1、 PERSONALIZATION IN THE RETAIL INDUSTRY A closer look at the value,expectatjons,and necessity of onetoone marketjng PERSONALIZATION IN THE RETAIL INDUSTRY/2 RRD/MARKETINGSOLUTIONS IN THIS PAPER 2 Introductjon 5 7 Reasons Why Personalizatjon Has Failed Retailers in the Past 6 Becoming Relevant 7 Stra

2、tegy 12 Engage Your Customers with Relevant Messaging INTRODUCTION Remember the fjrst tjme you became a regular?Its a rewarding customer experience.The barista remembered your name and drink;the clothing boutjque owner,your size and favorite designer;the fmorist,your wedding anniversary and the perf

3、ect fmowers for it.Whatever the scenario,when a business knows more than a customers fjrst nameand shows itgood things happen.In a consumerrelated survey by Accenture,60%of consumers prefer doing business with brands that use their personal informatjon to provide realtjme promotjons and ofgers.2 And

4、 57%of them are interested in sharing more if companies would send them more relevant communicatjons.3 Your retail customers are tjred of being treated like a number.Plain and simple.They want to be recognized as an individual,which means they expect you to:1.Know them.2.Remember and acknowledge the

5、m.3.Understand their current needs.4.Antjcipate their future needs.Personalizatjon is your vehicle to deliver on these expectatjons.PERSONALIZATION IN THE RETAIL INDUSTRY/3 RRD/MARKETINGSOLUTIONS72%52%72%66%52%66%RETAIL CUSTOMERS ARE TIRED OF BEING TREATED LIKE A NUMBER 66%52%72%66%of consumers say

6、theyre extremely or somewhat likely to switch brands if they feel theyre treated like a number rather than an individual.4 52%of consumers say theyre likely to switch brands if a company doesnt make an efgort to personalize communicatjons to them.4 72%of consumers agree they expect companies to unde

7、rstand their needs and expectatjons.4 PERSONALIZATION IN THE RETAIL INDUSTRY/4 RRD/MARKETINGSOLUTIONS Understanding Personalizatjons Place in Retail We acknowledge personalizatjon is not exactly the new kid on the marketjng block.In fact,a recent Forrester report found personalizatjon so widely acce

8、pted,94%of customer insights and marketjng professionals across multjple industries tagged it“important,”“very important,”or“extremely important”for meetjng their current marketjng objectjves.5 Furthermore,research by Data&Marketjng Associatjon(DMA)and Adobe found the concept of personalized marketj

9、ng is so highly recognized that“77%of marketers say dynamic,personalized content across channels is very important,however most are stjll in the planning stages.”6 Did you catch that last part?“most are stjll in the planning stages.”There is a massive gap between the many who understand the value of

10、 personalizatjon and the few who are actually doing it.This is a reality.A true marketjng opportunity.Those who aim to increase engagement through personalizatjon(in multjple channels)are fjve tjmes more likely to see an increase in overall consumer spending.7 Whats holding you back?The Challenges B

11、ehind Personalizatjon Personalizatjon done right is not easy.That may be obviousand also the very reason were having this discussion today.A RetailMeNot white paper revealed the following reasons are why marketers have had a tough tjme delivering personalized messages across multjple channels:Data c

12、ollectjonespecially from multjple channels 53%Data analysis 49%Lack of effjcient marketjng platgorms 47%Customized creatjve assets and copy 25%Executjve sponsorship 23%8 Truth is,efgectjve personalizatjon for the retail industry(and beyond)contjnues to remain just out of reach for the majority of br

13、ands for a variety of reasons.Personalizatjon,Defjned.Personalized marketjng means onetoone marketjng in the truest senseone brand speaking directly to one customer.It means meetjng the customers needs more efgectjvely and effjciently with relevant informatjon,making interactjons faster and easier a

14、nd,consequently,increasing customer engagement,satjsfactjon and retentjon.The reality is few companies are capitalizing on personalization.Those who do are fjve times more likely to see an increase in overall consumer spending.7 PERSONALIZATION IN THE RETAIL INDUSTRY/5 RRD/MARKETINGSOLUTIONS 7 REASO

15、NS WHY PERSONALIZATION HAS FAILED RETAILERS IN THE PAST For a number of our clients,heres where things have historically gone ofg the rails in any of their previous failed atuempts at personalizatjonproblems weve helped identjfy and rectjfy.If any of them sound familiar,consider it a red fmag.1.Stat

16、us Quo Personalizatjon Why are so many brands stopping at a customers fjrst name?For stronger engagement and increased response rates,online or offmine,consider additjonal personalizatjon elements like last interactjon,life events,relatable imagery,etc.2.Actjng Without Context Eighty percent of cust

17、omers say that companies do not have the context of their last conversatjon.7 Successful marketjng is all about whats happening right now.To do this,companies need to have a trigger in place to deliver a personalized message when its relevant to a consumers immediate situatjon.3.Not Cross-Referencin

18、g All Data Without a centralized database,a companys struggle to leverage data that is responsive,accurate and easily accessible is very real.Companies that have a true picture of the customeracross all data points are efgectjvely able to drive engagement across every relevant customer touchpoint.4.

