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BullRun-FROM

PERSONALIZATIONTO

CUSTOMIZATION:HARNESSING

D

ATA

AND

ANALYTICS

TO

FOSTERBRAND

LOVESPONSORED

BYSPECIAL

REPORTIfti

Digital-INTRODUCTIONForthe

sake

of

mental

convenience,people

often

talkabout“personalization”as

if

it’s

a

monolithicconcept,when

the

truthis

that

there

are

many

flavors

ofpersonalizationavailable

toretailers.That’s

actuallygood

news

forbrands,

whichcan

makestrategic

choicestoleverage

different

vehiclesfor

personalizationdependingon

theirbusiness

model,

customer

base

andspecific

needs.

Insome

cases

theycan

takepersonalizationall

thewaytocustomization,

which

notonly

gives

customers

greater

control

over

theirpurchasesbutalso

reveals

significantdata

thatbrands

can

analyzeto

create

even

sharperpersonalizationefforts

andboost

futuresales.“While

customizationallowscustomers

to

makeproductalterations

at

thetransaction

point,

personalizationis

aholisticapproach,”said

BenjaminBond,Principal

in

the

ConsumerPractice

at

Kearney

in

aninterview

with

RetailTouchPoints.

“It

spansthe

entirecustomer

journey,

intelligently

anticipating

needs

and

delivering

tailoredexperiences

even

before

the

customer

articulates

them.”This

special

report

will

examine

thelatest

personalizationand

customizationtrends,

including:••Expandingrolesfor

generative

AI

in

executingpersonalizationat

keypoints

in

theshopper

journey;The

fast-growingimportance

of

zero-partyand

first-party

datatosupport

personalizationefforts,particularlyas

third-party

cookies

deprecate;

and•Best

practices

formaximizing

personalization.From

Personalization

to

Customization:

Harnessing

Data

and

Analytics

to

Foster

Brand

Love2LimitlessVisions-GENERATIVE

AI

SUPERCHARGES

PERSONALIZATION

CAMPAIGNSGenerativeAI,

this

year’shottest

technology,hasquicklybecome

a

critical

element

inbrands’

personalizationefforts,

in

largepart

because

it

helpsmarketersscale

up

programs

quickly

andcost-effectively.“Generative

AI

is

the

driving

force

behindadvanced

personalization,transformingraw

data

intoactionableinsights,”

said

Bond.

“It’s

about

predictingcustomer

needs

and

makinginformed,nuanceddecisions

todeliveronthe

promise

ofa

truly

tailoredshoppingexperience.”AI

and

machine

learning

havebeen

critical

topersonalizationefforts

by

GNC.

“We

know

that

in

the

health

andwellness

category,offering

customizedproducts

todeliverholistic

healthsolutions

is

paramount,”said

ScottSaeger,

former

CIO

ofGNCina

previousinterview

with

Retail

TouchPoints.“When

a

customer

comes

to,

do

theyfeelthatGNCunderstands

who

they

areas

a

consumer

and

there’snotjust

this

barrage

ofadsand

recommendations

that

mean

nothing

to

them?”Saeger

asked.

“In

the

beginningof

the

year,a

lotofpeople

want

to

trimdown

andlose

theThanksgiving

andChristmasweight,so

if

all

I’m

doingisthrowing

proteinwhey

atyou,

that’sreally

not

the

experience

youwant.

Being

hyper-personalized

isaboutmaking

the

right

recommendations

at

the

right

time.”GNCalso

supports

personalizationvia

a

partnership

with

Ujet.

Using

machine

learning

andAI,

thesolution

givesGNC’s

customer

service

agents

pertinent

informationabout

customers

thatcan

go

wellbeyond

checkingon

anorder’sstatus.

GNCuses

thesolution

to

quickly

provide

relevantadvice,

suchas

thebest

post-workoutrecoverydrink,

to

help

ensureevery

customer

hasa

positive

experienceno

matter

what

theirquery

is.From

Personalization

to

Customization:

Harnessing

Data

and

Analytics

to

Foster

Brand

Love3sebra-WHY

WE

PUT

PRODUCT

FIT

AT

THECENTER

OF

PERSONALIZATIONByBrent

Hollowell,

CMO

and

GM

NorthAmerica,VolumentalResearchshowsthat78%ofconsumerswanttobe

delightedbygreatpersonalizedexperiences,butonly18%sayretailcompaniesare

currentlymeetingtheseexpectations.We

believethatfittingtechnology,orFitTech,isapowerfultoolforretailersto

meetthegrowingdemandforpersonalized,customizedconsumerexperiences.Know

Your

CustomerBrAt82-Volumental

specializesinfittingtechnology,orFitTech.We

scanthefeetofshoeshoppersin3D,andthenwematchthatdatawithconsumerpurchasebehaviorto

