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More people are using digital services than ever before. In this new world where online shopping is becoming ever more significant, personalization stands out as a buzzword for retail businesses looking to grow sales.
The term ‘personalization’ has frequented retailers’ marketing campaigns for decades, used in reference to anything from grocery discount coupons to department store personal shoppers. However, it could be argued that before AI, personalization was never an option for many businesses as they were unable to process the large amounts of data needed for the best service possible.
Now, for the first time, true personalization can be achieved thanks to digital technologies, Artificial Intelligence, and the availability of compliant customer data, including browsing and purchase history, interests, location, and gender. It is only through AI that this has been possible, and it’s truly transforming the industry.
Retail decision makers can analyze this data to determine the best strategy for their bottom line and profits. Small things, like adding names or providing suggestions based on previous purchases, can go a long way for customers.
Having this level of real personalization, when rivals may not, gives your business that all-important competitive edge.
Here are a few ways to increase your ROI through personalization.
Embrace AI solutions
AI has transformed the entire retail landscape. More customer data is available than at any other point in history, and businesses are leveraging AI to use this for their own growth and success, enhancing customer journeys by predicting their customers’ behaviours and preferences. AI also factors in seasonality and promotion planning, which means you can ensure your strategy accurately reflects what the market and your customers want for that moment in time.
Some key AI-driven tactics include:
Personalized loyalty programmes and reward schemes
These marketing strategies encourage customers who have made one-off purchases or have become dormant over time to become repeat customers. Recommending deals or tailored products and services based on their purchase history can inspire more sales and higher ROI from your existing customer base.
Chatbots
While, in theory, chatbots have allowed retail brands to provide a personalized customer service 24/7 - and may seem as if they do - the reality is that for most brands, they are not yet technologically advanced enough to provide a satisfactory service. The introduction of AI in this area presents an opportunity to improve customer experiences through chatbots. Using AI, chatbots can be programmed with data based on frequently asked questions whilst proactively gaining new information from customers as they are used. This helps to deliver both a faster, more streamlined process for the customer and frees up employee time to complete more complex and valuable tasks. While this opportunity is far more in reach than it ever was, retailers are still a long way from technologically advanced chatbots becoming the norm.
Following up with customers after sales
By doing this, you show your consumers that you appreciate their business and view them as a valued customer. In a world of exponential technological growth, it has never been easier to foster a relationship with your customers by using automated emails or notifications to deliver customized messages. This method has been proven to bolster brand loyalty and produce enhanced feedback on products, ultimately inspiring more purchases from new and existing customers.
With the help of AI, personalization can be achieved far more efficiently and naturally, impressing your customer base and producing an enhanced ROI.
Tailor your website
Your website is the window to your brand and, especially for online retailers, represents your entire business. It should accurately show what you’re offering and what the user wants to see, in the same way a brick-and-mortar store would do.
Home pages, landing pages, and product pages can be customized so that they only display items that customers have previously bought or looked at, or similar ones that may be of interest. Amazon is often seen as the leader in this type of personalization, with their hallmark “You might also like” and “Frequently bought together” sections on product pages, used to inspire further purchases.
In a move to shift personalization from inspiration to action, if a product that the customer was hoping to buy is out of stock, you can allow customers to request a notification for when that product is next available, alongside relevant alternatives. In addition, if a customer is regularly buying a particular product, sending a recommendation to join a subscription model is guaranteed to increase sales.
Products suggested to customers based on personalized data means that consumers can shop and check out more quickly. This makes for a smoother experience for existing customers as the shopping process is streamlined and tailored to their purchases. When using cross-channel personalization, it’s also important that your website, email marketing, and social media channels are all connected using a central Customer Relationship Management system (CRM) to provide a holistic experience to the customer.
Personalize your retargeting
Retargeting involves advertising to consumers who have visited your website previously and have abandoned their basket. Where these potential customers were once deemed lost, retargeting allows you to rekindle their relationship with your brand, helping to entice them into a purchase the second time around.
It is important to deploy retargeting methods at a time and place when the user would prefer to see it, otherwise it may have the opposite effect and appear intrusive or ‘pushy’ and result in a negative perception of your brand for that customer. However, with personalization added to your retargeting remit, the success you see from this marketing tactic can be even greater.
In using data that customers give you permission to access, you can offer them a personalized discount or send a notification about the product they almost purchased, to help reignite their interest. Retargeting efforts like this are best delivered via social media advertising or email marketing.
Deliver true personalization to your customers
With present AI offerings, it’s never been easier to provide personalization that connects with your customers in a way that wasn’t possible before.
At Thought Provoking Consulting, our team is on hand to provide valuable insight into the retail sector and how best to grow your business. With over 100 years of experience gained across all major sectors, we can help you to utilize the power of AI and personalization to deliver the best service for your customers, increasing accuracy, profits, and reducing costs.
With these revolutionary digital processes now available, businesses can provide genuinely personalized services in a way they never were able to before. If you aren’t already offering personalization, the question is, when are you going to begin?
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