Cristina Ziliani

Retail Micro-Marketing Strategies and Competition

The goal of this paper is to open the debate about the effect of customer specific retail marketing on competition. Segmentation and targeting based on loyalty card information affects horizontal and vertical relationships. Few retailers can take advantage of the power connected to the ownership of customer information. Consumers benefit from a more targeted approach to value creation but the distribution of such value varies widely, as a consequence of micro-targeting. A second goal is to test a new way of conducting joint research with practitioners. An online community was set up for the discussion of micro-marketing related issues. Online, the authors have been able to test the hypothesis and deliver the survey questionnaire to participating retailers who, in turn, can access results through the community website: www.partnership4loyalty.com.

Building customer loyalty in retailing: not all levers are created equal

This research examines the determinants in building and maintaining customer loyalty in grocery retailing. The first part introduces a distinction between traditional, ‘mass’ levers such as range and price, and relational, ‘targeted’ levers based on individual customer information. The second part focuses on the role ofthese two sets of levers for differentiation, that is, to what extent they are perceived by customers as distinctive to a retailer. For the first time, parallel analysis of retailers and consumers is used to obtain a dual perspective on loyalty drivers. Most supermarket chains in Italy today are found to invest marketing resources in the ‘mass’ levers of range and price. They are also starting to use other levers for differentiation, although effectiveness of their attempts varies a great deal and the perception of diversity by customers varies a lot from one banner to another. We also find that relational levers cannot be separated from traditional levers to sustain loyalty, but they clearly play a secondary role. Investment in targeted marketing is no substitute for that in traditional mass loyalty tools such as range and price.

Retail shopper marketing: the future of promotional flyers

Purpose – The purpose of this paper is to evaluate the recent evolution of store flyers to illustrate how a tool of traditional marketing can be applied to generate insight on customer “couch-to-cart” behaviour thus supporting an innovating shopper marketing approach. The authors support this position by elaborating on three themes: first, the recent evolution of flyers, driven by incorporation of customer insight derived from loyalty data and by new features enabled by flyer digitalization; second, the evolution of the flyer planning and management process, related to opportunities and challenges in the retailer organisational structure; and third, the rise of online flyer aggregators. Design/methodology/approach – The authors used field interviews. The authors included the perspectives of different subjects involved in planning and delivering flyer-based promotions. Secondary data were also collected regarding flyer activities of a sample of 67 retail groups across 15 countries and four industries. Find...

Towards digital loyalty programs: insights from customer medium preference segmentation

Purpose The purpose of this paper is to identify patterns of medium preference for loyalty programs (LPs) among members to support the case for segmenting customers based on their medium preference. Design/methodology/approach A survey of nearly 2,000 customers who are enrolled in at least one supermarket LP was employed. LP members are segmented based on a latent class clustering model and then profiled in terms of socio-demographic variables by means of a multinomial logit regression model. Findings Medium preference is heterogeneous and differs at the customer segment and at the LP touchpoint level. Five segments emerge which display different medium preference patterns. LP medium preference is associated with age, gender, affluency and number of different LPs the customer is enrolled in. Practical implications Retailers, e-tailers and brands can benefit from this customer segmentation when faced with the challenges of adding online features or migrating their LPs online. Marketers should differentiate their investment in online and offline LP touchpoints according to the medium preference for each LP touchpoint of the customer segments of interest. Originality/value Retailers, e-tailers and brands are today introducing online marketing strategies and tactics, such as LPs, that have been traditionally used offline. So far, however, they have failed to answer the question whether online and offline LPs and related touchpoints have the same preference among consumers. Literature on LPs has not explored customer preference for the LP medium or the consumer characteristics related to medium preference. This work is unique in providing an overview of medium preference for LPs and their touchpoints.

Online versus Offline Promotional Communication: Evaluating the Effect of Medium On Customer Response

ABSTRACT The effectiveness of online versus offline promotional communication is an important marketing issue. This study estimated the effect of online versus print promotional communication on customer response. It employed a field experiment comparing the effectiveness of print versus online store flyers to evaluate the memory and actual shopping behavior of more than 9,000 retail customers. Evidence shows that print and online flyers achieved equal results in terms of purchase behavior and memory. The findings thus suggest that retailers and brands can focus on cost and reach when making investment decisions about print and online advertising.

