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10 QUICK TIPS TO EXCEL IN BRICK & MORTAR

3 Prime Day Tactics to Leverage This Holiday Season 5 Tips For Keeping Stores Safe For Children RETAILMINDED.COM SUMMER/FALL 2018 $12.95

4 Tips to Help Retailers Prepare for the Holidays Now

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CONT

6 EDITORS NOTE Hear from RM’s Founder, Publisher & Editor

8 5 TIPS FOR KEEPING STORES SAFE FOR CHILDREN Aaron Stamm, Retail Specialist at Acuity Insurance

10 10 QUICK TIPS TO EXCEL IN BRICK & MORTAR Brought to you by Acuity Insurance

12 4 TIPS TO HELP RETAILERS PREPARE FOR THE HOLIDAYS NOW Brought to you by Acuity Insurance 14

TEENS’ VIEWS ON SOCIAL ACTIVISM AND CAUSE MARKETING AND WHY IT MATTERS FOR BRANDS Bill Carter Partner, Fuse

Photo by Nicole Reyhle

16 3 WAYS RETAILERS CAN INCREASE CONVERSION RATES By Sara Hicks, Co-Founder and CEO of Reaction Commerce 18 3 PRIME DAY TACTICS TO LEVERAGE THIS HOLIDAY SEASON Michael Osborne, President & CEO of SmarterHQ 20 GDPR AND THE U.S. RETAIL INDUSTRY: HOW BUSINESSES CAN MINIMIZE RISK By Greg Sparrow, Senior Vice President & General Manager, CompliancePoint

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EDITOR’S NOTE I love the change of seasons… and change in general. Do you? As a retailer, change is important. With Summer coming to an end soon and Fall just around the corner, change is inevitable since customer’s schedules may shift (back to school does that for all ages… not just kiddos) and seasons bring new patterns for customers that impact their daily schedules. Retailers should embrace these changes and likewise, embrace change in general in order to keep up with the competitive retail market. Among these changes is how customers like to shop. The path to purchase is no longer linear and thus, retailers should embrace this. At the upcoming NY NOW market in NYC taking place August 12-15, 2018, I will be presenting a variety of seminars that identify many of the changes taking place in retail right now. From technology to omni-channel shopping experiences to online reviews and how they impact in-store sales and more, there is a lot to explore and learn from when it comes to retail. Join me if you can! Learn more here! But if you can’t make it, don’t miss out. Be sure to follow along using hashtag #nynow. Speaking of change, there is no argument that how customers like to shop varies from generations. I’m curious what you have seen in your own store experiences when it comes to supporting customers across the generations and how you have had to adjust your support among customers based on their shopping preferences. Possibly, however, you haven’t made this change at all. But should you? This is something Retail Minded continues to explore and encourage you to, as well, based on your unique customer audience. Be sure to visit RetailMinded.com for regular articles discussing how to support customers across the generations… and let me know what your thoughts here are, as well. Tweet me at @RetailMinded or connect with Retail Minded on Facebook. We look forward to hearing from you always! Finally, the Summer may be behind us, but it’s not forgotten! One of my highlights was attending ASD Market Week in Las Vegas where I discovered high-margin inventory across a variety of retail categories. In case you weren’t able to attend the show, be sure to visit ASD social pages to see videos that myself and Jasmine Glasheen from the Retail Minded team shared highlighting a variety of the inventory found at ASD. Wishing you retail success in the season ahead. Till next time…

Nicole Leinbach Reyhle Founder | Publisher | Editor nicole@retailminded.com 6

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FOUNDER & EDITORIAL DIRECTOR Nicole Leinbach Reyhle OPERATIONS MANAGER Emily Carter PARTNER PROGRAMS

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Tips for Keeping Stores Safe for Children Contributed by Aaron Stamm, Retail Specialist at Acuity Insurance

For parents, itâ&#x20AC;&#x2122;s difficult enough shopping with young children without having to worry about what they could get into or uncertain conditions that could lead to harm. Here are some tips retailers can use to keep their stores inviting to families, kid friendly, and safe.

Change Your Perspective.

The key to creating a safe environment for children in your store is to view the environment from the perspective of a child. This means focusing on potential hazards that exist at and below 4 feet in your store. Floors should be dry, clear of obstructions, and level. Electrical outlets, including those built into the floor, should have appropriate outlet covers. Use reflective marking/taping for any level changes, such as at entrances, exits, and stairs.

