Sales communications of tomorw

Protection des données personnelles

Protection of personal data: the new regulations

Protection of personal data: the new regulations 1665 897 Altavia

On 25 May 2018 (sooner than you think!), the GDPR will be applicable in the European Unions 28 member countries. The responsibility of organisations and subcontractors will be increased through new rules and obligations. Are you ready? Here is the latest with Alexandre Guénon,Direct Marketing Purchasing Manager at Altavia.

 Some deadlines seem so far away and we wrongly think we have more time than we do… In just six months, the European Regulation of 27 April 2016 on personal data protection, initiated in 2012 by European Commissioner Viviane Reding, will take effect. According to France’s CNIL – the regulatory body that governs digital rights – the text should enable Europe to adapt to changing digital realities. “Non-compliance will be fined very heavily,” warns Alexandre Guénon, MD Purchasing Manager at Altavia. “The penalty is €20 million or 4% of global sales revenue, whichever is higher. That is some serious financial pressure to enforce all the new rules!”

 

The GDPR governs anything related to the handling of data, more specifically data that can identify a physical person (name, age, street address, IP address, telephone number, etc.). The rule applies to all organisations within the European Union, as well as those outside of it, who may be handling the data of European Union citizens: “The approach relies on three main focal points,” explains Guénon. “The risk, meaning anything related to data security, the rights acquired by individuals, and obligations in the event of data breaches.”

 

The rule sets two levels for involved parties: The “data handling manager,” the owner and manager of the database, and subcontractors, who use one part of the database from time to time on the request of the data handling manager.

 

Consent of individuals

Organisations’ obligations are invoked when new contact details are acquired. “Now, the agreement cannot be ambiguous and active involvement is necessary for the individual. On an online form, there could for instance be a box to tick to express consent,” Guénon continues. “In addition, companies will need to keep a record that states the date, time and means of agreement. These represent major changes in the acquisition of new contact details and will no doubt require data managers to be more exacting.”

 

Data handling

Once contact details have been acquired, organisations must respect a number of constraints imposed by the GDPR:

–Data limitation: obligation only to collect strictly necessary data. “One example of data limitation is when a company wishes to send out a birthday email,” explains Guénon. “Whereas up until now, it had been customary to also ask for an individual’s birth year, only the day and month are now considered necessary.”

–Obligation for data accuracy

–Obligation to ensure data integrity and confidentiality

–Creation of a new position called DPO (data protection officer), the named contact for security and legal and IT matters

–Recording of all of the company’s activities through regular updates to a log describing stored data

 

 

Individualsrights

The individuals concerned by the handling of personal data have the right to assert control over their personal information.

–The right to opposition, meaning that individuals can block their contact details from being reused, particularly for commercial purposes

–The right to access, rectify, and to request the deletion of personal data

–The right to portability, in order to transmit data to another company in a usable and legible format

 

 

Security

Organisations must also ensure that their IT architecture is properly secured by conducting regular testing.

 

“In the event of breaches, the companies involved must warn the CNIL within 24 hours of the incident,” says Guénon. “Depending on the gravity of the incident, the end user may also need to be informed.”

 

These major changes to how data is acquired and managed involve all organisations that manage personal databases, whether it is collected for use by human resources, purchasing, or sales. So, are you sure you’re ready?

Faire simple, il n’y a rien de plus compliqué

Keeping it simple couldn’t be more complicated!

Keeping it simple couldn’t be more complicated! 1789 802 Altavia

In a world that is changing faster and faster, the consumer evolves right before your eyes. Many marketeers have been pulling their hair out trying to find a way to reconnect with this new consumer.


What if the solution was as old as time?

It’s all in your head

Before delving into marketing considerations, we should focus on the most important thing: our brain. Relax! We are not going to explore this fabulous machine in its most complex aspects ‒ quite the contrary.

 

Each of us has the same goal when we communicate: for our message to be understood and remembered. But while it’s easy to recall the overall idea of a movie, for example, it is far more complicated to remember its details, such as the colour of the dress the actress wore in the eighth scene. The same principle applies to marketing communication, but with a key difference: your consumers did not ask for anything, so it is pointless to expect them to make the slightest effort to remember anything!

