Learning from the Masters: How Leading Retailers Are Setting the Bar

BROSS-2

January 16, 2017

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Personalization. It’s the new industry buzzword, variously touted as the solution for a host of branding and marketing, and recently, even merchandising, problems. But it seems to mean different things to different people, and as hard as it is to define, it’s even more challenging to execute. But with challenge comes opportunity. By looking to some of today’s leading retailers, we can see that delivering truly targeted communications can be the key to sustaining and growing a loyal customer base.

We know that customers want personalization – 69% of consumers say they prefer to receive personalized communications based on their shopping history. This demand for personalization grew 11% from 2015 to 2016. Yet despite growing promises of relevance by technology vendors, consumers say many companies are still missing the mark.

In today’s world of digital communication, it’s become very easy to send blanket emails to an entire database of customers for virtually nothing. It’s pretty incredible how cheaply we can now reach everyone. But we have to resist the urge. In the 2015 Precima Customer Centricity survey, 50% of respondents said they didn’t feel they were benefitting from the collection of their personal data. As customer expectations of personalization increase, the bar for what constitutes true customer focus continues to rise.

The PC Plus program by Loblaw is one leading retailer doing a great job of meeting the high expectations of consumers. It is the first “digital-only” program that rewards customers the more it knows them. All offers are targeted and personal – rewards improve as the customer’s data gets richer, and the better the customer, the better the rewards. That’s personalization – and the new future of loyalty.

With a willingness to invest the time and money required to do it right, today’s organizations can use personalization to build strong, loyal customer relationships. The data shows that customers want this. As most customers report that personalization increases their trust in a brand trust and loyalty, it’s a clear win for retailers, too.

Customer Analytics

Promotional Strategy

Price optimization

About the author

BROSS-2

Brian Ross

President

As president of Precima, Brian works with some of the world’s leading brands to deliver world-class customer-centric solutions through strategic consulting, industry-leading analytics and a next-generation technology platform. His vision and leadership helped launch Precima in 2008 as a three-person startup, and he has since grown it into a global leader in retail, B2B and CPG strategy and analytics with over 300 experts in Canada, the United States and Europe. With an extensive background in loyalty solutions, customer marketing and merchandising strategies, Brian oversees the strategic and operational management responsibilities, as well as relationships with customers and business partners.

Before Precima, Brian spent several years in management positions across LoyaltyOne businesses, notably providing client management and analytics support for key partners of the AIR MILES Reward Program. He used data-driven customer insights to develop successful programs for clients in grocery, pharmacy, department store, specialty retailing, financial services and consumer packaged goods. Brian shares his broad range of expertise and thought leadership in regular features in leading marketing publications, and is a frequent speaker at industry events and forums.

Learning from the Masters: How Leading Retailers Are Setting the Bar

Nov 29, 2018, 14:16 PM
Personalization. It's the new industry buzzword, variously touted as the solution for a host of branding and marketing...
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Publication date : Jan 16, 2017, 00:00 AM

Personalization. It’s the new industry buzzword, variously touted as the solution for a host of branding and marketing, and recently, even merchandising, problems. But it seems to mean different things to different people, and as hard as it is to define, it’s even more challenging to execute. But with challenge comes opportunity. By looking to some of today’s leading retailers, we can see that delivering truly targeted communications can be the key to sustaining and growing a loyal customer base.

We know that customers want personalization – 69% of consumers say they prefer to receive personalized communications based on their shopping history. This demand for personalization grew 11% from 2015 to 2016. Yet despite growing promises of relevance by technology vendors, consumers say many companies are still missing the mark.

In today’s world of digital communication, it’s become very easy to send blanket emails to an entire database of customers for virtually nothing. It’s pretty incredible how cheaply we can now reach everyone. But we have to resist the urge. In the 2015 Precima Customer Centricity survey, 50% of respondents said they didn’t feel they were benefitting from the collection of their personal data. As customer expectations of personalization increase, the bar for what constitutes true customer focus continues to rise.

The PC Plus program by Loblaw is one leading retailer doing a great job of meeting the high expectations of consumers. It is the first “digital-only” program that rewards customers the more it knows them. All offers are targeted and personal – rewards improve as the customer’s data gets richer, and the better the customer, the better the rewards. That’s personalization – and the new future of loyalty.

With a willingness to invest the time and money required to do it right, today’s organizations can use personalization to build strong, loyal customer relationships. The data shows that customers want this. As most customers report that personalization increases their trust in a brand trust and loyalty, it’s a clear win for retailers, too.

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  • Customer Analytics
  • Price optimization
  • Promotional Strategy
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  • Blog
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Author : Brian Ross
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