Photo by Nicole Reyhle

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2 4 35 Secure Shelving. Shelving with

Shopping Cart Safety. Each

sharp edges can be a cause of injury for children. Ensure

year, about 24,000 children under the age of 15 are sent

shelving corners are cushioned. Use shelf edging guards and

to emergency rooms due to shopping cart injuries. Falling

be sure there are no items protruding from shelves. Young

out of the cart is the most frequent cause. Verify all child

kids are naturally curious and don’t distinguish between

restraints in carts are properly functioning, safety signage

climbing playground equipment versus store shelves. Check

for customers is in place, and any damaged carts are

shelving and display fixtures to be sure they are properly

removed from operation. Carts that are designed to seat

anchored to eliminate the chance of tipping. Place heavier

children close to ground level are the safest choice. Ensure

items on bottom racks and don’t overload shelving and

your employees are well trained in shopping cart operations

fixtures—most have a weight capacity that should not be

and can educate customers as needed. Also, make sure the

exceeded.

aisles and merchandising displays are easy to navigate while using a cart. Parents can get frustrated if they have to leave

Review What’s in Reach. Take a careful look at all products that are displayed or

stored on lower shelves and remove anything that could

their children in the main aisle to go and get an item.

Get Everyone Involved.

cause injury. On low levels, avoid stocking small items

Safety is no accident. It is important for retailers to create

that could be a choking hazard as well as any sharp items.

a culture of safety with all employees. Make safety training

Many items can be considered a choking hazard, and the

and discussion a regular part of employee meetings.

CPSC provides a tool (small parts tester) to help evaluate

Everyone should be responsible for helping to maintain a

the risk. Also, it is important to secure any heavy items that

safe shopping environment and should never walk past a

could be grabbed and pulled off higher shelves onto a small

safety concern without addressing and resolving it.

child. Stores often have cleaning and maintenance supplies

Creating a safe store environment not only helps avoid

available throughout the building for employees to use.

accidents and injuries to children, but keeps their parents

Be sure those supplies are secure and kept out of reach of

coming back as customers.

children.

Contributed by Aaron Stamm, Retail Specialist at Acuity Insurance. Stamm is the Retail Specialist at Acuity Insurance, a property and casualty insurance company that protects over 100,000 businesses and offers innovative insurance products and excellent customer service. We understand you work hard to grow your company, so we provide the insurance you need so you can focus on operating your business.

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QUICK TIPS TO EXCEL IN BRICK & MORTAR

hanks to technology and consumer demands, the realities of retail

Want to really impress your customers? Treat every single guest who walks through your doors like a VIP. Whether a customer appears to be just browsing or is a familiar face who you know has spent money at your store in the past, deliver

are changing rapidly. Yet, despite

red carpet customer service to all guests who visit your business—ultimately

the rapid pace of retail evolution,

shop while also helping to increase sales.

brick and mortar retailers have the opportunity to lean on oldfashioned techniques to help their stores thrive while incorporating new strategies to help strengthen their business operations. Curious how your store can be among those physical retailers who excel in retail? Check out the ten tips below.

TIP #1: DELIVER RED CARPET CUSTOMER SERVICE

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helping your store earn a reputation for being a friendly and supportive place to

TIP #2: PROVIDE REGULAR EMPLOYEE TRAINING From your store policies regarding delivery of customer care to the expectations you set for merchandising your inventory and handling downtime in between customer visits, it’s important that your employees are informed about your unique store expectations. Don’t leave room for them to wonder what to do… or worse, disappoint you in their actions. Instead, make employee training with clear guidelines a priority for your store.

TIP #3: USE DATA TO IMPROVE BUSINESS EFFORTS To be proactive and efficient in your business efforts, it’s important to incorporate data into your day-to-day, weekly, monthly, and annual business tasks. Through data, retailers become enabled to improve productivity, strengthen ROI across all channels—including employee management, inventory, social media, and more—as well as improve performance and overall operational efforts. The catch? Data can be generated thanks to modern technologies, but it’s important to actually review it and react to it in order for it to be effective.

