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Impersonalisation:
Nobody Cares
Photo by Rist Art on Unsplash
Methodology
In Q3 of 2019, Valitor commissioned WBR Insights to survey
300 CMOs, COOs, Directors and Heads of eCommerce,
Omnichannel, In-store, Retail, Digital Operations, and those of
a similar standing from across Europe. Respondents were from
organisations under the following verticals: Food & Grocery,
Fashion & Footwear, Furniture & Flooring, Electrical,
Homeware, DIY & Gardening, Health & Beauty.
16%
Fashion & Footwear
13%
Health & Beauty
14%
Electrical
14%
Food & Grocery
14%
Homeware
15%
Furniture & Flooring
14%
DIY & Gardening
Breaking the Cycle of Impersonalisation: Nobody Cares | 3
12% 3% 15% 3%
Sweden
Finland
Norway
Respondents
33%
by Country
Denmark
4%
United
Kingdom Poland
Germany
Belgium
11%
France
Italy
2%
Spain
11% 4%
2%
4 | Breaking the Cycle of Impersonalisation: Nobody Cares
Interview
Q&A with Angus Burrell, General Manager UK, Valitor and
Andrew Howell, Head of marketing at Valitor
What’s separating the best in class retailers from shopping habits and use this to communicate with
the pack when it comes to personalisation? them, which could backfire. Retailers need to make
the customer feel that the data being gathered
Angus: Modern retailers have plenty of data on their
about them aims to benefit them because the retailer
consumers, but many are failing to fully utilise it, and
cares about their journey and experience.
some are still struggling to begin. Intelligent retailers
will start using data once they’ve understood who
their customer is, and what they want in terms of a What advantages will retailers with a single view of
personalised journey. There are a lot of retailers out their customers have over their competitors?
there who still don’t properly understand who their
consumers are. Angus: If a retailer has multiple channels but fails
to connect the data which sits behind them, then
Andy: Personalisation only works when you actually they can’t provide a single view of their consumers.
know why you exist as a business. Leading retailers However, there’s a fine balance in doing this, as some
have invested time in understanding why they exist, customers would feel their privacy is at risk.
and the value that they provide. That’s how they
have managed to bridge that data chasm between Andy: Those that have a single view of all the
them and their end-users in order to personalise different touchpoints, and have educated their
their service, products, pricing and communications. customers on the benefits of a data relationship
will be able to provide better service, and are one
step closer to the seamless omnichannel experience
What’s the difference between personalisation and customers are demanding. What better way to build
privacy invasion when it comes to data? a business than the brand advocacy model?
Key Findings
The greatest barrier to investing
in omnichannel technologies
which help build a single view of
the customer was a lack of time.
The majority say
their tech strategy
is ineffective when
30 %
it comes to building
a single view of the
customer.
of respondents described the acquisition of customer data
as transactional, noting that customers were willing to give
over their data for a tangible benefit.
50 %
of respondents said that an
omnichannel payments solution was
crucial to creating a shopping journey
that would survive the current climate,
however over half said they did not
have such a system in place.
55 %
of respondents reported
that from their customers’
point of view the greatest
52
benefit to passing their
% data over is a personalised
experience.
Contents
8. Part One:
The Battlefield of the Mind
The Modern Consumer
Migrating Between Channels
Loyalty and Collaboration
25. Conclusion
Introduction:
Welcome to the Machine
In the coming year, we’ll spend a collective total of more than 1.2 billion years browsing
the internet. A good deal of this time will be spent ignoring pages of convoluted terms
and conditions, and ticking boxes to grant permissions we don’t fully comprehend.
However, as stories of invasive data usage gain more traction and our awareness around
data grows, the privacy versus personalisation paradox is causing more and more discord
among customers. In large part, GDPR has been the catalyst for this data empowerment.
For any retailer who relies on customer data as a vehicle to brand loyalty, building trust
should be a top priority. With Cambridge Analytica having made huge waves in the
media, customers are becoming disquieted by the idea of faceless corporations like
Facebook spying on them, quietly collecting data in over 52,000 categories ranging from
pragmatically invasive such as ‘living with one or more people who are not family’, to
more jarringly niche categories like ‘pretends to text when feeling awkward’.
Customers are on high alert for corporations who are overstepping the line between
collecting data around buying habits which can be used to deliver a tangible experience,
and prying into personal habits to manipulate the mind. For those that can break open
the black box of data collection and invite customers into a symbiotic relationship, the
opportunity for a customer journey that is fully personalised will cement brand trust and
create loyalty. However, for brands that force customers to subscribe to binary ‘in or out’
personalisation hidden in convoluted terms and conditions, loyalty is at risk, and so is the
future of the business.
In this report, we’ll look at how and why brands are building a personalised omnichannel
experience, and why education around data, its use and the benefits of sharing data is
crucial in building a trust-based dialogue between brand and customers.
