KEY POINTS

  • Consumers say that a personalized shopping experience can inspire loyalty and increases in spending. Nearly half (44%) of consumers said that they're more likely to make a repeat purchase after a personalized shopping experience, according to a Segment study. Additionally, 49% of consumers said they’d be willing to pay more for products or services if they had a highly personalized in-store experience, per TimeTrade.
  • However, brick-and-mortar retailers aren't meeting consumers’ in-store personalization expectations. Only 17% of consumers believe retailers are personalizing the in-store shopping experience. For example, although 41% of consumers expect sales associates to know about their previous purchases, just 19% have experienced this, according to Segment.
  • The nature of online shopping gives e-commerce the upper hand when it comes to personalization. Online, retailers can track every click and purchase a consumer makes, and use third-party data to know what they've done elsewhere. They can then roll all of that information into artificial intelligence (AI) and algorithms to immediately react. These responses can be in the form of recommendations, promotions, and more — all of which consumers are likely to see while they're shopping since the content is right on their screens.
  • Physical retailers can close the gap in personalization by identifying consumers when they enter, tracking them throughout their journey, and then using that information to inform individualized offerings:
    • There are several [...]