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3 Key Takeaways from The National Grocers Association Show 2019

March 04, 2019

Sam Richardson

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As someone who has worked in the customer experience space for over 20 years, across multiple industries, I was happy to bring it back home to my earlier days by attending this year’s NGA Show in San Diego. Right away it was easy to see what a great representation this year’s conference was in showcasing the growing number of resources available to independent grocers – who are competing in today’s technology driven world.  As I reflect on the providers and exhibitors, I’m left with dozens of takeaways, however below I havsae prioritized on my top three:

1. Mobile Mania & Omnichannel Omnipresence

It’s really no surprise that mobile accessibility is key to winning and keeping customers.  From independents up to the largest chains, many shoppers are using a mobile device to research grocery purchases, build shopping lists and pay. And today, price comparison only accounts for a small part of that research. Keeping things like ingredients and brand reputations in mind, this means grocers will need to have a seamless experience at all levels: online, mobile app and in-store.

It’s no longer enough for CPG brands to understand the omnichannel path-to-purchase, but retailers also need to step up their game.  Pay by mobile is increasingly an expectation, and if a retailer doesn’t already accept mobile payment, they are behind.  It was Steve Bishop who said it best in his presentation, “Independent retailers need to consider how to make it seamless for shoppers to move between online and in-store.”

2. Marketing (R)Evolution

Creative marketing can be a real win for local grocery retailers – whether an independent or large chain.  While traditional mailers and circulars are still a key aspect of the advertising push, the drawing power of a low-cost YouTube video can really maximize returns in marketing.  It doesn’t have to be Academy Award winning. It can be about your stores’ core beliefs or even footage from a service event. At the end of the day, it just has to be authentic and show your customers the respect you have for them.

3. Experience Maximization

Brick and mortar store locations can meet future shopper expectations by taking advantage of readily available technology and continuously working to improve the overall experience.  Advances in mobile technology are available to help shoppers find the right aisle, pick the right product and even market to them while in store.

Smart home devices will start to roll out into grocery stores to provide that same type of assistance and, eventually, work between store and home (“Alexa – can you tell me how many rolls of paper towels I have left?”). Despite the emphasis on technology, the in-store experience will continue to be significant. No matter your store size, it will be essential to evaluate and measure customer experience and more importantly, further enhance it with actions that drive profitability. Not everyone can afford a data scientist, but everyone will need to be able to respond to data.

It is not by mistake that I have mentioned technology numerous times. Over the past few days I met with at least a dozen “data aggregators”– everything from basket data, to SKU analysis to inventory. Almost every retailer I spoke with talked about the changes from just two years ago when all focus was on product variety and traditional marketing.

Today, experts in the industry have recognized that gathering data is essential for the future success of a business. I would take it a step further to suggest that it is essential for the future success of a business to know how to take action on that data. Having a dedicated function at every location isn’t always possible. However, having a road map to achieve and partners that support you in that effort will always help you win with your customers.  As the grocery industry continues to go through massive change, a huge opportunity exists for retailers that use data to deliver omnichannel experiences that meet their customers changing needs.

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Former SAS CEO, on Empowered Employees and Customer-Centric Growth

February 21, 2019

Sam Richardson

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My philosophy is that every department has one objective: develop customer satisfaction by meeting customer needs.  Everything else – operations, marketing, finance – should be organized around this principle.

For most companies, this is easy to say but hard to achieve. Most are not organized around a single objective.  Departments are siloed, information is unevenly shared, compensation structures aren’t always aligned with the overall mission.  When I became president and CEO of SAS airlines in 1980, our reputation among the flying public was less than stellar and our finances were under pressure.  We were known for often being late, a form of disrespect for our flyers.  Our organization was highly centralized, making it hard for front-line employees to respond quickly to our customers. We were losing money.

This had to change if we were going to survive.  To focus the organization on what mattered most, I communicated a very tight brief for the company: win the frequent business customer. To achieve this, we set the goal of being the best in customer satisfaction.  We told all our employees, “We used to fly airplanes and we did that damn well, now we have to learn how to fly people.”  To be the best, everyone needed to understand that the only value any organization has is a satisfied customer.

