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Breaking the Cycle of

Impersonalisation:
Nobody Cares
Photo by Rist Art on Unsplash

A WBR Insights & Valitor White Paper


2 | Breaking the Cycle of Impersonalisation: Nobody Cares

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.

The survey was conducted by appointment over the


telephone. The results were compiled and are presented
here with analysis and commentary.

What kind of retail organisation


do you work for?

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

We sat down with Angus Burrell, the General Manager at


Valitor in the UK and Andrew Howell, Head of Marketing at
Valitor to find out more about how retailers can earn trust and
build a data relationship with their consumers. Here’s what they
had to say...

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?

Andy: Privacy invasion is a result of impersonalisation


that comes from not understanding why your business What are the biggest challenges for retailers who
exists. By fully understanding your customer’s needs, are seeking to create a personalised omnichannel?
and building a brand which really resonates with that,
retailers will have a solid basis for a dialogue that Andy: People are a lot more aware of their data
continues to remind customers why they shop with you. nowadays, and this represents a great opportunity.
However, retailers who are convinced that flashy
Angus: Retailers need help from their customers tech such as AI will be the silver bullet will be at a
of respondents reported that customers want
in the quest for personalisation. There are many disadvantage. Before bringing advanced technology
shoppers who, by the very nature of their shopping into the equation, retailers need to fully understand
stores to act as showrooms for online products
habits, don’t provide retailers with an accurate their customers. If the data relationship isn’t there,
(33%) or distribution hubs for online (31%).
picture of their personal data. If a customer buys
an unsuitable item online and doesn’t get around to
and customers don’t trust retailers, then the strategy
will be built on bad data. Retailers need to educate
returning it, the retailer will have no idea. They will consumers on how handing over their data will make
start to build an inaccurate picture of the customer’s their lives easier.
Breaking the Cycle of Impersonalisation: Nobody Cares | 5

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.

51 % are able to target their communications based


on customer data, while 31% say they have the
data to do this, but haven’t crunched the numbers.

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.

said their education


programme around the
use of customer data
was standard, basic or lacking.
6 | Breaking the Cycle of Impersonalisation: Nobody Cares

Contents

8. Part One:
The Battlefield of the Mind
The Modern Consumer
Migrating Between Channels
Loyalty and Collaboration

15. Part Two:


Selecting the Right Tech to Drive Loyalty
Creating a Single View
Synchronising Omnichannel

20. Part Three:


Privacy Versus Personalisation
Breaking the Black Box
Making a Trade
Education and Retention

25. Conclusion

26. About Valitor / About WBR Insights


Breaking the Cycle of Impersonalisation: Nobody Cares | 7

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

The Modern Consumer


While additional channels have afforded retailers has allowed retailers to build unique relationships
new opportunities to interact with customers, they with each of their customers. Instead of being swept
have also amplified the saturation of marketing into a vague age/gender/region profile, consumers
communications to new levels. With so many are treated as individuals based on their previous
messages on so many platforms, it can be difficult to interactions. Of the 300 Heads of eCommerce we
stand out. surveyed, 51% are able to target their communications
based on customer data, while 31% say they have the
Instead of adding to the noise, leading retailers data to do this, but haven’t crunched the numbers.
have been trying a different tack. Personalisation

What relationship do you have with your loyal customers?

l Our loyal customers return due to brand


loyalty, experiential preference, and the
18% personalised interactions we build around
23% them individually

l Most of our loyal customers are brand


loyal, and can be specifically targeted and
managed using contact strategies based on
their preferences and previous purchases

l Most of our loyal customers are brand loyal,


and although we don’t have a personalised
31% contact strategy for them, we could if we
28% crunched the data properly

l Our customers are loyal, however, if we overly


communicated with them, they would leave
03 || Breaking
10 The High the
Street
Cycle
is Dead
of Impersonalisation:
– Long Live the High
Nobody
Street
Cares

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

Migrating Between Channels


By migrating new and existing customers onto and This is a good example of migratory tactics
through different channels, retailers can start to build permeating bricks and mortar to bring all channels
a single view of them, and create a more personalised into one experience. However, if these channels aren’t
engagement strategy based on this view. If a retailer underpinned by the same data, then there cannot
has a truly omnichannel customer journey, then we can be a seamless omnichannel experience, meaning
think of their channels as making up one whole, seamless customers may be driven to channels which don’t
experience. Ensuring that customers get the chance stock the correct inventory, or offer them irrelevant
to see the value of multiple channels within one single suggestions. A whopping 52% of respondents who
holistic experience with unified personalisation across use migratory tactics said they don’t have a single
the board is crucial to gaining access to customer data. view of their customers.

