5 BEST PRACTICESTO ACHIEVECUSTOMEREXPERIENCEPERSONALIZATIONAT SCALE 

A G U I D E B Y I D C R E T A I L I N S I G H T S

I n n o v a t i o n A p p r o a c h

P l a t f o r m

S i d e - c a r a p p r o a c h

I s l a n d s o f i n n o v a t i o n

What is the Future of Commerce?

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B u s i n e s s M o d e l

C o n s u m e rE x p e r i e n c e s

O m n i c h a n n e l

C u s t o m e r - c e n t r i c

I s o l a t e d t o u c h p o i n t s

Traffic and conversion are no longer business as usual

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ToContextualdiscovery

experiences

Productsfinding

customers

Proactivecustomer

service

Interfaces  &

Multipleengagement

inputs

Customermoments

(Time)

Hyper microsegmentation

&  Active and

passiveshoppers

From GuidedSelling

Customerssearching for

products

Reactive Touchpoints Location (Space)

Segments andPersonas

What is retailers' CX differentiation direction?

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Static Segments

Dynamic Segments

Hyper-microsegmentation

Real-TimeContexual

Dynamic Personas

Differentiation Opportunity

7% 8%

35%

45%

5%

IS THE #1 INNOVATIONPRIORITY FOR RETAILERSTO ENABLE INNOVATIONPROGRAMS

C X P L A T F O R M

IoT Platform

Omni-ChannelCustomer Experience

eCommerce Platform

65%

54%

49%

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And a New CX Architecture is Required...

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HOW CAN RETAILERS ACHIEVECUSTOMER EXPERIENCE

PERSONALIZATION AT SCALE?

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Top 5 Best Practices and successful use cases...

01Tommy Hilfiger's TommyLandSnap:Shop app allowscapturing and managingstructured and unstructureddata to deliver a superiorcustomer experience.

Tommy Hilfiger reported a60% growth in sell-throughand 900% increase in digitaltraffic, with 70% coming fromnew visitors to their website

Manage structuredand unstructureddata as foundationsfor empoweringcustomerexperiencepersonalization.

Implement AIfoundations toempower customerjourneypersonalization.

In 2016, Domino’s Pizzalaunched: - a chatbot app  - an AI camera system  - commercial autonomousdelivery vehicle

02Domino's estimatesannual global digitalsales of $4.7 billion  

03 Define new KPIs formeasuring customerexperience level ofmaturity.

AutoTrader adopted a data-driven approach based onintegrated KPIs. The companysaw an increase in the overallcustomer satisfaction (+5 points)and a 42% improvement of itsNPS score.

AutoTrader registered a 12% increase in vehicle

advertising views and a 7%increase in time spent

on site

Evolve towardsmicromerchandisingstrategies that arecentered on customerexperience strategies.

Sephora adopted a new supply-chain model based on simulations.

The beauty retailer introduced adigital card that consumers receivewhen they enter the store.Customers can simply scan theperfume tester with near fieldcommunication (NFC) and add theproduct to the digital cart. 

04Sephora improved total reaction

time, the service to the stores and areduction of safety stocks. Over 60%

of Sephora stores are nowreplenished during the

same week

05 Leverage in-storeexperiences andmobile transactions toenhance the customerfeedback loop.

TUI: - launched the "Destination U"  prototype in the U.K.  - installed large screens on theirstorefronts - at the store entrance, installedinteractive maps and table-sizetouch screens to allow searchingon specific information

TUI increased sales by 3times in over 30 flagship

omni-channel stores

IDC PEERSCAPE: RETAIL CUSTOMEREXPERIENCE PRACTICES FORENABLING PERSONALIZATION ATSCALE (DOC # US42174017)

V I S I T I D C . C O M

IDC Retail Insights EMEA

insightseurope@idc.com

@IDCInsightsEMEA #IDCRetail

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