Engage Shoppers with Omnichannel Personalization

The explosive changes in retail today are due in part to pervasive mobile technology, which is empowering consumers. With mobile shopping and abundant product information at their fingertips, consumers now expect and reward a personalized, omnichannel shopping experience.

Omnichannel means consumers can research and buy products anywhere – from traditional brick and mortar stores, to online channels using digital and social media on computers, tablets and smartphones. Personalization helps shoppers feel special and understood, and involves customizing your marketing to reflect consumers’ personal preferences.

To compete effectively, consumer goods and retail companies are using omnichannel personalization to engage consumers, and offer them the convenience to browse and buy products however and wherever they choose.

Why omnichannel personalization matters

As Computerworld declared, “Success means merging online and in-store.”¹Gaudin, Sharon. For retailers, e-commerce alone won’t make the sale. Computerworld. January 19, 2016. To succeed in the B2C market, companies of all sizes strive to deliver a seamless customer experience throughout the entire buyer journey, and across all channels.

Forrester Research found one-third of retailers surveyed plan to grow their smartphone investments by more than 20% in 2016. Their in-store associates are more likely to use tablets to provide greater service to customers, show additional products not available in stores, send e-receipts, and check inventory in warehouses and in-store.²Berthiaum, Dan. Study: Mobile Commerce Paradigm Shifts. Chain Store Age. January 7, 2016.

Beyond the store, e-commerce accounted for 7.3% of global retail sales in 2015, and will grow to 12.4% by 2019, eMarketer says.³Lindner, Matt. Global e-commerce sales set to grow 25% in 2015. Internet Retailer. July 29, 2015. Social buying is also accelerating. While only 10% of all U.S. shoppers told PwC they shopped directly from social media in 2015, that figure is more than double the 4% that said the same thing in 2014.⁴Murphy, Ian P. From phone to store, the entire customer experience is the key. Retail Dive. April 6, 2016.

What’s fueling this growth?

Perhaps when consumers feel understood, they’re more willing to buy. Accenture found 73% of consumers prefer to buy from brands that personalize their shopping experiences. eMarketer found data-driven marketing led to revenue increases for 57% of marketers and 56% of marketers say personalized content drives higher engagement. Even Deloitte named personalization among its 4 Ps of Retail, as consumers favor customized communications.⁵Deloitte. Retail Trends 2016: Redefining Convenience.

Omnichannel personalization trends

The following omnichannel personalization trends impact B2C companies:

1. Data-driven marketing
   As a Forbes article states, “It’s critical in the era of the social web … for marketers to ensure they’re personalizing experiences in the ‘offline’ or physical world, as well as its digital counterpart, and always grounding it in data.”⁶Chandra, Aseem. Why Personalization Is Key To The Future Of Marketing. Forbes. May 12, 2014.
   
   Ideally, companies unify their consumer data, including in-store transactions, online browsing and social media engagement. Combining disparate sources of data allows companies to truly know consumers – at the individual level instead of a generic buyer persona. Applying data insights helps companies capitalize on current retail trends, including omnichannel, mobile and social selling.⁷Newman, Daniel. The Top 10 Marketing Trends That Will Define 2016. Forbes. November 3, 2015. These insights help B2C companies optimize their marketing personalization across all their online and offline channels.⁸Donde, Nitin. Unlocking Retail’s Big Data Opportunity. Datanami.com. April 8, 2016.
2. Physical stores embrace digital
   Since some shoppers prefer mobile to malls, traditional retailers are embracing digital channels to give consumers more choices. For instance, cosmetics giant Sephora’s in-store experience includes a digital Beauty Board where shoppers can browse user-generated content and find the products featured in in-store photos. Shoppers can also personalize the images to show products for their own skin tone.⁹Milnes, Hilary. Inside Sephora’s innovation lab. Digiday.com. January 6, 2016To simplify the customer experience, Kroger’s ClickList online grocery ordering service lets shoppers order products online and pick them up in-store. Similarly, Starbucks’ new mobile app lets consumers pay by smartphone and pick up their customized drinks in-store without waiting in line.
3. E-commerce giants get physical
   In recent years, e-commerce retailers like Amazon¹⁰Alter, Alexandra and Nick Wingfield. A Trip Through Amazon’s First Physical Store. The New York Times. March 10, 2016., Birchbox¹¹Birchbox.com. Birchbox Soho Is Here! Meet Our First Brick-and-Mortar Store. April 2014. and Warby Parker¹²Macmillan, Douglas. Warby Parker Adds Storefronts to Its Sales Strategy. The Wall Street Journal. November 17, 2014. have opened physical stores to offer convenient omnichannel options and personalized service. Opening physical stores allows e-commerce companies to provide a richer customer experience, including face-to-face, personalized service, to strengthen relationships with consumers. Offering an in-store experience allows customers to touch the merchandise, and try on clothing, cosmetics or glasses – items that shoppers may return more often due to poor fit when purchased online only.The stores also encourage showrooming, which allows shoppers to visit a brick-and-mortar store to examine a product – then buy it online.

Bringing it all together

To deliver superior service and convenience, CPG and retail companies are offering omnichannel options. By analyzing consumer data from their online and offline channels, B2C companies can make their marketing resonate by customizing it to individual preferences. Embracing omnichannel personalization helps these companies gain a competitive edge.

Today’s unprecedented convergence of retail and e-commerce is transforming how B2C companies reach, communicate and engage with consumers. In response, successful consumer goods and retail companies adapt by embracing omnichannel personalization to strengthen their relationships with shoppers across multiple channels by sharing relevant marketing.