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%

Yes No, but we’re No


working on it

To what extent do you agree with the following statement:


‘We make the most out of the opportunities our bricks and mortar stores create
for us to capture consumer data and migrate customers into other channels’

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

What type of consumer bases do you currently rely on most?


l Online l In-store
70% 61%
60% 59%
47% 47%
40% 44%

Loyal Unknown Repeat customers Nomadic customers


customers footfall (Customers who return (those who flit
but aren’t identifiable) between brands/
retailers based
on price)
Respondents were asked to select all that apply.

What customer data do you collect to inform strategic decisions?

Payment data including


type of payment 39%
Purchase data 38%
Marketing data 37%
Eyesight tracking online 36%
Social media engagement data 35%
Location data 33%
Returns data 31%
Heat mapping in stores 31%
Fulfilment data 29%
Refunds data 27%
Channel data 24%
Data based on time of day 8% Respondents were asked to select all that apply.
Breaking the Cycle of Impersonalisation: Nobody Cares | 13

Loyalty and Collaboration


41% of our respondents said they receive little or Respondents thought that price (73%) was the most
no input from customers when choosing customer important element of a good loyalty scheme, closely
facing tech. While retailers are identifying the followed by seamless omnichannel (68%). Incorporating
most integral parts of loyalty, there is still a chasm price as a significant aspect of a loyalty scheme is
between retailer and customer when it comes to counterintuitive. True customer loyalty isn’t based
implementing these insights, as there is very little on price, and while enticing deals can be useful to
focus on testing strategies with consumers before acquire new customers, retention is much more
pushing them to market. This is a symptom of the valuable. This is why it is essential that brands listen
divide between customers and retailers which has to their consumers and collaborate with them to
seen many well-established brands crumble in the meet their demand for a fully integrated and
past few years. However, as the symbiotic model of personalised omnichannel experience.
omnichannel continues its trajectory, we can expect
to see much more collaboration between leading
brands and their consumers.

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%

Good reviews 61% Quality 55% Influencer promotion 49%

Loyalty solution 60% Personalised offers 55% Customer Service 48%

Refunds 59% Payment options 54%

Respondents were asked to select all that apply.


14 | Breaking the Cycle of Impersonalisation: Nobody Cares

The Battlefield of the Mind


l With the massive number of marketing messages
on new platforms, retailers are differentiating
themselves with personalisation. 51% are able to
target their communications based on customer
data, while 31% say they have the data to do this,
but haven’t crunched the numbers.

l 55% of respondents reported that from their


customers’ point of view the greatest benefit to
passing their data over is a personalised omnichannel
experience. However, to make the most of this hook,
there must be proper measures in place to educate
consumers on the benefits of sharing their data.

l Retailers are using migratory tactics to move new


customers onto different channels. 46% of respondents
say their in-store footprint is linked to their online
inventory directly at the shelf so they can drive online
sales in-store. However, encouraging shoppers into
multiple channels is futile if you don’t know what they
want, and how best to give it to them. Photo by Javier Garcia on Unsplash
Breaking the Cycle of Impersonalisation: Nobody Cares | 15

Part Two:
Photo by Marius Masalar on Unsplash

Selecting the Right


Tech to Drive Loyalty
16 | Breaking the Cycle of Impersonalisation: Nobody Cares

Creating a Single View


Having a single view of each customer is the basis For those who feel they can’t spare the time, it may
of a truly omnichannel strategy. If a customer feel like they’re taking the path of least resistance.
interacts with one channel, the data from that This is simply not true. By digging themselves
interaction should inform and improve the journey deeper into legacy systems and traditional methods,
through others, to provide a seamless omnichannel they are edging further away from the most
experience. However, the majority of respondents basic priority: customer demand. With the retail
said their tech strategy was ineffective for building industry in such a turbulent period, brands must be
a single view of their customers. Given that a single responsive to their customers if they are going to
view is the key to meeting customer expectations survive. Retail has reached the omnichannel tipping
and gaining access to data, this should be a clear point, and we’ve already seen major casualties on
focus for retailers. the high street from those who relied on short-
term price-slashing tactics rather than listening to
In the previous section we discovered that 55% of their customers and acting on their demand for a
retailers thought personalised brand experience personalised omnichannel. Having the necessary
was the main benefit that customers would pass over tech to sustain a single view of the customer is fast
their data for. So why are the 31% of the retailers who becoming a prerequisite – one which retailers must
have gone to the trouble of collecting the necessary make time for.
data to personalise communications neglecting
this expectation? The second most common barrier to investing in
building a single view of the customer (39%) was
The Heads of eCommerce we surveyed said a lack that retention was not a key part of the strategy,
of time was the main barrier to investing in with 35% saying they didn’t care enough to invest
a truly omnichannel technology, rather than time and resources into creating an omnichannel
multiple independent technologies in a patchwork strategy. Considering the current state of the
omnichannel framework. Figuring out which tech high street, the lack of urgency around meeting
you need to support an omnichannel strategy can be customer demand and driving retention is shocking.
time consuming. However, by making sure the proper A major shift towards omnichannel has begun, and
infrastructure for personalising an omnichannel it is perhaps this blasé attitude towards customer
experience is in place, leading retailers have not expectations that has led to the collapse of so many
only given themselves the competitive edge, but big brands, while other more perceptive retailers
have also saved themselves more time and resources have enjoyed a renaissance.
further down the line.

