If that isn’t compelling enough, consider this – more than 75% of shoppers find a lack of personalisation frustrating.
It’s a golden opportunity. What’s more, companies successfully implementing personalisation grow faster, generate revenue quicker and are more likely to retain customers.
Personalisation in action.
Rich, rewarding and relevant customer experiences are synonymous with personalisation.
A common example is a recommendation engine. In the retail world, this could be an algorithm that recommends similar products or purchases made by lookalike customers. Amazon’s recommendation features are a prime example.
However, personalisation can be much more than this. At its most complex, it could be a company-wide strategy, providing multi-touch omnichannel customer experiences. Take Stitch Fix, for example. The personal styling service has embedded data and insight throughout their business, resulting in a highly personalised offering that improves as more individual customer data is collected.
Everyone’s a winner with personalisation.
Customers want to be understood. They crave relevant, frictionless experiences. They reward excellent experiences with loyalty.
Over 80% of consumers are willing to share data in exchange for personalisation. After all, who really wants to spend precious time trawling an endless aisle?
Meanwhile, there are countless benefits for retailers and brands. Increased revenue. Reduced customer acquisition costs. Improved customer-brand relationships. Heightened brand loyalty.
It’s a no brainer.
First party data goes hand-in-hand with personalisation.
Now that third party cookies are coming to an end, retailers should already be collecting more and more first party data. This feeds into personalisation, as it relies on data.
The more data retailers can collect about consumers – from demographics like age and location, to behaviour such as browsing and purchase history – the better they can personalise the customer journey.
First party data is no good in isolation, though. Affinity, attributes, customer need states and segments are the four cornerstones of personalisation. Put together, they build a detailed picture of consumer behaviour, helping retailers provide truly personalised experiences. We explained these concepts in more detail in a previous blog.
Technology, like HyperFinity’s decision intelligence platform, helps connect the dots in your data to bring truly personalised experiences to life.
Crucially, though, personalisation needs to be consistent. Frequently good, personalised experiences build trust and loyalty, whereas bad experiences drive customers away.
The future is personal.
A recent study predicts customer experience will be the key brand differentiator in the future – over product and price.
So how are brands innovating with personalisation?
Personalisation shouldn’t be reserved for online experiences. Bricks and mortar stores can personalise too – from the décor to the experience provided by staff members.
Take mobile POS systems, for example – they’re perfect for in-store personalisation. Staff have detailed product and customer information at their fingertips, giving them the power to make informed recommendations.
Customers love multi-touch omnichannel experiences. They may use several devices (eg mobile, tablet and desktop) and expect consistency across the board.
Retailers can use data science and AI to connect user data across touchpoints – for example, using credit/debit card details or loyalty programmes.
Personalisation is a long-term strategy. Collecting data helps identify opportunities and successes – retailers can understand performance on a micro-segment basis. For example, is there any friction in the customer journey? Where is the greatest conversion/engagement? Is there room for improvement?
No one wants to be encumbered by irrelevant, annoying adverts. By building an in-depth understanding of customers, retailers can serve more targeted ads.
As well as improving customer experiences, retail media is also an opportunity for monetisation. Retailers can sell advertising space to suppliers, helping increase the likelihood of consumers purchasing their products. Head over to our retail media blog for more on this topic.
Providing personalised customer experiences is even easier with HyperFinity. Our decision intelligence platform helps retailers and brands create deep customer insight, including the four cornerstones of personalisation (affinity, attributes, customer need states and segments).