TIP #5: APPEAL TO YOUR TARGET DEMOGRAPHICS THROUGH IN-STORE STRATEGIES TIP #4: REMERCHANDISE YOUR DISPLAYS REGULARLY Let’s face it, a reality of retail is the opportunity displays have to make or break engagement among consumers. Through displays, retailers can leverage opportunities to connect with customers and provoke consumer engagement. Poor displays can do just the opposite and turn customers away from your store and inventory. To avoid this potential shortcoming, make merchandising a priority. From dynamic displays to regular merchandising updates, how your store visually appeals to consumers is something not to overlook.

If you’re looking to capture more customer attention, begin by first understanding who your customers truly are. Do they exclusively fall into the Gen Z category, or do Baby Boomers also provide opportunities to be among your customers? Identify who your audience is, then make sure you provide an in-store experience that resonates with each of them. From incorporating digital technologies and providing signage with large enough fonts for all generations to easily read to offering a play area for kiddos to stay busy while their moms shop, it’s critical to consider every detail of your store experience when it comes to keeping your customers happy across every generation.

TIP #6: IDENTIFY STAPLES & STATEMENTS AMONG YOUR STORE INVENTORY Want to strengthen store sales while keeping customers engaged and excited? Be sure to offer staple items your consumers can confidently know you stock and sell, such as denim jeans for a clothing store, red roses for a floral shop, and other basic items depending on your store category, while also providing statement items that are more seasonal or trendy. This variety will help keep customers consistently coming to your store while also providing you an avenue to keep sales growing.

TIP #7: INTRODUCE AUTOMATION INTO YOUR STORE EFFORTS Time is among the most valuable resources any business can have. Therefore, it’s important to welcome today’s modern technologies into your store efforts as a way to ease your business operations. Through automation, inventory can be better managed, customer service can be strengthened, and billing and operational responsibilities, such as renewing your insurance policies or paying your employees, can be done more easily. Welcome automation into your store strategy as a way to gain time to do what you do best—building and growing your business.

Brought to you by Acuity Insurance. Discover more here!

TIP #8: PROTECT YOUR BUSINESS AGAINST ANY POTENTIAL THREATS Peace of mind is something any busy retailer can appreciate. Yet, too often this reality doesn’t set in until it’s too late. If your store is on fire or flooding, you do not want to have to worry whether your insurance company will be there for you, so making sure you have an insurance company you can trust is important. An insurance agent can review your unique store risks and help you choose the right insurance coverages to protect your business. Explore more here.

TIP #9: GET TO KNOW YOUR NEIGHBORS Despite online reviews and savvy technologies that help spread the word about your store to others, old-fashioned referrals can still drive sales to your business. To help gain more customers, make an effort to get to know other businesses in your community so they can refer their customers to you and you can do the same for them. This word-ofmouth marketing strategy may be old fashioned, but it’s something that will never go out of style.

TIP #10: SHOW YOUR CUSTOMERS HOW MUCH YOU APPRECIATE THEM From introducing loyalty programs into your store strategy to handwriting thank-you notes for certain customer purchases or hosting in-store consumer appreciation events, let your customers know just how much you care. This TLC is often lost in today’s busy merchant landscape, yet it’s usually appreciated when introduced. To help maximize your efforts here, be sure to layer your customer appreciation efforts into multiple strategies versus just one. Finally, as you aim to strengthen your brick and mortar experience, also aim to strengthen your visibility among consumers. Don’t dismiss the importance of having an online strategy that includes social media, an easy-to-navigate website, and cohesive branding across all platforms where your store is represented online. Combined with the other tips mentioned here, you will be positioned to gain strength in your local retail marketplace while also gaining strength in your store’s success.

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From festive window displays to increased inventory sell-thru to hiring seasonal employees, there is a lot on a retailer’s to-do-list when it comes to preparing for the holidays. Among the key points on any merchant’s checklist as they prepare for the busiest shopping season of the year should be making sure their store is adequately prepared to welcome customers and employees alike both safely and confidently in their store environment. To help consider these 4 tips below.

