Real-Time Context-Aware Offers In CPG Retail
Is personalization approaching the sublime?
While on that famous voyage, better known in the marketing circle as “shopper journey”, shoppers show a strong aversion to anything irrelevant. To connect with the customers along this pathway, retailers must be ultra sensitive to diverse contexts. But, what actually retailers are doing to preclude the possibility of overstepping the precincts of relevancy? They have started communicating contextual offers to customers based on their personal demographics. So, when customers enter grocery stores, they get tailored messages about inviting deals on their smart mobile devices depending on their exact location inside the establishment. And, gradually this “me-specific” engagement strategy is winning customers’ affections. Data from Gartner shows that, by 2017, 15% of shoppers will fall in love with context-aware offers.
Wider ramifications that can break the retail mold
Though context-awareness is still in the first flush of development, in near future it will have all the required specifications to thrust retail to a breathtakingly exciting level. Customers have already approved of the phenomenon; they are quite forthcoming in providing personal details to retailers. Now, it’s for the retailers to preserve the sanctity of these details and maintain an atmosphere of trust. They should ensure that in the name of relevant offers individual data is not misused. Not only retailers, the situation will be equally advantageous to manufacturers. As the concept is set to go full steam ahead in the coming days, there will be some fundamental shifts in the retail playground.
- First of all, coupons as we know today will cease to exist. They will be supplanted by highly individualized offers that entirely conform to contexts. In the process, comprehensive aggregation of shopper data will become the norm. Moreover, all possible context scenarios like, physical context, time context, and information context will be taken into consideration.
- The perspective on point of sales data will get drastically altered and the sector will be more interested to know which product is sold to which customer at different stores. However, the essential conditions for translating this alteration into reality are mingling of structured and unstructured data and use of prescriptive analytics.
- The context-aware regime will open the door to ample opportunities for both retailers and their suppliers. By engaging customers at a very intimate level, they will be able to register better financial results.
To reap the maximum benefit out of context-awareness, retailers and manufacturers must apply it throughout the “shopper journey”
In an overtly competitive marketplace, it is important to reach shoppers with context-aware offers at every point on the path to purchase, be it at home, on the way to office, or obviously at the store. Also, the buyers must be fully apprised of the benefits they will get once they decide to act on the offers. According to NCR Corporation, 73% of customers from North America are willing to receive personalized offers. This is definitely an encouraging number, but the chapter doesn’t close here. Offers that are being conveyed to customers must be related to their day-to-day lives in someway, otherwise customers might be rubbed the wrong way. Thus, a superficial understanding of shoppers’ behavior is not the name of the game; instead a thorough knowledge is needed to formulate the most pertinent deals.
Is the game worth the candle?
Definitely it is. It’s a win-win for all the players involved. True, that the strategy is not yet scalable, but it will become so within a decade. For retailers, context-aware offers mean augmentation of customer loyalty and margin. In the case of manufacturers, besides jacking up the revenue, it will give them a bigger slice of the market and bring a perceptible efficacy in promotional activities. More than anything else, it will make the “shopper journey” supremely smooth and convenient.