Shoppers Are Expecting More Personalization - And That It Will Benefit Them

Personalization leads to greater numbers of unanticipated purchases, and at higher price points. It could also drive more in-store sales. Customers appear to have decided decisively that the trade-off between data provision and discounts works in their favor.


Stephanie Pandolph reports in Business Insider:

54% of shoppers anticipate a personalized discount in a day, and 32% within an hour of sharing their information with a retailer. Personalization presents a huge in-store opportunity, as physical stores are more likely to drive last-minute purchases over $50. Consumers want more in-store personalization — 41% of shoppers said they’d like sales associates to be able to see their online shopping history, yet less than 20% have experienced this. (But) retailers need to focus on omnichannel personalization.
Consumers are expecting personalization more quickly, with 54% of shoppers anticipating a personalized discount in a day, and 32% within just an hour of sharing their information with a retailer, according to a new report by customer data platform Segment.
Although most consumers crave more bespoke offerings, only 22% said they're satisfied with the level of personalization they receive, meaning retailers are missing the mark on creating a shopping experience that appeals to customers.
By falling short on personalization, retailers are missing out on several benefits, as it can drive customer loyalty, increase sales, and decrease returns.

• Personalization can lead to increased customer loyalty — 44% of respondents said they would likely become repeat buyers after a personalized shopping experience.
• It can also bolster sales, as 49% of consumers surveyed said they've purchased a product they weren’t planning on buying after receiving a personalized recommendation. Additionally, it can increase average order size, with 40% of shoppers reporting that they've spent more money on a purchase than planned because of a personalized shopping experience.
• Personalization can decrease returns on impulse buys. Eighty-five percent of shoppers who made a last-minute purchase from a personalized marketing message said they were happy with their order, and only 5% said they wanted to return the item.

Personalization also presents a huge in-store opportunity, as physical stores are more likely to drive last-minute purchases over $50. Consumers want more in-store personalization — 41% of shoppers said they’d like sales associates to be able to see their online shopping history in-store, yet less than 20% have experienced this. Alternatively, retailers could use their apps to push personalized offers in-store — Target’s Cartwheel app provides in-store discounts based on a customer’s previous in-store purchases, for instance.
Moreover, this means that retailers need to focus on omnichannel personalization. To create a seamless cross-channel shopping experience, retailers should store all of a customer’s information in one centralized record, according to Segment. This can be a complex and costly endeavor that requires updating data systems and tedious data collecting and cleaning by highly paid data scientists. However, retailers may be able to benefit from outsourcing personalization to companies like Segment, as they can leverage such firms’ experience in this area and implement the necessary technology more quickly than building out these systems in-house.