But words are just words. Empowering employees is how a customer-centric strategy comes to life. An individual without information cannot take responsibility; an individual who is given information cannot help but take responsibility. But to make this work, you can’t just give employees the power to act and step away. You have to measure the success of the program you design and use the data to provide honest feedback and ways to improve. One principle we applied across the organization: it’s preferable to be one percent better in 100 details than 100 percent better in one detail.

Brand Health Measurement: Developing Your Brand's Core Strength

This search for improvement led us to focus more closely on the business traveler  and to institute a program that empowered customer-facing employees to make decisions on the spot. We improved our on-time performance, becoming the most punctual airline in Europe.  Most importantly, within one year, we turned a profit thanks to the hard work of all our team members.

What we were addressing then is now known as the “customer experience (CX)” and many organizations are moving to put this at the center of their mission.  In today’s world, the way businesses talk to customers has changed – things have gone digital – but the principles still apply. Done properly, the application of these new CX techniques can significantly enhance customer interaction by providing a better understanding of customer needs and higher levels of personalization.

I left SAS in 1993 but have remained committed to the customer experience message.  I love it when I see it properly done.  Zappos proving their customer-centric strategy by encouraging customer service staff to spend MORE time talking to customers on the phone is an inspiring example.

Another example is Nepa, which is leading the way in delivering research insights into what matters most for customers. Nepa’s alignment with my management philosophy led me to invest in the company and join the Board of Directors last year.

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A word about Jan Carlzon

Carlzon served as CEO of SAS Airlines from 1981 to 1994.  He is the author of Moments of Truth, a look at the 15 seconds of employee interaction that define how a customer sees a company.  The book has been translated into 22 languages and has been a global bestseller for 34 years.

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5 Key Takeaways – National Sports Forum 2019

February 19, 2019

Sam Richardson

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I recently attended my first National Sports Forum in Las Vegas and, Wow – what an event for the sports business enthusiast! It’s a big show and I was fortunate to have a veteran tour guide, Steve Livingstone, Head of Nepa Global Sports. As Steve and I reflected on the seminars and conversations, here are 5 things that stood out most:

1. Clubs ‘Engagement’ Focus Risks Fan Experience

Sports business leaders are enthusiastic about “fan engagement.” Many teams and their partners were discussing ways to involve the fan in more aspects of the game. It struck us how few were talking to fans about their view of the “experience.”

Since Valentine’s Day just passed, I’ll use a dating example to demonstrate experience vs. engagement. A husband goes all out for a date night: flowers, car service, dinner, theater, etc. He spends hours in planning and several hundred dollars on the evening. However, what she really wanted was the two hours of just the two of them together. In the end, it was all great and very appreciated, but if he had just asked, he would have known that a nice quiet dinner would’ve been enough. And saved some time, effort and money in the process. And remember, those expectations are now higher for next year. Think of your fans in the same way – take some time just to ask what they want directly.

2. Maximize Sponsorships by Understanding Affinity

Not surprisingly, the topic of maximizing sponsorship came up often at NSF. Taking that all in, sponsorship value is at its best when fans’ passions intersect with sponsor’s offers. That doesn’t mean 100% engagement with every sponsor, but those partnerships should relate based on the fans’ demographics, interests and buying behaviors. If that’s the case, it will be a mutually rewarding proposition for the fan, the team and the sponsors. You shouldn’t leave one party out of that mix, or all three suffer.  If the sponsors don’t experience an uplift of the sales from fans, they won’t renew – leading to lost revenue that impacts what the club can do for the fans.

Teams can avoid this trap with strong measurement – not just in sales or attendance, but also a measurable affinity. Again, talk to your fans and establish KPIs that will help you evaluate the success of sponsorships, including those that can be tied directly to valuation.

3. Drowning in Data

Teams are getting more data, but doing relatively less with it. Market data, fan data, attendance data, merchandise & concessions data – I saw an NSF presentation about data that corresponds to movements within the stadium to evaluate concessionaires and seating in sections. With all this data, teams are often left with generic takeaways from a single source of data. It is understandable that most teams don’t employ a full-time data scientist, but it’s also important that they understand where data should be merged, where there are gaps and how that data can benefit the entire organization.

