Personalisation and data analytics now a ‘necessity’ in retail
Personalisation is no longer a bonus but a marketing “necessity” in the retail sector because 81 per cent of consumers consider relevance to be the most influential factor in whether they redeem promotions.
This is according to a new report by software-as-a-service company Eagle Eye, which works with many of the most well-known retailers in the UK, including Tesco, Sainsbury, Marks & Spencer and Greggs.
Eagle Eye says 75 per cent of consumers are “unhappy” with generic offers, and prefer products and services to be directly aimed at them.
Younger people are even more likely to be turned off by generic or general marketing aimed at no one in particular, and they are more into their mobile devices.
Some 58 per cent of consumers are “most likely” to redeem promotions sent via digital channels such as mobile, email and social media.
Eagle Eye found the figure for younger people to be significantly higher – at 67 per cent – because they are more comfortable with mobile and digital media.
Tim Mason, CEO of Eagle Eye, says digital media is not only the preferred option, it's also essential to finding out more about consumers' requirements.
Mason says: “Not only are digital channels the most effective, but they are also the only way retailers can gather the real-time customer data needed to time marketing messages to maximum effect.
“Using the insight provided by data, retailers can identify the best moment to send a tempting offer incentivising customers to add something extra to their purchase, or engage with a brand when they might not otherwise.”
Another significant finding of the report was that people are generally open to the idea of “predictive offers”.
Approximately 73 per cent of respondents said they would find it “useful” to be offered promotions for items they had run out of.
This means that, by collecting and analysing consumer data, forward-thinking retailers can predict regular customer purchases and send tailored offers to change consumer behaviour, says Eagle Eye.
Moreover, 79 per cent of consumers said they would be open to trying options other than their usual brand if they are on offer – especially if it's combined with a predictive approach, presumably.
Eagle Eye says retailers can capitalise on this by sending a targeted offer to upsell a different, more expensive product, for example, an alternative brand or related product.
Mason says: “By sending targeted offers we are trying to drive two things; either another shopping trip or additional product purchase; real-time promotions are an important addition to the promotional armoury, particularly for stretching spend.
“Businesses need to invest in mobile, which allows them to deliver offers straight to a customer's hand. With ‘near me' searches booming, and 88% of them done on mobile, it's high-time businesses adapt to mobile-enabled, real-time marketing.”
The conclusions of the report were based on a survey of around 2,000 adults in the UK, and was conducted by Censuswide on behalf of Eagle Eye.