19、Incomplete Data Capture More than half of consumers(57%)are okay with providing personal informatjon(on a website)as long as its for their benefjt and being used in responsible ways.10 This willingness to share should encourage companies to seek data in a more aggressive fashion.5.Organizatjonal Sil

20、os Remember what many companies are forgettjng:Customers expect personalized experiences throughout the lifetjme of a relatjonship with a brand.To achieve this,each department must share a single view of the customer,with the single goal of customer centricity in mind.6.Insignifjcant Segmentatjon It

21、s hard to argue that retail brands arent successfully identjfying their core customers.They are.Where most fall short is segmentjng those core customers into smaller groups for notjceably more accurate targetjng and discernible patuerns in user behavior and engagement across all touchpoints.7.Too Ma

22、ny Solutjons According to a recent benchmarking report by Marketo,“more than 60%of marketers have six or more technologies in their tech stacks.”11 When multjple solutjons are housed in two or more disconnected platgorms,marketers run the risk of forcing themselves to work ofg of isolated viewpoints

23、 that may result in a misleading customer journey.PERSONALIZATION IN THE RETAIL INDUSTRY/6 RRD/MARKETINGSOLUTIONS BECOMING RELEVANT Up to this point,weve covered almost all the bases on personalizatjon what it is,common challenges it presents,and how its helped a variety of brands to deliver relevan

24、t,engaging communicatjons to their respectjve audiences.Now lets focus on the howtomakeithappen portjon of the program.Afuer all,according to research from CMO Council,34%of consumers only want to hear from brands they like or do business with when the informatjon is something relevant or useful to

25、them.18 PUTTING THE CUSTOMER FIRST In a recent MarketjngSherpa study,2,400 consumers were split into two groups.Half were asked to name a company they were satjsfjed with,and the other half to name a company they were unsatjsfjed with.Both groups were then asked:How much does company names marketjng

26、 put your needs before its business goals?19 Always 6%18%Sometjmes 30%31%Ofuen 40%10%6%Seldom 30%Never 24%3%Unsatjsfjed Customers Satjsfjed Customers PERSONALIZATION IN THE RETAIL INDUSTRY/7 RRD/MARKETINGSOLUTIONS STRATEGY 6 Essentjal Components for Efgectjve Personalizatjon Personalized marketjng m

27、eans onetoone marketjng in the truest senseone brand speaking directly to one customer.It means meetjng the customers needs more efgectjvely and effjciently with relevant informatjon,making interactjons faster and easier and,consequently,increasing customer engagement,satjsfactjon and retentjon.Thes

28、e are the six components necessary to operatjonalize this proven marketjng strategy:IDENTIFY ANALYZE COMMUNICATE Data Analytjcs Message Context Research Channel IDENTIFY 1.Data Do you have the right data to accurately identjfy customers?For many retailers,data provisioning is a critjcal step in the

29、success of personalizatjon(in any form),because the right data is useful data.This service ensures the data in a system is accurate and correct,removing outdated,incomplete or duplicated data in the process.The benefjts realized immediately afuer the right data has been identjfjed include:Cost reduc

30、tjon.Stop wastjng resources on people who arent there.Increased response rates.See the same return with less email.Brand preservatjon.Duplicate sends and incorrect details jeopardize a brands integrity.Reduced waste.Less ink and less paper are used when mailers hit their target.PERSONALIZATION IN TH

31、E RETAIL INDUSTRY/8 RRD/MARKETINGSOLUTIONS IDENTIFY 2.Context Can you deliver your message at the optjmal tjme?Youve heard the saying:Timing is everything.Thats not hyperbole.When a marketjng campaign is triggered by context,the right customer receives the right message at the right tjme.Bingo.Unfor

32、tunately,determining the exact right tjme to engage with a customer remains a struggle for most instjtutjons.Not to mentjon capturing the exact right data points to act as the trigger for marketjng messages.When contextual data is taken into account,retailers are able to betuer understand how a cust

33、omer interacted with a message,but it doesnt stop there.By layering on past behaviors and predictjve analytjcs,retailers are also fully capable to determine the optjmal tjme to deliver the next specifjc message for each individual customer.This deeper level of insight provides a betuer view of the c

