It’s Personal, and It’s Business: Using Retail Personalization to Connect with Customers

Whether it is personalized license plates, decorative phone covers, social media profiles, or even just a soda bottle with your name on it, there is one universal truth: People like to feel unique. And with the resources that are available through the internet and smart technology, personalization in the retail industry is now easier than ever. But in an age when consumer data is vast and easily available, is there a risk that customers may see use of this data as more invasive than beneficial?

The facts suggest otherwise; 57% of consumers say they're willing to share personal data in exchange for personalized offers or discounts, and 62% say it’s acceptable for companies to send personalized offers or discounts based on items they’ve already purchased.

It is clear then, that many consumers are already looking for a more personalized retail experience. As it stands, it is the younger generations that are most on board with online retail personalization — 63% of millennials and 58% of Gen X customers are willing to share data with companies in exchange for personalized offers and discounts, as opposed to 46% of baby boomers.

As the industry moves increasingly toward personalization, however, it is important to know the various benefits that it provides, for both your customers and your business.

1. An improved customer experience.
Data collected makes it easier to send customers personalized offers. This makes for a better, more streamlined shopping experience for customers. However, the benefits also extend to interactions that customers have with your company. A massive 89% of marketers think customer experience is their main differentiator. Whether in a marketing setting or through customer service interactions, representatives are able to instantly access customer profiles and use relevant data to more effectively help customers.

2. Better data for better business decisions.
When asked to prioritize one capability that will be most important to marketing in the future, one third of marketers answered with personalization. Through advanced analytics capabilities, marketers are able to ensure that the right offers go to the right customers through the most effective channels. And when you put predictive intelligence into the mix, that data can help you accurately forecast trends, predict customer action, and supply effective next steps automatically.

3. More repeat customers, higher customer retention.
All of this adds up to a higher rate of customer retention. As shown by the more than half of customers who said that they would switch brands for personalized communication, retail personalization is becoming a major brand differentiator. This means that you are more likely to not only keep your current customers, but have a head start in gaining new ones. As it becomes more common, expect to see more and more customers looking for brands that offer personalized retail.

Most of these benefits are available through the use of an effective customer relationship management (CRM) platform. These platforms often come with the kind of web analytics personalization retail depends on, as well as tools for managing customer support, marketing, sales, ecommerce, and more.