4. Play as a Team

Even in a small environment, teams seemingly operate separately from one another.  You can find the best example of this when speaking with two members of the same team in different departments.  While speaking with them on current projects, one brought up specifics in their marketing initiatives, which prompted the other to respond, “I wish I had known that earlier, we could have used that information in selling tickets.”  Even in smaller offices, teamwork sometimes is overshadowed – not necessarily maliciously, but often as a result of everyone trying to focus on their own job.  It may require someone taking the initiative, but your fan engagement, fan experience, ticket sales, events and sponsorships can – and should – all be working together.

5. You Can’t Please Everyone

Recognize that you can never please 100% of the people 100% of the time. That even goes for everything above – don’t expect a one-size-fits-all approach. I’ll summarize this idea in one of the most memorable session takeaways, when Las Vegas Aviators VP Chuck Johnson said there will always be CAVE people.  What are CAVE people? They are “Citizens Against Virtually Everything.” That sums it up quite well.

I’m sure many of you walked away with some great takeaways. For me, an overarching theme was – the time is now.  Sports will continue to evolve, fans will continue to evolve and their business together will continue to evolve.  I heard several times that front offices can no longer afford to wait, things are moving far too fast.  Measure now, analyze now, evaluate now and win as a team now. I’m looking forward to NSF ’20, where I’m sure we’ll hear teams talking more about “Fan Experience.”

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3 Signs Your DIY CX Measurement is Weakening Your CX Strategy

February 13, 2019

Nepa CX Measurement

Sam Richardson

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Developing a customer experience strategy is easier said than done. It’s a process that needs to be built on a strong foundation, and your measurement will continuously guide the broader CX strategy. As companies grow and evolve, resources are needed to evaluate current performance and chart the path ahead. Dedication, accuracy and clear KPIs that are aligned with overall business goals all play an important role in building your success and supporting long term goals.

Companies that overstay their time on a DIY CX Measurement program risk losing ground to competitors and create operational inefficiencies internally.

Here are three benefits that many companies experience when upgrading to professional CX measurement.

1. You need to focus on what matters most

You know your business inside and out. But are you looking at the bigger picture? Or are you focused on the right metrics? It’s one thing to be an expert on you, but when it comes to developing a strategy for your customer experience, you need to be an expert on them. Understanding your industry benchmarks, advancements, setbacks and overall target customer behavior is key.

Choosing the right CX partner with a flexible model will provide an outside-in perspective on your most relevant focus areas. Having a CX expert in your court will allow you to configure the technology to your needs and ultimately streamline your efforts understand your customers by asking the right questions at the right time.

2. Get full value from your CX data

Disparate tools and insights may give you the basic information you need, but advanced technology, data science, and industry expertise provides the holistic view of your customer base that unlocks growth.

Your CX program should be producing continuous feedback to align with the other sources of data in the business. If these areas are not in sync, you run the risk of only analyzing a piece of the puzzle. Advanced machine learning techniques combined with industry knowledge prioritize which actions will produce bottom line results.

3. Start leveraging your measurements to direct strategy

When it comes to CX, most organizations attack the symptom, not the cause. The symptom could be an upset customer because your company did not accept their credit card of choice.  However, more importantly, the cause could be a lack of overall payment options. Many organizations focus on short term goals and how to quickly and efficiently address a customer’s issue. While perfecting the response to a bad experience is important, it’s just as important to identify common issues and put plans in place that prevent these bad experiences.

Businesses with a successful CX program have mastered the art of identifying and meeting customer needs while at the same time, delivering results. CX Measurement is a critical piece of a CX Strategy that professional CX technology and services can help you master – so that you can fail fast and identify opportunities to adapt to win customer loyalty in the long run.

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Making good things happen on the omnichannel path to purchase

February 01, 2019

Sam Richardson

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The old proverb has it that “good things come to those who wait”. According to the Internet, Abraham Lincoln added “but only what’s left by those who hustle.”

Whether Lincoln said that or not, the point remains: Waiting for shoppers to find your brand is not a winning strategy. Today, only a few brands and shopper insights leaders are beginning to fully understand the omnichannel path to purchase from the perspective of their shoppers. Those who invest in understanding shoppers’ behaviors and motivations through the omnichannel path to purchase are increasing conversion rates and growing market share by focusing investment and activity on touchpoints that matter most to shoppers. These leaders will enjoy growth, while brands that rely on outmoded constructs that separate online vs. offline, behavior vs. motivation, and paid vs. earned vs. owned, will fight over the scraps.

