Why Brick-and-Mortar Retailers need Data to Succeed

In the past years, many brick-and-mortar retailers have failed to adopt the advanced analytics and big data metrics that have boosted the increasing success of online retailers.

Using mounds of customer data – from online activity to purchase history to response rates – e-Commerce retailers have been able to smartly tailor emails, pop-ups, and recommended products for each customer, thereby driving sales by offering today’s consumers the personalized experience they demand. 

Likewise, traditional retailers must begin to leverage consumer and purchasing data to increase retention rates by planning advanced marketing campaigns that target individual customers to yield higher returns.

Recognizing the merging of offline and online consumers

The line between offline and online shoppers has all but disappeared today. Some modern consumers prefer to shop online, some use their mobile devices, and others opt for traditional brick-and-mortar shopping.

But most shoppers use a combination of methods, and they want a memorable and satisfying customer experience in all of these channels.

Evidence of the merging of the e-commerce and traditional retail channels can be seen in the rise of showrooming, when consumers use their mobile devices to compare or make purchases in stores, as well as the more common reverse showrooming or “webrooming,” wherein consumers research products online before heading to the physical store to complete their purchase. A 2013 Harris Poll survey found that almost half (46%) of American adults report showrooming, while a majority (69%) use reverse showrooming to inform their buying decisions. Emerging technologies like the Internet of Things and iBeacons have also blurred the distinction between the physical and digital worlds.

To meet this new paradigm, brick-and-mortar retailers must break away from old marketing models and seek to better engage customers by providing a personalized, data-driven customer experience.

Using data to create a comprehensive “in-line” shopping experience

Consumers want to visit brick-and-mortar retailers, just as websites, that know who they are, what they like, and what they might want or need. So, traditional retail stores must leverage in-store data to help them better know their customers and engage with them more productively online. They must also regularly track progress and analyze results to hone their offline and online marketing campaigns.

Specifically, traditional retailers can work to satisfy and keep their customers by enacting segmented, personalized email campaigns and implementing the tools of retention marketing automation powered by Windsor Circle. By embracing the power of data to inform stronger marketing efforts, retailers can create an “in-line” shopping experience marked by customer engagement across both in-store and online channels.

Some of the data that Windsor Circle’s platform and software can help retailers gather and apply for successful marketing include:

  • Historical Data – By understanding customers’ behavior and spending patterns, retailers can better prioritize marketing strategies, segment customers, and personalize and automate targeted email campaigns. Windsor Circle allows retailers to import years of customer and purchase history data and create detailed shopper profiles that can be used to market related products, retain latent customers, and offer loyalty incentives.
  • Customer Lifetime Value (CLV), – Retail marketers can use data about the projected lifetime revenue from a given customer – including both in-store and online purchase timetables and spending patterns – to segment customers for more personalized marketing campaigns. Applying CLV along with Average and Median Order Values to inform marketing efforts, Windsor Circle can help retailers vary their marketing messages and promotional offers for different customers, as well as implement proven campaigns such as rewarding customer loyalty programs and other incentives.
  • Customer Latency – Using data to define the periods between a customer’s in-store and/or online purchases, retailers can govern the timing and tempo of email marketing campaigns and reach customers when they are most likely to buy again. By analyzing all of a retailer's purchase history data, Windsor Circle can identify the relative difference in order value and other metrics by time between purchases, and then tailor marketing strategies for each customer.
  • Predictive Data – Predicting future customer behaviors or needs is a good way for online and offline retailers to engage with the right customers at the right times via optimized email marketing campaigns. Windsor Circle offers a number of key predictive data fields used to power personalized, automated marketing efforts, giving retailers the ability to send timely product recommendation and replenishment emails, and even enact win-back campaigns.

Meeting the challenges of the modern consumer paradigm

Modern brick-and-mortar retailers will only continue to thrive in our competitive modern economy if they can understand and engage with customers in a more targeted way to make their shopping experience more personalized and enjoyable.

eCommerce retailers have figured out how to give shoppers the experience they want, setting a new standard for increasing customer engagement and sales using data-driven retention automation and lifecycle marketing. Equally, traditional retail stores must harness the power of data if they wish to compete— and keep customers coming back.

Contact an expert at Windsor Circle today, and find out how you can begin leveraging data to power more informed, personalized, and profitable marketing campaigns that can enable offline retailers to see greater success.


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