Big Data collection for the use of a personalized customer experience at retail has been proven to increase in-store sales, drive impulse purchase decisions and generate customer loyalty. Getting it right, by leveraging the right data with the right balance, can achieve a real win-win for consumers and retail brands. Online retailers have successfully achieved personalization by greeting customers by name when they log in to shop, saving their shopping cart and payment history and providing recommendations for future purchases. This technology has been less utilized inside the brick and mortar retail stores, although technological advances in data collection can give marketers the information they need to deliver a more personalized in-store shopping experience.
Reaping the Benefits of Personalization at the Store Level
Personalization does influence purchasing decisions, and shoppers realize that. According to a study by Infosys 59% of the consumers surveyed reported that a personalized shopping experience noticeably influenced their purchasing decisions. Despite the studies that have been conducted, not all retailers have implemented consistent data collection and personalization technology.
Here are some compelling statistics concerning retailer's beliefs about personalization:
- 96% of retailers believe that personalization influences purchasing behavior
- 56% believe it influences purchasing behavior significantly
- 18% of retailers do not offer any type of personalization
Great statistics regarding retailers that have incorporated personalization marketing strategies:
- 74% report that they have experienced an increase in sales
- 61% have seen an increase in profit
- 55% have seen an increase in customer loyalty
These statistics should be a motivating force for retailers and brands to take next steps in implementing a strategy towards offering more personalized experiences to customers. While 90% of consumers report that they impulse buy, 50% reported in the recent Infosys study that they are more likely to do so while in store. Retailers can include real time marketing, personalized email communications and in store recommendations in their marketing mix to maximize impulse buys from shoppers.
Shoppers Want More Personalization
How does the customer feel about personalization? 31% of consumers say that they want more personalization in their shopping experiences, according to the study by Infosys. As more shoppers are utilizing mobile technology during their shopping trips, the possibilities become endless as to the number of ways brick and mortar retailers can capitalize on delivering personalization.
Creating Effective In-Store Communications Through Geo Tracking
Retailers and consumer brands alike are making an effort to connect with shoppers on a personal level through new forms of technology, to include iBeacon location sensing technology and other methods of Geo Location tracking. Geo Tracking, also called Geo Targeting, is the tactic of using a person’s mobile GPS location to trigger a notification to them; such as a store location in the vicinity, an in-store product offer, and even offers based on current weather conditions.
Walgreens did just that by partnering with P&G to send messages to women through the Weather Co. app. Based on the weather report for the day, a personalized advertisement would appear, along with a Walgreen's coupon to encourage women to visit Walgreen’s to pick up a hair product. For instance, on days with high humidity, the ad may show an anti-frizz product. Walmart has also teamed up with Weather Co. to send weather related ads to consumers, to include advertisements for Gatorade on high temperature days, and Claritin when the pollen count is up.
Personalized Email Communications Drive In-Store Sales
Personalized emails yield 6x's more revenue than those that are not personalized, according to the 2013 Email Marketing Study . While this seems like a no brainer for retailers and brands to pursue, 70% of brands do not send personalized emails even though they may already be collecting valuable customer data. While consumers are continuing to be bombarded with email marketing, it's important for brands and retailers to provide personalized content that best markets to the individual consumer. This will not only increase the email open rate, but will also lead to in store conversions, and ultimately increased profits.
The Omni-Channel Utopia
While there continue to be challenges in data collection and incorporating technology in store, there is a huge potential there for brand marketers to tap into. Shoppers are seeking personalized experiences in store, and expect stores to deliver personalized offers and recommendation. The omni-channel approach to marketing is not going away, and as technology continues to advance, shopper's expectations will continue to change. Utilizing mobile technology along with digital and print advertising can work together to create the ideal shopping experience for customers, while maximizing store profitability.
KDM P.O.P. Solutions Group supports some of the nation’s top retailers and consumer brands with innovative solutions to help them engage shoppers, drive sales and build brands at the point-of-purchase. We do this by blending technology with custom POP print materials and merchandise displays, as well as designing retail environment spaces that deliver personal experiences to targeted shoppers.
You may also be interested in these related blog articles:
- Blending POP Print With Technology to Engage Shoppers
- Big Data Offers Big Benefits for Retailers
- Using Technology in the Retail Environment to Boost Sales