Personalization of Retail – A Market of One.

Market of One Strategy

Customers continue to demand more from retailers – they have a never ending quest for personalization.

Personalization isn’t just about knowing some high level information like the person’s name. Retailers today looking to increase the level of connection they make with their customers are exploring the extreme benefits of high touch personalization.

It’s taken decades for the concept of market of one idea to set in. Until recently, there were too many hurdles in technology to make personalized marketing a reality.

One of the biggest reasons it’s taken so long for the concept to set in?  It’s far from easy to unravel the vast depths of data flowing across various sources throughout a retailer’s data ecosystem. It’s so much of a daunting task that some question if they even have the data they need to be successful in this type of marketing.

The potential of unlocking all of the data is mind boggling. Experienced marketing and operations team members talk about scaling personalization and hyper-personalization. Doing it right requires rethinking how you collect, aggregate, measure, analyze, model, and optimize all the various “omni-channel” data sources and create an ecosystem of data that serves your organization and customers across all points of interaction.

Speaking of omni-channel, talk about a super buzz word! In order to perform the various data operations previously mentioned, all that data needs to have already been standardized. So if we still need to do all of those steps to make the data cross system relational aka “omni-channel”, then how are all these systems that claim to be omni-channel actually omni-channel?

Let’s get to the base of it all – Understanding the sheer power of customized & targeted marketing has several crucial benefits: Increasing loyalty to your brand, Improving the customer experience, Driving additional revenue, and creativity of content across the various customer channels.

To back those points up are some quick points:

Content is king – 78% of customers say that personally relevant content greatly increases their purchase intent. 81% of customers what retailers to understand them better and know when and when not to approach them.

Personalization can reduce acquisition costs by 50%, lift revenues by 15%, and increase the efficiency of marketing and operations spending by 30%.

70% of customers prefer to do business with retailers that provide personalized, real-time promotions and offers!

Getting to personalization requires company leaders to fully buy into the revolution of real time retail. Leaders need to develop a strategy that defines how they will acquire and use the technology and processes needed to adapt to this market of one approach. Every system and action that touches a customer needs to have it’s data collected, integrated, and analyzed to allow the retailer to make fully data informed decisions across marketing and operations, that all serve driving the customer experience.

Slightly less than 5% of all retail has begun adopting this level of customer personalization and have a granular view of the customer to plan and personalize across channels. Customers are demanding it – and they’re going to find it somewhere and brick and mortar retail, as already proven, will not survive it they don’t quickly adapt.