1.2bn
YEARS
BROWSING THE INTERNET
IN 2020
8 | Breaking the Cycle of Impersonalisation: Nobody Cares
Part One:
Photo by Javier Garcia on Unsplash
The Battlefield of
the Mind
Breaking the Cycle of Impersonalisation: Nobody Cares | 9
Attention has always been the currency in the For those that don’t have access to customer data,
marketing world, but in an instant everything world, the privacy/personalisation trade-off is key. Building
carpet-bombing the same database with generic the trust to earn access to a customer’s private data
content isn’t enough anymore. Customers are is contingent on creating the most valuable benefit
looking for brands which can make their journey for them: a personalised omnichannel experience.
as effortless as possible by delivering the right Omnichannel is the medium through which retailers
content at the right time. But in order to personalise can begin and maintain a symbiotic relationship with
communications, retailers need customers to trust their customers, showing values and purpose across
them with their data. 55% of respondents reported all channels and reinforcing the brand’s place in the
that from their customers’ point of view the greatest consumers mind.
benefit to passing their data over is a personalised
brand experience.
From your customers’ point of view, what are the biggest benefits from them
supplying you with data?
Personalised experience
55%
Convenience 44%
Exclusive content
39%
Offers and discounts
37%
Loyalty schemes
33%
Customer experience
23%
Easier payments
15%
Respondents were asked to select all that apply.
Breaking the Cycle of Impersonalisation: Nobody Cares | 11
Retailers are catering to a diverse mix of loyal and The disconnect between what consumers demand
nomadic consumers. Migrating these customers onto and what retailers are delivering suggests that
different channels will help with both retention and something is missing from the personalisation
acquisition by showing them the value of a transparent process. 23% of respondents who use these
omnichannel experience. 46% of respondents say migratory tactics identified themselves as retailers
their in-store footprint is linked to their online who don’t use personalisation, but could if they
inventory directly at the shelf so they can drive crunched the numbers.
online sales in-store.
Is your in-store footprint linked to your online inventory directly at the shelf so
you can drive online sales instore?
46%
34%
20%
45%
34%
21%
l Agree l Neutral l Disagree
03 || Breaking
12 The Highthe
Street
Cycle
is Dead
of Impersonalisation:
– Long Live the High
Nobody
Street
Cares
Retailers who have the right data aren’t currently able retailers we surveyed, but over a third said their
to channel this into personalisation, and as such they’re strategies were also being influenced by eyesight
inviting consumers onto disjointed platforms which tracking online, social media engagement and
don’t have the capability to know what they want, or location-based data. With data streaming in from
how best to give it to them. a vast array of channels, retailers cannot build a
complete picture of their customer to underpin their
Payment, purchase and marketing data ranked as network of channels until this data is centralised.
the most common forms of data collection for the
When selecting consumer tech, how much input do you get from your
consumer base?
26%
22% 21% 18%
13%
We collect data We have very little We make We make sure to We don’t get any
from customer input from our assumptions run pilots on a input and launch
surveys consumers but based on the select focus group test technologies
run technology in consumer data of loyal customers to gauge adoption
trials across key we collect without running
stores/online any research
other than desk
research
Which of the following are the most fundamental to creating the perfect
customer loyalty programme?
Price 73% Credit facilities 59% The human touch 53%
Full omnichannel
experience
68% Social media buzz 58% Speed of delivery 51%
Later payment
options 63% Returns policy 57% Warranty 49%
Part Two:
Photo by Marius Masalar on Unsplash
Which of these are the main barriers to investing in true single omnichannel
technologies, rather than multiple independent technologies in a patchwork
omnichannel framework?
47%
39%
35% 34% 34% 33% 32% 32% 31%
16%
Time Retention Lack of Legacy Resources Lack of Lack of Cost Vision Too much
isn’t a key care systems knowledge understanding focus on short
part of the term tactics
business
strategy
Respondents were asked to select all that apply.
Breaking the Cycle of Impersonalisation: Nobody Cares | 17
Synchronising Omnichannel
The majority of respondents said an omnichannel one gateway that caters for all in-store and online
payments solution was crucial to survive in the transactions, and reconciles payment data across
current climate, as it allows you to present the all channels automatically. A few respondents
most relevant purchase journey based on customer considered manual reconciliation of separate
preferences and channel, while also positively platforms to be omnichannel, despite the inherent
impacting the customer experience through multichannel silage of data.
personalisation. Over half of respondents followed
up on this, reporting that they had invested in an In addition to this misconception, 18% of the Heads
omnichannel payments solution. of eCommerce who reported that they had an
omnichannel payments solution also said their
However, it should be noted that there was a gap strategy included two completely separately
in respondents’ knowledge when it comes to functioning portals for online and in-store, without
omnichannel payments. While the majority said even manual reconciliation.