 

That is how the human brain works. However, although we are naturally drawn to what is simple, it is extremely complicated to achieve that simplicity in our creations.

Why make it complicated when you can make it simple?

The major problem we encounter on a daily basis is lack of vision. Traditionally, advertisers do not have a clear sense of where they are going. As a result, to be sure they have conveyed the right message, they would rather ‘play it safe’ and say everything. Wrong! The studies speak for themselves: a single message on a poster has a 30% chance of being memorised. But when you move up to three messages, the memorisation rate plummets to 14% (source: Kantar Millward Brown study).

Ask the right questions so the consumer does not have to ask any questions

Who is your audience? What response or what emotion do you want to elicit from those people? On which media platforms are you communicating? The questions you should ask are simple, but you have to ask them at the right time, namely before you write the brief.

Simple but not simplistic!

Simplifying does not mean paring down your message to nothing. The fact that your product is complex is not a bad thing. Au contraire! ‘What matters is that your promise is obvious to the consumer,’ explains Benoit De Saedeleer, Strategy Manager at Altavia ACT*. To accomplish that, you have to be empathetic with your audience because, though something might be easy to understand to one person, it will undoubtedly harder to grasp for another person. This is a painful and costly lesson for a company like Snapchat, which is dropping off the map after having set the world on fire.

 

Let’s conclude with a quote from Henri Bergson:

‘Man should put as much effort into simplifying his life as he does in complicating it.’

Easier said than done?

Innover pour légitimer

Innovation is credibility, innovation is magnetic.

Innovation is credibility, innovation is magnetic. 1677 1119 Altavia

 

Innovation is at the heart of business today. From Uniqlo to Jimmy Fairly, companies are innovating in terms of their products, business models and services in order to attract and satisfy increasingly demanding customers navigating a commercial ecosystem that is constantly flooded with new offerings. As a result, brands are forced to innovate in terms of their services, to attract more customers for their traditional ranges but also to develop other services and businesses to secure the reputation of their brand and company.

 

 

There are two ways of developing services, one of which is through acquisitions. This is the strategy chosen by the company Alphabet (Google). Since its creation it has taken advantage of its position as leader and its substantial resources to purchase companies and start-ups. The aim is to improve both its search engine and the synergies between different sources and thereby improve the overall navigation experience. The list of acquisitions can be consulted here.
On the other hand, some companies prefer to develop their services directly in order to establish their brand as a benchmark for a specific segment. This is the case for Amazon and Alibaba, which push innovation to the limit by creating R&D centres to work on aspects such as the supply chain and the delivery experience. A good example is Amazon’s latest innovation of delivering packages directly into customers’ homes.

 

 

Whatever the strategy chosen by the company, in addition to establishing the company as a benchmark for its segment and thereby boosting incremental turnover, the common denominator of developing services is the consumer centric approach. Indeed, “new” models of innovation and ways of thinking are appearing, such as business design for example. This approach aims to develop services that are pertinent both for the consumers (meeting needs based on actual usage) and for the brands (developing profitable services that generate new sources of income). The development of services of this kind allows brands to establish themselves as benchmarks in their segment for several business targets, without having to shout the loudest, simply by offering pertinent services that enable consumers to appreciate their experience and therefore to spread the word amongst their entourage.

 

By Sidney Debaque, Strategic Planner, Agence Cosmic

normalisation de la chaîne graphique

The requirement to standardise the design implementation process

The requirement to standardise the design implementation process 1679 1118 Altavia

Standardisation, systematisation, unification, normalisation… These terms all refer to the need, when talking about the same subject, to establish a common framework. This is essential when it comes to colour. Interview with Hervé Lyaudet, colorimetry and workflow manager at Altavia Paris.

Why is standardisation of colour so important?

The perception of colour is a physical phenomenon (before it reaches the eyes), then a biological one (once the light is captured by the eyes). It is therefore dependent on several factors, the illuminant, the object being observed and the observer. The fact that colour is nothing more than a sensation created by our cortex from electromagnetic waves captured by our eyes means that we all see colours differently and that this perception depends on our state (culture, stress, tiredness, etc.).

