Businesses overlook this key driver in retail

Even though personalisation seems to be key driver in retail, many companies are still in transformation mode, considering themselves pioneers in adopting digital technologies.

Those are the results of the latest cross-industry study released by digital transformation and services company Mindtree.

The study, entitled Winning in the Age of Personalization, surveyed 6,000 retail consumers across three regions: Europe, US and Asia-Pacific. It also surveyed 900 business decision makers from retail, travel, hospitality, banking and entertainment.

It says that personalisation is the number one driver for consumers wanting to go 'phy-gital' – a combination of online and offline shopping. It also says that despite these numbers, few retail businesses are investing in personalisation initiatives.

The study says 78 per cent of consumers were encouraged by personalised promotions to buy things they had already previously bought, while 74 per cent went for things they had never bought before.

On the other hand, 28 per cent of companies are investing in this driver, even though it has improved sales for 58 per cent of them, in the last year.

The survey also says people are turning to mobile apps more. Last year, 6 per cent said mobile apps were the preferred shopping channel, and 15 per cent said they expect mobile apps to be their preferred channel by 2018.

“There are a lot of stories to be gleaned from this study, but what stands out most is that companies need to prioritize more investments in personalization, an area that quite clearly drives more commerce,” says Radha R., EVP and Head of Digital Business at Mindtree. “Many of today’s personalization approaches are ineffective since they are based on a siloed view of the customer. With the right data engine and digital underpinnings in place, customized experiences will allow companies to target the right people, at the right time, in the right place, on the right device, with the right content.”