A Roadmap To Retail Personalization: How To Align Marketing Strategy And Execution
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VP of Customer Analytics
86% of consumers — and 96% of retailers — said
personalization has at least some impact on the
purchasing decision (Infosys)
The Line Between
Personal And Creepy
93% of shoppers are willing to share personal information to
receive customized offers. BUT they’re not willing to share
everything: 78% are ok with sharing their email address;
64% zip code; 38% birth date and 38% postal address.
Using Personalization To
Innovation through personalization is key to gaining an
edge in today’s competitive marketplace.
Bottom line: at least 31% of consumers want more
personalization in their shopping experiences.
Personalize Across Channels
40% of consumers buy more from retailers that
personalize across all channels (the e-tailing group)
A Roadmap to
VP Customer Analytics, Manthan
Today’s retail pressures
Give me what I want, when I
want it, how I want it.
And it better be at a good
I’ll engage with you in a
race to the bottom.
I know I can win.
Profits, profits, profits!
Do more with less.
The experts weigh in
The key is segmenting to closely target the demographics making up your future shopper base. By
looking at segments on a micro level, you can get to know shoppers on a store-by-store basis and figure
out which features you want to prioritize in which locations. Get to know who is in your store aisles and
what they want today to shape how you personalize their experiences in the future.
PricewaterhouseCoopers LLP “Front of the Line” report.
Retailers now recognize that price and/or product are not enough to differentiate their brand, they need to
focus on the customer experience to win.”
RSR, Retail Marketing 2013: Organizational Drift report.
[Retailers] are viewing their shoppers’ behaviors broadly: They look at things like spending and
purchasing habits, basket composition, purchase timing and frequency, wallet share, marketing
effectiveness, and branding impact. Envision your future shoppers by understanding the most minute
changes in areas like these, and use that knowledge to model and anticipate future behaviors.
PricewaterhouseCoopers LLP 2014 report.
Your consumers are ready and waiting
Nearly half of consumers are happy to provide retailers
with their personal information as long as it results in a
truly personalized offering; and more than 60% would
increase their purchases if they were offered a
personalized subscription program.
Accenture. November 2013 Survey of 15,000
consumers across 20 countries.
As many as 59% of shoppers who have experienced
personalization believed it had a noticeable influence
on their buying behaviors.
Retail Touchpoints. Consistency,
Personalization Valued Most Among
What is retail personalization?
TEST + REPEAT
REMINDER: BRAND CONSISTENCY IS ALSO A CRITICAL COMPONENT
For better or worse: a personalization matrix
• 6 things online retailers can learn
• How Target figured out a teen girl
was pregnant before her father did
• Shutterfly congratulates thousands
of women for babies they didn’t
• Office Max blames data broker for
‘car accident’ letter
Spot OnMissed the Mark
Why is it so challenging?
While consumers have expressed
growing interest in receiving
personalized offers, only 8% of retailers
rate themselves as being effective at
Gartner. “Predicts 2014:
Digitalization in Retail” report.
Over 63% of marketers express a need
for better data and better marketing
platforms to achieve effective
Neustar. 2014 survey.
must be accurate, timely and
must incorporate multiple
sources (e.g., channel).
must support the complete
must consider CRM, loyalty,
management, real time offers.
must be flawless and aligned
Before you get started …
Create your strategic roadmap.
What is the
What is the
revenue impact if I
What is a
Roadmap for Customer Analytics
360 Degree View of
• Single customer-centric
view of customer
data, demographic data,
information and loyalty
• Define and understand
• Predict what customers
will do next including
• Understand customer
recency, frequency and
monetary behavior and
other key attributes of
• Select targeted offers
for customers based on
customer attributes and
• Manage customer
channels in an
engine that evaluates
market basket and
behavior that identifies
other products that are
appropriate for an
CLOSED LOOP FEEDBACK PROCESS
Churn reduction: 20%
Sales lift: 8%
Retailer adopts Manthan solution:
• Single view of the customer
• Behavioral segmentation
• Customer behavior
• Customer churn prediction
• Affinity-based promotions
• Best-in-class marketing reporting
Succeeding with personalization
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