Real time personalization is a prominent force in today’s retail marketing industry. Retailers are now judged on their ability to create meaningful, positive interactions with consumers based on previous shopping habits, preferences and interests. However, while retailers understand the value of personalization, recent research suggests their efforts may not be living up to customer expectations.
According to a report from Infosys, only 1 in 5 consumers say they have encountered personalized offers and promotions in-store, while just 27 percent have seen them online. And while 75 percent of consumers like it when brands personalize messaging and offers, Experian revealed that 70 percent of brands are still not personalizing emails sent to subscribers.
But it’s not just the email channel in which consumers expect cohesive personalized experiences. There is also a shopper-driven need for retailers to maximize the value of real time personalization across all marketing channels. In its ninth annual survey Accenture states that even though 75 percent of shoppers use one or more channels, 58 percent of customers are frustrated with inconsistent shopping experiences from channel to channel. The push for retailers to personalize a customer’s cross-channel experience has shifted from an occasional strategy to a must-have mandate.
The cause behind this gap in customer expectations and retail efforts could be credited to a lack of a data-driven approach to personalization. Since the emergence of big data, retailers have collected in-store data, transactions, loyalty programs and online data, but treated each category as a different silo and used them separately within the organization. Retailers are in need of a data management platform that enables retailers to transform raw data into customer intelligence, or data-driven strategies comprised of identifying and differentiating customers into segments.
By understanding each customer’s interactions, retailers have a better chance of maximizing value for shoppers and for themselves. Overall, retailers need to deliver the genuine, transparent and helpful communications customers are demanding.