Personalisation in the Retail Sector

Accenture has recently released a US survey about personalized retail experiences with some very interesting results.

The study found that ‘nearly 60% of respondents wanted real-time promotions and offers but only 20% of them wanted retailers to know their current location and only 14% wanted to share their browsing history.’ It is very interesting to note that customers want a high degree of personalization without retailers knowing too much about them.

Here is a big opportunity for US retailers but could apply anywhere in the world as well. No one wants a company knowing too much about them but some degree of personalization works well to delight customers, keep them engaged and increase sales and revenues over time.

Some other key findings in the study were that consumers were willing to share personal data with retailers including, ‘demographic information such as gender (65 percent), age (53 percent) and contact information (52 percent), although a significantly smaller percentage (24 percent) would share their contact information on social media.’ The amount of information people are willing to give retailers is very promising and will make the conversations they have with customers a lot richer.

Retailers need to build trust with their customers so that they offer up more personal information. If retailers are able to show that they have their customers’ privacy in mind and can show them a benefit from giving up their information, they will be able to provide a more personalized service and in turn increase sales.

Another interesting aspect of the study showed that younger customers were more willing to share their personal information than older customers in certain areas. Millennials were more receptive to the idea of personal shopping and getting advice on in-store purchases. Baby Boomers, on the other hand, wanted to receive more benefits in return for giving up their personal information.

A retailer today has to be sensitive to a cross generational marketing strategy and cater to different ages in its marketing offering from intelligent segmentation and contextualization so customers receive the type of marketing they want. A highly personalized marketing strategy will be one that is much more successful for a retailer while keeping customers coming back over and over again.

Post by SmartFocus Blog

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