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Mastering Retail Personalization in 2023: A Comprehensive Analysis March 21, 2023 (0 comments)


New York, NY--As retail personalization continues dominating the industry, an in-depth report highlights its implementation's challenges and successes.

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According to Instapage, 74% of customers feel frustrated when website content isn't personalized, while PWC states that shoppers are willing to pay up to 16% more for personalized shopping experiences.

Retail personalization aims to offer a unique experience for each shopper, improving their overall shopping journey. However, Smart Insights reports that 63% of consumers will stop purchasing from brands that use poor personalization tactics.

A common mistake made by retailers is to confuse segmentation with personalization. Segmentation groups people with similar tastes and interests but doesn't cater to individual preferences. Forrester Research reveals that 68% of shoppers are unlikely to return to a website or store that doesn't provide a satisfactory customer experience.

To achieve true personalization, retailers must embrace 1:1 personalization, which involves creating a unique shopper profile for every customer. This can be accomplished by utilizing AI-powered retail personalization, which delivers a different experience for each shopper based on their preferences and shopping behavior.

However, AI-driven personalization relies on good data. Retailers need to focus on data creation, management, and deployment, ensuring the information used is accurate and precise. AI-powered retail automation can help create data, such as automated product tagging and collating customer preferences.

Shopper profiles are critical to retail personalization, capturing each individual's visual and non-visual affinities. These profiles inform visual merchandising, styling decisions, and inventory management for future seasons.

Despite its potential, AI-based retail personalization engines face challenges balancing data-driven algorithms with real-time contextual events. Retailers must ensure their personalization engines remain sensitive to fluctuations in browsing and spending patterns due to life events, such as pregnancies or job changes, and work towards understanding the true intent of each shopper.

Retail personalization is crucial for success in the industry, and retailers need to invest in AI and automation to create unique, personalized experiences for their customers. However, this requires accurate data and a deep understanding of shopper intent to achieve effective personalization.

Learn more about this in the entire article.

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