Phy-gital Roundtable: Breakfast Roundup from Germany and Netherlands

02 May '15 | Debjyoti Paul

German Shoppers: Meet Them in the Fast Lane to Phy-gital

15 January '15 | Ralf Reich

Shoppers Will Share Personal Information (But They Don’t Want to be “Friends”)

15 January '15 | Anil Venkat

Modernize or Perish: Property and Casualty Insurers and IT Solutions

14 January '15 | Manesh Rajendran

Benelux Reaches the Phy-gital Tipping Point: Omnichannel Readiness is Crucial

13 January '15 | Anil Gandharve

The New Omnichannel Dynamic: Finding Core Principles Across Industries

13 January '15 | Debjyoti Paul

Technology does not disrupt business – CIO day 2014 Roundup

02 December '14 | Anshuman Singh

Apple Pay – The Best Is Yet To Come

02 December '14 | Indy Sawhney

Digital transformation is a business transformation enabled by technology

01 December '14 | Amit Varma

3 Stages of FATCA Testing and Quality Assurance

06 October '14 | Raman Suprajarama

3 Reasons why Apple Pay could dominate the payments space

18 September '14 | Gaurav Johri

Beacon of Hope: Serving Growth and Customer Satisfaction

05 August '14 | Debjyoti Paul

The Dos and Don’ts of Emerging Technologies Like iBeacon

30 July '14 | Debjyoti Paul

What You Sold Us On – eCommerce Award Finalist Selections

17 July '14 | Anshuman Singh

3 Steps to Getting Started with Microsoft Azure Cloud Services

04 June '14 | Koushik Ramani

8 Steps to Building a Successful Self Service Portal

03 June '14 | Giridhar LV

Innovation outsourced – a myth or a mirage or a truth staring at us?

13 January '14 | Ramesh Hosahalli

What does a mobile user want?

03 January '14 | Gopikrishna Aravindan

Consumers Will Spend More With Personalized Service: New Mindtree Study

Posted on: 10 February '16

Mindtree’s newest global study, “Winning in the Age of Personalization,” reveals that while the vast majority of consumers say that personalization initiatives cause them to spend more – including on products they have never bought before – companies across the retail, entertainment, banking and travel industries appear to be under-investing in this key area of digital development.

In a survey of 6000 global consumers and 900 industry decision-makers, customers indicated that customized promotions encourage them to buy products and services they have purchased before (78%), as well as relevant products and services they have never purchased (74%). However, only 28% of the decision makers surveyed say their organizations are investing significantly in personalization to improve the online purchasing experience, even though 58% of them say that more targeted promotions are the key driver of improved online sales over the past 12 months.

Consumers Will Spend More With Personalized Service: New Mindtree Study

The survey also revealed that consumers expect their use of mobile apps as a primary channel for shopping to double in the next three years, from 6% in 2015 to 15% in 2018. This represents a huge opportunity for consumer-facing companies, and one that ties in perfectly to personalization initiatives, given the one-on-one relationship that mobile apps provide.

Personalization: A Comprehensive Approach

There were many other interesting facts that came out of the large survey, an overview of which can be found in the infographic and detailed report found on the study’s website. But the opportunity that lies in re-focusing investments toward personalization initiatives is the biggest take-home message in our view.

Many of today’s personalization approaches are ineffective due to being based on a slioed view of consumers. To get a more enriched view of their customers, companies may need to regroup and follow specific steps before embarking on an advanced personalization initiative:

  • Break up data silos from third-party ecosystem, beyond their own sphere of data, and consolidate all data from various digital touch points into one system.
  • Create context-weighted personas of customers via personalization algorithms.
  • Deliver messages and offers to customers in a cross-channel, cross-device landscape using this enriched customer context as a basis.

This will only work if a company has the right digital underpinnings at the broadest level, blending four cornerstones that are crucial to achieving true digital transformation and success: Creating digital customer experiences, Digitizing the value chain across the front and back end, Developing “sense-and-respond” systems, and Shaping new, innovative business models and partnerships.

More specifically, companies need to think about how to deliver personalization to customers across the entire purchasing journey. We’ve developed a four-part framework – detailed in our eBook, “Get Personal to Make Digital Real” – necessary for to make this solution work:

  • Creating unique customer personas using the vast number of digital data streams companies have access to.
  • Applying analytical models to finely segment customers.
  • Using this segmentation knowledge to deploy an activation layer that engages customers with the right information and offers.
  • Doing all of this within a code of honor – maintaining the customer’s trust around using data to personalize services and offers.

Implicit in all of this is that companies need to focus on serving their customers just as well as they sell to them. The good news is that the survey also reveals that companies are ready. When asked whether they consider themselves to be “pioneers” in adopting or investing in digital technologies, 58% said yes. Knowing that a majority are already in transformation mode is a great start.

Radha heads the Digital Business group at Mindtree, which includes Digital, Mobility, DAS and SaaS packages. She is responsible for designing and delivering broader digital solutions for Mindtree's clients globally. During her tenure, she has played a decisive role in laying out the strategic roadmap to transform Mindtree and make it ready for 2020.

  • Chittan

    Bridging the gap between online customer experience and the in store experience is the key to happy customers, especially in the case of high involvement products such as electronics, automobiles and fashion & cosmetics. Often the customer just walks in and out of the store without any interaction. Digital and mobile have the power to enable the in store sales with the right interfaces and customer insights converting foot falls into revenue.