Accurately predicting what to sell each customer and at what price is a difficult task, but a necessity when it comes to keeping customers happy.
The tricky part is effectively using data from all channels to make these predictions. It is no easy feat, and despite the many advancements we’ve seen in recent years, there is still a lot to learn about personalization across multiple channels.
Data is dirty: It always has been. Cleaning and preparing data to run models is the first challenge retailers face when beginning the personalization process.
Modeling the freshly cleaned data properly is a task that if done poorly can be detrimental to the outcome of the entire project. Hiring the best data scientists ensures higher quality results but is a considerable challenge in a competitive marketplace.
Retailers have advanced to the point where marketers can generate and send out personalized campaigns and offers, but the legacy systems in-store will not allow customers to check out with their unique offers. Upgrading these systems will pose one of the largest challenges overall because of how costly and time consuming it is!
Customer is the new product:
When retailers drop the idea that they need to offer promotions that are product centric and move toward a customer-centric approach it improves margins. Once margins improve retailers have the opportunity to acquire more market share! And who doesn’t love that idea?
Transforming people, process and technology is a long-term vision that needs an entire organization on board for success. Showing off the benefits and possibilities personalization can offer is the first step to getting people on board . Offering customer centric training for employees, implementing change management plans and upgrading in-store hardware are all pertinent steps to getting the ball rolling.