Leveraging Personalization in the Retail Industry
Leveraging The Power Of 5G
Digitalization has modernized the retail industry by providing contemporary ways for retailers to engage with customers, optimize operations, and drive sales. Personalization has become a key priority for retailers. According to a survey by Epsilon, 80% of consumers are more likely to make a purchase when brands offer personalized experiences.
Although brands have a significant opportunity to improve their personalization strategies, only 12% of them believe that their current efforts are highly effective. Retailers face an even greater challenge in this regard.
The retail industry, for that matter, has always been profoundly competitive, with businesses vying for consumer attention and loyalty. In recent years, however, retailers have had to contend with the rise of e-commerce and online marketplaces, which have disrupted the traditional brick-and-mortar retail model.
Personalization in Retail:
Businesses catering to a consumer marketplace face two familiar challenges.
- Providing a personalized shopping experience for their customers, &
- Ensuring consistency across their retail locations and channels to create a sense of brand familiarity for customers.
By utilizing customer data, retailers can gain valuable insights into their customers’ behaviors and preferences, allowing them to tailor their offerings to meet those needs.
For instance, a fashion retailer can use customer data to personalize product recommendations based on customers’ browsing and purchasing history. This can help the retailer to present relevant product options to each customer, thereby increasing the likelihood of conversion and customer satisfaction.
Talking about personalization, our recent panel discussion whirled around the same technology disruption in retail and how personalization gets it covered. Sameer Nagpal, CBO at InfoVision moderated the intriguing discussion between the top retail industry leaders.
Sameer was part of the recent NRF event, where he was impressed by the retailers’ dedication to personalization. He strongly advocates for tailoring the shopping experience to each customer’s specific needs and preferences instead of adopting a one-size-fits-all approach. Sameer believes that personalization can be achieved through targeted marketing campaigns, personalized product recommendations, and various other means, which can enhance the overall customer experience.
Sameer initiated the talks by presenting data from an Accenture report which showed that 91% of people are more inclined to shop at stores that recognize them as their customers. Sameer also mentioned another report on the flip side, which stated that 45% of customers abandoned a website due to a lack of personalization that matched their preferences.
Here is a glimpse of the brilliant retail talks for you. The panel comprised industry leaders like
– Cassie Janis, Director Digital Product Management, Chico’s FAS, Inc.
– Mathew Vermilyer, Sr. Director of Analytics and Optimization, At home
– Tarunam Verma, Director, Product Engineering & ML, Lowe’s Companies, Inc.
So, let us understand some ways that retailers can leverage personalization to boost customer engagement and loyalty:
1. Tailored Marketing Campaigns
Retailers can use data analytics and customer insights to create targeted marketing campaigns that speak to the individual interests and preferences of each customer. This can include personalized emails, targeted social media ads, and personalized offers and promotions.
For example, if a customer has previously purchased a specific product, the retailer can use this information to target them with ads for complementary products or accessories. This helps to build a relationship between the retailer and the customer and encourages repeat purchases.
You may target your ex-purchaser on their special days like Birthdays or Anniversaries to make their purchase extra special with discounts on their basket product (even better).
Mathew Vermilyer stressed the focus on the customer life cycle. Personalization according to him is the way of translating a one-time customer into a 2-time customer.
2. Personalized Product Recommendations
Retailers can also use data analytics and artificial intelligence (AI) to generate personalized product recommendations for each customer. This can be based on factors such as past purchases, browsing history, and even demographic data such as age, gender, and location.
By recommending products that are tailored to each customer’s individual preferences, retailers can increase the likelihood of a purchase and improve the overall shopping experience.
Tarunam Verma emphasized the importance of identifying and understanding the needs of customers to provide a seamless and personalized experience.
With a hyper-focus on personalization, retailers can tailor their offerings to each individual customer, ensuring that every interaction is unique and tailored to their preferences.
By implementing this strategy on a large scale, retailers can gain a deep understanding of their millions of customers and cater to their needs with precision.
3. Personalized In-Store Experiences
Personalization is not just limited to online shopping experiences. Retailers can also use data analytics to personalize in-store experiences for their customers. For example, Retailers can use personalized signage and displays to help customers find the products they are most interested in, based on their individual preferences and past purchase history.
Cassie Janis emphasized that personal style is deeply individual and reflective of one’s identity. This is particularly important for Chico’s business, as the customers’ personal style plays a significant role in their success.
Moreover, Cassie stressed that Chicos prioritizes personalization to enhance the customer experience and foster long-term customer loyalty. This is achieved by providing individualized attention and tailored solutions to each customer, with the goal of driving lifetime customer value.
4. Personalized Loyalty Programs
According to Accenture, 63% of consumers are willing to share their data with companies in exchange for personalized recommendations and offers.
Loyalty programs are a key tool for retailers looking to build customer loyalty and repeat business. By offering personalized rewards and incentives, retailers can incentivize customers to shop with them over the long term.
For example, a customer who frequently purchases products in a specific category can be offered discounts or bonus points on future purchases in that category. By tailoring rewards to each customer’s individual preferences, retailers can increase the effectiveness of their loyalty programs and improve overall customer satisfaction.
Leveraging personalization is essential for retailers looking to stay competitive in today’s retail landscape. By tailoring marketing campaigns, product recommendations, in-store experiences, and loyalty programs to each individual customer, retailers can improve customer engagement, boost loyalty, and drive repeat business.
DigitMart, created by Digit7, is a prime example of a new concept in the retail industry. Unlike traditional markets, DigitMart offers an autonomous shopping experience. Customers can easily enter the store, select their desired items, and exit without having to scan or checkout, making it a highly convenient option for shoppers.
By providing added convenience, customers have the flexibility to shop at their own convenience, allowing them to make purchases at any time that is suitable for them. As a result, the shopping experience becomes much more convenient and hassle-free. To know more about this fully autonomous retail experience Check DigitMart by Digit7!
For expert advice on leveraging personalization in retail, watch: