5 minute guide to: getting more personal …...2018/01/05 · our solution start your...
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THE PAYOFF FROM TAKING
A MORE PERSONAL APPROACH
5 MINUTE GUIDE TO:
GETTING MORE PERSONAL IN RETAIL
IN THE NOT SO DISTANT
FUTURE, EVERY VIABLE
RETAILER WILL BE A
TECHNOLOGY COMPANY.
- Gartner1
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Staying on top of the personalization game ranks among the top priorities for retailers worldwide.
From emails, coupons and weekly circulars to the new geo-targeted offers, retailers that consistently
deploy personalized campaigns across the right channels are meeting shoppers’ heightened
expectations and reaping the benefits of loyalty, repeated visits and growing basket sizes.
THE PAYOFF OF GETTING PERSONAL
75%e-business professionals
prioritize personalization
technology investment
In today’s highly competitive retail landscape, incorporating innovative geo-technologies
such as beacons and sensors is forcing retailers to rethink their strategies to be more in
sync with consumers’ changing desires and needs. According to Gartner1, “In the not
so distant future, every viable retailer will be a technology company.” However, the
impact of loyalty and retention programs is likely to be limited if retailers’ execution plans
are not consistent across digital and physical worlds.
According to Forrester, personalization technology is today the top technology investment
priority for 75% of e-business professionals2. Personalization and successful
omnichannel execution is not just about delivering the same offers to consumers across
devices and channels; it is, first and foremost, about making sure consumers experience
a seamless journey regardless of the channel, location or product preference.
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UNDERSTAND YOUR CUSTOMER
Relevant Content Matters
To achieve the correct combination of emotional and rational connection for
effective shopper engagement, retailers should consider developing content that
is interesting and relevant across all platforms.
Producing content with consumers’ buying stages in mind will help you boost
sales. For instance, providing product information at the prospect stage and
targeted offers at later stages strategically moves consumers along their
journey. Shareable content is a valuable tool to employ today - especially
among millennials, the majority of which want product information,
reviews and price comparisons at their fingertips.
At the same time, businesses must recognize the impact of
providing valuable offers beyond just discounts. Understanding
customers in-depth and beyond transactions, as well as combining
customers’ preferred channels and machine learning capabilities to
arrive at predictive content, leads to a more powerful connection
and eventually to real engagement, as effective personalization
helps shoppers feel valued and rewarded.
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Today’s Consumer is a Moving Target
A CUSTOMER
WHO IS ENGAGED
ONLINE AND OFFLINE
IS WORTH
32%MORE THAN
THOSE ENGAGED
ONLINE ONLY
At the same time, thanks to the prevalence of channels such as
mobile and wearables, retailers need to better understand a new type
of customer: the shopper who is always informed, knows what he/
she wants and can easily access information about competitive stores
and products at all times.
Similarly, geo-located messages and offers are gaining ground as
retailers are now able to track customers’ movements within or near
their stores. The financial payoff is significant. “Businesses that
successfully employ a consistent cross-channel marketing
strategy enjoy a 14.6% year-over-year increase in annual
revenue and a 13% annual.” 3
Based on results reported by a leading German retailer using SR’s
Personalized Marketing solution, “A customer who is engaged
online and offline is worth 32% more than those engaged online
only.” 4
To be effective today, it is important to reach customers through their preferred channels.
The days of single-channel communications are over and customers have preferences
that change constantly. Therefore, any personalization program needs to be able to
change with them automatically.
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In today’s highly competitive, hyper-connected world, where channels are
becoming increasingly blurred and an omnichannel, personalized approach
is becoming an absolute necessity, no company can afford to be left behind.
Recent surveys reveal that while many retailers think they get it, in reality,
shoppers disagree.
REALITY CHECK
According to a recent report by TimeTrade6, “More than half
of retailers are confident they are providing a personalized
experience to consumers, but only 26% of consumers believe
retailers are actually doing so.”
DID YOU
KNOW?
Only 10% of Tier 1
retailers believe they
are highly effective
at personalization,
and nearly one-
third report having
limited or no
capability to support
personalization efforts.
- Gartner5
To overcome these challenges, many retailers have heavily invested in sizeable CRM departments
or upgraded their existing technology. These expensive and inflexible solutions often fall short in a
dynamic retail world requiring agility and minimized costs.
