I realised it’s been quite a while since I heard retail marketers talking about socioeconomic groups - so where have all the ABC1s, 2s and 3s gone?
The answer is that more retailers are now focusing their marketing on individual shoppers and shopper types, with the intention of selling on a ‘one-to-one’ basis.
For years, retailers have been able to analyse how individual customers moved through their websites and use that knowledge to develop better experiences and boost conversion.
Nowadays, this type of analysis is possible in stores via video, mobile and product/radio-frequency indentification (RFID) analytics that can help formulate better layouts and a more interactive experience.
Some larger US retailers are using RFID data about which products customers are handling or trying on, and linking it to geo-fenced loyalty apps and smart cards to make individual shopping offers and recommendations.
As such, stores are performing as websites in terms of customer interaction.
While such investment might be a leap too far for many retailers, there is a low-tech option that can be adopted by all: staff engaging more with customers. If they do, shoppers are nine times more likely to try something on, and typically around half of those that do will buy.
- Sue Butler, Director at management consultancy Kurt Salmon