18 Aug What do we mean by ‘true personalisation’ in retail?
Innovation for customers (the external focus of a retailer) is much easier to spot than the more fundamental internal decisions a retailer takes when selecting or updating their retail management system. Achieving total accuracy in their master-data (product info and price) is not as outwardly as exciting as some new features involving customer facing loyalty programmes, apps or new ways to pay.
On the customer side, we see the emerging innovative notion of true personalisation for the customer.
Standard personalisation is outbound, but the industry has moved beyond ‘money off coupons’. Coupons just give money away.
But customer choice is in-bound – so the retailer has to cater for it, and this therefore brings the need to have the platform that enables this capability.
The aim for a retailer should be the ability to be as agile as possible for a customer to do business with.
Look at the data they hold on customers. We believe that retailers should let the customer have access to that data. They should know what that customer has bought.
Imagine a scenario where the retailer really enables true personalisation in how a customer choses to shop.
An example of this is if it lets customers self-serve through complete self-scanning mobility, fused with e-commerce, and click and collect services
The transaction doesn’t have to begin in-store. They can simply scan pre-arranged products using that retailer’s app and set them for collection in-store.
Now in-store they can add on extra products, and have the ability to chop and change as they wish. They simply walk around the store using their smartphone. A dynamically determined smart coupon can be automatically redeemed to reward them for their loyalty, and a truly personalised promotion can increase their basket size, without just giving away margin.
It’s a domino effect.
The total capability from true personalisation for a customer to do business exactly as they choose demands total efficiency from the retailer.
The retailer needs to optimise their stock handling so they don’t disappoint customers across any channel.
Their retail system should automate the handling of store forecasting, reducing the staff need, and releasing them to serve their customers in-store.
With improved service levels of products for the retailer, they reduce the wastage of items, protecting their margins.
This reduction of stock of items facilitates the freeing up of more retail space for new items in-store, providing better and more interesting choice for the customer.
Profitability is increased as a result
All from placing the customer at the centre of the business.
The key in the first instance is to have the foundational piece for all of this.