Interpersonal Relations

Customer relationship management (CRM) is the strategy a retailer uses to develop an ongoing, individual relationship with a customer to ensure satisfaction and loyalty. But the specifics of CRM can mean different things for different retailers. Such factors as customer demographics, product assortment and technology infrastructure can all affect how retailers perform CRM.



Here is a look at how three retailers employ very different CRM strategies for the same end goal of maximum customer engagement and profitability:



GameStop: For video game retailer GameStop Corp., engaging millennials, its largest customer group, is essential.



“Millennials are more digital and comfortable with technology,” said Mike Hogan, executive VP strategic business and brand development, GameStop. “It has an impact on how we communicate with them.”



GameStop bases efforts to engage millennials across channels on the four pillars of curation, co-creation, community and authenticity. The retailer curates an individualized customer experience that includes a pilot of tablets providing associates access to customer preferences and history.



“Rather than use technology to replace human associates, we use it to augment them,” said Hogan.



GameStop also offers an individually tailored mobile app experience.



Co-creation efforts include allowing loyalty members to vote on special features to include in exclusive versions of games, as well as provide user ratings and feedback.



To build community, GameStop uses its mobile app, website and social media to connect with customers and let customers connect with each other. To provide an authentic level of engagement, the retailer enables consumers to fact check and perform research online, in-store, or across physical and digital channels.



Adagio Teas: For omnichannel specialty gourmet tea retailer Adagio Teas, digital promotions are the most reliable way to engage customers.



“As an online vendor, we are sensitive to the effectiveness of promotions,” said Michael Cramer, founder and CEO of Adagio Teas. The retailer operates three stores in the Chicago area as well as a global e-commerce site.



Adagio experimented with traditional print advertising when it launched in 2000, but had difficulty gauging the effectiveness of promotions. In contrast, the retailer was able to determine a clear ROI from digital promotional campaigns.



By utilizing the Linkable Networks Omnyverse digital offer affiliate network, Adagio has been able to combine the benefits of affiliate marketing and product discovery, while also better meeting the needs of its consumer base. Using the Omnyverse network, the retailer is able to link offers directly to the customer’s credit card for automatic redemption.



Through its network of digital publishers, including Groupon, Shop.com and Savings.com, Omnyverse is able to bring Adagio’s promotions to 50 million consumers. The merchant has seen some sales increases and expects more as customers adapt to the network.



Hoven: San Diego-based vertical eyewear retailer Hoven leverages the Holonis Internet marketplace platform to provide uniform messaging and engagement across platforms, including Twitter, Facebook, Instagram and Amazon. Since going live with Holonis in mid-March, the company has been able to automate and optimize consumer engagement and branding across all channels.



“With one code, we can put content through to all the social media channels,” said Conor Coleman, lead sales and marketing manager. “We can engage directly with customers and subscribers, and give them rewards for things like good reviews.” Hoven also uses the Holonis platform to send targeted emails to customers with special offers related to recent online purchases. In addition, Hoven has improved search engine optimization so that it is now usually in the first several search results for eyewear products on Google, with improved online sales.