We hear it all the time: data is yesterday’s “big thing,” today’s “big thing,” and—more than likely—tomorrow’s “big thing.” But how can a brand leverage its data in a way that is truly meaningful from a marketing perspective? The answer is personalization. Personalization is the practice of producing and delivering individualized content to people by using data collection, analysis, and automation technology. Though it has been viewed as “creepy” by some, the truth is that both brands and consumers alike are coming to embrace personalization—even the slow adopters. Why? Because it’s a very effective marketing tactic that serves consumers products or services that they were probably already thinking about purchasing anyway.
A recent article from Marketo stated that: “email personalization boosts open rates by 26%, and click-through rates by 97%”. Also, according to recent Epsilon research, “80 percent of consumers are more likely to do business with a company if it offers a personalized experience.” So how can retail brands put this into practice using their own Customer Retention Management (CRM) data? Here are three ways:
Scanner Applications: Scanner data can be used to capture consumer preferences and buying habits. Many retailers use scannable cards, which are loaded with personal consumer data, to plan for and outline marketing strategies. For instance, a retailer could use that data to offer coupons that are specific to a brand that was purchased. One can also offer a percentage or dollar amount off of future purchases based on total dollars spent by that consumer. Scanner data allows you to reach a consumer when your products or brands are still top of mind.
Recommender Engines: Using the data you have access to by just doing business can be a simple way to implement personalized marketing. Let’s say you are a sporting goods retailer, and a consumer purchased a lacrosse stick from your website. A few days later, you could then use that information to generate an email to send that consumer recommending lacrosse balls. Generating recommendations based on purchasing behavior is one of the simplest and most effective marketing tactics, as consumers likely need or want what you’re recommending based on what they’ve already purchased. Segmenting your CRM data into lists depending on purchasing behavior allows you to remind consumers of items they likely need to complement past purchases or are clearly interested in based on those past purchases.
Subscription Services: This example is slightly different than the previous ones, in that subscription services provide a much more obvious way to encourage consumer purchases based on preferences that are directly provided. A subscription service, such as Stitch Fix, for example, requires consumers to fill out a survey that details their personal fashion preferences. Doing so very clearly defines what a consumer might buy, and, in turn, allows Stitch Fix to send 5 curated items to the consumer that they know they will like based on the data. In turn, that consumer is more likely to purchase those items because the items have been selected in response to the personal preferences data that was collected.
If you’d like to learn more about how to leverage your customer data, please call 585.421.0100.