Category Archives: Customer Engagement & Business Intelligence

by ketv

How to collect and analyze customer data in Retail Pro®

 

 

Understanding your customer is key when it comes to offering service that meets and anticipates customer needs, cultivates loyalty, and stimulates repeat business.

Retail Pro® provides native functionality that allows you to capture and analyze the exact information you need to understand your customers’ shopping habits, needs, and expectations across channels.

Data collection with user-defined fields 

User-defined fields in Retail Pro®

User-defined fields (UDF) in Retail Pro allow you to track a virtually unlimited number of data elements.

UDF and auxiliary fields can be completely customized to ensure you capture the specific type of data you need to inform, for example, your merchandising or marketing strategies.

Capture customer preferences like favorite colors, styles, and activities to personalize your marketing campaigns, or arm your sales associates with access to those details on a mobile device so they can make meaningful recommendations.

For example, a cosmetics retailer might track a customer’s favorite brand, shade of eye shadow or lip tint, or their skin type based on their transaction history, and can send special offers for those products when they shop online or come into your stores during their birthday month.

Data analysis with calculated field 

Calculated Fields in Retail Pro®

Calculated fields like total sales, total transactions, total units, and the total number of visits enable you to analyze your customers’ sales history and determine their lifetime value.

Then, using that key criteria, build targeted customer lists to increase the effectiveness of your marketing across channels.

For example, you can create segments to market to customers with total sales over $10,000 or every customer whose favorite hobby is fishing.

Whatever your engagement strategy, Retail Pro gives you the tools you need to gather and analyze the customer data that helps you drive effectiveness and build greater loyalty and customer satisfaction.

by Jennifer Bosavage

Amazon’s Brick and Mortar Is a Bold Marketing Move

Online retail giant Amazon recently opened a brick and mortar store. The ecommerce behemoth has ventured into territory where others have failed to trun a profit — RIP Waldenbooks and Borders.

But what if the stores aren’t aiming to make money, at least not primarily? What if, instead, the store is ramping up as a marketing tool for Amazon?

Amazon is one of the few large retailers to grow faster than smaller merchants.

Amazon is one of the few large retailers to grow faster than smaller merchants.

So far, only one book store has opened its doors, at that’s in Seattle. Most of the news reports have mentioned the store’s unconventional way of displaying books: front cover outward. That, of course, lessens the number of books on display, but online shoppers are accustomed to being “greeted” by a book’s cover, rather than its spine. It makes sense to me there might be a correlation between seeing a cover and buying a book.

That’s not a new idea; independent booksellers have — and do — display books that way, but it does limit how many books can be kept in stock. But criticizing Amazon for making such a “retail newbie” mistake, as some have, is ridiculous. Only 5,000 to 6,000 books will be sold at Amazon Books, a small number compared with other bookstores. But Amazon seems to be using the stores as a physical implementation of “suggested for you,” as it offers 32.8 million books for sale in varying formats: paperbacks, hardcover, Kindle, audio CD, board books and audio books. Clearly, it via its omnichannel strategy, it can provide any book desired.

Indeed, some of the criticism seems petty, but booksellers are smarting from 20 years of online competition for which it was unprepared. Some suggest there’s not much new going on in the stores, citing, for example, the brief recommendations from Amazon reviews on cards by each book (hand-scripted employee selections are staples in independent bookstores). Seems to me that’s simply implementing a best practice of making a personal connection using a low-tech method. As author Charles Caleb Colton said, “Imitation is the sincerest form of flattery.”

Others have suggested the store set-up is not conducive to shopping, noting, for example, the tables were placed too close to the entrance, discouraging browsing. But most people don’t go to the bookstore for a quick hit — it’s generally a destination. That doesn’t mean shoppers want to play hide and seek. Allowing customers to find a book quickly makes them happy, and should not dissuade them from shopping further.

In fact, reports on the stores seem to indicate Amazon is attempting to put the customer first. Making the atmosphere appealing with books easy to find, and at prices in line with those online seems to add up to a positive customer experience. A bit of the fault-finding is unsubstantiated, like the inference the stores will not have knowledgeable staff members. Take the comments of John Mutter, co-founder and editor-in-chief of the book industry newsletter Shelf Awareness in GeekWire:

It’ll be interesting to see how the book retailer that relies on algorithms and readers’ recommendations and cold sales metrics will do in a brick-and-mortar space, where customers are used to dealing with booksellers who love books and have a lot of personal knowledge of the kind that is opposite of Amazon’s corporate approach.