givetailoredrecommendations.Essentiallyweoffer

fitasaserviceasawayforbrandsandretailersto

deliverexcellentcustomerexperiences.Withover45

millionfootscanscollected,we'veamassedtheworld'slargestcollectionofsuchdata.Retailerscandeploytheirdataacrossin-store,omnichannelandecommerceoperations.Thisaccessibilityempowersretailersto

provideatailoredexperienceto

eachindividualcustomerbysuggestingthemost

suitablefootwearmodelsandsizesbasedontheinsightswe'vegathered.Atthecoreofthiscapabilityliesfirst-partydata.Of

course,whenitcomesto

utilizingdataforpersonalization,privacyandconsentare

critical.Whatwe'vefoundisthatshopperswillinglygrantconsentto

sharetheirinformationbecausetheysee

theclearvalueitbrings.Inphysicalstores,ourscannerspromptusersto

optinbyprovidingtheiremailaddress,andremarkably,ouremailcapturerateaverages71%,andforthehighestperformingretailers,itexceeds90%.Whenretailersdemonstratetheirabilityto

streamlinethebuyingprocess,customersare

morethanwillingto

reciprocatewiththeirtrustandengagement.From

Personalization

to

Customization:

Harnessing

Data

and

Analytics

to

Foster

Brand

Love4The

Potential

of

Generative

AIGenerativeAIhasthepotentialto

enhancehowwecommunicateproductrecommendationsto

shoppers.Imagineascenariowherearetailercanprovideamoredetailedexplanationbehindarecommendation.Forinstance,insteadofsimplysuggestingashoeinsize91⁄2

overasize10,theycouldalsoclarifywhythischoicewasmade.Thisexplanationcouldbe

rootedinfactorslike

thecustomer'sheight,weightandintendedusefortheshoe.Dependingonusage,generativeAIcouldeventakeitastepfurtherbyconsideringyouruniquerunningstyle

orthetype

ofjobyouhave.Ultimately,theaimisto

giveshoppersmoreconfidence,makingsuretheytrustboththerecommendedsizeandthechosenproduct.BackwhenIworkedatafootwearcompany,weused

to

sendshoesto

fittesters,butwedidn'thaveaclueabouttheiruniquefootshapes.Theresultswereallovertheplaceintermsofhowwelltheshoesfit.

Butnowweactuallyscantheirfeet,so

whenwegettheirfeedback,weknowwhichshoeworkedforthemandwhichdidn't,andwhy.Inthefuture,retailerscouldcombineallthisfootscandatato

getahandleonwhatalltheircustomers'feetlooklike,whichcouldseriouslyimprovehowtheymanagetheirinventory.Theymightrealize,"Hey,wethoughtweneededonly13%ofsize91⁄2

forthisshoe,butitturnsoutweneed20%."

So

theycantweakinventorybasedonthesescansinsteadofusinghistoricalsalesnumbersonly,whichdon’treallycapturemissedsalesopportunities.Andwithallthisdatainhand,retailerscanhavebetterconversationswiththeirmanufacturers.Iftheyseethatalotofpeopleare

into

differentwidthsofshoes,

theycouldsuggestsomethinglike,"Insteadofmakingyetanothercolorforyoursixth-orseventh-bestperformingshoe,whynotoffer

morewidthsforyourmostpopularstyles?"

It'salmostlike

personalizationinreverse—we'remakingthestore'sinventorymatchwhatcustomers'feetare

reallylike.Attheendoftheday,

customizationisaboutbringingretailersandbuyersclosertogether.Whenweusedeepdataintherightway,

wecanhelpretailersdeliverthosefantasticexperiencesthatshopperswantfromthem.LearnmoreaboutVolumentalat/.From

Personalization

to

Customization:

Harnessing

Data

and

Analytics

to

Foster

Brand

Love5-CAN

ZERO-

AND

FIRST-PARTY

SOURCES

FILLPERSONALIZATION’S

DATA

REQUIREMENTS?Because

personalizationgoes

beyond

basic

customer

segmentationandpersona-building

efforts,

it

requiresgranular

data

at

the

individuallevel.

However,withthe

comingdeprecationofthird-party

cookies,

one

of

themost

commonsourcesof

consumer

browsing

and

purchasing

behavior,brands

are

turning

to

zero-

and

first-party

data.Zero-party

dataisinformationconsumersintentionally

sharewith

a

brand,

e.g.

whentakinga

quiz,whilefirst-partydatais

collected

by

thebrandas

a

result

of

interactionswith

its

own

customers.Making

greateruse

of

zero-

andfirst-partydataalso

helpssolve

one

of

thetrickiest

challengespersonalizationpresents:finding

(but

not

crossing)

the

line

ofpersonal

privacy.Consumerswant

the

relevance

and

recognitionthatpersonalizationefforts

offer,buttheyalso

don’twant

tofeel

creeped

outor

spied

on.“Utilizing

zero-

andfirst-partydata

seamlessly

aligns

value

with

privacy,”

saidKearney’sBond.

