Personalization Talks #9 with Andrey Andreev
Andrey Andreev, Head of eMerchandising at METRO Russia, shares his insights on how to win customers over with personalization and choose the right technical solution. He also highlights the Target case as a standout example of successful personalization.
In our ongoing Personalization talks series, we are privileged to have Andrey Andreev, Head of eMerchandising at METRO Russia, join us to share his expertise on the topic.
METRO is a German multinational company that operates business membership-only cash and carry stores.
During this interview, we will explore how businesses can use personalization to win over customers and how to choose the appropriate technical solution for implementing personalization. We will also dive into the Target case as a prime example of successful personalization efforts.
Tune in to learn from the insights of a true expert in the field.
Why do companies need to implement and use personalization?
As the digital world continues to grow and evolve, and competitors become stronger and more agile thanks to new technologies, our customers are looking for a more personalized approach based on humanity.
When your neighbor, who goes every Saturday for fresh pastry and milk for breakfast, or a young mother from the yard who takes care of her child and tries to find anti-allergic diapers — get what they want via personalization —, then here it is the very moment when we can close the deep need with a deeply personalized experience and gain trust to our brand.
In the end, all over the country, we know our customers as neighbors or young mothers from the yard and help them solve their daily needs.
And the company that closes customer needs remains forever in their hearts.
What is your favorite personalization example?
That is the famous case of how Target figured out that the teen girl was pregnant before her father did.
In short, Target has figured out how to data-mine its way into your womb, to figure out whether you have a baby on the way long before you need to start buying diapers, and has started to send necessary coupons. Find more about this case here.
What is crucial to take in mind working with personalization?
I would single out two things that you will encounter anyway. They have come from the world of A/B testing, but they will also affect the work in personalization.
The first is HiPPO (Highest Paid Person’s Opinion), coined by Avinash Kaushik and Ronny Kohaviby.
The second is the Semmelweis Reflex. The maturity of the culture of experimentation within your company will depend on how you solve them.
From what do you recommend companies start working with personalization?
First, you must decide which path you will choose: build your own platform for personalization and experimentation or buy a SaaS solution.
As for us, we have counted our capabilities and chosen the latter. Then everything is simple: find the best, choose the KPI and conduct a POC. If it is successful, welcome to the world of personalization.
Which roles in the company should be involved in the successful personalization project?
Again, it depends on the business goals, capabilities, and resources.
It is important to understand that there is no universal model for the personalization team. One company can develop with a certain list of employees, and another can drive with a different set of rules.
You can create a personalization flow within your company that will affect your product, development, marketing, and merchandising teams or outsources it. From different approaches, different success is possible.
About METRO
METRO is the largest management company of the international business format cash&carry (small wholesale trade) as part of METRO AG holding, a global retail, and small wholesale trade operator. The company was founded in Germany in 1964. For more than 57 years, the company has offered professional customers high-quality products tailored to their requirements.
More than 750 METRO shopping centers are successfully operating in 25 countries worldwide. The company’s sales volume for the 2019–2020 financial year amounted to 27.1 billion euros. The number of employees is about 100,000 people.
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