It will also be interesting to see how brick and mortar responds to Amazon’s algorithm of customer service, price and selection, this time in “real life.” After years of missed opportunities to engage customers, perhaps it is this push by an online giant, which heavily relies on business intelligence, that will spur booksellers to try and to implement new ways of delighting their customers.

by Jennifer Bosavage

Sensors, Beacons and GPS: The IoT Is Here

 

 

One of the nightmares any retail store manager endures is keeping tabs on inventory.

Knowing instantly whether a particular item is in stock can mean the difference between a happy customer who at the very least will have the item shipped to her doorstep in a few days, and a shopper who will find it at a competitor — and may never visit again.

Many manufacturers are using Internet of Things technology to keep tabs on products in the supply chain, and IoT technology can work similarly inside retail stores to streamline the inventory process.

With RFID, products, or pallets of products, are tagged at the warehouse.

Upon distribution to the retailer, and the stock is “checked in,”  and in-store inventory issues can be tackled via a combination of IoT connectivity, including sensors, beacons and in-store GPS.

 

Sensors

Hardware and software can make the store shelf “smarter.”

A solution made up of  store shelf sensors, smart displays, digital price tags and high resolution cameras allows retailers to know what is on store shelves as well as in stock rooms.

Those sets of data are linked, providing visibility from the product’s arrival to ultimate sale.

Further, should a customer buy the last of a particular item, a notification can be transmitted to the stockroom.

The items are either restocked on the showroom, or the supplier is notified the next shipment is needed.

That is particularly helpful for retailers with a history of being out of stock, perhaps due to carrying on-trend items that can suddenly move rapidly or to seasonal sales swings.

The greater visibility IoT provides can greatly assist in managing the inventory process, which can lead to greater inventory turns and more sales.

 

Beacons

Beacon technology is another B2C application that can help drive shoppers to those “smart” shelves.

One advantage online stores have is the tremendous amount of customer information they can mine and analyze to provide more tailored and streamlined shopping experiences.

Brick and mortars, through the use of beacons and other devices, are starting to leverage such data as well.

Beacons can, for example, offer more targeted content onto smart displays within the stores (even at the shelf) or onto customers’ mobile devices.

Coupons and exclusive events can be pushed to the consumers, and via such targeted content, retailers hope to increase retail sales.

Inside a smartphone app, shoppers can define personal shopping preferences—for example, food preferences and allergies.

Next time they enter a store, their phones will connect via Bluetooth to smart displays located underneath products on store shelves.

In addition, cameras that upload digital content to a data center or to the “cloud” for later viewing, combined with beacons, offer a potent weapon to prevent internal theft (“shrinkage”) as well as shoplifting.

But that one-two combo of cameras and beacons can also help retailers plan the flow of their stores in order to accommodate their guests and help move goods that otherwise could linger, resulting in lost revenue.

 

In-store GPS

This type of functionality typically is part of a smartphone app for a large retailer or a mall.

Using a combination of Wi-Fi and GPS, the retailer knows shoppers’ locations, and can offer deals and promotions based on that data.

By offering real-time product suggestions through a shopper’s personal mobile device, the technology lets brick and mortar retailers compete effectively against online merchants.

The Macy’s flagship store in New York City has in-store GPS, as does American Eagle Outfitter.

In-store GPS is able to target consumers and glean insights about how they choose to shop, providing answers to a tricky puzzle for retailers.

Other technologies can also be used to establish direct communication with customers, such as QR codes and gamification.

For example, a customer walks into a high-end boutique and sees a QR code that’s offering a 10% discount for participating in a game about fashion.

She answers the questions and then receives a discount on her next purchase, or an invite to an exclusive event.

Not only is it a way to incentivize sales, but it also fosters customer loyalty.

IoT technology may sometimes seem like the fodder for science fiction novels.

In reality, machine to machine learning is here and can provide valuable assistance to retailers in maintaining efficient business processes.

In addition, the data gathered can help retailers provide more customized experiences for shoppers, encouraging them to return.

And creating a happy, loyal customer base is a dream come true for retail store managers.

by Jennifer Bosavage

RFID Should Be a Part of the Manufacturing Process

RFID is just one type of technology that is part of the Internet of Things (IoT). Expanded use of RFID-enabled technologies is helping retailers recognize and fight back against operational loss, improve their customers’ experiences and streamline omnichannel operations. RFID-enabled systems help companies reduce costs and labor, boost accuracy, and raise production levels. Additionally, the technology is superior compared with the limitations of traditional technologies such as barcode technology. For example, RFID tags can be read from a greater distance than barcodes, and RFID tags don’t need to be positioned in a line of sight with the scanner, as barcodes do.

