The Challenge: Many companies are still not using preference based personalization. This compromises relevance and sacrifices engagement and potential sales.
40% of consumers say they prefer buying from retailers that cater to their preferences. According to research firm The E-tailing Group, respondents said they:
- Find it valuable if the retailer offers product recommendations tailored to their personal tastes and shopping histories.
- Purchase more often when retailers send e-mails that are personalized based on a shopper's past interactions.
One retailer who has embraced preference based personalization is Men's Wearhouse. With more than 1,100 stores nationwide, Men's Wearhouse prides itself on providing personalized service to all of its customers. "Customer satisfaction is our highest priority, across all of our channels," said Susan Neal, EVP, E-Business, Marketing and Digital Technology. "Just as our in-store tailors alter garments to perfectly fit each customer, we plan to deliver personalized emails individually tailored to each recipient."
- Men's Wearhouse captures data from every customer touch point, mines behavioral signals using advanced predictive algorithms and overlays deep retail domain knowledge.
- They are extending their personalized experience to email as well.
- The company has in-store wardrobe consultants to help its customers. This service continues the online experience which offers a website for its full offerings as well as a separate website just for tuxedos by type of occasion. The Tux Sites features a dedicated Wedding Planner that can be contacted online or via an iPhone app.
- Overall Men's Wearhouse is an example of a forward-looking retailer that understands the importance of delivering clients a consistent, personalized experience.
According to our firm's VoC research on the Preference driven Reciprocity of Value Equation, consumers are willing to share personal preference information with trusted brands in exchange for "reciprocity of value" -- in other words, receiving highly targeted and relevant offers and communications based on their individual preferences. This represents a powerful opportunity for marketers to transform how they engage with customers and prospects.
3 Research-based Takeaways
- 59% of shoppers said that it is easier to find what they're looking for when retailers personalize the shopping experience. So make it easy for your customers to find and buy what you have to sell.
- 40% of consumers said they buy more from retailers that personalize shopping across all channels. So make sure your personalization experience extends to every aspect of your customer experience and interactions.
- Retailers that remember the shopping behavior of individual consumers and use it to personalize future experiences are being rewarded -- consumers are more engaged and purchase more. So be sure you have in place accurate and easily updated CRM practices and technology.
Ernan Roman is recognized as a Customer Experience innovator and was inducted into the Marketing Hall of Fame for creating three transformational methodologies: Voice of Customer Relationship Research, Integrated Direct Marketing, and Opt-in Marketing.
He was also named by Crain's B to B Magazine as one of the "100 most influential people in Business Marketing".
His latest book on marketing best practices is titled, : Voice of the Customer Marketing: A Proven 5-Step Process to Create Customers Who Care, Spend, and Stay.
Ernan is also the author of the widely read blog, "Ernan's Insights on Marketing Best Practices", (www.erdm.com), and author of "Opt-in Marketing" and "Integrated Direct Marketing".
ERDM's Customer Experience strategies achieve consistent double-digit increases in response and revenue for clients, which include IBM, MassMutual, QVC, NBC Universal, Microsoft, Hewlett-Packard, and Symantec.
As a leader in providing Voice of Customer research-based strategies, ERDM has conducted over 10,000 hours of interviews with customers and prospects of these clients to gain an in-depth understanding of their expectations for high value customer relationships.