As a retailer, customer data is essential. High-quality data allows you to learn about your customers, from demographic information, to purchasing habits. It is at the heart of product innovation and marketing, as well as customer experience and engagement.
High-quality data positions your business to be able to build accurate customer profiles in order to deliver the level of personalization customers have come to expect. According to a survey conducted by Epsilon, ”80% of consumers are more likely to make a purchase when brands offer personalized experiences”.1
Clearly, personalization is important. But what exactly does personalization mean for your consumers? How can retailers do a better job of providing it?
For customers, a personalized experience demonstrates that a company has put the consumer's needs first and is striving to build a one-on-one relationship, based on an individual’s interests and habits. This starts with communications that greet the customer by name, and continues with product and service recommendations specific to them, rather than “others also purchased”.
Personalization makes a customer feel valued and understood. It also removes barriers to finding the items they need, or the ones they didn’t realize they wanted. As machine learning scales and delivers increasingly relevant and timely customer touch-points, enhancing data collection will need to be a strategic focus for retail companies.
Traditionally, first-party data collection can be grouped into a number of buckets, including, transactions, customer feedback and loyalty programs. In each instance, the consumer releases some of their data in exchange for something, whether that be making a purchase, having questions answers or receiving a reward. Companies learn the types of products customers prefer to purchase, when and by whom, as well as who the most valuable customers are.
Additionally, companies rely heavily on their marketing data. However, as marketing teams are well aware, when new data collection laws come into play the ability to access first party data will become increasingly important. A study from GetApp suggests that when third-party data ends, 44% of marketers predict a need to increase their marketing spend by up to 25% in order to reach the same goals in a post-cookie world.2
How can companies ensure a steady stream of data, one that includes a 360° customer view? The strategic addition of new app features, designed to engage consumers between transactions, will be a key driver in not only learning more about consumers, but ensuring that they return to a retailer’s app, again and again.
Consumers are increasingly looking to improve their health and wellbeing, and the retailers who help support this journey are posed to become their retailer of choice. Big-box retailers, grocery store chains, even airlines, are beginning to integrate wellness offerings into their customer experience. New health and wellness features serve the dual function of increasing app stickiness while simultaneously collecting new lifestyle and behavioral data.
When companies demonstrate their commitment to their customers, their interest in them beyond the transaction, and provide valuable offerings, customers are open to sharing their data because they can clearly see what’s in it for them.
How comfortable are consumers with sharing their data?
“83% of consumers are willing to share their data to enable a personalized experience”.3
Sprout Open Health API gives you access to our reliable and scalable technologies in order to stay ahead of the competition and create meaningful customer engagement. Learn how the Sprout Open Health API’s modular and extensible platform architecture can drive business outcomes that matter to your organization. Book your discovery call today.
