My best friend and I have been shopping at the same grocery chain, in different cities, for years. We're both members of their loyalty program. My friend receives a weekly e-mail of "personalized" specials. I just get a tape of coupons when I check out.
After sharing my philosophy about the investment companies are making in analytics at the expense of interacting directly with their customers, my friend starting forwarding his "personalized" e-mails from the grocer which were clearly not personalized (e.g., his 21 year-old son no longer needs diapers).
After several years receiving useless coupons, I just received a coupon at checkout for something I would actually buy. When I went to redeem the coupon, the store didn't have the product and didn't even appear to have it planogrammed. How frustrating!
I forwarded the e-mails to the SVP of merchandising and operations for the grocer and received no response.
So why spend all the money on analytics packages that not only don't help you gain a greater share of wallet but actually show your customers how clueless you are about using the information you're collecting?
If retailers would spend 10% on consumer insights to understand the data, as what they spend on their analytics packages, they would see a greater return on their analytics investment and actually get customers for life rather than alienating them.
Perhaps if my grocer did this, I would get meaningful coupons when I walk in, my best friend would get relevant "personalized" e-mails and the grocer would get a greater share of our wallets.
For me, with analytics used properly, my grocer would know when it's time for me to buy shaving cream and almond milk so I would not have to make a shopping list.
What could they do for you?