By Cheryl Black, CEO, You Technology
Today’s consumers respond to personalized engagement with the retailers they love and trust, but building strong relationships doesn’t happen overnight.
Retailers navigate a maze of platforms in order to digitally engage with their shoppers – from beacons to digital wallets, intelligent shopping carts to social media. But no platform has proven more effective at converting online engagements into in-store purchases and engagement than digital offers - consistently promoted - on retailer websites, mobile apps, and emails.
This is because of the best-in-class technology driving digital offers, as well as strong point-of-sale integrations that enable true personalization and flexibility for retailers. Based on our proprietary data, there has been a 42 percent increase in coupon redemption over the past year alone. Additionally, retailers that personalize offers for its shoppers see a tremendous increase in conversion rates - a 101-percent increase in the offer redemption rate above non-targeted offers. Prioritizing investment into digital offer platforms for both retailers and brands is critical to driving increased sales and top-of-mind brand awareness with shoppers.
Building a Strong Retailer-Shopper Experience
Creating personalized offers and content for each individual shopper is crucial to building a strong retailer-shopper relationship. And who has better insights than retailers into the regular patterns of shoppers to achieve this goal?
Industry research shows that shoppers are willing to share personal data in exchange for better experiences. Nearly all consumers are willing share their information as long as it is used consistently and accurately. With digital offers, retailers can reach shoppers with the offers they are interested in, when it makes the most sense for them. This makes for a win-win between customers and retailers.
Over the years, point-of-sale (POS) systems have integrated with a range of capabilities, from inventory management to sales reporting, and now with the growing importance of personalization, integrated digital offers offer great promise. Utilizing what retailers know about shoppers, modern POS systems enable retailers to streamline the process of rewarding shoppers with individualized digital offers.
Creating Truly Personalized – Individualized – Offers
Retailers utilizing a digital coupon content and technology provider that is integrated with POS can leverage shopper data to reward and support loyal customers, and attract and retain new customers. According to a recent study, more than half of consumers want a personalized experience with brands and retailers, in addition to rewards and savings based on past purchases.
As a result of the demand for personalization, an increasing number of retailers are using You Tech’s relevancy ranking and targeting for digital offers and coupons, which makes it easier for shoppers to find timely offers that are pertinent to their needs.
Emailing shoppers with desirable personalized offers is not only helpful, but also highly motivating for the customer. Retailers who take the time to deliver relevant digital offers to shoppers will have an enormous advantage in attracting customers with what they want because digital offers uniquely give marketers the ability to target, personalize, and measure return on investment (ROI) very precisely. Retailers powered by You Tech saw a 13 percent redemption rate last year instead of just 0.4 percent with paper coupons.
In addition, we see the highest traffic to our retail partners’ sites on the first day that coupons are live. Running digital offer promotions gives retailers a 3.4x lift in redemption volume compared to days that have no promotions.
Retailers can delight their shoppers by anticipating their specific needs. It’s also important to remember that sending offers that aren’t relevant or valuable will likely backfire. Shoppers won’t engage, they’ll ignore retailer messages, and they might even decide retailer promotions are no better than spam.
How To Take Advantage of Personalization & Digital Offers
Integrating new technology, like digital offers, into current POS systems to take advantage of personalization can seem like a daunting task, but it doesn’t need to be.
Today, POS vendors are partnering for turnkey digital coupons as a feature making it easier for retailers to take advantage of software that seamlessly integrates into their existing system, allowing consumer access to digital offers via mobile and desktop apps.
Retailers who use digital offers with granular information, big data analytics and accumulated expertise develop trusting, loyal relationships with consumers who can become ongoing brand advocates. So what can we expect next as digital offers are adopted by more and more retailers? More integration of technology and analysis across the shopper’s journey as retailers take full advantage of emerging opportunities in new technology.
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