping websites or App portals.