 

To manage these factors, the graphic industries must adhere to a certain system, a controlled framework, so that each person can see colour in practically the same way. Standardisation therefore concerns the whole design implementation process, including the viewing conditions (standardisation of illumination, the environment, etc.), measurement and reproduction of colour and press settings, the exchange of files, etc.

 

How can we measure and reproduce colour identically?

Equipment, such as the spectrophotometer, is used to measure the electromagnetic waves precisely. The job of this now essential instrument is to measure the waves that reach our eyes. Thanks to the mathematics and research done by the CIE (International Commission on Illumination), we have a calculation method for defining measured colour in a mathematical space. Once this has been done, we can predict colour and obtain statistics, precise information on deviations and possible reproduction in various media.

 

Is colour standardised at European level?

Yes, and event internationally by means of ISO standards. The data we use in colour management reproduces the characteristics, for example of Offset presses reflecting printing aims stipulated in ISO 12647-2, which enables us to align our work according to worldwide recognised printing.

 

In some regions such as Europe additional groups such as ECI (European Color Initiative) is active by providing free of charge tools such as ICC profiles and control wedges reflecting ISO standards spot on. Also Fogra, a not-for-profit media technologies research centre based in Germany, which more than 800 members whereas more than 30% are based internationally.  They represent the members interests, which reflect the entire graphic chain from the supply industry over printing and prepress houses up to print buyers, by shaping ISO standards that provide clear aims all of the planet. The technical committee behind all graphic arts ISO standards is TC 130.

 

What are the benefits of colour management?

Incorporating colour management into workflows helps to automate the process as much as possible and therefore reduces the risk of error, production costs and lead times. Reproducing colour over time, which was not the case in the not so distant past!

 

But of course, we cannot talk about colour management without talking about standardisation.

 

Are there different interpretations in different geographical places?

Yes, and that’s the problem! Some countries ignore international standards and some add regional variations on top.  The USA, for example, opted for a spatial method known as G7, different from ISO 12647-2 aims. Although the US voted for ISO 12647-2 aims as part of TC130, more influential experts promoted the G7 method and do a great marketing. Modern colour management tools can convert from national G7 (CRPC or GraCol) to international (ISO) standards such as FOGRA39 or FOGRA51.

 

The interpretation in Japan, by Japan Color, is similar. Although they heavily contribute in TC130 and agree to ISO 12647-2 printing aims they provide local standards that differs a bit, in particular the paper shades.

 

The bright future of physical retail, by Raphaël Palti

The bright future of physical retail, by Raphaël Palti 1678 1119 Altavia

Since its birth, fifteen years ago, the growth of e-commerce has been rapid. And this year, once more, the share of online sales is expected to enjoy two-figure growth worldwide. Is this an omen of the imminent end of brick and mortar?

On the contrary, I think that the profound change that the retail sector is currently undergoing represents, for historic retailers, a new opportunity to reinvent themselves and to ensure a bright, lasting future for physical retail.

 

Having increased 20% in just one year, online commerce represented 1,860 billion USD in 2016, i.e. 8.7% of total retail sales worldwide. A share that is expected to pass the 10% mark in 2017. In developed countries, more than half of consumers make purchases online and, in emerging countries, the increase in internet access provides e-commerce with the potential for considerable growth.

Although, in light of the above figures, it seems unthinkable to question it, will the rapid growth of online commerce mark the demise of physical retail? The answer is no. I have no doubt about it. And what’s more, I am convinced that physical retail, the famous brick and mortar, has a bright future ahead, and I can give (at least) five reasons for this:

 

1 – The figures confirm it: the e-commerce wave is no tsunami

In the USA, the second largest e-commerce market in the world, just behind China, the share of online sales stands at just over 8%. And yet, as significant as it is, this figure cannot overshadow the remaining 92%, well and truly occupied by the physical networks. Similarly, projections indicate that, worldwide, e-commerce will represent just shy of 15% of the market by 2020. And to emphasise this point, the share of online sales will not end up exceeding 20 to 25%.

 

2 – The pure players themselves do not believe in a 100% digital future.

