Consumers aren't too happy with the "personalized" offers and communications they're getting from retailers. But is it the retailers' or consumers' fault?
A survey conducted by Econsultancy for IBM found only 22 percent of consumers believed the average retailer understands them as an individual, with only 21 percent finding their communications "usually relevant." Even at their "preferred retailer," only 37 percent believed they were understood, with 35 percent finding related communications "usually relevant."
One explanation for the relevancy void, according to IBM, is that only 34 percent of marketers at consumer brands in a separate survey admitted they do a good job of linking their online and offline customer experiences. IBM said in a statement, "With the vast majority of dollars spent offline and the majority of product research happening on the Internet, the two are already linked for consumers but this gulf must close for marketers if they are to advance."
Technology is also a hurdle. Only 37 percent of the marketers agree they "have the tools ... to provide exceptional customer service and experience."
But personalization efforts are also being challenged by limited access to shopper data. For example, a recent Accenture survey found that 60 percent of consumers want real-time promotions and offers, yet only 20 percent want retailers to know their current location and only 14 percent want to share their browsing history.
As a result, few of the personalization efforts are moving beyond shoppers' purchases and online browsing behavior.
On the positive side, consumers, more so Millennials over Boomers, are open to exchanging data for exclusive deals and loyalty points. Raising trust levels would also ease privacy concerns. The Accenture study found a wide majority of consumers would prefer to determine how personal data can be used and want to review and correct information.
Personalization approaches are also being enhanced to incorporate when a consumer opens or clicks their e-mail, reads a company blog post or redeems a past coupon, according to a Washington Post article.
A BuzzFeed article further said many retailers are focusing more on relevancy than personalization to improve such targeting.
Helen Vaid, VP of customer experience at Walmart.com, told BuzzFeed that personalization is about "relevant contextually" at a point in time rather than the stream of algorithmically driven product pitches. She said, "It's 'Do you help my shopping experience the way I want to shop,' as opposed to 'Well, I know you did this and this and this, so I'm going to show you those, those, and those items.'"
- 4 Out Of 5 Consumers Declare Brands Don't Know Them As An Individual, According to IBM and Econsultancy Study - IBM
- U.S. Consumers Want More Personalized Retail Experience and Control Over Personal Information, Accenture Survey Shows - Accenture
- Retailers are tailoring their Web sites and promotions for you. Just you. - The Washington Post (tiered sub.)
- Retail Execs Deem "Personalization" Creepy, Embrace "Relevancy" - BuzzFeed