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Personalization in retail : What to Expect in 2023

   April 3rd, 2023
It will be interesting to see how personalized retail will evolve in 2023 across all retail industries. This is due to the fact that shopping, even for experiences, has become a part of our everyday lives. Customers are increasingly willing to spend money on things with which they can interact, such as games and virtual reality, rather than simply sitting in front of screens.

While the importance of personalization in retail is well known, the market has yet to embrace personalization for the same reason that supply chain personalization is essential: it optimizes the supply chain’s efficiency and quality. Further in this blog one can understand the use of personalized technology – both in-store and online – to better serve the customers.

Personalization's impact on retail performance

According to various conducted surveys, it was found out that investing in customer experience personalization, companies saw an ROI of at least four times. Consumers are increasingly making purchasing decisions based on customer experience, which is why it is advised for the companies to create a personalized approach for customers which means tailoring products to better match what their needs are or simply placing higher emphasis on the little things that help with the customer journey.

Personalization is a proven method of increasing engagement and sales through the exploration of what’s important to the customer. It gives retailers the ability to better understand their customers, predict their needs and desires, and define how they want to engage with them.

An application of personalization has been shown to increase conversion rates, reduce cart abandonment and boost customer loyalty. This is no surprise, but what can be surprising is how much it can impact a business. With the right personalization strategy, a business can improve conversions and achieve multiple ROI milestones in a very short period.

Success stories in retail personalization

  • Crocs realised a 42X marketing ROI

    Crocs India’s main challenge was low customer engagement and retention. Customers left the website without making a purchase due to a lack of personalised experiences. Creating accurate product recommendations was also difficult with a catalogue of over ten thousand products. Crocs was able to personalise product recommendations and messaging across their website, emails, web messages, and web push notifications, resulting in a 42x marketing ROI!

  • The Body Shop increased its website revenue by 13.2%
    Customers were leaving the Body Shop because they couldn’t find the right products. A lack of tailored recommendations was also causing retention issues. They were able to increase their eCommerce revenue by 13.2% and engagement by 13.4% by using various personalization tools such as email marketing, push notifications, personalised chatbot implementation etc.

Did Personalization Fail in the Past?

  • Personalization  previously failed due to a lack of data to support it. Furthermore, tracking the customer journey was difficult, and there were time, resource, and technology constraints.
  • Marketers lacked access to the sophisticated data tools. They were unable to track customer behaviour or recognise patterns. As a result, they were unable to effectively personalise messages or offers.
  • Another reason was the difficulty in tracking the customer journey. There was no way to see how customers interacted with a brand across different channels in the past. This made creating a seamless and personalised experience difficult.
  • Due to time, resource, and technology constraints. Personalization was difficult to implement without these three things. However, technological advancements have enabled us to overcome these obstacles.

 

Personalization is no longer an unattainable goal.It is now possible and can be highly effective thanks to advances in technology and data collection.

 

It’s a reality that can help an organization to improve their company’s performance.

 

Below are some wonderful recommendations on how to leverage technology to make personalisation objectives a reality.

  • Smart Content and Website
    Smart Content (also known as adaptable or dynamic content) refers to the components of a message, ad, landing page, or website that may be updated depending on the prior behavior or interest of a person. One may think of it as stuff that’s tailor-made precisely for the individual who’s seeing it.Whenever anyone visits a site for the first time, evaluating their device kind, language, location etc. and if they satisfy any of the specific criteria, a smart website will serve the content that’s relevant to them. On future visits, the website utilizes their cached cookies to extract the data and present relevant content depending on smart rules they’ve set up. A business may construct smart polls, CTAs, or rich text components in mails, sales funnels, based upon this data.  

     

  • Personalized Videos
    Videos are currently one of the most popular kinds of material amongst users of all age groups. On average, individuals spend 6 hours and 48 minutes every week viewing videos online. The average amount of time by individuals viewing videos has witnessed a 59% rise from 2016.The major reason why people enjoy viewing videos is due to their extremely participatory character. In fact, customised films might be the ideal method of participatory marketing given that messages via movies are kept better. It’s, then, no surprise that most consumers prefer viewing videos when learning about a brand-new service or product over writing, graphics, ebooks, and slideshows. A business may harness this extremely engaging kind of media to meet their personalisation objectives.When a business sends a customized video to the clients or prospects, it may make them feel unique and can motivate them to spread it publicly to build a viral campaign.

     

  • AI Bots
    Bots are nothing but automated programs built to dwell on apps such as WeChat, WhatsApp, Facebook Messenger, or on web sites that enable visitors to get relevant information or receive help promptly. AI powered chatbots are wonderful at entertaining leads and may assist to give them a highly tailored experience. For example, one of the top chatbots can be observed on a co-living business, Hmlet’s website. It is meant to assist people discover a new house extremely simply. It starts the chat session by asking a few inquiries to determine a user’s interests and preferences. ‘It then enables the user to discover the information they are searching for.

     

  • Exit Purpose Pop-Ups
    Did you know that just 1% of first-time site visitors truly want to buy an item? The others are merely seeking information on services or products or their costs and will depart as soon as they’ve discovered it. What if a firm could catch some of these leads? Here’s where a tailored exit intent pop-up may assist the company . These pop-ups would show on the screen of a user anytime they tried to exit the site. Surveys have discovered that 35% of lapsed visitors may be re-engaged utilizing these pop-ups.

     

  • Smart Content and Website
    Smart Content (also known as adaptable or dynamic content) refers to the components of a message, ad, landing page, or website that may be updated depending on the prior behavior or interest of a person. One may think of it as stuff that’s tailor-made precisely for the individual who’s seeing it. Whenever anyone visits a site for the first time, evaluating their device kind, language, location etc. and if they satisfy any of the specific criteria, a smart website will serve the content that’s relevant to them. On future visits, the website utilizes their cached cookies to extract the data and present relevant content depending on smart rules they’ve set up. A business may construct smart polls, CTAs, or rich text components in mails, sales funnels, based upon this data.

     

  • Personalized Videos
    Videos are currently one of the most popular kinds of material amongst users of all age groups. On average, individuals spend 6 hours and 48 minutes every week viewing videos online. The average amount of time by individuals viewing videos has witnessed a 59% rise from 2016. The major reason why people enjoy viewing videos is due to their extremely participatory character. In fact, customised films might be the ideal method of participatory marketing given that messages via movies are kept better. It’s, then, no surprise that most consumers prefer viewing videos when learning about a brand-new service or product over writing, graphics, ebooks, and slideshows. A business may harness this extremely engaging kind of media to meet their personalisation objectives. When a business sends a customized video to the clients or prospects, it may make them feel unique and can motivate them to spread it publicly to build a viral campaign.

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