TIP #1: STRENGTHEN YOUR SAFETY EFFORTS PRIOR TO THE HOLIDAY RUSH As the saying goes… it’s better to be “safe than sorry” and this could not be truer when it comes to preparing your store for the holiday rush. Among the safety details you should review and strengthen include: Building Maintenance: Whether you lease or own your retail space, take the time now to review the health of your furnace and heaters, refrigerators and freezers and all other key components of your space that may be impacted by weather – including windows, doors and the spaces that surround the entrances and exits of your building. Don’t overlook your necessary maintenance in your bathroom and fitting rooms, as well, if applicable. Slip & Fall Prevention: Incorporating durable floor mats at the entrances and exits of your store can help avoid unexpected – and often damaging – falls in your store. Additionally, having salt purchased and ready to use for salting sidewalks and common exterior space is always a good idea to help avoid accidents, as well, when the weather suddenly takes a turn for the worse. Incorporating hand railings or making sure existing hand railings are strong and securely in place is also a good idea. Snow Removal Plans: Rather than wait until the last minute to identify what to do when snow falls, have a plan in place for a snow removal service provider to clear your entrances and exits in a timely matter. Inclement weather should not prevent customers from visiting your store, so ensure you are prepared to react no matter what the weather is. If you choose to handle this internally, make sure you clearly identify with your entire team what the protocol is and who is in charge of what. Plus, be sure you have the right equipment – including durable shovels and weather proof footwear – to help avoid accidents due to these efforts. Additionally, when it comes to safety you can never be too clear among your employees on what your store expectations are. Set standards and have these firmly outlined for your entire team to review and sign off on as having read and understood. Take the added steps of making these visible for easy review and reference, as well.

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#2: HAVE A MERCHANDISING SCHEDULE IN PLACE When the holidays come it’s easy to get caught up in the hustle and bustle of the season, but don’t let this keep your store from engaging in festive store updates along the way. To ensure your store stays holiday fresh throughout the entire season, schedule merchandising updates now. Identify what themed décor you will need for your displays and then make sure you have this décor purchased and ready now versus trying to track down last minute. From window displays to interior merchandising strategies to point-of-sale displays and more, review your store to prepare for what you will need to look like later. Don’t forget to factor in the inventory you are having delivered into your store for this time of year, as well.

#3: SCHEDULE EMPLOYEE TRAININGS Often, retailers hire new employees for the holidays while other times retailers increase existing staff hours. Either way, the holidays present a great excuse to update your store team on everything from store policies to customer care expectations to how to handle down-time in between customer visits and more. A training is a great way to make sure all employees are on the same page when it comes to store expectations, but it also presents an opportunity to strengthen team morale and overall spirit leading into a busy time of year. Make it productive but also make it fun. Arming your employees with clear guidelines for your store should be a priority… but arming them with clear guidelines in addition to increased store respect and appreciation is even better.

#4: IDENTIFY MARKETING EFFORTS TO BRING MORE AWARENESS TO YOUR STORE From leveraging local media for publicity to incorporating heightened social media efforts to building email campaigns nowto avoid having to do later, there is no better time than today to begin your holiday marketing efforts. Ensure your store is positioned to stand-out among your local marketplace and big box competitors by getting savvy with your marketing goals. Scheduling, promoting and ultimately hosting in-store events (both small and large scale) during the holidays is a great idea, as is creating promotional campaigns that drive foot traffic to your store. Don’t dismiss partnering with like-minded yet non-competitive businesses, as well, to generate increased visibility among consumers.

Finally, while retail races rapidly throughout the holiday season, don’t forget to take time to enjoy the ride along the way, as well. Begin today – and even turn on some holiday music to help get you in the spirit – to ensure your holiday season will be your most profitable and enjoyable yet.

4 Tips to Help Retailers Prepare for the

Holidays Now

Brought to you by Acuity Insurance. Discover more here!

Photo Credit: Shutterstock

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Teens’ Views on Tips for Social Activism Retailers and Cause Marketing and Why It Matters for Brands Before you create or update your cause marketing programs, consider the following tips: 1. Be authentic ensure that the cause is relevant to your organization and beliefs

2. Think long-term retailers who have a longer-term commitment to a cause are seen as more credible

By Bill Carter Partner, Fuse

3. Engage employees allow employees to use paid time to volunteer with the cause 4.Promote your cause find ways to let customers know you are involved; through social media, your website or in store displays

For more information about teen-centric cause marketing strategy and best practices, please contact us. 14

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retail “ T h e r e a r e s e ve r a l etting g e r a t a h t s ie n a p m co r fo s n e e t f o n io t n e t the at g in t e k r a m e s u a c ir e th ef for ts.”

