Retailers that can’t deliver a personalized experience are at serious risk of becoming irrelevant soon. According to a study from Accenture, 75% of shoppers are more likely to do business with companies that recognize them by name, offer relevant recommendations and remember their purchase history.
This study highlights that we’re in the midst of a paradigm shift in the shopper-retailer relationship. With mobile technology and a wealth of information at their fingertips, shoppers want an experience that’s tailored to their individual needs and desires. They crave a one-to-one relationship with the retailers they do business with—and they’ll happily switch brands if that expectation isn’t met.
In the race for personalization, digital natives have an early lead. That’s because they’ve built infrastructure and business models that enable the real-time collection of data and the delivery of customer needs. But both incumbents and newcomers in retail need to realize that personalization isn’t simply a technology problem—it’s an insight problem that revolves around the customer journey.
To get personalization right, retailers need to take a step back, start from the beginning and look at the big picture. It requires understanding not just the logical aspect of purchases, but also the emotional triggers that convince shoppers to buy.