Early adopters across the globe are seeing the benefits of connecting the dots across dozens of online and offline touchpoints. Here are three ways Nepa is seeing shopper-centric understanding drive conversion and grow sales and market share:

1. More effective initiatives and investments, based on what matters most to shoppers

Many of the insight sources and marketing analytics techniques employed today haven’t kept up with explosion in touchpoints that can influence conversion. For example, Marketing Mix Modeling is a solid approach, but it’s typically limited to evaluating paid media with years of historical data. Similarly, multi-touch attribution modeling relies solely on online touchpoints, ignoring offline interactions. And many approaches disregard the ways in which online touchpoints influence offline sales, and vice versa, which we see across multiple categories and geographies.

In short, traditional methods don’t line up with today’s purchase paths, which might include an online product search, skimming a blog post, checking prices in store, reading a friend’s social media post, and, perhaps, a purchase on an eCommerce site. By capturing the shopper’s actual omnichannel experience, Marketers can learn the conversion power of every touchpoint, individually and in combinations, and make more effective decisions on budgets and other resources.

2. Competitive Intelligence and Inspiration

Traditional marketing analytics focus on one brand and how it’s marketed, as well as related consumer behavior. But brands and markets don’t exist in a vacuum. Omnichannel path to purchase methods recognize this obvious truth. By taking a shopper-led perspective at the category level, omnichannel sheds light on how every brand and touchpoint impact the shopper’s decisions along the path to purchase – including those of competitors. The insight gained can inspire brands to try new strategies and tactics, and to identify and neutralize their competitors’ advantages.

3. Strengthen Retail Partnerships

The path to purchase involves decisions on where to buy, as well as what to buy. Multiple retailers with similar offerings are competing for shoppers’ dollars. An omnichannel approach can help identify exactly where and why a retailer is losing category sales to a competitor. Early adopters are applying these insights to strengthen strategic retail partnerships and establish themselves as trusted category advisers. For example, Nepa recently provided a CPG client with insights and recommendations that helped its largest retail customer, Walmart, understand exactly where and why they lost purchases to Amazon. This kind of actionable intelligence leads to competitive advantage and growth.

The point is clear to early adopters of omnichannel analytics: along the path to purchase, good things happen when you hustle.

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Brand Health Measurement: Developing Your Brand’s Core Strength

November 20, 2018

Sam Richardson

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Performance marketing KPIs get a lot of attention these days, and that’s understandable. But, if that’s all you’re looking at, you might remind us of the guy at the gym who only works on his biceps. Real strength is core strength, and the right way to improve it is through brand health tracking.

Here are some thoughts on why to focus on your brand’s “core strength,” and an invitation to take our free assessment.

1. Strong brands = efficient sales

A brand with core strength creates many benefits: premium pricing power, a loyal cohort of repeat customers, strength in retail partnerships, and more. A consistent finding in our Marketing Effectiveness work is that a strong brand can command premium pricing, withstand competitive pressure, and deliver efficient growth. While the way brands and consumers interact each other is certainly changing, the benefits of strong brand will remain constant.

2. Consumers establish personal relationships with brands

For modern consumers with nearly unlimited choice, brand preference is influenced by elements beyond the product or service. Today, a brand may represent personal topics like social values and politics in more personal relationships with consumers. This is a great opportunity for brands – but it also makes them more susceptible to reputational threats. In the social media age, where one tweet can erase millions of dollars from an established brand’s equity, it’s critical to continuously measure a brand’s health.

3. Challengers are threatening established brands on more fronts and at a faster pace

Established brands that have been on shelves for decades, or even centuries, are now forced to adapt to ecommerce. Adding to the complexity is the rise of private label competitors, delivery services, and third-party sellers. Technology enables brands to be created at an unprecedented speed – crowdfunding campaigns, easier access to manufacturing and direct to consumer distribution have reduced barriers to enter almost every product category. A name drop from the right social media influencer can catapult awareness to millions of followers.

In this environment, both established brands and the challengers that are looking to unseat them need to cultivate the health of their brands.

4. Choosing the right brand-building media mix

The media landscape today is a beast – aptly described as a “spaghetti bowl” by one of our clients – and more dollars are being allocated to performance channels that are unproven for brand-building. These changes in marketing channels and allocation of marketing spend will have a profound impact on a brands’ reputation. Smart marketers are incorporating metrics that allow them to measure the effect that their media mix has on brand health.