These companies accept the new reality: the store is wherever the consumer is.

Even companies with smaller marketing budgets can apply omnichannel personalization best practices to adapt to consumers’ expectationsThe business case for omnichannel marketing is clear: companies with omnichannel customer engagement strategies retain 89% of their customers (vs. 33% of companies without one).¹³Rudolph, Stacey. “10 Notable Omnichannel Trends and Statistics.” Business2Community. April 22, 2016. Now companies of all sizes must aspire to customize service across all channels to deliver an enjoyable shopping experience, which can boost brand loyalty and lifetime value per customer.

How to excel at omnichannel personalization

The following CPG brands demonstrate how to engage individuals across multiple channels:

• Mondelez: The confectionary giant launched a new Oreo cookie website to let consumers design custom packages
• Frito-Lay: This snack food manufacturer’s interactive “Do Us a Flavor” campaign used crowdsourcing to inspire new chip varieties¹⁴Ulrich, Greg and Aaron Fidler. Manufacturing Growth: Top 5 Trends for CPG in 2016. Consumer Goods Technology. February 9, 2016.
• Lancôme: The global beauty brand tailored product recommendations based on consumers’ individual preferences and Lancôme’s expertise

¹⁵ Sabharwal, Veebs. Lancôme to deliver omnichannel personalization. Retail Gazette. March, 2, 2015.

Even companies with smaller marketing budgets can apply omnichannel personalization best practices to adapt to consumers’ expectations. Your company can gain a competitive advantage by using the following tips to create an omnichannel strategy, manage data and personalize marketing.

Omnichannel Strategy

• Make your strategy consumer-centric: Since consumers like to shop across channels, base your strategy on how consumers use multiple channels for product discovery, review and purchase.¹⁶Re-engineering the supply chain for the omni-channel of tomorrow: Global consumer goods and retail omni-channel supply chain survey EY. February 2015.¹⁷Magni, Max, Anne Martinez, and Rukhshana Motiwala. Saving, scrimping, and … splurging? New insights into consumer behavior. McKinsey & Company. March 2016.¹⁸ Murphy, Ian P. From phone to store, the entire customer experience is the key. Retail Dive. April 6, 2016. For instance, 71% of in-store shoppers who use mobile technology for product research say their phone is now more important to their in-store experience.¹⁹Rudolph, Stacey. “10 Notable Omnichannel Trends and Statistics.” Business2Community. April 22, 2016.
• Pinpoint your touchpoints: Harvard found desktop, mobile, website, email and social media are the top touchpoints for customer experience opportunities.²⁰Bedgood, Larisa. Which Touch Points Do Marketers Rate as Central to the Customer Experience? Business2Community. April 10, 2016. Which other channels – such as in-store events, product reviews, mobile apps and online chat – can help you engage customers?
• Align with digital retail trends: One of this year’s hottest retail trends is “mobile everything,” including mobile web, apps, messaging and marketing, such as digital coupons. Use a responsive web design so your website looks attractive on desktops, tablets and mobile phones. Add these online marketing trends to your strategy.²¹Ewing, Brian. 5 Emerging Trends for Online Retail in 2016. Pure Chat. March 15, 2016.
• Infuse your website with social media: Embrace social media as a service channel to build brand trust. Let consumers log in to your website through their social accounts. Add Facebook product and company reviews, and YouTube videos of customer testimonials and helpful tips on how to use your product.
• Strive for seamless service: Across every channel, deliver consistent messaging, coordinated promotions and quality service to delight shoppers.²²Boston Consulting Group. The Digital Future: A Game Plan for Consumer Packaged Goods. BCG Perspectives.

Data Management

• Consolidate consumer data: To truly know consumers at the individual level and serve them better, unify all the disparate sources of consumer data within your company, including in-store transactions, online browsing, loyalty points and social media.
• Use clean product data: Ensure your product data is accurate, consistent and complete to enhance efficiency, inbound product discoverability and personalization.
• Collaborate with retailers: As consulting firm EY states, “Effective omni-channel cannot be achieved by either retailers or manufacturers alone… data sharing is critical.”²³Re-engineering the supply chain for the omni-channel of tomorrow: Global consumer goods and retail omni-channel supply chain survey EY. February 2015. Share your product and consumer data with your trading partners to support agile supply chain management.
• Note e-commerce data deadlines: Succeed online by providing your products’ Global Trade Identification Numbers (GTINs, which are barcode numbers) for Google Shopping product listing ads.²⁴Marvin, Ginny. Retailers: GTINs Required By May 16 For Google Product Listing Ads. Search Engine Land. February 11, 2016. While major brands had a May 16 deadline, consumer goods suppliers who sell to multiple retailers will soon follow.

Marketing Personalization

• Apply your data: Use your data insights to create customized profiles and targeted marketing that resonates with consumers on an individual basis. For instance, does a shopper prefer sustainable goods? Organic foods? Healthy lifestyle products?
• Think local: Use location-specific data to offer consumers local specials, such as promotions, coupons and events.
• Make marketing a priority: Marketing personalization boosts ROI, so invest in audience targeting, one-to-one marketing, such as email and mobile campaigns with customized calls to action that lead to conversions.²⁵Carlin, Katie. Increasing Audience ROI with Personalization. HubSpot. March 31, 2016. Share authentic brand stories and deliver unique value across all channels to build loyalty.

B2C companies of all sizes must accept the reality of the empowered consumer. Start with an omnichannel strategy, manage your consumer and product data, and offer unique, customized value for consumers. Always remember, “ultimately the consumer is the channel [so] treat the customer consistently like an individual” for a superior customer experience.