How personalisation influences today’s retail shopper

Customer experience is the new driver for loyalty. In our recent report, The Power of me: the impact of personalisation on business outcomes, we found that 80% of consumers are more likely to purchase if their experience is personalised. Whether they are making a purchase online or in-store, they expect an experience that’s personalised, convenient, and meets their needs. And consistency across channels is key.

Retailers need to know and understand the preferences of their shoppers so they can deliver on these and influence the next sale. For example, a client recently shared that six out of ten shoppers use their mobile phones while in their retail store and that the mobile app is a preferred purchase channel. Having this insight allows marketers to tailor personalised messages to consumers on the app while shopping instore. Ulta Beauty’s GLAMlab feature of their mobile app offers personalised make-up application services where users can experiment with 1000+ products and shades that reflects accurate colour representation for the consumer’s specific skin tone. Ulta Beauty can leverage the data insights gleaned from the app to support the development of future marketing programmes/messages that are personalised to the shopper’s needs.

In addition to mobile app technology enhancement, the topic of concierge services is also popular at the moment. Some of our clients are integrating concierge-type services (a concierge model) within their stores to enhance the customer experience. A concierge model often includes designated space within a brand’s retail store that provides exceptional customer service and is fueled with data insights about an individual’s unique needs. Store associates who are a part of this service model are equipped with data about customers to help them make relevant product recommendations. For example, retailers are leveraging concierge services that provide in-store, online and mobile guidance to help consumers choose products and get tips on recommendations. Let’s take a look at an example.

From leveraging data, Designer Store Warehouse (DSW) learned that a large segment of their customers prefer customised insoles to fit the needs of their foot types. Informed by this data, DSW created Polaris Lab Store which includes a concierge area called the Sole Lounge where guests can create custom insoles, get their shoes and handbags repaired and even get their nails done while they wait.

Let the data decide

It’s important for marketers to leverage data for their decision-making. With the proliferation of first-party data available on consumers coupled with the power of third-party data across both offline and online channels, marketers can achieve a true 360-degree customer view. Having consumers’ shopping/retail preferences and understanding their retail services preferences (tailoring, etc.) further enables your ability to offer customised/personalised services.

So whether you’re a retailer of fashion apparel, furniture or pet supplies, evaluate your strategy to determine how personalisation will influence your brand’s the next sale and how you can best improve the customer experience by doing what’s right for your customers, and your brand.

The advances in data and technology together are unstoppable. Take time to evaluate your program to determine if the concierge model is a good fit for your brand.

For more insights and tips, download The Power of me: the impact of personalisation on business outcomes now.

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