Evidently, while the pace of change in retail is staggering, many
leading retailers globally struggle to keep up: “51% of marketers
today can’t react to new channels, devices, trends or
competitors using their current tech.” 7. At the same time,“Over
90% of marketers struggle to seamlessly connect more than
three channels on the buyer journey.” 8
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42% OF SHOPPERS ARE LOYAL
TO A RETAILER THAT HAS
KNOWLEDGEABLE STAFF WHO
TREAT THEM LIKE A VALUED
CUSTOMER. 9
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BE MORE RELEVANT
Customers will explore emerging communication
channels and touchpoints. Yet, they will continue to
expect easy, effective service interactions that
foster an emotional bond between the customer
and the company. Companies must leverage
insights from past interactions, transactions,
and connected devices to deliver upon
these expectations.”
Do you really know your customers?
Of shoppers are encouraged
to choose a retailer offering a
more personalized experience
tailored to their needs.1141%An additional challenge for retailers is gaining an in-depth
understanding of customers.
Transaction data is not enough to secure that much sought-after 360O view of shoppers, who
in turn expect retailers to understand, reward and value them. According to Forrester10:
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Investing in thoroughly knowing your customers can not only gradually boost sales, but
also secure your shoppers’ lifelong loyalty. This investment should be two-fold:
Developing reward-
type offers for your best
customers to insulate
them from competition
Providing incentives to the remaining
shoppers to experiment and engage
with new categories and/or increase
their shopping frequency
Building customer relationships
Neglecting to look after your shoppers as individuals will prevent you
from differentiating between a customer that loves shopping at your stores
versus shopping purely out of convenience.
Likewise, it’s critical to know which marketing vehicle will be most
effective to meet specific loyalty objectives for your shoppers as
well as understanding how each customer touchpoint affects shopper
engagement. Understanding your customers’ preferences and their path
to purchase can be demanding but it is key in transforming your shoppers
into lifetime customers.
36%OF RETAILERS SAID LACK OF
CUSTOMER PREFERENCE AND
PURCHASE AWARENESS LOST
THEM CUSTOMERS IN-STORE” 12
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OUR SOLUTION
Start your personalization journey with
Symphony RetailAIAsk how SR’s Personalized Marketing solution is helping retailers
deliver more than 345,000,000 personalized, precision-targeted offers
every month, which is increasing average redemption rates 10% and
higher, when compared to untargeted, ad hoc offers.
30+ YEARS
70+ COUNTRIES
1200+ CUSTOMERS
Symphony RetailAI is the leading global provider
of Artificial Intelligence-enabled decision
platforms, solutions and customer-centric insights
that drive validated growth for retailers and CPG
manufacturers, from customer intelligence to
personalized marketing, and merchandising and
category management, to supply chain and retail
operations.
Symphony RetailAI is innovating rapidly to drive
faster, more profitable decisions through AI,
machine learning and voice technologies. We are
trusted by over 1200 organizations including 15 of
the world’s 25 largest grocery retailers, thousands
of retail brands, and hundreds of national and
regional chains worldwide to help solve their
toughest business problems, through AI-powered
customer intelligence and retail solutions. More at:
www.symphonyretailai.com
Copyright © Symphony RetailAI.All rights reserved.
1. 2015, Gartner, Predicts 2016: Digital Business Uproots Traditional Retail Revenue Generation
2. 2014, Forrester, It’s Time To Rejuvenate Online Transactional Experiences With Responsive Web Design
3. 2015, Omer Minkara, Customer Engagement: From Interactions to Relationships
4. 2015, Symphony EYC, EYC Personalized Marketing solution’s results reported by leading European client, Q4 2015,
Germany
5. 2014, Gartner, New Research on Personalization Highlights the Challenges
6. 2016, TimeTrade, Personalization in Retail: A RealityCheck
7. 2015, Episerver, Multichannel Digital Marketing Report
8. 2017, Gartner, Multichannel Marketing, https://www.gartner.com/marketing/multi-channel-marketing
9. 2016, Planet Retail, Redefining Loyalty, What loyalty means to shoppers today, June 2016
10. 2016, Forrester,Trends 2016: The Future Of Customer Service, Vision: The Contact Centers For Customer Service
Playbook
11. 2015, Planet Retail Shopology, BASE: 90,000 shoppers; Period covered: Aug 2014 to Nov 2015
12. 2016, Planet Retail Era of Personalization research, BASE: 320 retailers with $1bn+ revenue p.a., published January
2016
APPENDIX
Start your personalization journey with Symphony RetailAI:
www.symphonyretailai.com/marketing-manager-retail
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