Consumers shop with the same retailer in different ways. Data from these multiple touch points should be processed in real-time to offer the shopper a personalized experience, including content and promotions.
For example, do not treat loyal customers the same as new ones. The experience needs to be personalized to reward loyal customers. It should look attractive and “sticky” for new customers.
Most retailers have embarked on some form of personalization strategy. As they seek to expand beyond entry-level tactics, they often run into structural obstacles that keep data and teams in silos. Getting past these barriers will allow for full personalization of the customer experience.
- Personalization is effective : According to one study, 48% of US marketers reported that personalization on their websites or apps lifted revenues in excess of 10%. Only 11% reported no lift.
- A recent survey found that 55% of US internet users ranked Amazon as the digital platform having the best personalized customer experience. As Amazon and other companies, such as Netflix and Google, have built customer experiences around customized recommendations and content, other retailers are struggling to keep up. The retailer challenge is amplified by the move to mobile shopping, where consumers browse far fewer products and expect relevant suggestions.
- Integration of data across devices, channels and functions is essential, but most companies lack this capability. Data from customer relationship management (CRM) systems is often the hardest to tap for personalization purposes.
- Personalization is as much about the right moment as it’s about the right offer or information.