RFID tags can be used for a number of retail purposes.

RFID tags can be used for a number of retail purposes.

However, many of the applications of RFID is in the aftermarket, whereby the tags are affixed to already manufactured products. Software assigns each tagged item with a unique validation code paired with an ID number encoded to an item’s tag or label. That code is encrypted and stored not only on the tag’s chip, but also in software on a back-end database. The printers, labels, thermal ribbon, and scanning equipment can be expensive for product makers that are trying to keep track of inventory.

Such challenges caused Peltz Shoes to stop using RFID and move to the far less technologically sophisticated barcode technology. Peltz, in a press release last month, noted that, “RFID is a great tool, but for all of the inaccuracies and associated high costs, it will not be a viable solution until a significant manufacturing change at the wholesale level occurs.”

That simply means that RFID should be built into items — including apparel, furniture, electronics — so that they arrive in customers’ hands ready to be recorded using RFID.  IoT solutions can help track the location of products during the manufacturing process and throughout the supply chain at the serial number level, which can help to manage delivery expectations. In addition, the identity of the distributor and end customer for any particular product can be immediately known.

Manufacturers of luxury goods can take that tracking information one step further, and ensure  that the products are what they purport to be. Some luxury brands are using the technology to fight counterfeiting. For example, German messenger-bag manufacturer Bagjack two years ago implemented an RFID-based anti-counterfeiting solution from Serfides. Not only does the solution help confirm the authenticity of goods, it also tracks the movement of the bag through the supply chain — ensuring the bags stay on their expected routes.

Products with integrated tags are much easier to process and track, even when original packaging is lost or product labels are damaged. Also, for complex systems for which component level returns must be managed, tags are effective at preventing fraud and abuse of warranty replace policies. And, if a product must be recalled, RFID can make that entire process more efficient.

by Jennifer Bosavage

IoT Adoption By Retailers Set To Soar

The global market of the Internet of Things in retail is expected to grow from $14.28 billion (US) in 2015 to $35.64 billion by 2020, at a Compound Annual Growth Rate (CAGR) of 20.07%. Big names driving and supporting that growth include IBM, Intel Corp., Zebra Technologies, SAP, Google, Microsoft, Freescale, PTC, ARM and Cisco. All those major leaguers are connecting devices to make shopping more personal.

IoT technology can be used for inventory management.

IoT technology can be used for inventory management.

It’s not just retail, of course. Transportation, smart buildings and industrial uses of IoT are growing. But connected technology in retailing is something most of us see and even experience every day. It is becoming embedded in every process of retailing such as advertising and marketing, smart kiosks, vending machines, inventory management, and customer payments. IoT is rapidly connecting with these retailing processes largely because of increasing internet ubiquity, and emergence of cloud platforms.

In addition, the declining cost of sensors and RFID have also significantly increased IoT adoption by retailers. Along with these drivers, the market is facing certain restraints such as lack of common standards, skill gap, and security and privacy concerns. Those are challenges that must be faced for IoT to reach its full potential.

What is that potential? There are a number of ways retail can use IoT technologies, including: product tracking; interactive consumer engagement; dynamic, hyper-local marketing; shopper intelligence; mobile payments; inventory management and asset management.

Retailers can benefit from huge efficiencies gained when devices and data can collect, present and use real-time information in meaningful, actionable ways. Retailers grow more nimble because the information and insights they need are readily available. Stores can program smart screens in an “aware” retail environment that deliver more comprehensive information to shoppers about what they’re looking at, influencing buying decisions, and potentially leading to up-sells. Consumers benefit because connected devices — including POS, cameras and beacons —can help provide improved, more efficient shopping experiences.

by Jennifer Bosavage

Grocers Have M-Commerce In the Bag

A three-year research report, “Consumer Perspectives on Grocery Apps and Digital Trust: Retailer Opportunities for Maximizing Differentiation and Success,” by Saint Joseph University and the Food Marketing Institute, concludes that a mobile app can be a big boost for sales and customer engagement. The lessons in the report are particularly interesting because they can be applied to any vertical market.

