Decreasing foot traffic is one of the major roadblocks for retail store owners in our mobile-digital world. Because physical stores are not as busy as they used to be, standard in-store advertising is losing effectiveness and, as a result, ROI is suffering. What’s more, customers often research products online before making the purchasing decision. And that, in turn, makes them less receptive to in-store advertising. In the face of shrinking sales volumes, brick-and-mortar retailers are forced to reinvent the shopping experience.
The good news is that this trend can be reversed through a new in-store marketing technology we like to call Targeted In-Store Promotional Solutions, or TIPS, for short. TIPS look like digital displays, but they contain a camera that can "see" a customer standing before the display and quickly gather valuable data about the customer in real-time. These include age, gender and more ... all without actually identifying who the customer is. TIPS can then match the customer to any of several pre-defined profiles in order to display ads and other relevant marketing content to that customer. Women see different ads than men. Younger people see different ads than older audiences, and so forth.
TIPS represent the transformation of in-store marketing from one-size-fits-all, static ads to high quality, personalized offers. As such, TIPS open a whole new area for cutting-edge, in-store technologies. It empowers retailers with capacities to engage a shopper—to invite him or her to interact with the brand—by delivering more meaningful, personally targeted experiences.
Companies have already begun to compete with experiences rather than products and services. This trend will become even more visible in the upcoming years as more businesses decide to join the game.
More meaningful relationship with your customers
More-engaging and more-personal marketing communication magnifies the impact of branded messages. According to a survey conducted by Accenture nearly 60% of customers want to receive real-time promotions and offers from brands.
When it comes to personalization, access to good data is fundamental. Companies should find ways to retrieve and apply customer insights to anticipate needs. Every shopper has different buying habits. By developing an understanding of them—for example through purchase tracking or store monitoring—retailers can decide what type of messages should be displayed to specific customers. Interactive technology simplifies the buying process by determining customers’ needs even before they become aware of them. McKinsey found out that companies using extensive customer analytics experienced a 126% profit improvement over competitors.
How do TIPS work?
Tahzoo's proprietary interactive technology allows retailers to deliver different content to each digital customer, based on data insights from real-time, in-store monitoring.
First, relevant information about consumer characteristics like age and gender, is collected through real-time visual observation. The camera registers general physical features of the potential customer, but never actually identifies that person for privacy reasons. Next, the person is matched to a pre-determined profile and receives a relevant message, which is displayed on the screen.
Tahzoo's TIPS guarantee that the right message reaches the right customer at the right time in the right place.
Thanks to real-time data insights, communication can be tailored to the prospect, delivering different content to each customer segment. More relevant in-store campaigns convert much better – L’Occitane en Provence experienced 36% growth in conversions within the first six weeks of implementing Tahzoo's TIPS platform.
Providing richer and more personalized customer experience increases long-term customer loyalty, too. It has a direct impact on the overall performance of stores –the solution guarantees a continuous influx of traffic without generating high advertising costs for the company.
TIP also allows marketers to analyze the impact of marketing content and therefore improve the quality of future campaigns. Anonymous customer information is stored in a database that can be accessed anytime to retrieve valuable insights on the target audience.
Contact Tazhoo today to learn more about our Targeted In-Store Promotional Solutions. Higher in-store sales could be in your future.