• by Michael Sands , Columnist, July 10, 2017

What are you doing Monday night, say, around 9:00 Eastern Time? 

If you’re like 70% of digital consumers, you plan to check out Amazon when it hosts its third annual members-only Prime Day sale — this year boasting an extra six hours of deals, plus two more for voice shoppers via the Alexa personal assistant. And if you’re a rival retailer, you’re hoping to garner interest from the 60% of online buyers likely to take a look at the competition while they’re at it.  

Amid murmurs of a “Retail Armageddon” Prime’s combination of cutthroat pricing, unrivaled merchandise selection and free shipping may seem insurmountable. But there is an area where other retailers can gain an edge: personalization. 

According to BloomReach’s second annual “State of Amazon” study, only one-third of U.S. consumers believe Amazon’s site personalization and product recommendations are superior to other retailers, and 41% claim they would shop elsewhere if personalization were improved. This leaves open a huge window of opportunity for retailers who are not ready to pull down the shutters — and who are ready to invest in strategies to get it right.

Notwithstanding personalization’s explosive headliner status in industry publications and conferences, most brands still don’t seem to have it down. In a study of the top 100 online retailers, less than half have even mastered the basics: Only 39% are able to suggest relevant offerings based on a returning shopper’s past browsing behavior on their site, and only 17% are able to track a customer’s cross-device activity to personalize recommendations, even when the shopper has logged in to the same account. 

Personalizing the retail experience is another manifestation of the customer identity problem that is hindering marketers’ ability to deliver relevant experiences anytime, anywhere. In practice, a solution to this problem leverages all parts of the martech stack, integrating all of a brand’s digital data with any offline sources — CRM, loyalty, even call center data — and tying it all back to a persistent profile that continues to update as an individual switches among channels, platforms and devices. 

This is an easy way to holistically understand a customer, anticipate and solve her needs, and reach her at the right time, place and moment in her buyer journey. 

There are several ways that solving for customer identity will help retailers take the lead in personalization.

Know your customers better than the competition

Consider how Amazon recommends products based on a shopper’s past purchase or browsing behavior. Aside from asking if a product should be gift-wrapped, the retail giant has little way of knowing whether the purchase is for the buyer or someone else — meaning future recommendations can be off the mark. By merging all of a brand’s historical and behavioral cross-channel data, marketers gain the most accurate and granular insights to holistically understand customers and relate to them with more relevant suggestions. 

Be there when customers need you

Shopping online is fast and convenient. But it lacks the human touch — there’s no sales associate greeting you at the door, asking what brings you in today, answering your questions or pointing you in the right direction. This means online retailers have a very small window to engage shoppers with personal and valuable interactions before they click their way to another site. Brands can compete with Amazon by recognizing customers at each stage and at every touchpoint and engaging them with relatable, personalized messaging in the key make-or-break moments of decision. 

Keep the conversation going

Maintaining an ongoing relationship with customers requires knowing whether a shopper is still researching, is ready to buy or has already moved on. That always-on, 360-degree view creates endless opportunities to re-engage customers with genuine and thoughtful interactions that strengthen brand relationships and build long-lasting loyalty — and keep them from becoming seduced by other options. 

Consumers are already validating this strategy with their shopping behavior. Brands that leverage both their digital and offline data to personalize customer experiences are seeing revenue increases of up to 10%, a rate two to three times faster than companies that aren’t yet doing so. Over the next five years, the retail, healthcare and financial services sectors alone are predicted to see a revenue shift of around $800 billion toward the 15% of companies that get personalization right. 

“Retail Armageddon” is not inevitable. But Amazon Prime’s continued success does mean that a thorough understanding of the consumer across all touchpoints is no longer optional for retailers in the cross-platform era.