Editors Share Their Top Takeaways From RTP Personalization Survey
Last week, Retail TouchPoints unveiled its inaugural Personalization Benchmark Survey, revealing how retailers have reaped the benefits of personalization strategies as well as identifying where there is still room for improvement. With 66% of retailers crediting personalization strategies with increasing their sales, and 46% saying that personalization has boosted sales by up to 10%, it doesn’t appear these initiatives will slow down any time soon.
The RTP team dives into the findings of the Personalization Benchmark Survey and shares their biggest takeaways, and a few surprises, from the results.
Debbie Hauss, Editor-in-Chief: While it’s not surprising that email is the most-used personalization strategy, it is surprising that more retailers have not invested in advanced capabilities. Just 33% of retailers scale their email message volume based on individual customer engagement levels, and only 29% use algorithms to determine which types of personalized emails to send. It’s great that 79% are using the customer’s name in emails, but by not honing in on customer engagement and customers’ specific needs, retailers risk sending irrelevant communications. What could make matters worse is that retailers seem afraid to let consumers decide when and how to communicate with them: Only 28% allow consumers to have a say in how much marketing material they receive via email, mobile and/or direct mail.
Adam Blair, Executive Editor: I was happy to see that more than half (57%) of retailers responding to our first Personalization Benchmark survey keep track of individual’s customer service history, including complaints, returns and positive reviews. Without strong customer service and an engaging CX, even the most sophisticated personalization initiatives will fail. It’s a bit alarming that only 32% of retailers gather data on social media activity related to their companies, and I also wonder if organizations are effectively sharing this information with everyone who needs it — call center agents, store associates, etc. Given that respondents’ two biggest information management challenges are maintaining a comprehensive, real-time customer database and integrating structured and unstructured data, it’s more than likely that important data is still siloed to a large extent. Fixing these issues seems like a worthwhile hurdle to surmount if retailers really want to reap the promise of personalization.
Glenn Taylor, Senior Editor: Online personalization is still heavily oriented towards products, with 53% of shoppers providing product recommendations based on similar customers’ activity. It makes sense given that online shoppers are more apt to focus on the end result rather than the journey that often takes place when shopping in a store. But as e-Commerce continues to evolve in tune with shopper preferences, retailers are going to have to get creative in personalizing their sites, to go beyond product and make experiences that feel different for each consumer. I would like to see more headway down the line from retailers when it comes to offering a digital personal shopper. Only 22% currently provide this, but as shoppers demand more curated, individualized online shopping experiences, I would expect this service will continue to grow.
Bryan Wassel, Associate Editor: The results of our Personalization Benchmark survey show how important it is for retailers to communicate with customers. As Accenture found, 83% of consumers are willing to share data with a company to enable a personalized experience. The key phrase is “to enable a personalized experience” — shoppers are overwhelmingly willing to part with valuable data, provided they know they’re getting something in return. Forming this mutually beneficial relationship can help retailers tackle their concerns, such as meeting consumers’ demand for customized 1:1 experiences (the motivation behind personalization initiatives for 63% of retail executives) and the need to improve the effectiveness of marketing campaigns (cited by 47%). By keeping communication channels open with shoppers, retailers can gather the data they need to be successful while keeping their customers happy.