34、ustomer at the very moment he or she will likely be most interested in your ofgers.CASE STUDY:Target Target leaned on multjvariate testjng for a personalized direct mail campaign that went to two million of its most frequent shoppers.The highlypersonalized mailpieces(with up to 20 variables)containe

35、d product promos and coupons based on previous purchases.The major retailer realized a 50%lifu over previous nonpersonalized campaigns.14 ANALYZE 3.Analytjcs Are you using the right analytjcs to understand,remember,acknowledge and be relevant to your customers?Predictjve analytjcs,data mining,patuer

36、n matching and forecastjng,big data analytjcs,and locatjon intelligence are just some of the analytjcal categories to fall under the heading of advanced analytjcs,all of which truly benefjt from freshly scrubbed data.Stjll,too many companies contjnue to rely on analytjcal methods that are far too si

37、mple,like basic clustering techniques,to understand the needs of each customer.PERSONALIZATION IN THE RETAIL INDUSTRY/9 RRD/MARKETINGSOLUTIONS ANALYZEAdvanced analytjcs is an(semi)autonomous analysis of data using sophistjcated techniques and toolsbeyond traditjonal business intelligence(BI)to revea

38、l needlemoving insights,share predictjons,or generate recommendatjons.It makes identjfying the 5%who are likely to respond to an ofger possible.Now,lets take things a step further.Say you have three versions of a headline,fjve potentjal images and two difgerent blocks of text to choose from.With mul

39、tjvariate testjng,every possible combinatjon is tested against the others to fjgure out which arrangement yields the best conversion rate.Multjvariate testjng not only tests the efgect of changing one element,but the combined efgect and interactjon of several elements.This helps determine which comb

40、inatjon of variatjons performs the best out of all of the possible combinatjonssomething not possible with A/B testjng.4.Research What components in your marketjng vehicles are driving or diminishing customer response?Nailing down the most compelling(or even most damaging)elements of your multjchann

41、el marketjng strategy can be more atuainable than it initjally sounds.How?Short answer:Embrace testjngusability testjng,that is.For a variety of marketjng mediums,usability testjng observes how consumers receive,decipher and respond to your marketjng communicatjons(and channels).A usability test pro

42、vides answers the following questjons:How easy is it for a customer to understand the calltoactjon in our message?How memorable is the design and delivery of our message?How many errors does a consumer make as they try to complete our calltoactjon?How much does the consumer like our messaging and th

43、e way it was delivered?CASE STUDY:Johnny Cupcakes By embracing social data collected on its 80,000+subscribers,fashion brand and retailer Johnny Cupcakes put together its fjrst segmented email campaign for a new product launch.By simply segmentjng to male and female customers,the campaign realized i

44、ncreases in conversions(123%),clickthroughs(42%)and revenue per campaign(141%).12 PERSONALIZATION IN THE RETAIL INDUSTRY/10 RRD/MARKETINGSOLUTIONS COMMUNICATE5.Message Are you personalizing your message to speak directly to an individual?Do your ofgers address your customers needs?The beauty in pers

45、onalizatjon is that it enables a company to dig into the details available,using them to crafu the right,best message to address a customers needs.Lets use email marketjng as an example.How much of your email marketjng output is personalized to refmect a subscribers profjle and previous actjvity?Acc

46、ording to a stat from MarketjngSherpa,not enough:Nearly half(46%)of consumers who opt out of or unsubscribe from emails cite irrelevant messages as the reason.20 Now hear this:70%of brands fail to personalize their email messages.21 Yet 83%of brands that have taken this extra step have experienced a

47、n uplifu in conversion rates.22 PERSONAL MESSAGE Percentage of Consumers Who Strongly Agree or Agree Theyre Willing to Share Personal Data in Exchange for the Following19 CASE STUDY:BustedTees Based in the U.S.,internetbased Tshirt brand BustedTees implemented personalized send tjmes for its interna

48、tjonal users.The results of this individualized email delivery include increases in email revenue(8%),clickthrough rate(11%),email response rate(17%)and postclick site engagement(7.6%).16 63%Personalized offers 58%or discounts 46%Personalized in-store or online shopping experience Product recommenda

49、tjons that match their needs 61%52%41%58%52%42%Millennials Gen Xers Baby Boomers/Traditjonalists PERSONALIZATION IN THE RETAIL INDUSTRY/11 RRD/MARKETINGSOLUTIONS COMMUNICATEDynamic email content enables marketers to send one email,but strategically pepper in unique content to speak more to a subscri

50、bers interests and intent.The reward?Personalized emails deliver six tjmes higher transactjonal rates.24“This ofger was selected specifjcally for you.”For a company trying to grab a customers atuentjon with a more personal message,thats a pretuy great opening line.What comes next,however,can make or