Within the space of scarcely two years, many leading e-commerce players have shown a growing appetite for physical retail. In Europe, this was particularly the case for the French firm Spartoo, which, in 2015, opened its first physical store, with plans to open around fifty by the end of 2018. In the USA, the takeover of Whole Foods by Amazon bears witness to the same aspiration. Lastly, in China, Alibaba has already invested no fewer than €7 billion in physical retail by acquiring shares in the Suning and Sanjiang chains.

Of course, this sensational début by the web giants in the world of physical retail is likely to cause concern for historical retailers, and quite rightly so. Nonetheless, is it not proof in itself that pure players themselves believe that the future of retail will play out, at least in part, in real life? Is it not a sign of an awareness, by e-merchants, of the importance of human beings in the quality of the connections between them and their customers and, similarly, in the longer-term success of their businesses?

 

3 – Setting physical retail against e-commerce is meaningless.

With a growing number of hybrid merchant concepts, like showrooms, where you can come to touch and test a product before purchasing it online; with the Drive, where only product selection and the transaction take place online; with the development of applications – intrinsically, of purely digital products – capable of analysing products in a bricks-and-mortar store, can we still talk about physical retail? Can we still talk about e-commerce? There is no longer such a thing as pure players. But in the end, did they ever actually exist in the strict sense of the word? Take delivery to relay points, for example. Does this not involve a physical shop? We have entered an omnichannel era, where the dichotomy between physical retail and e-commerce is no longer required.

 

4 – The physical businesses of tomorrow have not yet made an appearance.

And then, asking ourselves about the survival of physical retail is just as absurd as questioning the sustainability of the city. And of course, the city isn’t going anywhere! What makes it meaningful are its places for socialising and meeting people. Acquaintances, friends and family. Users and service providers. Retailers and customers.

We can’t imagine the city of tomorrow without shops. And most of tomorrow’s shops have not yet been invented. Tomorrow’s store will not be physical or digital, it will, above all, be social. So, its transformation will be constant, because now, test and learn, with and for the customer, will become law.

 

5 – The revolution of historical retailers is under way.

One thing is for certain, tomorrow’s retail will be designed with historical retailers or at least those that have actually established, or re-established, a connection with their customers. A connection that goes beyond just the simple transaction: connecting with a customer means listening to them, establishing a dialogue and interacting with them, with the sole aim of better meeting their expectations.

 

It is time to tip agility and creativity towards the historical players. And it is clear that their revolution has now started: testing of a fully automated supermarket by Auchan in China, delivery by Walmart of shopping to your fridge even – and this is the cherry on the cake – while you are out, etc. There are already plenty of examples and there will be plenty more in the future. In the future, and more than ever before, creativity and innovation at the service of the customer will be the foundation of new commerce. More than ever before, the rebirth of physical retail is set to be exciting!

 

By Raphaël Palti, 

CEO and founder of Altavia

 

Sources : Statistica – Worldwide retail e-commerce salesStatistica – e-commerce share of retail sales worldwideCrédit SuisseEcommerce NationMarketingland.com – E-commerce accounted for 11.7% of total retail sales in 2016Kantar WorldpanelLe Monde – Spartoo étend son réseau de boutiquesClubic; Le Monde.fr

 

Beyond the hype: Augmented and Virtual Reality in 2018

Beyond the hype: Augmented and Virtual Reality in 2018 1677 1119 Altavia

With the recent launch of IOS11 by Apple and ARKit that comes with it, Apple opened the way for mainstream Augmented Reality. Despite the fact that the Iphone has a lower penetration rate that Android devices on a global scale, I believe the launch of ARKit and IOS11 will bring a boost to marketers seeing the potential benefits of bringing this technology in the mix. ARkit brings augmented reality to all of the more recent Iphone models, while Google’s platform Tango is only deployed on a limited number of devices.

There’s plenty of opportunity for retail to adopt Augmented Reality. A consumer today who is considering a product, could be pulled over the line by providing him or her with services that allow to visualise the product and inspect it from all angles or that allow them to see how the product could fit or be used projected in real life.

 

Ikea recently launched Place. An app that seamlessly integrate Ikea products into your home while you are looking through the camera of your mobile. It allows you to see if the item fits into your style or in the size of your home . Ikea had this type feature before but you needed the catalogue as a marker and the fitting wasn’t always flawless. Now through ARkit, the app understands the geometry of the room and perspective and then places the item perfectly.