Consumers don't seem to have privacy concerns about "M-commerce."

Consumers don’t seem to have privacy concerns about “M-commerce.”

Mobile apps are great ways for stores to keep track of customer purchases are reward them for loyalty. Many stores have such loyalty programs, which drive revenue. Grocery stores have a unique retail advantage because they offer necessities that require regular purchasing.

The report notes that today’s shoppers are more tech friendly and increasingly mobile than in recent years. Mobile devices are used in myriad ways, from couponing to payment to price checking. Although customers enjoy the convenience of the app, savings are attractive also, according to the research.

Nurturing a regular clientele can increase sales significantly, and the data from loyalty programs can help grocers hone in on what drives traffic into their stores on a personal level. It requires fostering “digital trust.” Digital trust is defined in the report as “the confidence placed in an organization to collect, store, and use the digital information of others in a manner that benefits and protects those to whom the information pertains.” Consumer digital trust is vital for sustained growth in consumer personalization and mobile commerce. Currently, privay is not a major concern for users, according to the research:

Digitally active grocery shoppers are aware and knowledgeable of personal data sharing during app use. They express low concern for negative consequences. Digital sharing is an accepted practice and not a deterrent to use. It is not perceived as a violation of rights, infringement of privacy, misuse, or abuse of personal information. Ubiquitous sharing of personal data on Facebook is considered a norm for many consumers, so the personal data collected by grocery shopping apps is viewed as inconsequential.

A high perceived value of such apps is crucial to success. Many retailers with successful apps have differentiated their apps’ functionality. For example, one grocer offered the ability to pre-order at its deli counter. Another retailer’s app is well received for personalized and easily accessed coupons and savings.

What’s interesting is that the grocery segment — with its notoriously slim margins and “old-fashioned” business model— seems to be producing exciting apps that offer clear reasons for customer engagement. This traditional retailer may be providing excellent examples of building m-commerce success, which can be adopted and executed by any other brick-and-mortar business.

by Ulyana Avetisov

IoT in Retail: How Luxury Luggage Retailer Rimowa Gets Connected with Retail Pro®

 

IoT Connectivity Enters the Luxury Luggage Market

Though consumer talk of the impending Internet of Things revolution is still primarily on the buzz, a handful of progressive retailers are converting talk into action and laying the groundwork for connectivity in their operations and products. One such Retail Pro customer is the luxury luggage manufacturer and retailer, Rimowa (pronounced Ri-moh-vah, for its German heritage).

From its genesis in 1898, the company has always been a leader in innovative luxury design, focusing on lightweight construction and stability. Today, they are leading the way with IoT innovation. They have combined the durability of their polycarbonate luggage with the intelligence of modern IoT technology in a smart luggage design that connects, for example, to proximity-based beacons in airports or airline barcodes. Their new Bag2Go will be able to exchange relevant data with beacons and other devices to streamline the check-in process and decreases the likelihood of losing luggage, as notes Skift, a travel marketing platform.

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IoT is Not As New As We Think

Popularity of connectivity is growing among consumers but as a last-year’s article in The Economist on the Internet of Nothings pointed out, businesses have been operating with this kind of connectivity “for ages” and “without any hoopla.” In fact, such connectivity is the fundamental premise to Retail Pro. Its platform design makes it the mission-critical retail management software backbone through which retailers connect all their applications and drive processes.

Tom Nelson, Executive VP for Rimowa Distribution, shared in an interview with Retail Pro how this network effect impacts their ability to connect with customers and earns them a reputation for 5-star service.  “The network of connection – between customer data stored in Retail Pro, geolocation data, and the human connection of stellar, take-on-any-challenge customer service – enabled our company to deliver an excellent brand experience.”

Long before the tech trend’s recent rise to fame, Retail Pro has been giving its customers complete flexibility to “[interope] with adjacent applications,” as a Retail Info Systems article on the new POS put it. Retail Pro is the foundation, connecting all of the data from retail processes – both in stores and online – for a unified, omnichannel view of company-wide operations and customer engagement.

Efficiency and ease of use are without question the biggest benefits in the Internet of Things, and these are hallmarks of Retail Pro. When used in the retail context, such connectivity improves retailers’ ability to mold their processes according to customers’ needs.  It allows them to offer a higher level of contextualization in customer engagement in their corporate and franchise stores everywhere in the world. Retailer support, too, is globally local, with the Retail Pro Business Partner network. In Retail Pro, the Internet of Things has been a longtime reality, without any hoopla.

