The Personalization in Modern Retailing

Abstract

In today's conditions, the retail industry is undergoing significant transformations. They are dictated by the need for the business to respond to the dynamically changing needs and expectations of the market. Personalization, which is based on the idea of a personal relationship with consumers, is not at all a new concept for business. But, in the current third decade of the 21st century, the concept of personalization has risen to a whole new level. What is new is the mechanism of its implementation in modern retailing, in an electronic and omnichannel environment. Personalization is becoming an essential component of modern marketing and retailing, a key element of business strategy and a sustainable competitive advantage. Retailers and marketers strive to create exceptional personalized brand experiences to keep consumers coming back. Omnichannel consumers expect personalization throughout their entire interaction with the retailers – across all possible touchpoints. The article examines the concept of personalization as history and present, its importance for modern retailing, the main definitions, the "4Ds" operating model, omnichannel personalization and the barriers to it, as well as the important role of the human factor in the implementation of the personalization system.