 

https://www.youtube.com/watch?v=-xxOvsyNseY

 

The social platforms are also picking up AR. The camera feature in the facebook app is using AR for these funny masks or animations and Snap is launching their own 3D world lenses which could bring a new boost to the platform.

 

 

While we see obvious applications of putting AR at work, VR is another cookie. While the hardware and software platforms are producing not less then stunning experiences, everything will stand with the adoption of the headsets.

 

It is expected that the mass adoption of VR will go through mobile first. The platforms to do so are ready. We see VR video on youtube, 360° on Facebook and what not. The possibilities there are endless and retailers and brands could benefit big time from this on the condition they are able to get the headsets distributed.

 

As video is the absolute king for distributing content, we can start imagining how impactful interactive 3D video could become once the consumer is emerged in it. Shoppable VR experiences where we can bring the user a lot closer to and into the product or shopping environment. It needs no argument that Virtual Reality also has the potential to enrich the consumer experience in store, wether it is in the travel industry, home deco or DIY.

 

 

Prevision

Companies are starting to get their first tests on the water and see how these new technologies can either impact product knowledge consumers are craving for or enhance the consumer experience online or in store. The expectation is that these technologies will grow exponentially in the next years. AR because it will be widespread in our pockets, for VR we still need to see what the next generation headsets will bring.

 

Are you also looking at how these technologies could enhance experiences or services you bring to your consumers? We’d be happy to assist.

 

Tim Wolfs
Chief Digital Officer Europe

“Successful retail is that which enables the client to be successful”, by Raphaël Palti

“Successful retail is that which enables the client to be successful”, by Raphaël Palti 1678 1119 Altavia

For a long time, I have been convinced that retailers have everything to gain from supporting their clients to better serve them. Today I’m even more convinced, now that new technologies allow the customer, who was formerly a mere consumer, to have full control over their purchases.

“Customer is king”: every retailer has spoken these words. Even if only once. Yet until recently it would have been relevant to question the truth of this statement, given the increasingly powerful mass market seen over the past fifty years and the fact that it is impossible to truly and effectively listen to customer expectations.

 

To say nothing of that fantastic liberating tool, new technologies. A tool which the consumer has been able to use to become a truly active player: the customer now has the authority when it comes to their purchasing.

 

Mere logisticians serving customers

This change may ultimately lead to distributors being mere logisticians serving customers. After all, these platforms already exist, especially in the digital sector. Take Airbnb or BlaBlaCar as examples. These are simply interfaces serving customers who play the roles of retailer, consumer and critic in turn. This is the ultimate acceptance of “consumer to business to consumer (C2B2C)”.

 

C2B2C is more than a model for e-commerce. It is, I believe, the major trend towards which retail is going to (and should) evolve. And this, whether in its gentlest form: the customer being taken into account when a service is designed, or a more involved form: the customer becomes a purchasing advisor, or in its ultimate form: as detailed above. As they gain autonomy in their relationship to retail, find out more information, share and coordinate, consumers discover the breadth of their talents.

 

Customers working for other customers

The twenty-first century customer is now a hotelier, chauffeur, tourist guide and food critic. By sharing his or her passions, the customer is effectively working for other customers and thereby regaining power over the whole buying cycle.

 

Retail can no longer do without this power: more than ever, successful retail is that which enables the customer to be successful. Distributors can achieve this by being guided exclusively by their clients and not making the mistake of believing that retail is just about buying and selling products.

 

Extreme customer support

This change will need to be comprehensive. Retailers should support customers in extreme ways, going beyond mere words to action. To assist with this transformation, it is up to those of us who serve the customers of our clients to help them structure the ways in which they listen to customers and use participation and collaboration wisely.

 

By Raphaël Palti, CEO and Founder of Altavia.

 

 

food consumption trends

What impact do new food consumption trends have on retail?

What impact do new food consumption trends have on retail? 1677 1119 Altavia

 

 

According to Social Food, 79% of French people in 2017 think that food can cause health problems.

 

So they look for certification and methods of consumption that give them control over what they eat.

 

According to Social Food again, 65% of them eat ORGANIC products on a regular basis. In addition to this, of the 60% of French people who think that the Made in France label is a guarantee of quality, 75% favour Made in France for their food.