Enabling Human Connection at Every Point

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Rimowa’s entire philosophy of retail revolves around making the experience special at any touchpoint. Whether it’s service in the field or in stores at the checkout area, Rimowa’s luxury customer experience is enabled by the wealth of customer details stored in their Retail Pro. “Every customer is a VIP customer,” Nelson told us, and they treat them as such. The exclusive VIP area in each store allows for shopper connectivity as well, both technological with Wi-Fi accessibility and personal, with Rimowa sales associates taking time to really get to know their customers.

Rimowa employees love the ease and intuitiveness of using their Retail Pro, because it allows them to focus on clienteling. As part of their engagement strategy, Rimowa is planning to taking on mobile POS. “We’re going to be that cool company on mobile,” Nelson commented. Their Retail Pro Business Partner, Retail Information Systems, is their go-to resource for all their implementation support needs.

The natively mobile Retail Pro Prism®

The natively mobile Retail Pro Prism®

Rimowa uses Retail Pro customer management and analytics features to actively manage their customer profiles and mine their demographics data. With Retail Pro, they access and act on their shoppers’ preferences for special editions and colors. Through it they tell their unique story in every retail interaction – because, as Nelson said, “it’s plug and play,” so they tailored their software to completely reflect the sleek beauty of their brand essence.

Retail Pro software is continuously adapting to ensure that retailers’ tech investment is always two steps ahead of the ever-evolving industry trends and requirements. In addition, Retail Pro takes into consideration the actual, tangible needs in the retail ecosystem, so every process and functionality built into the software is a tool that is critical to simplifying retail life. “They listen to retailers and are committed to innovation. Years and years of expert adaptation and intelligent reinvention make Retail Pro the perfect solution to run my business,” Nelson stated.

The Connected World

The increasing adoption of IoT goods promises more opportunities for retailers and manufacturers to build connectivity into their customer relationships, and progressive companies have been leading the way among their industry peers. With phenomenal luxury luggage and the efficient, integrated retailing made possible by their Retail Pro retail management software, companies like Rimowa are getting connected in the network of IoT.

Want to see how you can get connected with Retail Pro?

 

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Image sources: rimowa.de, The Essentialist

by Jennifer Bosavage

The Internet of Things Is Transforming Retail

The challenge for retailers successfully implementing Internet of Things technology is in offering contextually relevant information to the consumer. Otherwise, the connectivity becomes noise and the merchant risks annoying the customer.

Internet of Things may shape future of ecommerce

Internet of Things may shape future of ecommerce

Push technology, which often uses beacons to alert shoppers to sale or exclusive merchandise, is often misapplied or overused. But there are other connected technologies that don’t involve sending push notifications to the consumer. For example, “magic mirrors” in fitting rooms at retail stores can “track” the piece of clothing being tried on and provide information to the consumer about where that item is available, in what sizes, etc. Neiman-Marcus currently uses the technology, but other higher-end stores are also in the mix. Macy’s and Bloomingdale’s vendors last Fall began using RFID tagging for fashion items, such as social dresses and men’s jackets, for all of the retailer’s stores.

Other examples include tracking the amount of time the consumer actually spends in a particular aisle looking at specific items on the shelf before the app sends any notifications. Of course, push notifications are a part of the IoT plan, but there is more careful planning going on surrounding their implementations: For example, Macy’s is building out its deployment of Shopkick Bluetooth Low Energy (BLE) beacons, to include multiple departments in all stores. That will let shoppers who “opt in” to receive discount coupons and rewards within a store, based on their locations.

Nordstrom, renowned for its customer service well before the age of the Internet, uses beacon technology  to locate customers in or near stores through the geolocation technology in mobile devices. It then targets customers based on consumer preferences and behavior. Nordstrom is one of the retailers using data analytics to help customers move seamlessly between digital and physical worlds, providing the desired information and service while reducing friction.

Data from Forrester Research underscores just how much shoppers want a more streamlined shopping experience. In a recent study of nearly 200 consumers, 71% expect to view in-store inventory online, 69% expect associates to be “armed with a mobile device” and 50% expect to buy online and pick up in-store. Retailers have some work to do to get to that level, but the journey has begun.

“This is going to be a 5- to 10-year journey,” Peter Zaballos, vice president of marketing at SPS Commerce told me recently. “Macy’s and Nordstrom are at the front end of this, but the use of IoT in stores is less about the technology and more about changing consumer behavior and enabling compelling apps that make use of the technology. Think of how long it took mobile commerce to take off. This will not be a fast burn.”

