Personalisation what’s really going on? — SwiftERM
Personalisation what’s going on? Personalisation has come to dominate nearly every conversation in the retail world for a very good reason — because consumers now demand and respond positively to personalized experiences.
Most often, these conversations centre around topics like:p Why personalisation is so important (consider Accenture’s finding that retailers lost $2.5 trillion globally due to poor personalisation and a lack of trust)
- Why the time to get started with personalisation is now (BCG found that creating personalised experiences could increase revenue by 6% to 10% — and help deliver those increases faster)
- What an ideal personalised experience should look like (check out McKinsey’s take on what shoppers really want from personalised marketing)
- Which retailers do personalisation best (Amazon regularly , as do some non-retailers like Spotify)
These findings and advice are no doubt interesting and valuable in the right context, but for most retail marketers, they’ve passed their prime. They focus on personalisation 101, and most marketers are ready for the more advanced course.
What is personalisation and how does it work?
Everyone is unique — we learn it when we’re young, and we’re constantly reminded of the little idiosyncrasies that make humanity so varied. Today, retailers are beginning to realise they can leverage the personal elements of each customer to create a truly curated experience.
By definition, personalisation in retail involves tailoring your offerings and marketing materials to suit the need of a specific individual or small segment of like-minded customers. Customers have unique paths to purchase, and personalisation helps retailers guide customers on the right path based on their needs and behaviors. Personalisation requires analyzing a wide range of data, including location, browsing and demographic data, to determine individual consumer preferences. With customers shopping on more channels than ever before, this is no simple task.
Marketers must also match this granular customer data to existing product data. However, many marketers struggle with the arduous task of collecting and analysing customer data, let alone combining that with granular product data. This can result in a sizable missed opportunity, with customers being served subpar products during outreach.
If everything is executed correctly, however, personalisation can provide a boon to retailers. Customers will not only feel known, they will also appreciate the convenience of shopping with a retailer that understands their product needs.
Why it’s time to update your approach
There’s a reason that conversations about personalisation are everywhere. It’s because retailers, and especially frontline marketers who handle channels like email, personalisation is important. In fact, more than 90% of US retailers rate personalisation as at least somewhat important to their business goals.
And not only do retail marketers know personalisation is important, but they also have a good idea of what that personalisation should look like. So the problem isn’t the why or the what. It’s also not selling the pitch up the ranks internally, as personalization is on every retail executive’s radar too .
Then why haven’t we realized the personalisation nirvana we’re so desperately seeking? The problem is executing on the personalisation imperative due to technology limitations.
The retail personalisation gap
As it turns out, the real retail personalisation story no longer centers on the why or even the abstract how, but rather on the nitty gritty of moving from a strategic vision to reality. We need to tell this story — and more importantly, solve this problem — now because we’ve hit a personalisation gap.
Specifically, RIS News reports that despite the fact that over 90% of retailers recognize the importance of personalization, 69% lack the advanced technologies they need to improve their personalisation capabilities. The same data reveals that most personalisation efforts to date focus on email communications.
We’ve arrived at this retail personalisation gap because the technology that most commonly comprises retail marketing stacks, especially when it comes to email, aren’t designed to meet the more sophisticated and nuanced needs of today’s marketers. Plain and simple, retail marketers are often held back by their technology (or really, a lack thereof).
More specifically, a survey of retail leaders conducted by Worldwide Business Research found that some of the top technology-related challenges that retailers face include the length of time required to derive insights, the ability to enable activity across multiple channels and the ability to access a single view of all customer data.
Originally published at https://www.swifterm.com on April 1, 2021.