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IDC PeerScape: Retail Customer Experience Practices for Enabling Personalization at Scale

IDC PeerScape: Retail Customer Experience Practices for Enabling Personalization at Scale

This IDC PeerScape document addresses the main challenges that retailers are facing when approaching customers. It also suggests starting points for technology buyers to differentiate customer experience. Lessons learned from companies that are moving from one segment to a segment of one show the way seamless composition of customer services can leverage information, processes, and channels consistently. Artificial intelligence (AI) and machine learning (ML) foundations, unstructured data, IoT technologies, and new metrics enable retailers to track the dynamic customer journey evolution at speed and scale."Delivering customer experience personalization at scale is the strategic opportunity enabled by real-time, curated and contextual offerings," said Andrea Sangalli, associate research director, IDC Retail Insights Europe. "A key success factor is to activate a virtuous circle in which retailers are able to track and analyze customer-product-associate interaction at individual level, enriching individual customer journey maps by gathering accurate shoppers' behavioral data. Combining action and insights through a dynamic iterative process enables retailers to eliminate the paradox of choice delivering the most relevant product and service."

Please Note: Extended description available upon request.


IDC PeerScape Figure
Executive Summary
Peer Insights
Practice 1: Manage Structured and Unstructured Data as Foundations for Empowering Customer Experience Personalization
Challenge
Example
Tommy Hilfiger — Visual Commerce Enables CX Personalization
A Large International Home Improvement Retailer — Real-Time, 1:1 Personalized Offers from Clickstream Events
Guidance
Practice 2: Implement AI Foundations to Empower Customer Journey Personalization
Challenge
Example
Alibaba — AI is Reshaping eCommerce
Domino's Pizza — Foundational AI Solutions for Personalizing Customers' Journey
Guidance
Practice 3: Define New KPIs for Measuring Customer Experience Level of Maturity
Challenge
Example
Pret à Manger — "We've Made Customer Feedback Central to What We Do"
Auto Trader — Profit from Customer Feedback
Guidance
Practice 4: Evolve Toward Micro-Merchandising Strategies That Are Centered on Customer Experience Strategies
Challenge
Example
Harvey Nichols — An Integrated Merchandising Strategy from a Customer- and Profit-Centric Approach
Sephora — Driving Micromerchandising Strategies to Achieve Omni-Channel Profitability
Guidance
Practice 5: Leverage In-Store Experiences and Mobile Transactions to Enhance the Customer Feedback Loop
Challenge
Example
TUI — Integration of Digital and Physical Stores
McDonald's — Getting Digital to Reach Customers' Tastes
Darden — A New Operating Model Oriented to Customers' Preferences
Guidance
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