Is it time for a brand health check-up?

There are many reasons that brand health is more critical than ever as challenger and established brands alike navigate a new business environment that is unfolding at an incredible speed. Maintaining a healthy brand requires reliable measurement tools to track important brand KPIs.

We’ve created this brand tracking assessment to help you determine if you’ve got the right tools in place. Click here to get started.

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The Future of Marketing Mix Modelling

November 09, 2018

Sam Richardson

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Marketing Mix Modelling has been available for over 30 years–but it’s now come into a new age brought forward by massive changes in the media landscape, easy access to large troves of data, advances in methodology and a greater need for organizations to optimize their marketing spends.

In this whitepaper team Nepa outlines

  • A brief history of marketing mix modelling and what is driving today’s demand
  • Why MMM is the best way to make informed media investments
  • How data integrations are making MMM more robust than ever
  • What’s next in MMM and use cases for the future

Download here


 

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Liz Earle maximizes Profit with Nepa’s Pricing Optimization Tools

November 02, 2018

Sam Richardson

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Data-driven decision-making results in £1,200,000 profit increase

Stockholm, Sweden

Nepa, a leading Consumer Science company providing customer experience insights and marketing optimization solutions, has released the results of a data analytics project with skincare manufacturer Liz Earle. Using Nepa’s strategic pricing tool, the skincare company implemented price changes in multiple categories and increased profitability.

“Nepa’s team provided an actionable solution which proved to have a high predictive accuracy. 12 months after implementing price changes in 7 categories, we have increased profit £1,200,000 in the first year. We are very happy with these results that are testament to our focus on the consumer and being a data-driven organization.” Rian Edward, Liz Earle Representative

“Nepa used a Discrete choice experiment approach, enabling us to test thousands of possible pricing configurations. This type of methodology is robust but often requires a combination of historical sales data and experimental choice data to accurately predict future consumer behavior. The Nepa team has great experience with these types of projects.” – Niclas Ohman, Chief Product Officer at Nepa

“These results show Nepa’s dynamic ability to provide clients with a range of actionable solutions powered by our passionate and talented team.” Fredrik Östgren, CEO at Nepa.

Contact Information:

www.nepa.com

Fredrik Östgren

CEO

Maria Skolgata 83 118 53

Stockholm, Sweden

+46 733 345 069

fredrik.ostgren@nepa.com

P-O Westerlund

Deputy CEO, CFO

Maria Skolgata 83 118 53

Stockholm, Sweden

+46 706 404 824

p-o.westerlund@nepa.com

About Nepa

Headquartered in Stockholm and with local presence in Helsinki, Oslo, Copenhagen, London, Mumbai, New York, Miami and Denver, we help some of the world’s most reputable brands in more than 50 countries to optimize customer experience investments and get more effect out of their marketing and sales. Nepa has been awarded DI Gasell’s award for organic fast-growing companies in 6 of 7 years since 2011. The company is publicly traded at the Nasdaq First North Stockholm stock exchange since 2016. Erik Penser Bank is Nepa’s Certified Adviser.

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Why Investing In Fan Insights Is a Smart Play

October 24, 2018

Sam Richardson

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Sports fans are extremely passionate and typically quick to give you their thoughts about a certain player or team. However, many sports teams and organizations do not capitalize on this passion and generosity by asking their supporters about the experience of being a fan. As a result, fan experience suffers and leads to less engagement and profitability.

In recent years, professional athletes have adopted a much more scientific approach to their training and conditioning. To stay competitive, professional sports organizations should do the same with fan insights. Here are the reasons why teams should listen and act on fan experience.

Better Fan Experience, Better Ticket Sales

In the sports world, poor sales performance is often attributed to team performance or the efforts of the sales team. But we know from other industries that the customer experience matters to customer acquisition and retention. Gameday fans have many critical moments of truth with sports brands as they park, buy concessions and much more.

Is every member of the team behind the team contributing to satisfying the fan and optimizing the fan experience? How do you know if everything is going smoothly to ensure that your fans have a great experience that they want to share with others? The answer to these questions will help drive sales through repurchase and recommendation.

Just like a coach reviews game footage, continuous fan experience insights can uncover the real reasons behind poor sales performance. Often, it’s not just the sales executive who fumbled.

