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 methods of in-store customer account recognition that allow retailers to identify who's in their stores. Facial recognition and camera networks, required logins, voluntary Wi-Fi logins, and apps can all be used to determine who’s visiting a store.
    • Once retailers identify shoppers, in-store tracking lets them locate consumers to better individualize each experience. Camera networks can keep track of consumers throughout their entire in-store journey, while other technologies like beacons and geofences can give retailers live updates about where shoppers are located in a store.
    • Although the combination of the right practice and technology varies for each retailer, using a platform that has voluntary Wi-Fi sign-ins for identification and a camera network for tracking will often be best. Platforms using Wi-Fi sign-ins can be relatively inexpensive, and may prove more popular among consumers since they’re voluntary and present fewer privacy concerns than other methods. Meanwhile, money saved on account recognition would be well [...]