Over the past 20 years, TV shopping channels have become increasingly more sophisticated, and most of them now operate their own web-based stores that allow customers to browse product catalogs however and whenever they want.
Like so many other media and retailing segments, TV shopping channels need to reimagine the basic techniques they use to engage customers and improve loyalty and lifetime value per customer.
Due to vastly improved fulfillment efficiencies, shopping channels can now offer three-hour merchandise delivery within the boundaries of many cities in Asia, meaning that customers can order fresh cooking ingredients or fully prepared meals, and receive them in time for dinner.
These channels typically earn less than five percent of their total retail revenue through their web stores, with a larger share coming from orders placed with call centers. Nonetheless, executives should be aware of the substantial upside potential that is possible by leveraging advanced customer engagement strategies, big data, and OmniCommerce technologies.
Digital relationships drive customer engagement
The charm of shopping channels relates to sales presentations, product demonstrations, a clear illustration of product features, and promotional pricing, all of which persuade viewers to make a purchase more quickly. This is not too different from bricks and mortar retail businesses that maintain relationships with customers through direct mailers, email campaigns, or simply hoping the customer will come again. Other than having records of past purchases and returns, most TV shopping channels know very little about their customers.
To achieve better insight into general consumer preferences, shopping channels need to establish continuous digital relationships with their customers via all possible digital touchpoints. This can provide information on specific user behavior such as browse, click, hover, open, ignore, walk by – plus customer location, time on site duration, and abandoned carts.
With big data, this information can be translated into deep customer knowledge, which makes it possible to establish better context and deliver a relevant and personalized offer whenever certain behaviors are detected.
Mobile strategy improves customer engagement
With ever-increasing mobile adoption and customers shifting from desktops and laptops to mobile – shopping channels must establish their own mobile touchpoints that actually work. Instead of simply adapting their web store to a mobile format, TV shopping channels can expand their use of mobile technology to boost customer engagement and revenue in many ways.
First, mobile apps can extend the reach of TV and web stores to customers who might otherwise have no access. Second, mobile apps can easily collect user profile data upon registration, more effectively than call centers. Third, mobile apps are a great way to bridge all possible touchpoints for continuous and timely engagement.
By synchronizing consumer devices with TV programs using second screen technologies, mobile apps can also enhance the shopping experience. Mobile apps are smart enough to detect what is being featured on a shopping channel and provide detailed product information, user reviews, warranty information, and free gift options – and can also facilitate the order with a one-click experience.
OmniCommerce enhances revenue potential
Driven by highly-connected customers who demand experiences that adapt to their preferences in purchasing and shopping, OmniCommerce helps TV shopping channels unify the call center, web store, mobile apps, and other touchpoints to provide an integrated customer engagement experience in real time.
Customers can place an order with a call center, and then be given a coupon code for a discount over the next two hours to buy any product via mobile. Both offline and online orders can be consolidated and fulfilled at once. Price discounts or product bundles on one touchpoint can also be available via other means
Newer customer engagement technologies, big data, the Internet of Things, and perpetually addressable consumers served through OmniCommerce platforms open up exciting new horizons for shopping channels and consumers to expand beyond traditional TV viewing. Shopping channels can continuously monetize their relationships with customers by engaging and understanding them better. Consumers can enjoy a more personalized shopping experience across multiple touchpoints with contextual offers whenever they want them.