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

To what extent do you agree with the following statement:

‘An omnichannel business strategy around


payments is critical to survive in the current
50%
climate. This allows you to present the
most relevant purchase journey based on
customer preferences and channel, while
29%
also impacting positively on the customer
experience through personalisation.’ 21%
l Agree
l Neutral
l Disagree

Do you have a connected omnichannel payment solution? 

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

If you operate across multiple channels, what does your payment


platform look like?

47%
37%

16%

We have one gateway We have two gateways We have two


that caters for all and manually reconcile gateways and they
in-store and online the information to operate completely
transactions allowing us build a single view of independently
to reconcile payment customer behaviour –
data across all channels we then converge this
automatically, and then with existing customer
blend it with shopper data to build a picture
data to build a single of customers
view of the customer
Breaking the Cycle of Impersonalisation: Nobody Cares | 19

Selecting the Right Tech to


Drive Loyalty
l Despite the customer demand for a personalised
omnichannel experience, the majority of respondents
said their tech strategy was ineffective for building a
single view of their customers.

l The Heads of eCommerce we surveyed said a lack


of time was the main barrier to investing in true
omnichannel technologies. However, ignoring
this customer demand now will further entrench
legacy retailers in traditional systems, making it more
difficult to overhaul them later on.

l With so many retail brands collapsing, not enough


attention is being paid to meeting customer demand
to build loyalty. The second most common barrier
to investing in building a single view of the customer
(39%) was that retention was not a key part of
the strategy.

l 18% of the respondents who reported that they had


an omnichannel payments solution said their strategy
included two completely separately functioning
portals. This highlights a misunderstanding of
Photo by Marius Masalar on Unsplash

omnichannel, which could explain why brands have


been failing to meet customer demand.
20 | Breaking the Cycle of Impersonalisation: Nobody Cares

Part Three:
Photo by Matthew Henry on Unsplash

Privacy Versus
Personalisation
Breaking the Cycle of Impersonalisation: Nobody Cares | 21

Breaking the Black Box


The days of pages of binary ‘in or out’ Ts and Cs are of respondents reporting that they have a single or
over. New levels of data awareness have replaced omnichannel view of their customers, over half said
previously blasé attitudes, and the privacy paradox that when it comes to educating consumers on the use
is now front and centre in the media. Convoluted or of their data they offer standard, basic, or no solutions.
poorly displayed terms sow suspicion in customers
with the implication that a brand is trying to Opening up and educating customers on this black
hide something. So, in order to build trust with box of personalisation will help build a relationship
a customer, choice is key. If users are able to set that goes two ways to benefit both brand and
limitations on their personalisation, and choose how customer. Due to the buy-in from those engaging,
their data is used, brands must refine and distill the this dialogue will help to create a customer journey
field of reference around what they’re selling and that strikes all the right notes when it comes to
offer something customers actually want. personalisation without violating privacy.

At the moment, customers have very little visibility or


choice when it comes to their data, and despite 45%

Is your technology strategy effective in building a single view of a customer?

45% YES
55% NO
Do you have an education programme for customers around the use of their data?

