Personalization in Practice
Let’s use a fictional company called Ace Shopper (“Ace”) and a fictional customer named Hank to illustrate the above concepts in action. Ace is a specialty consumer electronic superstore that actively profiles its buyers with customer 360-degree view analytics. Their records have Hank on file as a busy executive with three teenage children, two of whom are musically gifted. In the past 3 years, Hank’s family has spent over $10K/year on musical instruments and accessories in the store.
Ace’s marketing department categorizes its customer population based on the most distinguishing features, which are found to be indicative of their spending patterns. Hank is categorized in a group containing highly-educated parents with college-bound children. His purchase records show a preference for high-end electronics and incidental interest in laptops.
When a new electronic keyboard came onto the market, Ace’s marketing department ran their recommendation engine and found Hank to be a top 10% match. Ace proactively includes Hank in their email campaign on seasonal product releases. The email addresses Hank by name and thanked him for his purchase items in the past on year.
Soon after the email campaign, the customer tracker application lists Hank as a customer whose interest level moved from “unaware” to “interested” due to his short visit to Ace’s eStore. The marketing platform does not fire additional emails yet, but starts retargeting Hank with ads for musical instruments.
In a few months, when summer break nears, the tracking application picks up frequent visits by Hank on the eStore and each time the click trail dives deeper into product details. Click-tracking software also picks up signs of comparison shopping. Hank’s readiness status is now upgraded to “active”. With this status, the marketing platform now authorizes promotions valued up to 5% of Hank’s annual purchase.
At the same time, one of Hank’s Facebook influencers posted a complaint about a failed circuit board on an electric guitar, to which Hank actively responded. Apparently, this issue worried Hank sufficiently enough that he opened a chat session with an Ace sales agent. Before responding, the agent sees Hank’s readiness status, purchase history, issue list, and suggested promotional offers prepared by the customer analytic engine. The agent greets Hanks, assures him on the quality of the new product line, and offers a free two-year extended warranty plus an invitation to attend an in-store live performance by a famed local artist. Within a week, Hank became a happy repeat customer.