Better Fan Experience, Better Gameday Revenue

Fan Experience not only keeps the turnstiles turning – fan engagement also drives spend at the merchandise and concession stands. It’s not surprising that a key factor to minimizing gameday sales are the length of lines – but it’s also a big stadium cost driver to manage the crowds. Fan Insights provide powerful value in assessing where best to allocate those resources and what is the optimal level to capture the most value from attending fans.

Sponsors Love Fan Insights

Professional sports teams are diversifying revenue streams – with some making over 50% of their revenues off the field. Sponsorships are now a major source of club income and the market for sponsors has become increasingly competitive.

Just like any other form of media, sports sponsorships are more valuable when the buyer knows exactly what they’re getting. Adopting principles from other industries, leading sports clubs are adopting insight-based selling methodologies to win more sponsorships and increase the value of existing ones. Check out how Louisville City FC used fan insights to increase the value of their sponsorship assets by over $1M.

Why Aren’t Teams Utilizing Fan Insights?

We’ve helped many clubs that hesitated to invest in a known need for fan insights to overcome these common hurdles:

  • Financial – Sport Insight has been controlled by a small number of expensive firms, so many sports marketers have a wrong perception that fan insights are out of their reach.
  • Priority – Even when traditional resource allocations are providing diminishing returns, some sports marketers are hesitant to invest their staff’s time in understanding fans’ needs.
  • Business Cards – There are a small number of fan insight companies out there (as we mentioned above), and the need for fan insights is often stymied by not knowing where or how to turn.
  • Fear of Knowing – Listening to fans takes courage and opens the door to unpleasant feedback that might upset senior management or ownership.

It’s extremely important to get over these obstacles in an age where expansion teams are shaking up leagues and fans have more ways to engage and interact with teams now than ever before.

Through improved ticket sales, merchandising, gameday revenues, and sponsorship values – an investment in fan experience insights could end up being your most valuable player with the investment paying for itself.

Fan insights are within your reach – Nepa’s Fan Experience Platform, Sports Optimizer, uses proven technology and expert staff to provide actionable and holistic intelligence at a much more reasonable cost. We assist you through every step of the process and help pinpoint areas for FX improvement.

Our veteran consultants can help you deepen understanding of your fanbase and improve renewal rates, optimize gameday revenues and bring in extra sponsorship value. Read a full case study here.

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Dressmann Chooses Nepa for Customer Experience Measurement

October 09, 2018

Sam Richardson

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Holistic CX measurement solution and extensive retail experience leads to another client partnership

Stockholm 

Nepa, a leading Consumer Science company providing customer experience and marketing optimization solutions, has been chosen by Dressmann to provide continuous customer experience insights.

Nepa’s CX Tracker product will collect, analyze and report customer feedback data from 400 Dressmann stores in Sweden, Norway and Finland.

“Nepa’s solution helps deliver the best experiences to our customers in the areas that matter the most by aggregating feedback from thousands of customers across all of our locations. The system gives us better understanding of our customers key demands and helps us make the right priorities to ensure a convenient shopping experience from their perspective.” Knut-Erik Kolberg, Dressmann.

“After a long collaboration with Dressmann on brand development we’re thrilled to add them as a CX partner as well. Fashion retail is one of the many industries driving demand for our Brand and CX solutions. Nepa has specialized CX solutions that help these companies deliver on their financial targets by developing their customer experience.” Fredrik Östgren, CEO at Nepa.

Contact Information:   

www.nepa.com

 

Fredrik Östgren

CEO

Maria Skolgata 83 118 53

Stockholm, Sweden

+46 733 345 069

fredrik.ostgren@nepa.com

 

P-O Westerlund

Deputy CEO, CFO

Maria Skolgata 83 118 53

Stockholm, Sweden

+46 706 404 824

p-o.westerlund@nepa.com

About Nepa

Headquartered in Stockholm, with offices in Norway, Finland, Denmark, UK, USA and India, we help some of the world’s most reputable brands in more than 50 countries to optimize customer experience investments and get more effect out of their marketing and sales. Nepa has been awarded DI Gasell’s award for organic fast-growing companies in 6 of 7 years since 2011 The company is publicly traded at the Nasdaq First North Stockholm stock exchange since 2016. Erik Penser Bank is Nepa’s Certified Adviser.