25% 23% 22% 19%


11%

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.

l Our customers are happy to share data in


return for a well-rounded experience with
our brand

l We don’t think our customers really think


about our exchange of data that much

30%
Photo by FuYong Hua on Unsplash
Breaking the Cycle of Impersonalisation: Nobody Cares | 23

Education and Retention


The education around data is going to be the one programme needs to be built on a completely
major key factor in the acquisition of new customers, transparent understanding of what data will be used
the retention of existing customers and in the creation for, and needs to connect the narrative straight away
of a future-proof data strategy. Technology is integrating to what’s in it for the consumer.
into our lives on a more granular level every day –
this is a trajectory that has been set. Ignoring this While 23% of respondents aren’t currently tailoring
instead of taking the initiative to educate consumers communications to customers, brands that are taking
on the use of their data is a complacent move by any a more personalised approach are using a range of
strategic retailer. platforms to explain to customers the benefits of
passing over their data. The most common method
The implications for this in retail when we look to is via email, which is also the channel which respondents
the long term are that the data-driven focus on reported having the highest engagement. However,
personalisation is here to stay, as are the retailers many have also been peppering education throughout
who can master it. So it’s crucial that brands are able other channels, including video education across
to build a solid foundation, and get personalisation social media (26%). Those who used in-app
right. In terms of retention and acquisition, it’s clear notifications and made calls to consumers were 11%
that education should be a priority. The education more likely to have a single view of their customer.

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

l Video education across social media


26% l Calls to individual shoppers to understand how
we can gather data best for them and what
23% their concerns could be.

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.

Which of the following 60% 60% 46% 46%

channels are best for Experience centres


50 %
50 %
Personal concierge facility
59% 59%
engaging consumers,
and which channels AI
58% 58% 62%
Genius bars – as per Apple
62%

are you investing 54% 54% 62% 62%

the most time and 55% 55% 64% 64%


Printed mail Store front
resources into? 57% 57% 50% 50%

54% 54% 69% 69%


l Channels which receive Social media Email
best engagement 59%
59%
53%
53%
l Channels you are investing
most resources into 53% 53% 60% 60%
Chat bots Face-to-face
59% 59% 52% 52%

51% 51%

Respondents were asked Mail order telephone


64% 64%
to select all that apply.
03 |
24 | Breaking
The High the
Street
Cycle
is Dead
of Impersonalisation:
– Long Live the High
Nobody
Street
Cares

Privacy Versus Personalisation


l Despite 45% of respondents reporting that they have
a single or omnichannel view of their customers, the
majority said that when it comes to educating
consumers on the use of their data they offer
standard, basic, or no solutions.

l Only 24% said their customers are happy to share data


in return for a well-rounded experience, despite 55%
of respondents reporting that the top reason for sharing
data is well-rounded personalisation. Again there appears
to be a disconnect from customer demand fostered by
retailers misunderstanding or delaying omnichannel.

l Transactional tactics are most useful for acquiring


new customers’ data, but when it comes to retaining
loyal customers, personalisation is key. Education
around how customer data is used will be integral
to retention strategies, and will allow for a symbiotic
relationship between brand and customer. Retailers
who used these channels to educate customers were
11% likelier to have a single view of their customer. Photo by Matthew Henry on Unsplash
Breaking the Cycle of Impersonalisation: Nobody Cares | 25

Conclusion: The Tipping Point


To survive in the new world of commerce, brands return, and further to this, they’re going to have to
need to understand how they are going to provide convince consumers of its worth. Our research has
for the new customer and the loyal customer alike. shown that a personalised omnichannel experience
Full transparency around the usage and benefits of and relationship can be both the platform for that
data will act as both an incentive for new customers communication, as well as the incentive. By migrating
and a channel for dialogue with loyal customers. customers between channels, retailers can show
Personalisation is the answer to a saturated market, consumers the value of their brand, and gain enough
and education will play a pivotal role in creating a trust to use consumer data in a way that benefits
dialogue between brands and customers when it both brand and consumer.
comes to data and managing the level of success
around data and personlisation. Retail is at a tipping point, and for those who turn
away from the omnichannel future, and the possibility
In order to build a single view of their customers, of a dialogue with their consumers, more may be at
retailers are going to have to offer something in stake than they realise.

Photo by Farhan Siddicq on Unsplash


03 |
26 | Breaking
The High the
Street
Cycle
is Dead
of Impersonalisation:
– Long Live the High
Nobody
Street
Cares

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.

We are an international payment solutions company That’s the Valitor Difference.


and one of the few who offer end-to-end solutions
with payment acceptance, issuing, omnichannel Please visit www.valitor.com to find out more.
gateway and point of sale services. Founded in 1983

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
©Valitor & WBR Insights 2019. All rights reserved. This document and its content are proprietary to Valitor & WBR Insights and
may not be reproduced, republished or resold. The information contained within is provided on an “AS IS” basis for information
purposes only and Valitor make no warranties of any kind including in relation to the content or suitability. The name Valitor, their
logo and any associated brand names are all trademarks of Valitor.

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