Photo Credit: Shutterstock

By now, we’ve all seen the compelling data as to why brands should invest in cause marketing – and our study says nothing to the contrary, with 67% of teens saying they were more likely to purchase from a company that supported causes they care about over another company that does not. But in our study completed this month of 2,000 U.S. teens between the ages of 14-17, we went deeper to identify actionable insights for brands as they consider their CSR programs.

What Teens Care About One of the most interesting findings of our 2016 study was that the Environment did not rank as a key concern of teens. But in our 2018 survey, the Environment is back on the list. Ranked in order, the top 5 key concerns of teens are: • Education • Jobs and Unemployment • Prejudice and Racism • The Environment • Terrorism With over 150 incidents of gunfire at schools from 2016-present, notable in its absence from the top 5 was “gun violence.” There are several possible reasons for this issue’s low standing, including the possibility that teens included gun violence along with other non-academic elements within their selection of education.

Teens Have Ramped Up Their Activism The principal change in the activism of teens since 2015 has been in their more forceful action. More than a quarter of respondents said they have “attended protests or rallies” or “boycotted a company” in the last year. In the last 12 months, teens cited taking the following actions: • 60% Recycled regularly • 42% Educated family and/or friends about a cause • 33% Volunteered their time to a cause

Teens – and Corporations – Have an Obligation to Solve Social Issues One of the most fascinating findings of our study was teens’ belief that corporations have the same obligation as teens themselves to help solve social issues. 68% said companies have an obligation to solve social problems, while 67% said teens themselves have that responsibility. Only 10% said they, nor corporations, have an obligation to solve social problems. And how do teens think companies are doing? Not so well. Only 28% of teens think companies are doing enough to support causes teens care about.

Communicating Authenticity vs. Teens’ Skepticism After learning a company supports a social cause or is socially responsible, teens are more likely to: • 69% Trust the company more • 62% Purchase products

the

company's

• 66% Pay more attention to the company’s marketing/advertising But teens are discriminating, if not skeptical, and said they need to see the following from a company in order to believe their cause marketing is genuine: • 50% - Company makes a financial donation to the cause • Working directly on the issue • 44% - Company communicates about their efforts in their marketing/advertising

Taking Steps Toward Effective Cause Marketing In our 2016 study, the brands whose cause marketing efforts were most resonating with Gen Z included Ben and Jerry’s, Chili’s, and the NFL. Now, there are several retail companies that are getting the attention of teens for their cause marketing efforts. Walmart’s partnership with Feeding America tackles food insecurity, improves quality and nutrition and helps Feeding America to increase capacity to fresh products. McDonald’s HACER Scholarship has granted more than 31 million dollars towards Hispanic scholarships and their Ronald McDonald House provides families housing near hospitals to be close to ill children. Target’s partnership with the US Soccer Foundation includes a commitment to build 100 new soccer spaces by 2020 and their Target United Cup is one of the largest recreations youth soccer tournaments in the US. In addition, Target focuses on local communities via building more than 180 play spaces for kids via their partnership with KaBOOM!

Contributed by Bill Carter, Partner at Fuse. As a Partner at Fuse for more than two decades, Bill has worked to build an experienced staff informed by consumer insights and data. He manages the agency's marketing and business development, as well as leads Fuse's Higher Ed projects. Bill has been an adjunct professor at New York University, St. John’s University (NYC), and George Washington University and regularly speaks at marketing industry conferences on influencer marketing, the use of brand ambassadors, and all things Gen Z. Bill has been named to Sports Business Journal’s “Forty Under 40” and his thoughts on leadership have been featured in the New York Times' Corner Office column.

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From a shift in consumer behavior to the technology available to retailers, the shopping experience has evolved immensely in the last decade. For retailers and brands looking to avoid the fates of mainstay brick-andmortar stores facing closures, it is crucial to adapt and adjust to suit the needs and pace of the modern shopper. Attention spans are decreasing and according to a study by Microsoft, the average person now has an attention span of eight seconds. This highlights a decrease from the average attention span of 12 seconds in the year 2000. What’s even more shocking is research from Jampp that found human attention span decreases by 88 percent every year. With this in mind, retailers need to move swiftly to utilize the limited attention spans of their shoppers and work quickly to turn interest into conversion- but how?