51、 break the kind of response you get for said ofger.A recent Marketo survey found more than 78%of consumers will only engage in an ofger if it has been personalized to refmect previous engagements the consumer has had with the brand.25 Like dynamic email content,variable printjng is another vehicle a

52、vailable for delivering the right ofger to your customer in a hyperrelevant way.From simple salutatjons and address blocks to fully variable text and graphics changes,variable print capabilitjes enable brands to create a unique,tactjle product for a targeted audience.In return,marketers experience s

53、mall run fmexibility,cross media integratjon,decreasing response tjmes and increasing response rates.6.Channel Are you using the channels your customers most prefer in an order that compounds their efgect?Email,direct mail,SMS text,social media,mobile apps,radio,TV commercialsyou have plenty of optj

54、ons and avenues to reach a given customer,right?Well,not necessarily.Leaning on direct mail to connect with a customer whos never home doesnt make a ton of sense.Neither does contjnuing to press send on emails to a customer who has never openedactually,always deleted every single email youve ever se

55、nt them.Identjfying how your customers prefer to communicate with you is no longer a marketjng nicetohave.Its a necessity.CASE STUDY:HubSpot Afuer analyzing data from more than 93,000 callstoactjon(CTAs)over a 12 month period,web marketjng company HubSpot found CTAs personalized to individual visito

56、rs had a 42%higher viewtosubmission rate than generic CTAs that appeared the same for every visitor.17 RRD/MARKETING SOLUTIONSPERSONALIZATION IN THE RETAIL INDUSTRY/12 RRD/MARKETINGSOLUTIONS ENGAGE YOUR CUSTOMERS WITH RELEVANT MESSAGING RRD Marketjng Solutjons Can Help By the look of it,the tjme is

57、now to change the way you communicate with your customers.Its tjme to get personal.According to an artjcle by McKinsey&Company,personalizatjon can reduce acquisitjon costs by as much as 50%,lifu revenues by 515%,and increase the effjciency of marketjng spend by 10-30%.27 RRD Marketjng Solutjons Know

58、s Personalizatjon To realize such headturning numbers,it takes working with the right partner.And if you are serious about engaging and retaining satjsfjed customers,we can help.For those in the retail industry,we are ideally positjoned to:Grow and retain your customer base with personalized marketj

59、ng Maximize operatjonal effjciency by streamlining your entjre communicatjons process Preserve brand consistency and reduce risks through compliant communicatjons RRD Marketjng Solutjons employs a fmexible engagement model,so if youre not ready to jump into a fullscale personalizatjon program,we can

60、 help you start smallwhere you need help the most.With a customer base that wants to be on the receiving end of truly personalized messages,youre in a positjon to separate yourself from the pack.And dramatjcally improve your marketjng ROI.Personalizatjon is how you do it.To accomplish these goals,ou

61、r suite of customer-centric services enables brands to deliver truly personal,1:1 marketjng.Services that include:Data provisioning and management Advanced analytjcs and business intelligence Customer journey mapping Dynamic email content Variable print direct mail Optimize Engagement.Visit MS.RRD.c

62、om SOURCES 1/Journal of Language and Social Psychology:The Echo Efgect 2/Accenture:“U.S.Consumers Want More Personalized Experience”3/Colloquy:“Its My Data”Infographic 4/Salesforce:State of the Connected Customer 5/Forrester:“The Personalizatjon Imperatjve”6/Data&Marketjng Associatjon:“RealTime Mark

63、etjng Insights Study”7/The ETailing Group:“Engage Consumer&Increase Buyer Readiness Through CustomerCentric Marketjng”8/RetailMeNot:Evaluatjng the Changing Landscape of Retail Marketjng 9/247:Customer Service Experience Survey 10/Janrain:“Online Consumers Fed Up with Irrelevant Content on Favorite W

64、ebsites”11/Marketo:“2017 Marketjng Benchmark Report:North America”12/MarketjngSherpa:Johnny Cupcakes Case Study 14/Xerox:“DoubleDigit Response from Personalized Direct Mail”16/MarketjngSherpa:BustedTees Case Study 17/HubSpot:“Personalized CallstoActjon Convert 42%Betuer”18/CMO Council:The New Rules

65、of Engagement 19/MarketjngSherpa:CustomerFirst Marketjng Chart 20/MarketjngSherpa:“Digital Marketjng:Be Relevant,DataDriven and Precise”21/Experian:Email Market Study 22/Ecoconsultancy:Conversion Rate Optjmizatjon Report 2016 24/Experian:“Study Finds Personalized Emails Generate Six Times Higher Transactjon Rates”25/Marketo:“Consumers to Brands:The Louder You Scream,the Less We Care”27/McKinsey&Company:Digital Personalizatjon at Scale 2018 RR Donnelley Marketjng Solutjons.All Rights Reserved.