Head, Heart, and Shoulders
Tom Adamski, 1972–2015

L2 and Rosetta Release New Global Study on Customer Engagement

Examines Key Pillars for Retailers to Successfully Drive Meaningful and Profitable Customer Relationships

New York, June 3, 2015 —

Rosetta, the world’s leading agency focused on customer engagement, and L2 Inc., the premier member-based business intelligence service that benchmarks the digital competence of brands, today announced the release of a new study that examines the key pillars of customer engagement for brands and retailers wanting to drive more profitable customer interactions.

The L2 Customer Engagement Report Series, developed in partnership with Rosetta, provides four reports that span core areas that drive customer engagement including data capture, targeting, program design and global integration. The reports draw upon L2's extensive database of over 3,000 consumer brands globally, including Target, Starbucks, Sephora, Coach, Sears and more, to look at trends, best practices and case studies to effectively engage customers across industries.

“Retailers are under significant pressure to remain relevant and generate meaningful ties with their customers,” said Scott Galloway, Clinical Professor of Marketing, NYU Stern and Founder of L2. “These reports provide insight into key factors in successful customer engagement programs, which represent the connective tissue for deeper, more mutually beneficial interactions between brands and consumers.”

The reports include:

Key findings:

Data Capture:

  • Data and targeting capabilities are a loyalty program’s best assets. The program itself can be used to effectively aggregate customer information that is otherwise untapped and siloed across an organization.
  • The majority of brands in Fashion, Sportswear, Watches & Jewelry, and Big Box retail require 0–6 data fields on account sign–up; many fail to utilize implicit sources of data to replace or supplement data input by consumers.

Targeting:

  • Overall, brands across L2 Indices miss the opportunity to optimize email. Beauty leads in personalized welcome emails at only 37 percent while Sportswear leads in abandoned cart emails (51 percent), followed by Specialty Retail (44 percent) and Fashion (36 percent).
  • An estimated 78 percent of Specialty Retailers, 78 percent of Big Box retailers and 82 percent of U.S.-based Department Stores have some degree of site personalization.

Loyalty:

  • Out of 100 select retailers studied across categories, 41 brands offered transactional loyalty programs in 2014, allowing members to earn rewards or points on purchases in-store and online.
  • More than half of the 41 retailer transactional loyalty programs studied are tiered, with consumers unlocking a new set of rewards and services as they reach established thresholds; most are in Apparel and Accessories (10 brands) and Department Store verticals (all eight brands).
  • Roughly 70 percent of tiered programs are comprised of Aspirational (10 brands) and Prestige (six brands).

Global Integration:

  • While email marketing is used internationally, it has region-specific limitations. For example, consumers in Europe trust email marketing less while deliverability is a major obstacle to email in China.
  • With consumer preferences leaning to mobile messaging platforms, such as WeChat, brands are also using these platforms as supplemental or alternative modes of one-on-one communication.

According to Rosetta’s Chief Executive Officer Eric Healy, “Consumers’ needs are rapidly evolving, and it’s causing marketers to prioritize investments in customer engagement across CRM, loyalty and email while facilitating the integration of data silos. As brands develop customer databases, registration data, purchase history, loyalty programs and in-store data collection, they can leverage these insights to personalize communications and increase customer engagement—ultimately driving growth and profitability.”

Rosetta and L2 co-hosted an exclusive event in London on May 29th to launch the publication of the final report in the customer engagement series. L2 and Rosetta executives presented high-level insights from the study and discussed the next generation of customer engagement. Representatives from several global brands were in attendance, including Bare Escentuals, Chanel, Clinique and Elizabeth Arden.

For more information about the research, contact L2’s Eleanor Powers at Eleanor@L2inc.com or Rosetta’s Katherine Battle at katherine.battle@rosetta.com.


About Rosetta

Rosetta. Unlocking and Activating Human Behavior.

Rosetta, part of the Razorfish Global network and Publicis.Sapient platform, is an agency focused on Customer Engagement. We connect rich data, engaging experiences and robust technologies to create meaningful customer relationships that drive business impact.

About L2

L2 is a benchmarking and education firm, helping member brands share their digital roadmap and achieve greater ROI on human, creative and financial capital. The L2 Digital IQ Index® is the globally recognized benchmark for digital performance. Analyzing up to 2,100 data points across Site & E-Commerce, Digital Marketing, Social Media, and Mobile & Tablet L2 members include the world’s most relevant brands.

l2inc.com | Twitter: @L2_Digital | membership@l2inc.com