Personalize the shopping experience In-store customers expect to be greeted and assisted in their shopping process- from receiving recommendations to getting their questions answered in real time. The same is true for the online shopper, and personalized experience can make all the difference in turning a “window shopper” into a buyer.

3 Ways Retailers Can Increase Conversion Rates By Sara Hicks, Co-Founder and CEO of Reaction Commerce

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Customers want instant product recommendations, merchandise that’s dynamically tailored to their location and tastes, and the ability to browse multiple retailers in one place. As tech giants like Amazon continue to innovate and take over the retail world, these expectations are going to continue to grow. The solution comes down to offering real-time reactivity and customizations whenever possible. Real-time helps retailers engage shoppers quickly, in the moment with the use of a modern ecommerce platform. Additional customizations can be added to ecommerce websites through chat bots to offer customer service and sales alerts based on shopper preferences, making the shopping experience more tailored.

Optimize website speed Retailers are fighting for attention, often doing so after customers have left their website, via aggressive email marketing tactics, to try to get shoppers to come back to the site. Instead of spending energy mostly on after-the-fact actions, retailers should prioritize creating a first impression that drives sales from the initial visit. According to Google Think, “The average time it takes to fully load a mobile landing page is 22 seconds. Yet 53% of mobile site visitors leave a page that takes longer than three seconds to load.” And that’s just mobile! For every increase by the second in page load times, there’s significant increase in bounce rates. When it comes to increasing conversion rates, every second counts and first impressions matter. Ensure website layout is intuitive for customers who have never visited the website in the past and that load times are manageable.

â&#x20AC;&#x153;Retailers are fighting for attention, often doing so after customers have left their website. Instead of spending energy on after-thefact actions, retailers should prioritize creating a first impression that drives sales from the initial visit.â&#x20AC;?

Photo Credit: Shutterstock

Understand your customerâ&#x20AC;&#x2122;s journey The customer journey differs for each retail business, from where customers come from to how long they spend on your website. Track the customer journey to identify both the most popular and least visited areas of your retail website. Thinking like your customer is key to ensure that you are providing the optimal experience. Overall, mobile is a growing platform for customer engagement in retail, with 40 percent of online transactions taking place on mobile phones. Understanding that this is the case, it is important to optimize website function for mobile scalability. In fact, in recent research, Forrester identified mobileinfluenced offline spending to be over $1 trillion. Citing also that consumers engage in heavy mobile research before indulging in offline purchasing in almost all categories. Additionally, a recent survey found that 90% of smartphone owners use their phones while making purchasing decisions in a brick and mortar store. Ultimately, understanding how your customers shop, creating a personal experience and grabbing their attention is critical to driving increased sales conversions. Optimizing online and in-store experiences for omnichannel retailers is critical to creating the best experience possible, while online-only retailers must ensure mobile to desktop transition is smooth. Enact these three tips to drive increased conversion rates across your retail store.

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3 Prime Day Tactics to Leverage This Holiday Season Michael Osborne, President & CEO of SmarterHQ

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We all saw (and probably stalked) the headlines around Amazon Prime Day 2018. More than 100 million products were sold on their site during the historic event, making the day and a half of sales larger than both Black Friday and Cyber Monday. And while Amazon’s sheer size and power contributed once again to their success on Prime Day, there are a few things the rest of us can learn from their tactics to drive sales and customer engagement during the holidays. Here’s what every retailer can learn and apply to their own strategies this holiday season: 1. Make loyal shoppers feel like a VIP. Perhaps the biggest (and most obvious) takeaway from Prime Day is that Amazon manufactured their very own holiday—it’s a completely made-up event thriving on the “eliteness” of the Prime membership. Amazon’s success in creating such a sought-after shopping event relies heavily on the fact that they truly understand how to drive customer loyalty and reward Prime members by making them feel they have special access to something the rest of the world can’t get. Create the same feeling with your most loyal shoppers this holiday season—give them first access to your biggest sales, reward them with a larger percentage off than what’s on the site, promise them “exclusive free shipping,” etc. This type of special treatment will go a long way, especially as you try to stand out in the never ending inbox of holiday promotions. Also, be vocal about their VIP status in your messaging leading up to the big day. As Amazon does so well building up Prime Day before it happens, make sure your customers understand the hype so they can fully embrace it when the season hits. 2. Keep every interaction highly personalized. Another Amazon tactic to adopt as soon as possible: Create a highly personalized experience catering to each

