Personalization. It’s the new industry buzzword, variously touted as the solution for a host of branding and marketing, and recently, even merchandising, problems. But it seems to mean different things to different people, and as hard as it is to define, it’s even more challenging to execute. But with challenge comes opportunity. By looking to some of today’s leading retailers, we can see that delivering truly targeted communications can be the key to sustaining and growing a loyal customer base.
We know that customers want personalization – 69% of consumers say they prefer to receive personalized communications based on their shopping history. This demand for personalization grew 11% from 2015 to 2016. Yet despite growing promises of relevance by technology vendors, consumers say many companies are still missing the mark.
In today’s world of digital communication, it’s become very easy to send blanket emails to an entire database of customers for virtually nothing. It’s pretty incredible how cheaply we can now reach everyone. But we have to resist the urge. In the 2015 Precima Customer Centricity survey, 50% of respondents said they didn’t feel they were benefitting from the collection of their personal data. As customer expectations of personalization increase, the bar for what constitutes true customer focus continues to rise.
A program for a large grocery retailer, for example, is the first digital-only program that rewards customers the more it knows them. All offers are targeted and personal. Rewards improve as the customer’s data gets richer, and the better the customer, the better the rewards. That’s personalization – and the new future of loyalty.
With a willingness to invest the time and money required to do it right, today’s organizations can use personalization to build strong, loyal customer relationships. The data shows that customers want this. As most customers report that personalization increases their trust in a brand trust and loyalty, it’s a clear win for retailers, too.