they had one, under half reported that they had
46 YES %
54 NO
%
03 || Breaking
18 The Highthe
Street
Cycle
is Dead
of Impersonalisation:
– Long Live the High
Nobody
Street
Cares
The fundamental lack of understanding of what move past the tipping point. As the majority of
omnichannel means is what has kept it as an empty retailers with an omnichannel payments solution
buzz word for so long. In reality, there are many continues to grow, it’s going to become more and
multichannel retailers who misidentify themselves more difficult for brands who are still entrenched
as omnichannel, even though their customer data is in traditional legacy systems to differentiate
siloed across channels. themselves. This is the last call for retailers to wake
up and start acting on the customer demand that
Despite this, the fact that almost half of respondents they’ve been leaving on the back burner.
are using an omnichannel payments solution is
a good indication that the industry is about to
47%
37%
16%
Part Three:
Photo by Matthew Henry on Unsplash
Privacy Versus
Personalisation
Breaking the Cycle of Impersonalisation: Nobody Cares | 21
45% YES
55% NO
Do you have an education programme for customers around the use of their data?
We have a contact Yes we have a range We have the basics We don’t provide We haven’t
strategy and a few of materials and but don’t actively anything more than considered it
articles on data also work with our promote the benefits standard privacy
protection customers to ensure of giving data to us terms and we don’t
they feel confident have a provision to
with giving us data capture or utilise
personal data to
improve services and
retain customers
22 | Breaking the Cycle of Impersonalisation: Nobody Cares
Making a Trade
Knowing what customers want is only half the Despite 55% saying a personalised omnichannel
battle. The next challenge is figuring out how to is the number one reason to offer up their data,
give it to them – or rather how to convince them only 24% said their customers are happy to share
to let you give it to them. The most sophisticated data in return for a well-rounded experience with
personalisation technologies mean nothing if a their brand. There’s clearly some dissonance here,
consumer doesn’t trust a brand with their data. So and it may stem from the fact that the level of
how are leading omnichannel retailers acquiring personalisation and seamlesness across channels
permission to personalise? that is currently being offered is not meeting
customer expectations. This could explain why the
When we asked retailers how they would characterise most popular tactics at the moment are focusing
their customers’ relationships with granting permissions, on short-term acquisition rather than long-term
the most common answer was that 36% said their retention. The demand is there, but retailers haven’t
customers were very protective of their data and realised the full potential of omnichannel yet.
rarely offered access. 30% said that for a tangible
benefit such as discounts or free Wi-Fi, customers
would share data, but it is often pre-purchase and
mostly useful for marketing personalisation.
How do your customers interact with your business when it comes to your use
of their data?
10%
l Our customers are very protective of their
data and rarely offer permissions
36% l
For a tangible benefit e.g. discounts or free
Wi-Fi, our customers will share data, but it
24%
is often pre-purchase and mostly useful for
marketing personalisation etc.
30%
Photo by FuYong Hua on Unsplash
Breaking the Cycle of Impersonalisation: Nobody Cares | 23
How do you explain to consumers the benefits of passing over their data?
l Written education, sent to all new and existing
40% customers by email
23% l
We don’t do targeted personalised
communications, we use mass marketing
across digital and direct media
23% l Notifications within apps and on websites
highlighting the opportunities from giving
over more data.
51% 51%
About
At Valitor, we take care of our customers’ payments, and headquartered in Iceland, we operate across 22
which means they can focus on buying and selling. European countries with a strong presence in the UK,
Ireland, Nordics and pan-European retail.
Valitor is guided by three principles: we think
differently and solve your problems simply; we We provide a single connection to receive
always put our customers first, and we build our own payments across e-commerce, in-store and mobile.
solutions, so you know they will work perfectly. Our omnichannel payment solution simplifies
payments processing and helps merchants expand
We remove complexity from payments, using our internationally, consolidate service providers,
own technology, solutions and regulated services to add or merge sales channels, and implement true
help merchants stay focused on their business. omnichannel experiences.
About
At WBR Insights we conduct professional, executive Contact us to find out how your business could
research in key industry verticals. We use this benefit from:
research to create content-powered marketing
campaigns designed to kick-start dialogue, share l Year-round access to our network of
insights, and deliver results. decision-makers and industry leaders
l Lead generation campaigns that fit
From whitepapers focused on your priorities, to
your priorities
benchmarking reports, infographics and webinars,
we can help you to inform and educate your readers l In-depth research on current fast-moving
and reach your marketing goals at the same time. issues and future trends
l Promoting your organisation as an authority
in your industry.
Russell Tumath
Head of Insights
+44 (0)20 7368 9368
Russell.Tumath@wbr.co.uk
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