By Graeme Grant, VP of Predictive Intelligence
Data-driven marketing has been a hot topic for retailers over the past few years, but as many of them have come to find out, just because you have customer data at your disposal doesn’t mean that all of the tactics for utilizing that data are created equal. In a Retail TouchPoints article, I explain how retailers can make the most of their customer data, increase the number of times an average customer shops with them throughout the year and improve their bottom line. Here are my top tips:
- Use Every Possible Data Point
Big data has become a way of life for retailers today, and with the wide-ranging and ever-evolving customer data that is collected – from purchase history and loyalty cards, to browsing behavior and social media – it’s imperative that retailers are able to analyze this data and in turn, deliver tailored, personalized messages to customers that cater to current and future needs.
- Move Beyond Reactive Messaging
Reactive messaging occurs when a consumer takes the first action (e.g. browses a site or abandons a shopping cart) and the retailer tailors an email (or another form of communication) to the consumer based on that action. Many retailers tout the effectiveness of these conversions, and for the most part they’re right. These can be extremely effective. But the major, glaring problem with reactive messaging is scope. With most customers only shopping at any given retailer once or twice a year, this reactive approach extremely limits your active, marketable customer base.
- Strive for Predictive Personalization
While predictive personalization is harder and more complicated to achieve than the reactive approach, it’s key in communicating with every one of your customers, regardless of whether they’ve made an action (or even a purchase!) with you. Take John D., for example. If a retailer knows that he likes a particular brand and prefers to make purchases in store, sending an email that lets him know when a new item from that brand is available and providing an easy way to put that item on hold at his nearest location could provide immense value and drive sales.
Beyond delivering relevance to each individual consumer, predictive personalization also presents a unique business opportunity, enabling retailers to increase the average number of shopping experiences per year and cater to customers’ future preference and behaviors – two factors that can positively influence retailers’ bottom lines.
To read Graeme’s entire Retail TouchPoints article, “Superior Personalization Uses Data Analysis To Predict, Not Just React,” visit the website here.