Retailers face many challenges today that impact traffic and same store sales. This includes e-commerce, pricing pressures, an aggressive competitive environment, slipping mall traffic, and an emerging generation of customers with different behaviors than before. Amongst all of the challenges, retailers must have a deeper understanding of customers, their behaviors, demographics and attributes.
Marketing today must focus on current customers – who they are, how often they shop, and what they buy. In this environment, personalization is more important than ever. Businesses need to connect with their customers in a personal and relevant manner.
With the proliferation of data and online access, customers expect brands to know them while fighting for their attention. Data is allowing many retailers to simplify, enhance and personalize the customer experience. Today, mobile apps track customers’ past and favorite orders for quick reorder and mobile pay makes it easy to get in and out of the store fast. Retail businesses have POS systems that show customer transaction history and websites make the right recommendations to customers. Some companies are doing personalization well. However, many are not.
Our point of view is that brands need to know their customers, show them that they know them and show them that they care. In an environment where customer loyalty can be fleeting, communicating relevant and personal information increases your bond with customers. Customer experience personalization is all about data. Get the data right and you can shape the overall customer experience by applying data science and machine learning. Brands that personalize customer experiences by integrating advanced digital technologies and proprietary data are seeing revenues increase by 6% - 10%, which is two to three times faster than those that do not.*
Regardless of where you are on your journey, here are the four key steps retailers must navigate when driving traffic through personalization.