customer’s interests and shopping behavior. Prime Day

it to some of your shoppers. For example, offer free

flourishes on the e-commerce platform’s ability to provide

shipping to your highest-spending customers, or to

similar product views to their customers, powered by

those who have exceptionally long cart abandonment

algorithms and predictive modeling. On Prime Day, whether

times. Leverage free shipping as a way to push them to

I was shopping on Amazon or another brand’s site, the

purchase, with a simple CTA during checkout: “You’re

deals that won me over were those offering a compelling

X away from free shipping!”

personalized offer or experience—and I’m not alone. 44% of customers polled in a recent survey said they buy

Along with free shipping, a growing customer

based on Amazon’s product recommendations, and 78% of

convenience is the ability to shop online and return

consumers say they only engage in offers that have been

in-store. Our consumer survey found 55% of online

personalized to their own tastes (Marketo).

shoppers even prefer in-store returns to mail when given the option, and when a shipping

Personalization is becoming the expected

fee is added, that in-store returns

norm for shoppers, so take the “Amazon

number increases to 73%. Amazon

approach” to capturing and converting your customers this season. Use YoY data to deploy tailored messaging and similar products to seasonal shoppers who engaged with your brand at the same time last year and increase the likelihood that they return again. Supplement your holiday gift guides with additional merchandised products based on each shopper’s behavior. As holiday promotions come to a close, automatically message to customers who have engaged with products that qualify them for a specific deal, and enhance your content with personalized product retargeting. The possibilities are endless.

Personalization is becoming the expected norm for shoppers, so take the “Amazon approach” to capturing and converting your customers this season.

makes it incredibly easy not only to return items online, but they’ve dialed into those who prefer to do so in-person by allowing items to be returned at partnering stores. Call out this convenience to shoppers before, during, and after the holidays—and consider designating online returns counters within your stores. Doing so will help make the holiday returns madness less stressful for these customers, save you money on return shipping labels, and drive in-store foot traffic (and potentially more sales) post-holiday season, too.

3. Step up your shipping & returns experience. 82% of Amazon Prime members say they would cancel their membership if free two-day shipping wasn’t available, and it’s no secret that besides the Prime Day deals themselves, free and fast shipping is the next biggest draw for those participating. Customer demand for free shipping, especially during the holidays, is high. And while it’s not feasible to expect every brand to be able to offer (and afford) free shipping to everyone, consider at least offering

Contributed by Michael Osborne, President & CEO of SmarterHQ. SmarterHQ is the leading multi-channel behavioral marketing platform, empowering B2C marketers to personalize individual customer interactions in real-time. They work with some of the world’s largest brands—such as Bloomingdale’s, Santander Bank, Omni Hotels, and Finish Line—to drive outstanding business results and have been recognized by Forrester’s Total Economic Impact study to deliver 667% in ROI. Learn more at SmarterHQ.com.

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The General Data Protection Regulation (“GDPR”) was

Turning our focus to retailers specifically, several chains

first introduced on April 27th, 2016. The regulations were

have displayed international influence with the presence

designed to better protect EU citizens from businesses

of not only brick-and-mortar stores in several nations,

who could potentially misuse data and information that

but through international marketing efforts. A well-

was collected from these individuals. Since its inception,

known example includes Whole Foods, an American

the GDPR has raised a number of questions as to

supermarket chain that previously held over 477 stores

whether businesses are properly prepared to comply.

in North America and the United Kingdom. After

Post-adoption, there was a two-year grace period for

Amazon’s acquisition of the natural-foods company in

Photo Credit: Shutterstock

GDPR and the U.S. Retail Industry: How Businesses Can Minimize Risk By Greg Sparrow, Senior Vice President & General Manager, CompliancePoint

businesses to strategize and implement their compliant

June 2017, the e-commerce giant became America’s

approach. With just one month left, it has been reported

fifth-largest grocery retailer. Outside of the benefit of

that an estimated 61% of U.S. businesses are not ready

concrete locations near its customers, the marketing

for the regulation, and that only 67% of European-based

data obtained through the acquisition provided

businesses have begun moving into the implementation

Amazon valuable behavioral statistics on grocery-

phase of their GDPR compliance program .

