What’s the secret to running a successful retail promotion? These days, the answer to that question would be personalization – every shopper is unique and wants to be recognized that way.
Retailers who’ve experimented with personalized promotions have met with some startling reactions, and it’s not just because of the fact that they’re investing the effort. It’s also the level of accuracy: the story of a man walking into the Target outside Minneapolis demanding to know why his teenage daughter was receiving coupons for baby items proves just how analytics can help hit the personalized promotions bulls-eye!
The bottom line is this: it pays to know your customer – literally. This post on Harvard Business Review reveals that personalization can deliver five to eight times the ROI on marketing spends, and can lift sales 10% or more. If running analytics-driven personalized promotions are on the top of your list of priorities, then here are a couple of tips on getting it right:
- Choose a retail analytics solution that captures the data you need: Capturing customer and purchase data across several retail touch points today is crucial – after all, omni-channel customers are shopping in stores, on websites and on their mobiles. It’s important that your retail analytics partner can tap into data coming in from all these streams and make the right connections with the right customer identifier assigned. Getting your data streamlined and clean enough to give you insights is half the personalized promotions battle won!
- Explore personalized pricing – the new kid on the block: The fact that there are so many channels to shop on also adds extra pressure on retailers to maintain consistency – but also helps retailers experiment. 49% of retailers say they sometimes charge different prices in different channels, and this sheds light on a whole new angle to personalizing promotions. Retailers can now personalize prices according to shopping habits and purchase history.
- SoLoMo – your new personalization mantra: Social, location and mobile are three of the hottest buzzwords in the retail market. These are also important mediums for which personalized promotions need to be designed for. Social media based promotions encourage shoppers to share offers and get their connections to benefit from them as well; localized promotions offer special or unique promotions to a community based on their collective behaviour or consumption patterns; and mobile offers target the always connected customer who can shop and take advantage of personalized promotions literally on-the-go.