As we have written before, personalization has become an important competitive tool for retailers in today’s digital marketplace.

Consulting giant McKinsey offers many insights for retailers to consider regarding what it calls “Me-commerce”:

“Welcome to the world of  ‘Me-commerce,’ where retail success depends on meeting consumers’ ever-changing and increasingly demanding shopping habits. This shift to digital-enabled shopping has created massive pressures for traditional retailers. At one big-box company, for example, we calculated that a 5 percent reduction in revenue per square foot would lead to a 30 percent reduction in return on invested capital (ROIC). Embracing the me-commerce opportunity will not only allow retailers to navigate these headwinds but also open up significant rewards. Personalization — the foundation of Me-commerce — can deliver five to eight times the ROI on marketing spend, and lift sales 10 percent or more.”

“Many retailers have experimented and innovated to adapt to the demands of Me-commerce. In our experience, however, too many of these have been marginal adjustments rather than fundamental changes. Given the tremendous economic pressures building on retailers, marginal changes won’t be enough to survive. To succeed at ‘Me-commerce,’ we believe that today’s retailer must fuse technology and publishing. Operating like a technology company will allow retailers to effectively use Big Data and digital touchpoints to drive growth and reduce costs. At the same time, they must act like publishers to produce and manage content in real time across multiple platforms to create consistent, omnichannel experiences for their customers.”

Now, take a look at McKinsey’s infographic on “Do Stores Get Me?”