Retailing in Italy - Players, Strategies and Trends

Retailing in Italy is characterised by slowness in modernisation and internationalisation compared to the other European countries. The main reasons are restrictive regulations, especially governing the opening of large stores, and small firm size. This paper introduces the main players in the Italian food and nonfood retail market. The first part focuses on current developments in grocery market structure, strategic retail banner positioning and store format performance, at national and local level. Competition in nonfood retailing is also analysed, emphasising the key role played by international chains. The second part of the paper focuses on three major trends. The first is the growth of private labels. The second is the spread of loyalty programmes and the increasing use of loyalty card databases in planning and implementing micro-marketing strategies. The third and last trend concerns shopping behaviour, where there are changes in shopper profiles and needs.

Mapping touchpoint exposure in retailing: Implications for developing an omnichannel customer experience

The purpose of this paper is to identify the patterns of customer exposure to touchpoints by segmenting consumers based on the frequency of their exposure, and to understand the relationship of patterns of exposure with customer loyalty intentions (relationship commitment, self-disclosure and positive word-of-mouth) and demographic characteristics.,An online survey of almost 4,000 customers was employed in a supermarket retail setting. Customers were segmented based on their frequency of recalled exposure to multiple touchpoints, by means of a latent class cluster analysis, while considering the role of demographic characteristics. Afterwards, loyalty intentions variables were regressed on the resulting customer segments.,Based on the touchpoint exposure, six customer segments emerge. The main differences across segments relate to the intensity of frequency of exposure and the types of touchpoints customers have been exposed to. Sex, age, shopping role and geographic area of residence are related to segment membership. The identified patterns of exposure explain relationship commitment, self-disclosure and positive word-of-mouth: clusters displaying higher exposure to touchpoints display higher loyalty intentions than clusters displaying lower exposure.,The study offers actionable implications for brands and retailers on how to manage touchpoints for implementing omnichannel strategies.,As far as the authors know, this study is the first to identify exposure to multiple touchpoints and understand the role of demographics as far as touchpoint exposure is concerned. It also provides interesting findings on the relationship of different combinations of touchpoints with customer loyalty.

Innovation in Brand Promotion: Reacting to the Economic Crisis with Digital Channels and Customer Insight

Despite increases in promotional pressure by manufacturers and retailers to counter the effects of the economic crisis, promotional effectiveness is decreasing. Brands are reacting by experimenting with innovation in promotion, enabled by new digital channels, customer insight derived from individual customer information and new intermediaries. We respond to a call for research on promotion innovation (Grewal et al., 2011) by analyzing the post crisis promotional scenario. We see it shaped by the convergence of three industries: loyalty, payments and apps. Players and solutions from these three areas are merging to make a blend of loyalty and price promotion available for brands to deliver over digital channels and in targeted ways. We discuss managerial implications and new research opportunities.

From “Trade Loaders” to “Online Channel Partner Programs”: How Trade Promotion Changed its Face from 1990 to 2010

Based on the analysis of trade promotion and motivation activities targeted to various types of channel members by suppliers in 14 industries between 1990 and 2010, this paper aims to draw a picture of the evolution of trade promotion practice. We find that “loyalty” promotions, i.e. loyalty schemes and clubs that have literally flourished in consumer markets, have been adopted in B2B contexts. This has the potential for aligning supplier and distributor objectives and improve channel performance. In fact, non-price channel promotions such as the above act on attitudes, not only on behaviour, differently from price incentives that literature has found to determine mere short term compliance. We also find that loyalty programs in channel relationships can act as “frameworks” to provide and engage channel partners with the most-advanced, highly promising opportunities offered by web 2.0 developments, such as prediction markets and group/social buying.

Store Brand as a Customer Experience Touchpoint and Its Contribution to Store Loyalty

Store Brands (SBs) have been growing internationally over the last decades, spurring many managerial and academic studies. The present work aims to take a fresh perspective on SB by highlighting its role as a retail touchpoint within a Customer Experience (CE) framework. This study examines SB as a touchpoint, together with many other retail/store touchpoints that consumers interact with during their CE journeys. By means of a survey on more than 2000 consumers, we identify the relative role of SB within the CE journey in terms of reach, and its contribution to store loyalty when all other CE touchpoints are considered. First, we show that SB is a touchpoint that can reach a high share of retail customers and we highlight its overlap with other touchpoints. Second, considering that touchpoint “positivity” is defined as the customer’s affective response to the encounter with a touchpoint, the study estimates the relative contribution of SB positivity to store loyalty. SB positivity is found to be an important predictor of store loyalty. Results carry several implications for academics and practitioners.