This apparent failing owes much to a disconnect between the retailers view of personalisation, and what the individual customer perceives – and wants – as a personalised buying experience. It’s a balance that the retail sector has to redress, if the industry is to fully benefit from the potential gains of true personalisation – which can be quite considerable.
According to research conducted by the Boston Consulting Group (BCG), personalisation is key to increasing the rate at which retail organisations can convert occasional shoppers into regular customers, and increasing the lifetime value of those customers.
Many retailers assume that simply because an individual looks at an item, they automatically want it. Crude attempts at personalisation based on this kind of assumption include putting someone on a remarketing list, then pestering them with discount offers for goods they may have simply glanced at out of curiosity.
Clearly, the fundamental principle of personalisation (as understood by customers) is being misinterpreted by many retailers. And the message that their marketing is giving to consumers is breeding frustration and a lack of respect – hardly the intended result.
In a truly personalised journey, power resides with the customer, who can decide whether or not they receive personalised advertising, the nature of the content they see, and the products they are able to access.
Some retailers do appreciate this distinction, and take steps to customise their buyer experience in a manner more appealing to their consumers. The tailoring brand Savitude for example, requests minimal data from its customers, yet uses this information to produce outfits cut to suit the customer’s body shape, their individual preferences, and even the occasion they plan to attend.
The tailoring analogy extends to current trends in consumption, which look for sustainability in the form of minimal purchases of curated goods, designed for longevity. The price tags associated with commodities like this may be higher, but consumers are increasingly prepared to part with their money if the products and services they get are specifically attuned to their needs.
This is the kind of personalisation that customers want: a personalised service on their terms, with responsible data gathering, their consent requested from the outset, transparency, and clarity over how their information is put to use.
How do you then quantify personalisation and put observation into practice? There is a small percentage of organisations getting it right, though many retailers are unclear what steps to take and which capabilities to build, in order to generate and sustain a truly personalised experience for their customers. Find out about the methodology here.
From a generic standpoint, top-level retail organisations use a variety of tactics, such as personalised merchandising, loyalty schemes, and reward programmes. They use mobile, paid display, and paid search marketing to frequently activate more channels.
Their technology stack typically includes infrastructure that enables predictive algorithms (which help retailers to make personalised product recommendations and offers), and to access integrated customer data in real time (which helps in developing deep insights into how customers behave, and enables rapid response).
Get access to some recommendations on personalisation in retail with a free case study here
Day 2 at eTail Asia highlights an all-star panel discussion on “How can you improve, personalise and simplify the customer experience, adding value through each journey?”
With powerhouses such as Adidas, Flipcart, and Luxasia representing the speaker line-up, audiences are guaranteed to not only learn from the best of their category, but also get the unique opportunity to cross-learn from relevant case studies, all in the convenience of a single location.