Why Personalization is the Way Forward for Retailers to Succeed

As per the study by Salesforce, "51 percent of consumers expect that companies will anticipate their needs and make relevant suggestions before they even make contact."
Why Personalization is the Way Forward for Retailers to Succeed

In this whole world of opportunities, marketers have realized that the future of marketing lies in ‘personalization’. Nowadays, customers are bombarded with lots of information through various sources be it billboards, commercials, emails, or social media. Thus, in this changing retail landscape which is hyper-connected through the digital revolution, marketers need to emphasize engaging the customer with the right product, at right time, and with the right information. 

As per the study by Salesforce, “51 percent of consumers expect that companies will anticipate their needs and make relevant suggestions before they even make contact.” 

Understanding consumer’s likes, preferences, needs, history, and interests will help marketers in getting a competitive advantage as customers have become both critics and creators. 

Infosys shared in their report ‘Rethink Retail’ that, “31 percent of customers say that they wish their shopping experience was more personalized than it currently is, and only 22 percent are satisfied with the level of personalization they currently get.” 

What Statistics Say

Figures shared by Deloitte, Evergage, BCG, and others have made marketers realized that businesses not offering the element of personalization will lose in terms of revenue and loyalty. 

Today’s technology is helping retailers in augmenting the intelligence of products and services from the information gathered from tiny data points to big data systems. Brands have improved their personalization from emails to e-commerce. 

As per the results shared by Instapage, personalized email marketing generates a median ROI of 122 percent, and compared to non-personalized emails, and personalized emails have 29 percent higher unique open rates. 

As per the techniques used at digital personalization, it is observed, “if customers get personalized offers or discounts, 63 percent of millennials, 58 percent of Gen Xers, and 46 percent of baby boomers are willing to share personal information with companies”. 

“59 percent of customers say that personalization influences their shopping decision” when e-commerce personalization techniques were observed. 

Personalized techniques with influential content influence better segmented and targeted consumers as lack of content relevancy generates 83 percent lower response rates in the average marketing campaign. 

Retailers need to focus more on personalized techniques as, less than 10 percent of tier 1 retailers believe they are highly effective at personalization, and nearly one-third report having limited or no capability to support personalization efforts. Implementing personalization is leading brands towards modern personalized advertising, the next wave in digital marketing.

Data-Driven Personalization

A healthy relationship depends upon the marketing decisions taken wisely using the data collected throughout the customer journey. Data acts as a differentiator and helps the brands in extracting the real picture hidden in the collected, accessed, and activated data points. Every piece of data is important as it helps in converting visitors to customers and customers to advocates. 

Brands have realized that with innovative thinking and technology, they can create human experiences in the digital space. Shopping has been redefined by the technology innovation AI, VR, IoT, voice ordering, one-click ordering, or robot-assisted. By adopting these technologies brands are enhancing customer experience by providing ownership of a customized brand (NIKE’s Makers Experience), better customer support (Nespresso), visual interaction (H&M), and building a long-lasting relationship. 

Various products are helping brands in deploying personalization like Adobe’s target and Certonaby optimizing and targeting new customer segments and an Omnichannel personalization tool for retailers. For real-time personalization, brands need strategies against the data collected and analyzed through P(product), C(content), C(customer), and C(context) to earn customer loyalty. 

Understand Them, Appreciate Them and Serve Them

Creating an army of loyal customers from the treasure chest of data will thrive the business in the coming years. 

According to the Boston Consulting Group, “When the shopping experience was highly personalized, customers indicated that they were 110 percent more likely to add additional items to their baskets and 40 percent more likely to spend more than they had planned.” 

The rise of e-commerce and technology has made the brands ensure a consistent Omnichannel approach. To stay ahead of the competition, technologies like AI and CDP is helping in winning the customer base irrespective of the device customer are using. Personalization will act as a strong winning weapon in the growth plan of the retail race, it’s the time to join brick-and-click.
 

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