Why Provide A Personalized Experience Across Touch Points?
1. Personalization Drives Consumer Behavior
According to a December 2011 analysis from Janrain, in Q3 2011, personalization is important to consumers:
- half of the consumers surveyed say that social login’s personalization capability is attractive to them
- One-quarter are neutral.
- One-quarter do not find the capability attractive.
The study also shows that personalization proves quite valuable.
- 50% say that if a website personalizes their experience, they are more likely to return to the site
- 46% say they are more likely to buy products/services from the site
- 38% would be more likely to recommend the site to others
- 33% are more likely to make purchases in-store.
2. Both Consumers and CEOs are More Demanding
A January 2012 survey of 94 retailers by Retail Systems Research finds that 63% of multichannel retailers expect the online channel to account for a sharp increase in their total sales by 2015. As commerce continues to flow through multiple channels including in-store, online, mobile and direct mail, it’s important to remember this basic lesson: consumers still give their business to companies that are more service-oriented and customer-focused.
3. Personalization Has Become an Important Differentiator
Here are some statistics:
- A ChoiceStream study shows that personalization can drive 10% in incremental sales.
- Yet, only half of the Top 500 online retailers are using personalization techniques.
- Over 61% of retailers say personalization is among the most important merchandising tactics in web retailing (10th Annual e-tailing group Merchant Survey.)
- Some estimates are that e-commerce will account for 20% to 30% of total retail sales in the U.S. in as little as five years
Lauren Freedman, president of the e-tailing group testifies that:
Personalization is critical, essential, and growing in importance because as merchants really want to grow conversion, giving the customer a targeted experience through personalization is more effective.
Millie Park, Vice President & General Manager or ChoiceStream explains more concretely in How Can Personalized Recommendations Transcend Channels? why personalization is so important:
Think about your favorite in-store experience. The one where a salesperson on the floor makes suggestions, provides feedback, and helps you find what you need. You shop there consistently for a reason. That “personal shopper” model can be replicated across other touch points as well, whether it be online, via email, or even in catalogs. But retailers few and far between actually provide this experience across touch points.
4. Personalization Brings the Enterprise Together
Integrating online data into the offline world has endless opportunities. The key organizational roles that can implement and benefit from personalization include:
- Merchandisers – Being attuned to seasonality, product inventory and demand, merchandisers who oversee the presentation of products can leverage the power of personal recommendations online, at in-store kiosks and Point-of-Sale.
- Marketers – Personalized emails can be used to present recommendations and drive repeat visits both online and in-store, as well as to re-engage lapsed customers, to help create brand loyalists and advocates
- Customer Relationship Management – Personalized recommendations can be deployed online, via email, in mobile-commerce environments and in-store if there is a way to tap into online customer activity at the cash register or in a call center environment. This will help CRM to maintain customer data and reengage and nurture customers while creating loyalty across channels.
- Information Technology leaders – They can use personalization to assure that solutions deployed are usable across multiple touch points with minimal or no impact on resources and technology assets for both integration and maintenance, as well as enable the use of data across all channels while protecting personal customer data.
- Store (Brick-and-Mortar) Management – While relying on marketing and online promotion to drive shoppers to the door, having more information on the customer can help them to make a sale. By swiping a loyalty card or entering an online user ID and password, a prospective customer can give a salesperson a glimpse of their online behavior including what recommendations they clicked on or products they researched. This information can help the salesperson guide the customer to those same products that may be in-stock or on sale in the store.
- The CEO – Since the CEO wants to assure that all the business groups are working in concert to assure customers are being seamlessly serviced and sales are being increased profitably across each channel, (s)he can readily appreciate the contributions that a comprehensive personalized recommendation strategy can deliver.
Leading retailers are leading the way in embracing personalized recommendations, and finding ways to integrate recommendations across each touch point. Companies in the financial services industry, where buying decisions hinge on highly personal circumstances and concerns, should be closely following these retail trends for opportunities to leverage them to provide a more personalized experience across touch points that can help drive the purchase process.