The

buying habits, patterns, and product preferences. It is

potential fines have many concerned about compliance

estimated that over 80 million individuals are Amazon

as the May 25th, 2018 date of enforcement approaches,

Prime members and, with this new data, Amazon

but businesses struggle with fully understanding the

can build accurate predictive analytic models that

regulation and thus fail to launch a comprehensive plan.

can suggest to prime members what they will want, how much they will want, and when they will want it.

RETAILMINDED

AUG/SEPT/OCT 2018

The GDPR places Amazon’s acquired ‘Whole Foods’ business unit under scope for not only its presence in the United Kingdom, but also due to its monitoring of European Union (“EU”) data subjects, and attempt to offer them goods and/or services. Amazon’s practices most likely include the use of automated individual decision making against EU data subjects, requiring explicit consent under the GDPR. Processing is broadly defined in the regulation to include most actions that can be performed with data and can specifically refer

do not stand alone, and typically occur with others. There are several steps that companies must immediately embark on to mitigate their exposure to risk. A solid start begins with understanding GDPR regulation applicability to various parts of the business, and understanding each unit’s risk profile to establishing priorities for the initiative. Once risk and priorities have been identified, it is critical for organizations to identify and establish their lawful basis for processing of this data.

to collection and storage, which Amazon in this case

Every industry has its own unique risk and operational

would be doing. The massive retailer must therefore have

challenges, and every business within has its own

processes in place to honor nine distinct rights awarded

maturity relative to industry peers. Using the trusted

to EU data subjects, and be able to operate under the

counsel of a compliance firm helps to quickly identify

guiding privacy principles, defined within the GDPR. The

both industry and organizational risk that, as a non-

regulation further dictates appropriate security efforts

biased third-party, are often otherwise overlooked. A

around the protection of personal data, establishes

risk management and compliance consulting firm can

breach reporting requirements, and increases the risk

help organizations quickly identify risk, formulate a

associated with vendors processing this data. These

plan to mitigate this risk, and setup ongoing monitoring

expansive requirements make the process of marketing

programs to maintain valuable records of compliance.

and vendor outsourcing much more complex for anyone with a direct consumer relationship with EU data subjects.

Some have suggested the GDPR will set the global precedent for data privacy and security regulations.

Many smaller agencies may not be considering the new

Brazil and China have both showed interest in

regulations as seriously as they should be, but past

forming similar requirements to protect the privacy

enforcement actions point to enforcement risk even with

of its citizens’ personal information from businesses

smaller agencies. The GDPR states that non-compliant

storing

companies posing a risk to EU citizens and their privacy can be fined up to $20 million or 4% of their global turnover for the previous fiscal year, whichever is greatest. For companies like Amazon, with a net revenue around $178 billion in 2017, they could potentially face a fine of $7.1 billion. It is important to note that this fine would be per violation. It can certainly be assumed that larger repercussions would be imposed in this hypothetical case, since case law suggests similar types of violations

and

transferring

data

across

borders.

To adequately prepare for the GDPR and similar regulations likely to be introduced in the future, businesses must begin educating themselves on these regulations, and how they will choose to conquer the requirements. Applicable processes and procedures can obviously help minimize exposure to fines, but also provide an opportunity within the market to reassure customers and in return, earn their trust. Source – Iapp.org “Survey: 61 percent of companies have not started GDPR implementation”

About the Author: Greg Sparrow has enjoyed over 17 years’ experience in Privacy, Information Security and Risk Management Greg has had the pleasure of working on both US based and international projects. He was responsible for the development and implementation of the security program’s responsible for protecting billions of dollars in annual transaction volume. Greg’s most recent work includes security and certification work for Samsung Pay, enterprise risk management for multiple NFL and MLB sports teams and helping to secure critical infrastructure at some of the nation’s largest transit hubs. Greg holds multiple IT and security certifications covering the Healthcare Industry, Payment Card Industry and federal banking standards.

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