Online to Offline (O2O) is a familiar concept in the retail industry, but there are many confusing definitions. For example, buying Online and picking up in-store (Offline), getting Vouchers/Coupons Online and using them in-store (Offline), or even O2O being Offline to Online, meaning pulling customers from the Offline channel to make Online purchases.
Redefining O2O for Chain Retail
The PangoCDP team brings back two core concepts of “Offline Check-in” and “Online Influenced”.
Offline Check-in, also known as “Offline action”, is defined as:
- Customers entering a store, selecting products and possibly possibly making a purchase later
- Customers dining at a restaurant, use Wi-Fi and making a payment
- Customers receiving consultation and using services (education, beauty, GYM/SPA, etc.)
- Or simply buy a can of soda at any grocery store
Online Influenced refers to the impact of Online advertisements on customers’ buying decisions. It could be customers seeing a banner, an article, or visiting a website to view products, etc.
In recent years, over 80% of purchase decisions have been affected by certain Online information. O2O helps determine which “Offline actions” is caused by which Online advertisements: YouTube or Facebook? Or simply customers accidentally pass by and make a purchase.
Determining customers coming to the store or making a purchase influenced by which advertisements brings significant impact on the businesses. It helps the marketing team allocate advertising budgets, adjust messages or target customer segments.
O2O includes implementing specific Offline Check-in methods:
- Scan the QR Code for medical declaration at stores;
- Connect to Wi-Fi systems to measure customers using Wi-Fi at stores
- Integrate POS, CRM systems to recognize customers coming for consultations or making purchases at stores
- Deploy QR Code on products to identify customers when they make a purchase and scan the QR Code.
Then, it connects with customer’s Online data (visiting websites or landing page) and generates O2O reports to the business.
Is O2O valuable enough if it is just about measurement?
The impact of Online messages on Offline purchase decisions is a major concern for manufacturers or distributors. Understanding these factors helps manufacturers and retailers save substantial advertising budgets. So, how can they “spend” just enough but achieve outstanding sales results?
When starting to measure O2O and seeing which ads drive sales and which need to be eliminated, business owners are often very excited, but does this excitement last in reality?
When the initial excitement quickly fades, marketers start struggling with adjusting ads. O2O reports may indicate ineffective channels, but increasing the number of customers coming to stores from online channels is not simple. Numerous adjustments have been made, yet the results remain very limited.
‘What’s Next? – What do we do next?’ This question will be answered with The Master Channel and PangoCDP.
The Master Channel – The “Superhero” in the O2O “Universe”
We believe that if businesses invest more in interacting with customers, sales will grow accordingly. PangoCDP initiates the concept of ”The Master Channel” – helping businesses connect with customers like the way they connect with friends and family.
Combining the customer data processing platform (CDP) with The Master Channel, PangoCDP provides a series of interaction methods and use cases that are easily applicable in marketing, sales and customer service campaigns.
Back to the story of chain retail businesses after obtaining O2O data, marketers have seen the problem but still struggle with the question “What’s next?”, “How to attract more customers to the store?
What’s next 01: Distributing online vouchers with The Master Channel
A typical example when using Zalo as The Master Channel
Unlike sending vouchers via SMS/Email, vouchers distributed through The Master Channel – Zalo will be ”make-up” full of emotions, carrying the brand’s own personality and identity.
Customers easily receive a voucher by clicking on a banner on the Website/ Facebook/ TikTok without needing to fill in any information. After 1-2 steps Click & Next, the voucher will be sent directly to the customer’s Zalo.
Customers can also receive a voucher code via message. Instead of placing the voucher code in the message content, marketers can embed it in a link. Customers will then click and after 1-2 steps, the colorful voucher will be sent to their Zalo. Importantly, marketers will know how many customers are interested and see the voucher code.
Customers can find the nearest store to use the voucher, stimulating their shopping needs due to convenience. Voucher drop is not simply distributing a series of vouchers and calling for purchases. With PangoCDP’s support, distributing vouchers through The Master Channel – Zalo is personalized for each customer.
For example, new customers will receive type A vouchers, VIP customers who haven’t visited for a while will receive type V vouchers, customers in Ho Chi Minh City will receive up to 75% discount vouchers, while customers in provinces will receive buy “1 get 1 free” vouchers.
Not limited to Zalo, businesses can choose other platforms such as Telegram, Viber, Email, MoMo as The Master Channel with similar effectiveness.
What’s next 02: Conducting online surveys, giving vouchers to encourage customers to return to offline stores
Not all customers bring the same value. Satisfied customers are more likely to buy again and become loyal to your brand. Retail businesses depend heavily on them, so there should be care scenarios making them feel heard and appreciated. Conversely, customers who have unsatisfactory shopping experiences need “special care” to prevent a negative experience from turning into a “trust crisis” with your brand.
PangoCDP helps measure and segment different customer groups, helping businesses manage satisfaction levels and have appropriate follow-up care scenarios. One of the survey methods supported by The Master Channel and PangoCDP is as follows:
A PangoCDP partner applied this solution and received quite positive feedback from customers. They sent out satisfaction survey forms after purchases. For responses below 3 stars, real-time data was returned to the customer service department, and related departments would handle it within 24 hours. This helped them maintain customer satisfaction.
What’s next 03: Announcing member benefits to draw customers to the store
At certain times of the year, many brands reset their points systems. Reminding customers to use their accumulated points helps brands increase sales and create an important connection with loyal customer segments.
For example, when a consumer electronics distributor A chooses Zalo as The Master Channel, they can provide a Loyalty experience right in Zalo. Customers can view their accumulated points, automatically get reminders when customers are about to upgrade or when their points are about to expire without having to install apps or create complex accounts. Through PangoCDP’s data reports on app opening frequency and active member rates, brands can evaluate and come up with more specific scenarios to boost buying motivation.
In this article, marketers have some suggested answers to choose “What’s Next” for their businesses. The PangoCDP team believes that if businesses understand their customers and regularly interact on a familiar channel, customers will always stick with the brand and directly bring in sales.
Not only measuring Online to Offline (O2O), The Master Channel and PangoCDP also support businesses in creating outstanding experiences, bringing more customers from online channels to offline stores.
Not only data exploitation strategies, but also detailed marketing campaign implementations for businesses based on data orientation and much new knowledge around The Master Channel will be presented in detail in The Main Interaction Channel – The Master Channel, Volume 1.
Six chapters of the book will guide readers through the impressive development journey of interaction methods between businesses and customers.
From the most primitive forms to multi-dimensional interactions in the smartphone era, the book will present successful stories along with leading global brands in boosting revenue by enhancing customer experience, explaining the success of The Master Channel concept when applied at two leading Vietnamese companies, Nutifood and CellphoneS.
The book is now available at Fahasa, Phuong Nam, Hai An, Ca Chep bookstores, and online at 24h bookshops and e-commerce platforms like Tiki, Shopee, and TikTok Shop. You can also quickly order the book here: https://i.o2o.vn/H767