 

Although this new relationship with food has an explicit impact on communication, as is shown by the Fleury Michon campaigns and the “new” McDonald’s branding, new trends in food consumption are taking longer to become evident in retail. Which raises the question, what impact do new food consumption trends have on retail?

 

Products with certification are increasing in number and are increasingly identifiable on the shelves. Certification is highlighted through the use of stickers and packaging. “Specialist” counters such as fishmongers, delicatessens and butchers are becoming more common and more visible thanks to improved signage.

 

Some brands are going further, however, and offering a new shopper experience.

 

An example of this is the Coop in Milan, which provides online screens to enable customers to check the traceability of products. Online mirrors above fruit and vegetable counters provide customers with full details of the products they select.

 

https://www.youtube.com/watch?v=kb8txki-9j8

 

In Zona Sul in Brazil, vegetables are kept in the earth, for customers to pick themselves :

 

 

Despite the increase in requirements in terms of food, however, the French have less time to prepare their meals. They head for ready meals, fast food offers and home delivery. Franprix has understood this and joined up with Allo Resto by Just Eat to provide a themed package home delivery service.

https://www.alloresto.fr/livraison/franprix/

 

Despite the new offers and services made available by retailers, alternative methods of consumption are booming. Technological innovations and public actions provide customers with the benefits of a vegetable garden, even in the city. New collaborative consumer channels, such as the Associations for the Preservation of Peasant Farming (AMAPs) are being created.

 

For the first time in 8 years, the volume of supermarket sales in the food sector has fallen:     -0.2% in 2016

 

Although the retail sector is currently adapting in order to respond to new food consumption trends, new players with greater relevance to consumer needs are inviting these consumers to use retail brands alongside the alternative solutions they are gradually adopting.

 

By Sidney Debaque, Strategic Planner, Agence Cosmic

 

créativité en communication commerciale

Creativity in sales communications : myth or reality?

Creativity in sales communications : myth or reality? 2098 895 Altavia

In a large group focused on production and sales, is there a place for creativity? Benoît De Saedeleer, Creative Director at Altavia ACT*, outlines his vision of creativity.

An environment in which you have to have fun

As a player in production and communication at the point of sale, can we indulge in creativity when we are involved at the critical moment of purchase? According to the Creative Director of the Belgian BU, creativity provides real added value at any moment of communication. However, it is essential to respect the specific constraints of our activities: formats, techniques, time, budget, recurrence of the communication, etc. All these elements define the framework in which we can free our creativity.

 

“For many years, we have learned to control this framework and make it work in our favour to offer consumers a communication that is surprising, entertaining, and above all relevant. Creativity must be used to aid communication, never the other way around” he stresses.

Creativity must be developed

No-one is born creative, they become it. Tinker Hatfield, the brilliant Nike designer, said this: “Sitting in front of a computer all day will not make you more creative. We need to go out and get inspiration from the world around us.” This is exactly what us creatives must do to constantly come up with fresh ideas in an ever more complex field. Amazed by everything, always searching for new ideas, never getting complacent. Today we have access to amazing tools within the group, such as Altavia Watch or ShopperMind, to share this knowledge and inspire each other. “It is also for the purposes of this sharing of knowledge and inspiration, that we have decided to set up a Lab at Altavia ACT*”, Benoît explains to us.

Our own creative identity

The tools and talents that we can draw on, allow us to provide a totally unique profile to our clients. The research we carry out provides context. The concept can therefore be adapted to the real situation in the field and to the consumer to create relevant and effective communication. In addition to the many insights and statistics revealed by our research, we must put ourselves in the shoes of the consumer and learn from our observations.

 

We never forget that we are consumers above all!
Benoît De Saedeleer

A perfect mix

According to the Creative Director of the Brussels Bum creativity is both a matter of introspection and sharing. You must switch between these two phases to find the balance between conscientiousness and letting go. Two ideas that speak to the consumer, shared between their emotions and their rational mind. So just because we work in a purely promotional environment, it does not mean that we should abandon the emotions. The important thing is to arouse something in the consumer, capture their attention in order to win them over.

