Ways to turn around poor customer experience using personalisation

Personalisation – the application of data analytics to identify patterns of customer behaviour to improve their engagement or retention – traditionally focuses on enhancing positive experiences such as browsing and buying. Yet could personalisation be used to turn around a seemingly unchangeable, negative customer experience that also benefits the retailer? Here are some ideas…

Personalising the complaints process to drive better customer engagement

Making personalisation effective is challenging – it requires a high level of data integrity and can be costly to implement. When it goes wrong it can irritate customers or worse, make them feel like a retailer doesn’t know them at all – for example, consider the negative impact on customer experience of repeatedly receiving the same unwanted product recommendations when shopping online.

Could this failure be caused by a retailer’s approach to personalisation that arguably only focuses on purchasing and other positive behaviour? Whereas what is also required is a complementary understanding of an individual’s dislikes and pet hates about its brand.

For instance, rather than using a generic approach a retailer could personalise its complaints process. This could involve asking the customer who is making the complaint specific, personalised questions about the totality of this experience with the retailer (e.g. pricing, quality, service) to better understand what this individual really feels about its brand – i.e. use this moment of catharsis to gain a deeper, more rounded understanding of a customer’s expectations. The retailer can then use these hard to reach insights to dynamically inform its future engagement with this individual – complaints as a source of brand loyalty and advocacy.

However, this disruptive approach arguably feels counter-intuitive and commercially risky; it will require new types of behaviour from (and greater trust between) customer and retailer alike to be successful.

Incentivising a customer to keep an unwanted item

UK retailers are losing billions of pounds a year from managing reverse logistics costs for returned items across their physical and digital channels. Because of the multiple touch points involved margin can often deteriorate to a point where writing off the item as a loss is a better outcome than resell.

A retailer could lever cloud big data analytics to make an on the spot personalised counter offer to a customer alongside the standard return via a returns app. This could draw from the customer’s buying history and social media behaviour. The counter offer could ask the customer to keep the item in exchange for a future discount, special cross sell opportunity or third party offer (so eliminating the return cost and refund while driving future sales).

However, this disruptive approach to returns will need additional safeguards to mitigate risks of customer fraud or ‘gaming the system’ for unintended benefit.

Sharing insights with competitors to deliver unfulfilled customer orders same day

With the growing threat of digital disruptors like Amazon offering same day delivery on everything including groceries, customers are increasingly becoming more disappointed when other retailers can’t match such an experience. One example is Sainsbury’s acquisition of Argos was in part driven by a desire to access Argos’ supply chain capabilities that offer fast track delivery.

To combat this challenge, high street retailers could use a cloud-based platform to share local inventory information, fulfilling orders immediately for each other when the chosen retailer is out of stock – a faster, more convenient personalised customer experience than their online rivals. This approach to supply chain collaboration would also enable retailers to potentially increase the range of products they physically offer in store without needing to carry additional inventory.

However, for this form of coopetition to be successful it would need to have clear bottom line benefits for all participants given the risks to their market share involved.

If you would like more information about how Sopra Steria can help your organisation benefit from personalisation please contact the Sopra Steria Digital Practice.

Published by

Mark Howard

Mark advises on user centric digital service design & transformation with a focus on tangible business benefits realisation. His passion is helping organisations to transform how their people use digital ways of working to interact with users to deliver an seamless, integrated customer experience. Mark’s recent private sector experience includes delivery of a mobile application prototype for a European business services company and advising a major UK high street retailer about using enterprise social media tools to drive competitiveness. Mark has 10+ years consultancy experience advising blue chip Telco, FMCG, Retail and Pharma clients as well as UK Central Government. Mark holds an MBA from Open University. www.linkedin.com/in/mark-howard-mba/

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