Personalisation: Transforming the retail landscape
Customers don’t want to just buy stuff — they want experiences. And they want those experiences personalised. Customised. Tailored to fit their wants, needs and desires.
We should’ve seen it coming. In the late 1800s, Frank Woolworth started taking products from behind the counter and displaying them on the shelves. People loved getting to touch and experience products before buying them. It was a revolution.
Fast forward to today, and the world of retail (and now e-commerce) is powered by cutting-edge technology and an abundance of customer data. Successful retailers have unlocked unprecedented ways to cater to the unique needs and preferences of their clientele.
From finely-tailored product recommendations to immersive, customised shopping experiences, personalisation has ushered in a new era, completely revolutionising the retail industry’s approach to customer engagement once again.
Keep reading to explore the impact of personalisation on customer satisfaction and how it has become the cornerstone of overall business success in the retail industry.
The rise of personalisation
A one-size-fits-all approach doesn’t fit today’s retail space. With the rise of e-commerce and digital platforms, retailers have access to a wealth of first-party customer data, including purchase history, browsing behaviour, and social media interactions.
By harnessing the power of omnichannel marketing automation, retailers can now process this data to create personalised experiences for each customer.
Tailored recommendations
One of the most visible aspects of personalisation is the tailored product recommendations that customers receive.
E-commerce giants like Amazon and online streaming platforms like Netflix have mastered the art of suggesting products and content based on individual preferences.
By analysing customer behaviour, shopping patterns, and demographics, these companies can offer highly relevant and personalised recommendations, increasing sales and customer loyalty.
That increased loyalty leads to a higher customer lifetime value (CLV). Miinto, an e-commerce fashion powerhouse, has the stats to back this up — with an 18% increase in CLV since the implementation of automated email flows in the Agillic platform.
Customised shopping experiences
Beyond product recommendations online, personalisation is also transforming the in-store shopping experience.
While brick-and-mortar retailers are integrating technology into their stores to understand customer preferences better, and mobile apps and location-based services enable retailers to send personalised offers and discounts to customers when they are inside or near the store, true personalisation happens in the data and how you use it.
Following its customers’ interactions, both in physical stores and online is essential to Kop & Kande’s marketing success.
“What’s going on inside the physical store is often a black box data-wise. Who is buying what? Is the customer also shopping online? Is there a category or a brand that they’re interested in? This data is important for us to collect because it enables us to offer our customers better service and more personalised offers.” says Malene Maarbjerg Rasmussen, Kop & Kande’s Marketing & Omnichannel Director.
That’s why Kop & Kande is turning unknown customers into known ones through its customer club.
“When a club member shops in the physical store, we can correlate the offline transaction data with the communication we have sent. This way, we can determine whether a specific offer or piece of content is valuable to the customer. We can measure the extent to which our email communication drives offline sales, we can exclude a customer from communication if they have purchased within twenty-four hours, we can finetune personalisation and so forth,” says Jacob Fusager, Head of Marketing Automation at Web2Media.
Web2Media also developed an integration to Facebook allowing the marketing team to use data from offline transactions on Facebook so they can use the store visit functionality and create more in-depth targeted audiences on Facebook.
Fusager continues, “Working in-depth with data pays off. That’s where Agillic’s data structure is unique and powerful. The way we can work with the different tables is a gift for retailers.”
Enhanced customer satisfaction
While mobile apps and customised product recommendations are great on their own, what they add up to is a significant impact on customer satisfaction.
Consumers today are inundated with choices, and their loyalty is more challenging to earn than ever before.
Personalised interactions make customers feel valued and understood, leading to stronger emotional connections with the brand.
When a customer feels that a retailer knows and cares about their preferences, they’re more likely to return for future purchases and recommend the brand to friends and family.
Increased business success
The adoption of personalisation has proved to be a strategic move for retailers looking to boost their bottom line.
By catering to individual preferences, retailers like Miinto, Kop & Kande and Matas experience higher conversion rates, reduced cart abandonment, and increased average order values.
Moreover, personalisation helps retailers gain a competitive edge, creating a unique selling proposition that sets them apart from their competitors.
How retail giant Matas does personalisation right
Based on the customers’ shopping patterns in the stores and on their website, Matas personalises customer communication across sales channels and communication platforms.
“Automated and personalised communication is valuable — to our customers and us. We see it in the conversion rates and how well our communication spurs purchases reflected in the top-line development,” says Stefan Kirkedal, Head of Customer Insights at Matas.
Matas uses Agillic for campaigns and customer lifecycle communication and sends out personalised emails, SMSs, app push notifications, and launch ads in the digital ecosystem.
And with Agillic’s Advisor Portal enabled at the cash register, sales assistants have an overview of a customer’s preferences and can personalise the in-store experience, too.
“Everything we do is designed to improve the shopping experience across channels and create a seamless shopping experience between digital and physical stores,” says Stefan.
Their personalisation efforts have led to a +300% increase in repurchase rate, +45% in basket size, and a +20% share of wallet. All through personalised communication with an omnichannel approach.
Data privacy and ethical considerations
While the benefits of personalisation are evident, retailers must tread carefully with data privacy and ethics. As they collect and process vast amounts of customer data, they must ensure that they comply with data protection regulations and obtain explicit consent from customers to use their data. Moreover, the ethical use of personalisation is vital, as overly intrusive practices may lead to customer backlash and damage the brand’s reputation.
That’s where Agillic’s Omnichannel Marketing Automation Platform stands out from the competition. With strict GDPR compliance and security regulations in place, your data is safe.
Tips for enhancing personalisation in retail
- Prioritise high-quality data: Access to reliable customer data is the foundation for personalisation. A centralised data source and a flexible data model will help you extract actionable insights and drive personalised initiatives. Without good data, other personalisation efforts just won’t work.
- Personalised product recommendations: Start with broad recommendations like “viewed together” or “similar products” and gradually progress to more personalised suggestions, such as “Top picks for you.” Dynamic recommendations (based on every customer click and page view) are truly hyper-personalised and possible with an omnichannel marketing automation platform like Agillic. Experiment with different recommendation types to find the most effective ones for your customers.
- Personalise the entire customer journey: Extend personalisation beyond product recommendations to the entire shopping journey. Customise home pages, landing pages, product pages, cart pages, and other touchpoints to make each shopper’s experience seamless and unique. Implement omnichannel personalisation to differentiate your brand and eliminate friction from the shopping process.
- Utilise AI and ML: Implement AI and ML technologies to automate personalisation across all channels. These technologies can help ensure a consistent customer experience and provide valuable insights for improving marketing efforts and driving sales revenue.
- Avoid overwhelming customers: While personalisation is essential, avoid overwhelming customers with excessive personalised messages and recommendations. Offer clear opt-out options for data sharing and respect customers’ preferences. Over-personalisation can be creepy, so find the right balance.
Worried about personalisation becoming creepy?
Personalisation is undeniably transforming the retail landscape. From tailored recommendations to customised shopping experiences, the use of customer data and advanced technologies has enabled retailers to cater to individual needs and preferences like never before.
The impact of personalisation on customer satisfaction and business success cannot be underestimated. By forging stronger connections with customers and offering unique experiences, retailers can thrive in today’s competitive market.
As the retail industry continues to evolve, embracing personalisation will be a critical factor in staying ahead of the curve and meeting the ever-changing demands of consumers.