 

Boldness as a driving force

“By getting rid of their inhibitions, the creative can be unchained” insists Benoît. Daring to share ideas, submitting them to the judgement of others to help develop them and create strong ideas. That is the difficulty and the great secret of the creative. A secret that we have decided to share with you today. Don’t hesitate to pass it on!

 

By Benoît de Saedeleer, Creative Director, Altavia ACT*

 

carte de fidélité connectée

Are Connected Loyalty Cards a Step Forward or Backward?

Are Connected Loyalty Cards a Step Forward or Backward? 1678 1119 Altavia

 

Are they an enduring innovation or a temporarily trendy idea? Do they benefit customers or are they just another technological gadget? Each month, Bruno Auret, an expert on digital commerce and the founder and CEO of Blackwood Digital, takes a critical look at digital innovation in retail.

 

This month, he has chosen to break down and analyse connected loyalty cards recently tested by Kiabi with 20 customers in their Beauvais store.

 

Even though they were supposed to be spreading like wildfire for the last two to three years, digital in-store experiences have not taken off. Why? “Because they don’t do anything”, you might respond. While this statement is certainly a bit radical, it is essentially true. Eighty percent of digital innovations tested in stores in the last few years did not do much.

 

Though interesting at first glance, the connected loyalty card tested by Kiabi at the beginning of the year is, in my opinion, representative of what is happening now in the phygital world.

 

First of all, let’s examine the principle behind it and how it functions.  When a customer enters a store, they are instantly recognised through their connected loyalty card (with its RFID or NFC technology). This way, the customer receives shopping recommendations via a large screen display as soon as they enter the store and is greeted personally at the checkout, without the “Hello, [insert first name of your choice here]!” formula. In other words, it personalises the customer’s journey through the store through data collected in advance on the internet. However, while this approach may seem appealing, I do not believe it is the right one for several reasons:

 

The shopper is not an Internet user.

 

When you go shopping, especially at busy times, you are just one more anonymous person in a crowd of strangers. Now imagine that in this context, you walk into a store anonymously (or at least so you think), and there on a giant screen where everyone can see it, your name (and maybe even your picture) appears with recommendations based on your latest online purchases. Doesn’t this situation make you uncomfortable? There is a real issue with privacy. When it comes to speaking to me personally, it should happen in private sphere, not in front of everyone.

 

Far be it from me to say that we should not put on a performance with the customer in the store–we’ve actually stepped in this direction ourselves. Cap 3000 is the latest example of this. However, it is absolutely essential that the customer be an active participant who is in control of the information presented. In this case, the information is shown in spite of what they may want.

 

As far as the content of recommendations, will they be relevant? If yes, it means that the customer’s interests and previous purchases were tracked in advance, probably on the internet. In this light, a card like this one could be seen as a kind of harassment. We have all been in the position of looking for a product online, buying it (or not), and continuing to see the product suggested to us for several weeks.

 

The store is not a museum.

 

If the loyalty club works well, which we hope it does for Kiabi, it is easy to imagine that many people might get the loyalty card and they might come into the store at the same time. In this case, how would the display work? Who would get priority? Examining this scenario, it becomes clear that the concept was designed with one-to-one interactions in mind.

A system like this might work well in places with controlled flows of visitors, like museums, for example. In a store, however, people walk in all directions. There is generally a path customers are intended to take, but in the end, they will do what they want. And we all know how hectic a Saturday afternoon can be in a store, with all of the constraints of a real point of sale.

 

Just because technology can do something doesn’t mean it should.

 

Why not have a card that can communicate with a website and screens? But what does it provide? What benefit does it bring the customer? What does it do for the brand (in reality, not just the buzz it creates)? Technology is a means to an end, not an end in itself, or even an entrance key.

 

What if the value added of the Kiabi card lay in the fact that it is a physical object?

 

In the end, the true good idea in this new loyalty card ideas may be its old-school aspect. Kiabi is going against the current trend to go electronic by opting for a physical card. And why not? Why not have a few cards in your wallet again? A symbolic object for some or a status sign for others, a card can have real meaning. After all, every movement creates its own opposite. The more we move towards a paperless, electronic world, the more people will want to hang on to physical materials. The goal becomes: fewer, but better.

 

By Bruno Auret