When it comes to harnessing the power of data, Sport Chek is taking a slightly different tack than many other big retailers.
While many retail brands are tweaking their mobile apps to gather heaps of data on their customers, the Calgary-based retailer is taking its time.
According to Frederick Lecoq, senior vice-president of marketing at Sport Chek’s parent company FGL, getting it right the first time out is vital for the long-term game.
“Everybody is talking about ‘big data,’ but we would rather talk about ‘right data,’” Lecoq told Marketing.
“This way, we’re not just being drawn into data. We’ve got a different approach. Others are data hunting. But for us, it’s about focusing on that right data.”
At the risk of sounding behind the curve among the big players in Canadian retail—especially as others such as Metro and Shoppers Drug Mart pump out revamped and loyalty-linked iterations of their mobile apps—Lecoq said Sport Chek is still in the midst of crafting and implementing its plans.
“Most people are standing onstage and saying, ‘We’re into big data and this is what we’re doing.’ But it’s a big shift in an organization. From being data stupid to getting into big data, you have to have a transition. The phase that Sport Chek is in is, we are asking, ‘Are we data ready? Even from a governance perspective?’ For us, and I’m not ashamed of saying it, we’re building an organization that is data ready.”
In fact, Lecoq said getting Sport Chek—and its parent umbrella FGL Sports, which was acquired by Canadian Tire back in 2011—to a state of “data readiness” has been a key goal over the transition period.
What’s also taking time is a single-minded goal of doing things mainly in-house, and Lecoq didn’t mince words when pondering whether some retailers are outsourcing too much in the race for data supremacy. “Do you want to leave your most precious assets outside of the organization?” he rhetorically asked.
When some major companies outsource their customer service, their ecommerce or even their email server, they can miss gleaning potentially valuable data, he suggested. Even outsourcing specialized digital operations like web ad buys through an agency with DSP know-how can leave the companies themselves in the data darkness.
Lecoq’s go-it-alone approach is echoed in the fact that Sport Chek doesn’t have a current AOR. Instead, the retailer is using a mix of project-based agencies, in-house staff and even freelance talent.
“Most of the time, you used to outsource your brand to the AOR. It was the guardian angel,” he said.
But, on a fast-moving and content-heavy playing field, having an AOR seems old-fashioned to Lecoq.
“I’m not saying agencies are dead, because I think those agencies that are able to shift from creative-driven to content-driven will win. Their future is bright if they embrace the transition,” he said.
In May, Sport Chek parted ways with former AOR Sid Lee, but uses Rethink Communications for creative assignments and North Strategic for social media. TSN is also a key partner, collaborating with Sport Chek’s internal team to create video content.
Meanwhile, building a culture change inside the company is already well underway. As a quick example, transforming Sport Chek’s creative team from a traditional print flyer-focused operation, to a web-focused digital operation and finally to a group working on content creation has taken time and effort from both management and staff.
“Yes, you’re going to hire one or two data evangelists along the way, but if you want the culture to grow, it’s about building the capability and growing your people—but also not building a data ghetto inside the operation,” he said.
Other next steps include using personal identifiable information (PII) data to craft customer profiles so Sport Chek can create a special, one-on-one relationship with it’s customers.
“We don’t want to be intrusive. What I’m into getting is a one-to-one relationship with customers through permission. Everything that’s not relevant to me is noise. Everything that’s relevant to me is buzz. You can build an emotional connection through buzz.”
When asked if he thought other retailers and brands were rushing into the numbers game as they collect increasing amounts of data on their customers, Lecoq offered a nuanced response. “I think there are steps that you need to respect,” he said. “It’s earning that permission. You don’t own the right to communicate one-to-one with your customers. You have to earn it.”
Lecoq likened it to the old-school approach of mom and pop retail. “In the old days, the store owner knew your family. The brands today that are able to build an emotional connection—and I’m sorry, but it takes time—will do well.”
To do that, Lecoq spoke openly about crafting a Sport Chek loyalty program that connects on an emotional level. Indeed, while loyalty programs are often made to reward a transaction, Lecoq is looking for the “buzz” that will go beyond just the wallet.
So what would a future loyalty program from Sport Chek look like?
“Imagine I’m building a loyalty app that’s not rewarding a transactional behaviour, but that’s rewarding a brand behaviour. Imagine an app that knows you’ve been running 10 kilometres or going to a yoga class. So, we know that you’ve been behaving on-brand and we start rewarding you for that. We’re not going to reward a transaction, but we’re rewarding a behaviour. That’s powerful.”
So, in other words, if you run 50 kilometres in a week, you may be able to redeem all your sweat on a new pair of runners? Not a bad deal.
When asked if we would see such an app and loyalty program come onto the market in the short-term, Lecoq offered a quick reply: “I’m on it!”
