In today’s world, customers look for and expect a certain level of personalization in all aspects of their lives as consumers. Marketers have been working to identify and implement ways to learn about their customers that can be used to improve customers’ experiences and increase their spend. Retail is no different, with “91% of consumers [being] more likely to shop with brands that recognize, remember, and provide them with relevant offers and recommendations,” according to an Accenture study. 

The question then becomes, what is the best way to 1) capture data in a way that respects customers’ privacy concerns but also gives them the personalized retail experience they are wanting, and 2) execute those experiences in a meaningful way. 

There are three steps to follow:

  1. Capture data on your customers
  2. Analyze the data and formulate segments based on their preferences and history
  3. Build use case relevant journeys and present relevant, personalized experiences based on the data

Retail Personalization Use Cases

Personalization in retail can be used across the customer lifecycle and throughout their journey with your brand which can increase your return on investment by gaining customer loyalty over time. Retail personalization should be used in a strategic manner based on where the customer is in their journey.

At the beginning of the relationship, a potential customer is made aware of your brand and can then be segmented into how they engaged: made a purchase, started a cart or a profile, contacted customer support, liked your brand on social media, or engaged with a brand ambassador, etc. Based on that initial engagement, the follow-up should be unique to that experience. 

For those who did not complete their purchase, running abandoned cart campaigns with an offer is the most typical next step, but let’s think outside the box. If they did not complete the purchase, it’s possible it just doesn’t meet their needs right now, is too expensive, or they simply forgot. The personalized experience would not assume to know the customer’s reason but instead offer solutions that are tied directly to that initial product to make it more enticing or something similar but different to see if that closes the loop. You can also ask – inquiring with the customer on what they are looking for or needing sends the message that you care about them and want to help. 

For the customers who did complete a purchase, they are now in a segment of their own and for whom that personal experience is going to be the most relevant. They have shopped with you before, so the expectation is that you know and understand them and should act accordingly. There are many options for shoppers, so making sure they have loyalty to you is important.“63% of consumers will stop buying from brands that use poor personalization tactics“ (Smart Insights). 

When you send these customers email communications or advertisements, make sure not to include the product they already purchased or a product that is completely irrelevant to their past purchases. 

Use personalized on-site retargeting to avoid abandonment. Serving up a pop-up with cart related discounts, relevant products, or if you want to drive traffic to your brick-and-mortar locations, provide location-based stock or event information. 

If you know your customer is connected with your retail brand on social and is visiting your Instagram or Pinterest page, offer shoppable posts – especially on brand ambassador content. Your customers love what these creators are sharing, so help them by making the option to purchase easier. They purchased a pumpkin flavored coffee? When December rolls around, promote the same product but in the peppermint mocha flavor. They will likely be excited to try it – and even tell their friends, too.

Personalized experiences aren’t limited to online shopping. Customers are expecting similar service in-store as well. The future of AI and the Internet of Things have brought virtual smart mirrors to life in a small subset of retail environments, and the power of AI is growing, but there can be less expensive options to make your customer’s experience a better one, as well. Having well-trained employees and customer service representatives is key – they are the face of your company day-to-day with your customers. They should know the product, what is available, and how best to help. In a study, “31% of respondents said brick-and-mortar stores fail to provide the ease of access to detailed product information that websites do”(Vrountas) and “40% feel that a lack of product knowledge is the more irritating trait of a shop-floor assistant”(Vrountas). 

The Role of Data in Personalization

To make these use cases come to life, data is paramount. The more you learn about your customers, from your customers, the more tailored the experiences and campaigns can be. Privacy is a growing concern, to customers and marketers alike. With the rapid deterioration of Cookies and increase in privacy policies like the Apple Protection Plan, it is becoming more challenging for marketers to capture data on unknown visitors and email recipients. Providing opportunities to capture this information directly from your customers via form submissions, online shopper profiles, social media logins, and cart data is necessary. Believe it or not, the vast majority of people (83% according to Accenture) are willing to share their data if it means a better shopping experience.

Using Marketing Technology to Your Advantage

Marketing technology is available to assist marketers and retailers with streamlining personalization efforts to deliver the experiences customers are looking for through marketing automation, centralized data, and behavioral intelligence. 

Marketing Automation Platforms

MAPs and Customer Experience Platforms like Braze, Salesforce Marketing Cloud, and Oracle Responsys provide the functionality for marketers to build and automate customized experiences for customers based on gathered data. In these platforms, you can orchestrate email and SMS campaigns that are organized by segments of your audience. The personalization of these journeys and messages is possible through the data captured and ingested into the database. 

Behavioral Intelligence Platforms

BI platforms like Braze Intelligence Suite and Oracle Infinity use machine learning to analyze user behavior data gathered from digital channels like your website and social media platforms. These insights help you deliver personalized and relevant customer experiences in real time. These tools can help close the gap between customer-provided data and their digital footprint.

With these tools and use cases you can build successful and powerful personalized experiences for your retail customers. If you’re looking to get started or need help in expanding your personalization, reach out, we’re here to help!