Magazine: Personalised shopping

Retailers are trying to increase sales efficiency by personalising the shopping experience. Consumers are more and more open to being contacted online, but for the time being this translates into realised transactions only to a limited extent – reveals an IBM Institute for Business Value study (survey conducted in 19 countries, but not in Hungary). Although 43 percent of consumers prefer various forms of buying online, only 29 percent of them have just bought something off the internet. The study also found that a growing proportion of consumers demand omnichannel services and want personalised offers and discounts. They also like to see clearly what is in stock. Before shopping 60 percent of shoppers expect retailers to inform them online if a product is out of stock. 48 percent of those who purchase online appreciate personal communication with the online shop and 41 percent think it is important to be offered personalised promotions based on previous online purchases. Changing consumer attitude means retailers should make certain changes too. Communication between seller and buyer is becoming more important and there are three pillars of informing consumers well. Abbreviated as SoLoMo, these three pillars are social handle, location and mobile number. Good news for retailers: in 2014 twice s many consumers, 36 percent were willing to provide their location than in 2011, and 38 percent indicate their mobile number when purchasing online. However, 17-28 percent of shoppers still think of giving their SoLoMo information negatively. Based on SoLoMo characteristics and technology use, consumers belong to four groups: old fashioned (19 percent), transitional (40 percent), showing interest (29 percent), pioneers (12 percent). Ákos Bognár, managing director of játéknet.hu told our magazine that when asked directly in surveys, consumers say they don’t want their online activities to be monitored. However, the same people are very happy when their shopping is personalised, giving them a real experience. His company sends personalised offers to customers and although sales didn’t grow because of this, shoppers are more satisfied, e.g. because they can find what they need faster. In Mr Bognár’s view the big question is how far a retailer should go in chasing customers. Business development director András Deák informed us that in Libri-Shopline’s annual sales purchases realised thanks to recommendation systems represent a two-digit proportion. There are 2 million registered Libri-Shopline users and the company processes 80,000 orders a month on average. The company’s calculation is that recommendation systems have generated several hundred million forint worth of sales. Shoppers are sent personalised offers, they can see the preferences of others and offers related to items put in the basket. The goal is to make recommendations available not only on the website but in related channels too. Mr Deák opines that these days personalised offers are a basic requirement of shoppers. Tesco’s Clubcard loyalty programme had been launched in physical stores first and was later extended to the online shopping channel – both point collection and coupon redeem. Personalised offers are sent by post, but with the entry of digital channels the number of options is growing. Each Clubcard owner receives personalised offers by mail at least three times a year, and from time to time other channels are used to send out offers tailored to group needs. Tesco informed us that the proportion of coupon redeem – in the case of personalised coupons that can also be used online – is up to ten times bigger than with non-personalised offers.