Dagens Handel, Sweden: Cognizant’s Assistant Vice President, Retail Consulting, Says Psychology is the key to Personalized Retail

“Once, not so long ago, we used to go into the local shop where the person serving would know what we wanted based on a personal relationship; they would even sometimes know our name,” says Shannon Warner. “As shoppers in larger stores and busier cities, we have become anonymous, even with a loyalty card. But today, disruptive technologies such as beacons might be the key that reverses this anonymity: by using the data retailers have on shoppers’ buying behavior—the personalization loop—they can make shoppers feel instantly welcome.” Excerpts:

“Personalization has become increasingly important. Beacons allow retailers to identify loyal customers literally as they walk in through the door via their smartphones. Some even recognize shoppers when they are nearby, and will send special offers or information to their phones to encourage them to go into the store. In Sweden, companies such as Coop and Liseberg have already started to look at how beacons can enable more interactive customer communication: how the digital data generated by an individual in those interactions can be used in omnichannel programs to personalize and deepen customer engagement.

This is possible as every click, purchase, view, and search someone undertakes in the digital world produces data that becomes their virtual identity. Retailers have started to utilize these data-rich profiles to recapture the personal level of service of yesteryear, reclaim the customer relationship, and offer personally relevant service.

Many retailers have long understood the importance of personalization as a strategy to shape service and offerings around the individual customer and shoppers regularly provide retailers with a host of clues about their personal interests and preferences. By doing so, shoppers increasingly expect retailers to know who they are and what they like.

We can expect more retailers to begin creating highly personalized shopping experiences using beacons or similar technologies, as part of a larger shopper relationship management strategy. Smartphones have been fully embraced by customers and using them to offer a truly personalized service is an opportunity not to be missed.”

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