How Personalisation is helping the retail brands?
Personalisation has always been important in retail.BY Guest author | Jul 24, 2017 | comments ( 0 ) |
Personalisation has always been important in retail.Today personalization remains as important as ever, but the way it’s delivered is constantly evolving. Customers now have the option to browse their favourite stores online, at their convenience, across multiple devices, instead of taking a trip to their nearest high-street. Retailers have had to adapt to this change in consumer habits, to ensure that they maintain a connection with customers both online and in-store.
As commerce shifted online, basic customer segmentation was the initial focus of personalisation. But it was a blunt instrument – too often offering irrelevant recommendations. The evolution of technologyhas facilitated much a more in-depth insight,driven by machine and real time learning: the personalisation engine.
A personalisation engine acts as every customer’s favourite local shopkeeper across the multiple touchpoints of the modern shopping journey. It identifies the optimum experience for an individual, based on what is known about the customer. It can tailor the experience in real time, help anticipate consumer demands and behaviours, alter the online presentation layer or trigger a usefulsuggestion.
By 2020, Gartner predicts that personalisation engines used to recognise customer intent will enable digital businesses to increase their profits up to 15%. This means more page views and clicks per page, decreased bounce rates and higher use of self-service costs which all individually drives profit. With higher engagement, there are more customer acquisitions, wider margins, fewer returned items and lower service costs.
The driver of a personalisation engine isdata. It creates a customer profile on an individual’s personal data, as well as the behavioural data of both the customer and similar individuals. It can tell a retailer a customer’s preferences, what they’ve purchased and what they’ve been browsing, allowing retailers to fully understand their customer. This gigantic volume of datacan be overwhelming and for many extracting the important information is a real challenge. The personalisation engine ensures that this data is managed effectively, so each customer is approached with predictive targeting in the most personable way possible. This efficiency is what creates the competitive edge and puts personalisation engines at the forefront of online marketing.
With the right knowledge in place, you can start to apply it where it matters. Multiple devices and channels are now the norm when browsing and buying. Today, the leading 25% of mobile retailers saw 50% of their sales from mobile and one-third of transactions involve two or more devices from the first website visit to point of purchase. Delivering a truly personal experience requires a seamless customer’s experience across all touchpoints.
The combination of the right data delivered across the right channels meansmore intelligent solutionscan be created. The most sophisticated brands incorporate machine learning to update customer profiles in real time. These advanced engines ensure that personalisation is driving relevant digital experiences that help to increase satisfaction and engagement, which in turn help deliver happy customers.
The basic principles of retail remain the same: know your customer. Forward thinking retailers must place personalisation at the heart of their marketing strategy to deliver a truly relevant experience acrossthe multiple touch points available to customers and in-store.Whenpersonalisation is done right, it can be the magic ingredient that will make your profits soar.
The article has been penned down by Siddharth Dabhade, General Manager of Criteo India
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