Digital Personnalisation: Retail and Entertainment

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Digital Personnalisation: Retail and Entertainment

Seven companies in the retail and entertainment industries that offer innovative digital personalized experiences are Amazon, Nike, Target, Macy's, Mall of America, Netflix, and Spotify.

RETAIL INDUSTRY

1. AMAZON

OVERVIEW
  • Amazon offers relevant, personalized advertising which includes onsite content to customized emails and offers.
  • Beyond sending an email, Amazon also reminds customers of products that the individual had browsed or placed in the basket before bouncing.
  • The company also uses an individual's search and purchase record to personalize their homepage and tailor product recommendations accordingly.
TECHNOLOGY USED AND HOW IT IS INNOVATIVE
  • Amazon puts powerful algorithms in place to facilitate behavioral targeting, predictive modeling, and personalization.
  • The innovation comes in the form of “frequently bought together” and “customers who bought this item also bought” prompts, which are personalization efforts put in place by the company 'based on mountains of insightful data.'
  • According to Forbes, these prompts are recommendation triggers which drive 44% of the customers to buy from Amazon.

2. NIKE

OVERVIEW
  • With the help of consumer analytics firm, Zodiac, Nike targets consumers in different regions with personalized content for mobile devices.
  • The company also offers innovative personalized shopping experience through product personalization apps such as Nike ID or SNKRS.
TECHNOLOGY USED AND HOW IT IS INNOVATIVE
  • The technology used includes mobile apps, QR Code scanning, and chatbots.
  • It is innovative because it is possible for an individual to shop entirely through the Nike app by scanning QR codes to request items to be delivered to dedicated pick-up zones using 'Ask The Expert' for personalized advice via the chatbot.
  • Individuals can also buy online using 'shop the look' on mannequins.

3. TARGET

OVERVIEW
  • Target uses the purchase behavior data of individuals and can predict special purchasing period of users such as those who are expecting a child. It offers special deals on baby-related items such as "cocoa-butter lotion" or "a purse large enough to double as a diaper bag," etc.
TECHNOLOGY USED AND HOW IT IS INNOVATIVE
  • Target assigns a Guest ID number to each of its retail customers after the very first interaction with the brand. That ID is used to store the customer's demographic information, ranging from their ethnicity to job history, and to track buying behavior.
  • Tracking parameters such as their buying behavior in the baby registries with the store. Target's marketing analysts are able to form a "pregnancy prediction" score, which allows them to determine the purchasing patterns which indicated that a customer was in the early expectant stages.

4. MACY'S

OVERVIEW
  • Macy's stores provide a smartphone-based assistant, Macy's On Call, which starts chatting with the customer on their phone as and when the customer enters the store.
  • The chatbot asks questions to direct the customer's shopping experience and provide recommendations and directions to items around the store.
TECHNOLOGY USED AND HOW IT IS INNOVATIVE
  • The technology used is the IBM Watson AI technology.
  • This innovative personalization offering understands the nuances of customer interaction. For example, if it perceives that the customer is getting frustrated, it sends an alert to a human associate to intercept the customer as soon as possible.

ENTERTAINMENT INDUSTRY

5. NETFLIX

OVERVIEW
  • The personalization offered by Netflix includes showing film and TV recommendations based on the content the individual viewer has watched.
  • The service also personalizes film covers, giving prominence to actors or actresses that are familiar to the user.
TECHNOLOGY USED AND HOW IT IS INNOVATIVE
  • Netflix uses the vast amount of customer behavior data to formulate its personalization feature.
  • The company runs 250 A/B tests per year, to know exactly when the user hits play or pause when the user stops watching a title halfway through, or when the user clicks that little "+" button to add an item to his/her watchlist.
  • The personalization feature of Netflix is at such a level that no user ever sees the same combination rows on the Netflix homepage.

6. SPOTIFY

OVERVIEW
  • Spotify offers Discover Weekly, a curated playlist of tracks that the platform thinks a given user will like, as it is based on the listening behavior of that particular listener.
TECHNOLOGY USED AND HOW IT IS INNOVATIVE
  • The technology behind the service is from Echo Nest, a music intelligence company that was acquired, by Spotify in 2014.
  • The service is driven by an algorithm that determines a user's taste profile, based on their listening behavior and the most popular playlists among the entire Spotify audience.

THE COMBINED INDUSTRIES OF RETAIL AND ENTERTAINMENT

7. MALL OF AMERICA

OVERVIEW
  • Mall of America creates personalized shopping itineraries for each customer to find the right experience for them, by navigating through 520 retailers, 50 restaurants, 14 movie theaters, two hotels, an indoor theme park, and a museum.
TECHNOLOGY USED AND HOW IT IS INNOVATIVE
  • It uses a chatbot called ELF provided by IBM to assist shoppers navigating the vast complex.
  • This innovative chatbot is operated by a simple interface akin to a text messaging platform. ELF is available via the Facebook Messenger app, the browser page, or kiosks in the Mall of America.
Sources
Sources

Quotes
  • "IBM has provided the Mall of America with a chatbot named E.L.F to assist shoppers navigating the vast complex. The Mall of America is in Bloomington, Minnesota, and it is the largest shopping complex in the northern states. It plays host to 520 retailers, 50 restaurants, 14 movie theaters, 2 hotels, an indoor theme park and a museum."
  • "E.L.F. can create personalized shopping itineraries for each customer, finding the right experience for them (dependent on their needs). The chatbot is operated by a simple interface akin to a text messaging platform. E.L.F. is available via the Facebook Messenger app, the browser page, or kiosks in the Mall of America."
Quotes
  • "Mall of America® (MOA®) is the largest retail and entertainment complex in North America. "