Retail Gazette, UK: Cognizant’s Assistant Vice President of Retail Consulting Says Retailers Must Offer a Truly Personalized Service to Get Ahead

“Recent news stories highlight the fact that the major supermarket chains are adjusting their growth strategies by opening fewer hypermarkets and more local stores to meet the changing needs of the shopper, whose average basket sizes are smaller, and the challenges posed by the discount stores,” writes Ian Jarvis. “How can today’s larger retailers recapture that personal level of service, de-anonymizing the customers in front of their tills and suggesting products or special offers that might be of interest?” Excerpts:

“It all starts with the individual. Every customer is different, so why should they have the same experience? Cognizant’s recent global Retail Shopper Experience Study revealed that 90% of 18-34 year olds and 82% of those over the age of 45 value a more personalized approach from retailers. In particular, 54% of shoppers will respond to special treatment based on what a company already knows about them.

However, while consumers expect a highly personalized shopping experience, retailers are still in their early days of adapting to those expectations.

For retailers, the balancing act between being relevant and being too “big brother”-like is becoming ever more precarious. Customers’ expectations are a moving target and companies’ capabilities are advancing at unprecedented rates. Amid the proliferation of personalization and CRM technologies, customers have come to expect retailers to know who they are, what they purchased and their preferences for interaction, but not to go so far as to invade their privacy and sense of security.

Over time, every click, swipe, “like”, buy, deposit, jog, and search produces information that creates a unique pattern of accumulated data that becomes your virtual identity. This virtual identity is your personal Code Halo.

People, organizations, and things all have a Code Halo, and this trend is beginning to change how retailers create economic value. The next step being implemented by leading retailers is to create a joined-up view of each individual customer, to understand their interaction with a business’ website, social media channels and in-store, and be able to better map the customer journey.

Whether consumers browse online at the weekends, compile a wish list of items on Pinterest, and then shop in store or only ever look at items that are reduced, retailers are now in a position where they can build a clear picture of each consumer. Leading retailers are adapting their behavior in line with new patterns of activity, from listing trending items and adapting the website homepage based on an individual’s preferences, to building a complete picture that takes in both online and offline engagement with each customer. Understanding this type of data is crucial in order to make any progress in implementing a personalized consumer strategy.

Retailers that get ahead now will be ideally placed to take advantage of customer expectations and offer a truly personalized service in the future with technology that is fully embraced by their customers.”

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