According to a recent survey, 1 in 5 consumers say they have encountered personalized offers and promotions in-store, while 27 percent have seen them online. Those who have had personalized shopping experiences admitted that the personalization has influenced their purchase decisions. Little wonder that majority of businesses turned to various technologies to personalize their customer experiences. Sometimes unfairly perceived as an invasion of privacy, personalization can in fact create a much better experience for shoppers.

What is personalization? It is presenting information to an individual consumer that acknowledges whom he is and what his intentions are, thus making his interaction more meaningful. Personalization in retail is like going back to the golden age of corner shops where owners knew all their customers and could offer them deals tailored to their individual needs and preferences. For instance, the online gambling sector is eons ahead of retail in successfully implementing this more tailored customer approach. Gaming brands regularly use sophisticated software to track and identify users and their activity across the internet in general.

A shift in path-to-purchase

The way retailers interact and engage with customers has radically changes due to the emergence of personalization technology. Real time behavioral analytics, geo-targeting, segmentation, mobile apps et al have brought a whole new meaning to the fundamentals of the marketing landscape we were once raised on which was base on four 'P': product, price, place, and promotion. This technology enables consumers to participate and interact with brands’ messaging tactics in an unparalleled way. The traditional, linear paths to purchase no longer apply. Consumers and brands are now responding to one another in real time and on an entirely different level than ever before.

Staff in charge of personalization

The industry has always been quick to adapt to new trends. Towards the end of last year, multi-brand online retailer Shop Direct, owner of Littlewoods and Very, recruited Dene Jones as its first ever customer director so that he can develop the world's best personalised website. For Jones, it will mean analysing Shop Direct's unique data, collected from customers over 80 years, and turning it into customer insights. For other retail brands, personalisation strategies are usually driven by advancements in social media analytics, loyalty card data, online purchase information or internet tracking software. This kind of "big data" predictive targeting enables non-intrusive advertising. Furthermore, retailers can now help customers by recalling past shopping cart lists or offering the ingredients of recipes from viewed video clips.

Brick-and-mortar stores can do it, too

What about brick-and-mortar stores? Will they be able to keep up with online shops? It seems that they may not quit the race yet. The data collected over decades by established loyalty card schemes will finally marry with technological advancements and enable acute personalization for shoppers by major supermarkets. Both the Tesco Clubcard and Sainsbury's Nectar card are responsible for more than 60 percent of in-store sales. Whereas, even in the two short years after Waitrose launched the myWaitrose club, half the supermarket's sales are now reportedly coming through its loyalty card. Waitrose already announced its plans for the year ahead, which include many more personalized offers, allowing said suppliers to target lapsed customers. Brick-and-mortar stores indeed have to try harder if they want to stay in the game. Nowadays consumers want more from their shopping experiences. They expect the whole process to be made easier, more engaging, and they want it all instantly. There are several ways to achieve this. First, retailers must create a shopping experience that is equally favorable and curated and share it across all channels: online, in-store, on their brands' profile at Facebook, Twitter and Pinterest, and anywhere else their brand is present. Retailers must touch consumers pre-shop, mid-shop and post-shop. They need to give them a reason to believe in the brand and keep buying from it.

Privacy-aware personalization

Personalization across retail is bound to change things a lot. However, it has to be applied in moderation and with caution. Personalization is more than just knowing customers by holding data. It involves caring for customers by being sophisticated, transparent and not spying on them. If pushed to hard, it can make people perceive retailers as intruders who brutally violate customer's privacy. It is enough to think of Facebook or Google, which have been accused of spying on their users and how it affected their popularity and reputation. Briefly, keeping the right balance between privacy and personalization is key.

Sources: http://www.theguardian.com; http://www.marketingcharts.com; http://www.practicalecommerce.com; http://www.steelhouse.com Photo: http://www.marketingweek.co.uk/