Here are three buzz words that marketers and customers are familiar with: Personalized Customer Experience. But what does it really mean? Why is there an emphasis on customer-centricity and how do retailers transform their business models to become more customer-oriented?
The IBM Center for Applied Insights found that retailers who put the customer at the heart of the way they work, how they measure succeess, and how they’re organized outperfrom their peers in providing a more personalized, interactive experience. These leading retailers see 1.4x larger customer basket size and 3x greater company stock price than their peers. When customers are placed at the center of retailers’ business models, we get better results–why are retailers struggling to implement a customer-centric strategy?
In a nutshell, emerging technologies around ‘touchpoints’ such as mobile, e-commerce, physical stores, group purchase/loyalty programs, and social media channels are becoming increasingly available to engage consumers. The management of these channels while providing a consistent and unique shopping experience for their customers have become a challenge for retailers—but we believe that with customized capabilities, the omni-channel world serves as a golden opportunity for both retailers and customers alike. Here’s why–increasing touch points equals more data. More data equals better personalization.
Let’s take a look at a real world example. How have retailers created a unique, personalized and satisfying shopping experience for every customer? How do we enable the customer to shop whenever, wherever, and however they want? Take a look at Lindt and Sprungli’s answer:
“Chocolate is a very personal experience. Lindt needed a scalable solution which would allow us to individualize our offerings and our interactions with consumers.”
CEO and President, Lindt & Sprüngli (USA) Inc.
Lindt revamped their strategy and ecommerce presence entirely by leveraging IBM’s cloud and big data analytics in innovative ways. The first step was to create a more personalized connection to the customers by allowing an option to purchase unique assortments—creating an ecommerce platform that satisfies each unique chocolate craving, one customer at a time.
Lindt also efficiently executed personalized promotions around the holidays, selling highly targeted offerings tailored for holiday-based promotions and campaigns.
The result? Lindt’s new ecommerce site saw a conversion rate of 200%, and tripled its revenue on mobile devices. The effects are clear—well-designed technologies that make the world’s most consumed confections more accessible are necessary in the omni-channel world. And perhaps fitness apps are too.