 

by Jennifer Bosavage

Mobile Has a Hand In Building the Brand

 
experiential retail
 

Mobile technology is igniting a renaissance with brick-and-mortars.

Brands are using mobile technology to engage customers in and outside the store as well as at multiple levels: national, regional, all the way down to the local level.

Neighborhood managers, for example, can publish their own promotions and engage their customers with local themes.

Mobile helps bridge the gap between incorporating what corporate wants, and allowing the retailer to put a spin or flair on it, which helps build the customer base.

To compete with huge e-commerce players such as Amazon, retailers need to leverage their “embeddedness” in their communities.

For example: when the local high school football team wins a game, the town’s store manager can publish a sales special to celebrate.

Or, when a heat wave hits a region, the regional marketing director can promote a related product (air conditioners or slushies, anyone?)

Store apps help national chains provide very local interactions to its customers.

That also helps customers feel like they are part of a community within their own community.

While people often think about couponing and discounts for promoting local engagement, much more than that is involved.

Rather than simply sending a coupon, a retailer might invite app users for an event promoting a new collection, giving them a VIP experience when they get to see the new collection before the general public.

While using coupons from a mailer might seem too old-school these days — and forget about clipping them from a newspaper — mobile coupons are perceived as “cool.”

Shoppers who would never think of clipping and presenting paper coupons are happy to show a discount on their smartphone at check out. Segmentation and targeting are critical.

The best retailers are providing an experience that makes their customers feel special and understood by the retailer.

That can best happen when customers share relevant information with the merchant. The value exchange must be very clear.

For example, before asking to enable location services, a best practice is to explain to the customer what’s in it for them: By using their location, the retailer will provide them a better service, reward them for their loyalty, etc.

Customers need to be satisfied with the perceived value of the relationship.

Once the value exchange is explained and understood, there is often very little pushback.

by Jennifer Bosavage

Avoiding the Creepy Factor In Hyperpersonalization

Is hyper-personalization creepy or cool? A recently released Accenture study, “Retail Hyperpersonalization, Creepy versus Cool,”  finds that the answer largely depends on which demographic you’re asking.

While customers appreciate personalization, many are concerned about their privacy.

While customers appreciate personalization, many are concerned about their privacy.

By and large, Millennials seem more into with retailers personalizing messaging. Boomers less so. For example, nearly three times more Millennials (17.2 percent) than Boomers (6.2 percent) think being reminded while shopping about needed items is “cool.” Also, 41 percent of Millennials say they’d welcome retailers stopping them from buying electronics that are not right or are outside their budgets.

Gender influences the perception of what constitutes acceptable personalization as well. Accenture reports that 34% of male respondents think receiving suggestions personalized to account for their families’ food preferences is “creepy.” However, 40% of female respondents consider that type of personalization “cool.”

Some forms of personalization are generally welcomed, though not universally. For example, these implementations are widely considered “cool”:

  • 82% enjoy discounts or loyalty coupons;
  • 59% welcome promotional offers based on items that the customer may be considering or lingering over;
  • 54% like receiving suggestions for items that complement merchandise that the customer is currently browsing.

Conversely, there are personalization efforts that customers find “creepy.”:

  • 36% of shoppers do not want to be greeted by name when walking into a store;
  • 42% don’t want recommendations based on their health issues;
  • 46% don’t want to be dissuaded from a purchase by a sales associate with preexisting knowledge about what the customer currently owns.

That leaves retailers with some specific rules of engagement:

First, they must keep the value proposition from the customer standpoint in mind. There needs to be significant value for shoppers in order for them to be motivated to engage.

Second, it’s important that the customer doesn’t feel overwhelmed. Too many messages or promotions can easily backfire for the retailer.

Third, retailers must be transparent about how any information gathered will be stored and used. Opt-in policies let customers play an active role in the process.

Fourth, retailers should have a system in place to capture and safeguard customer information. There should also be a plan in place detailing how a retailer’s information is to be used and how it will improve business.

Fifth, and finally, building trust is key to success; retailers must work at establishing and maintaining a bond. It’s difficult to establish, yet easily destroyed.

The Accenture study notes that there are three components for implementing a hyperpersonalization solution properly: make it expected, secure and data driven. Doing so provides a foundation for success that will drive profits as well as customer loyalty.