Increases repeat business through personalization

The fourth industrial revolution

Already in the 18th and early 19th century was the Industrial Revolution, the transition from manual to machine production. But did you know that civilization has seen more than an industrial revolution? This first industrial revolution was followed by the introduction of technology in the late 19th and early 20th centuries, and the digital revolution in the second half of the 20th century. Automation and data exchange are spreading and we are experiencing a fourth industrial revolution.

The retail experience has evolved as production methods have changed. First came consolidation. Instead of going to the butcher, baker and farmer’s stand, consumers could buy their groceries in a single market. Similarly, shoppers began buying their clothes in department stores instead of visiting a dressmaker, milliner, and shoe store. With air conditioning and development came shopping malls, followed by large department stores and large retailers surrounded by ample parking lots. At the beginning of the new millennium, the Internet revolutionized everything. Suddenly, consumers could access more information and buy a wider range of products than they had ever known. You could collect reviews and learn from each other. The collective knowledge of consumers helped suppliers create meaningful profiles and adjust their product ranges. Online commerce was quickly becoming a global force. Some estimates suggest that the current value of the ever-growing online market is as high as 4 trillion dollars.

Personalization vs Personal Assistance

As the internet evolved, personalized user experiences became increasingly common and standard. Websites could know what time it was or where a user was located. Websites learned and remembered users’ names and preferences by asking a few questions or requesting an account. It became easy to greet a user with a friendly “Good morning Robert! Get dressed—it’s going to be cold in Peoria today.”

When Amazon pioneered product recommendations, an entire industry was born. Businesses used personalization technology to add another dimension to online shopping. By capturing data at every click and testing variations, retailers were able to understand their customers and create models that would inform their decisions. Retailers could see that personalization would effectively boost online sales. As far back as 2016, some analysts say predicted that e-commerce companies using personalization tools would see a 15% increase in profits by 2020.

Personalization has become standard for providers and is expected by consumers. Check out some of Segment’s results 2022 Personalization Report:

Personalization increases ROI. Almost half (49%) of consumers say they are likely to become repeat shoppers after a personalized shopping experience from a retail brand.

Personalization creates loyalty. One in three consumers (38%) say they will shop with a brand they have had a good experience with, even if there are cheaper or more convenient options.

Failure to deliver personalization angers consumers. 62% say a brand will lose loyalty if it offers a non-personalized experience, up from 45% in 2021.

But even as personalization has evolved, something is missing from online shopping: personal help.

Where personalization is data-driven, personal assistance adds a human touch to the shopping experience. Imagine entering a store for the first time and being approached by a salesperson. She has never met you and knows nothing about you, but she is able to communicate back and forth. She asks questions, absorbs everything you say, applies arguments to what she hears, and translates that information into the context of her surroundings. The more she knows, the better she can help personally. If you tell her you need living room furniture, have dogs, and want to spend $2,000, not only will she help you today, but she’ll remember your preferences when you return for bedroom furniture. She won’t show you a flowery blouse and will aim for your preferred price level. she has learned. Nor will she suggest a cocktail dress like the one you bought yesterday because it is irrelevant to your shopping goal today. she argues.

All of this begs the question: In today’s retail environment, what do businesses need to offer, personalization or personal support? While each has its merit and proponents, the best answer is both.

Combining personalization with personal assistance in an omnichannel environment

According to the same segment report 67% of consumers say they want to engage with a retail brand on more than one channel. Combining cutting-edge personalization with omnichannel personal assistance will spur a consumer into action. Retailers who understand which channels their customers prefer and who deliver individually curated experiences through those channels will see increases in conversions, counts per ticket, average order size and repeat business metrics online and in-store.

60% of companies are increasing their investment in personalization, but 40% find that getting the data they need is a challenge made even more complicated by the amount of data required and increasing consumer caution. They want personal attention and at the same time a sense of privacy.

Increase the bottom line with Shoptelligence

By going beyond surface-level crowdsourcing information and incorporating machine learning, the shop intelligence Platform develops deep layers of product-related data. Shoptelligence applies style considerations, analyzes shopper preferences, and learns to make recommendations across a range of attributes — category, color, style attributes, price point, style, and more — just like a seasoned sales rep would. There are also recommendations for supplementary purchases. Retailers that offer Shoptelligence say their online conversation rates double among shoppers who engage with the experience. Purchase per buyer increases by 35%. Units per transaction increase by 40%.

With just a little bit of information from the shopper, retail associates can do this Access to a customer’s browsing history and preferences, leading to a deeper level of decision support. Conversely, if a shopper walks into the store but would prefer to complete a transaction from home, retailers can track that interaction and reward the associate accordingly, creating a less stressful shopping experience for everyone involved.

Offer your customers the best of both worlds. Combine personalization and personal support in your company. Shoptelligence can help.


Leave a Reply

Your email address will not be published. Required fields are marked *