Adobe Analytics reported that Cyber Monday 2017 was the largest U.S. online shopping day ever, with a record $6.59 billion in online sales. It surpassed both Black Friday ($5.03 billion) and Thanksgiving Day ($2.87 billion). “Numbers like that simply can’t be ignored,” says Marco Morales, Creative Consultant at Mirabeau. “Except for a few specific niche markets, retailers will have a tough time surviving unless they can engage with customers digitally.” 

 

But ‘going digital’ to connect with customers isn’t easy for retailers, according to Gwellyn Daandels, Senior Director Digital Business at Cognizant. “Retailers face what I call the ‘personalization paradox’: on the one hand, they need to be more interactive, more personal and more relevant to customers than ever before,” he says. “On the other hand, they have more customers, less time and fewer people with which to do it. The only way to relevantly and personally engage with customers under these conditions is to utilize technology – like analytics, AI and conversational interface – to combat the paradox.”

 

But where should retailers start, and what are the most critical points to consider? Marco and Gwellyn explore this sometimes-slippery concept.

“In its most basic sense, Customer Engagement means partnering up with your customers, so that they become confident that you will deliver what they need, when they need it,” Marco explains. “The retailers who are most successful at Customer Engagement can even anticipate those needs, and offer them before a customer even asks.” 

 

Applying AI to engagement gives retailers the forecasting powers of ‘demand sensing’: projecting the needs of the user based on learned behaviors, either through in-store analytics or online statistics. Providing customers with the information they seek before they know it themselves is a powerful sales driver. Levi’s now offers virtual stylist chatbots who can discuss a shopper’s interests, preferences and tastes, and store all that information to make every future shopping experience more pleasurable.

 

“The important thing to remember about AI is that it is very similar to a newborn baby,” Gwellyn says. “At first, it only learns what you teach it with your robust data. As time goes on, however, it learns and grows from its own experiences, successes and failures, until it is a mature and competent ‘adult’. With AI technology, retailers can develop a long-term source of deeply personal information about their customers, and in turn create exceptional shopping experiences.”

 

Gwellyn cautions that Customer Engagement looks different for every type of retailer. “There’s no magic formula or silver bullet to get customers to engage with you,” he explains. “Since engagement is built during every interaction retailers have with their customers, it starts from the ground up. Of course, your brand and strategy must be in tip-top shape. Your product must be high quality and appropriately priced. Every level of service – from pre-sales to after-care – must be running like a well-oiled machine. Without those building blocks, customers have no reason to engage.”

 

Marco adds that the retailers themselves can improve their internal processes from these customer-focused initiatives. “Data collected during assisted customer journeys and POS moments can translate into marked improvements in retailer efficiency, stock management and sales efficiency. Retailers can utilize every bit of data to become more streamlined and effective internally.”

Marco and Gwellyn say that collecting and analyzing data is essential, but it often misses qualitative information and nuances that only become apparent when researching on the field with real shoppers. “Sometimes, the answer will come from the most unexpected places,” Marco laughs. “There’s one very high-end retailer whose sales representatives kept getting a single request from customers: a WhatsApp photo of the product they were interested in. Apparently, these customers were aware of how much retouching and special lighting went into the product photo shoots. They wanted to see what the products looked like in real life – and real light. So now, that retailer prepares its sales reps to fulfill that very specific client request.” For other retailers, the answer might be equally simple – so before you spend time and money making assumptions, it’s crucial to keenly observe customer behavior and ask your customers what would truly make their lives easier – and check that you are communicating in a way that they expect and appreciate.

Retailers who focus only on conversion or sales are missing a golden opportunity to create long-term engagement that leads to repeat business. “After customers buy a product – especially one with a longer lifespan – retailers can make sure they make that product as relevant and useful to the customer as possible,” Marco says. “Send tips and tricks for getting optimal use of the product. Offer insights on how to use the product to make life easier. Or show the versatility of the article of clothing or accessory in different contexts. This will reaffirm the customer’s purchase, and remind them that you’re truly interested in making their lives easier. Since those actions aren’t directly connected to a sale, customers feel more loyal and more appreciative of your business – and therefore, are more engaged.”

Gwellyn emphasizes that implementing technology doesn’t mean taking the ‘human’ out of retail. Implementing AI and conversational solutions simply means that retailers’ human capital can be better utilized elsewhere. “Some technology lovers simply can’t wait for items to be shipped to them, so Cool Blue shows them the closest retail location that has the item in stock. When shoppers arrive there, the human salespeople still have a key role to play in the transaction.”

 

Key learnings from digital can support brick-and-mortar stores, too. When Sephora realized how impactful customer reviews were, they started presenting them in their brick-and-mortar stores, as well. Now, tools previously reserved for digital are impacting physical store sales.

 

The key takeaway from this? Get a 360°-view of Customer Engagement opportunities that will combine insights from Sales, Marketing, Communications and Customer Service – and transform a forgettable, one-dimensional experience into an efficient sales funnel.

Both Marco and Gwellyn predict that the opportunities for Customer Engagement – and therefore long-term loyalty – will only grow in the coming years. “We’re already seeing retailers starting to digitize their in-store staff,” Gwellyn says. “And, as the possibilities for customer insight increase, so will the opportunities to take advantage of them. Think of customers scanning their loyalty cards as they enter the store, so that sales reps can personalize their shopping experience.”

 

“Robo-advisors can help sales reps be even more engaging, efficient and helpful to curious shoppers,” says Marco. “They combine the human know-how of store clerks and customer service reps with powerful tools to expand their capabilities. The robo-advisors can offer insight into shoppers’ preferences, previous shopping behavior and specific needs, and suggest the best next actions. That turns regular reps into super-reps.”

 

Marco continues: “And, in the same way that intelligent bots are creating excellent online customer experiences today, soon stores will be able to use facial recognition technology to connect with customers who enter their stores, and guide them to the products they most need.”

Mirabeau is no stranger to the power of Customer Engagement. Recent projects have shown just how impactful the right insights can be. Chat is quickly becoming the interaction of choice among mobile users through cognitive services like conversational interfaces. Mirabeau launched a chatbot for Transavia, so customers could purchase tickets directly from their social media messenger apps.

Through machine learning, Transavia Flight Search will learn from every user interaction. By creating a dialogue with users, Transavia can watch their game-changing offering develop in the blink of an eye. And they can rightly take their place on the forefront of the revolution. 

 

But chatbots are far from being the only new technology to increase engagement opportunities. Mirabeau has also developed face recognition, AR and IoT solutions to increase and add value to the customer experience, which in turn leads to increased sales. 

 

In the fast-paced retail market, technology is the key to connecting with customers in the digital domain. What’s the right solution for you? An intelligent combination of the customers you know and the technology that connects you to them.

Explore and experiment. The more you know your customers and their needs, the closer you can get to creating life-long loyalty.

Conversion: Turning browsers into buyers.