“Customerswillingly

share

informationwhen

transparencyandbenefits

intersect,

fostering

trust

and

paving

the

pathforrespectful

personalization.”From

Personalization

to

Customization:

Harnessing

Data

and

Analytics

to

Foster

Brand

Love6ForVolumental,

whichprovidesfootwear

fit

technology

based

on

scans

ofcustomers’

feet,

that

data-for-valueexchangeis

clearly

delineated.“The

hardest

thing

to

getoutofa

customer

[ina

storeenvironment]is

their

emailaddress,”

said

Brent

Hollowell,

CMO

at

Volumental

in

aninterview

with

Retail

TouchPoints.

“But

when

youshowsomeone

a

cool

scan

andask

ifyoucan

emailit

tothem,

95out

of

100

will

agree,

and

thatgets

them

into

the[retailer’s]loyalty

matrix.

We’veseen

people

go

back

to

[that

scan]

five

or

sixtimesovera

six-month

period.”In-store

technology

can

also

serve

as

a

stealthybutacceptablemethod

for

gatheringshopper

data.Forexample,digital

mannequins

from

Outformcan

be

dressed

ina

varietyof

clothingstyles

andcolors

thatcustomers

controlby

scanninga

QRcode,

providingin-store

insightsinto

whatshoppers

are

interested

inseeingand

potentiallypurchasing.The

mannequintechnology

passively

records

data

including

dwell

time,

number

ofsessions

andcontentpreferences.Because

the

digital

mannequincan

directly

link

to

retailers’unifiedcommerceplatforms,

executivesget

“a

real-timeview

of

whatshoppers

haveconsidered

and

purchased,”said

Simon

Hathaway,

Group

Managing

Director,EMEA

atOutform

in

anearlier

interviewwith

Retail

TouchPoints.

“They

canthen

retargetacrossother

onlinechannelswith

tailored

content

ata

later

time,usingA/B

testing

to

refine

theinsightsfurther.”“Utilizing

zero-

and

first-party

data

seamlessly

alignsvalue

with

privacy.

Customers

willingly

share

informationwhen

transparency

and

benefits

intersect,

fosteringtrust

and

paving

the

path

for

respectful

personalization.”—Benjamin

Bond,

KearneyFrom

Personalization

to

Customization:

Harnessing

Data

and

Analytics

to

Foster

Brand

Love7Antonio-PERSONALIZATION

AND

CUSTOMIZATION

BEST

PRACTICESPersonalization

and

customizationefforts

offer

bigpayoffs

to

retailers

andbrands,

and

there

are

manyways

tomaximizethese

campaigns’impact:•Seek

multiple

sources

of

customer

data:

One

of

thebest

ways

for

a

retailer

to

gatherfirst-partydatais

to

operatea

loyalty

program.Butevenfor

those

thatdon’t,

there

are

othersourcesofcustomerdata:

Tanger

Outletsrecentlyrevamped

its

loyalty

program

intoa

tier-based

subscriptionmodelandis

usinga

Coniqsolution

to

share

dataabout

customer

preferences,patterns

andspend

with

itsretailtenants.

DoorDash’slatest

appupgradeincludes

an

integrated

rewards

program

thatallowsmerchants

in

theU.S.,

Canada,

Australia

andNew

Zealand

to

create

programsfor

theirmost

loyalcustomers.While

the

programwasn’t

set

up

to

integratewith

restaurants’

loyalty

programs

atitsdebut,

that’sa

likely

future

update.•Align

personalization

effortswith

customer

lifetime

value

(CLV)

data:

Eco-friendlyhaircarebrandDavines,

dealingwiththeloss

ofin-person

contact

broughton

by

COVID,

workedwith

Coveotechnology

to

generatepersonalizedproduct

recommendationsbased

onthe

individualshopper’spreviousshoppingjourneys,

onlinebehaviors

and

haircarepreferences.

The

technology

also

allowedDavines

tofactor

in

CLV,

according

to

BrianMcGlynn,

VP

of

Ecommerce

atCoveo

in

an

earlierinterviewwithRetail

TouchPoints:

“For

example,

wheredo

wesee

users

that

mightbe

coming

in

andlookingto

experiment?

Thatmaybe

signalsa

long-term

customer,

and

wecan

apply

automatic

discounting,or

use

badging,search

and

promotions

to

enticesomebody

tobecome

a

customer,

tosampletheproducts

or

tobe

more

involved

in

thispart.”From

Personalization

to

Customization:

Harnessing

Data

and

Analytics

to

Foster

Brand

Love8••Personalization

can

bea

competitive

differentiator

for

small-

and

mid-size

retailers:Loop

Neighborhood,

a

120-storeconvenience

chain

in

California,used

the

Algonomyplatform

toengagecustomers

in

real

timewith

contextually

relevantmessages

based

on

theirbehavior

andtransaction

history.

Theretailercan

promoteweekly

offers,

embed

a

customer’s

savings

dashboard,distributepersonalizednewslettersa

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