Consumers Choose Retailers that Offer a Personalized Experience

Offering a personalized service requires identification of customers as soon as they walk in the store, but only 37% of retailers are able to identify their customers before checkout.

Customers want to shop wherever and whenever they want with the benefits of both the digital and physical retail environments. As consumers “check-in” on retailers’ e-commerce and mobile sites, they automatically receive personalized offers and recommendations based on their purchase and browsing history. However, most shoppers are still anonymous when shopping in a physical store so they don’t get the same level of personalized service.

We recently conducted our 20thAnnual POS/Customer Engagement Survey and compared our findings on retailer capabilities with consumer expectations from the BRP Consumer Study (report coming soon!) to identify gaps between customer expectations and retailers’ capabilities. BRP’s SPECIAL REPORT: Personalization gives you a closer look at what consumers expect from their shopping experience and what retailers can currently offer.

Our study found that 79% of consumers indicated that personalized service from a sales associate was an important factor in determining at which store they choose to shop. Consumers understand that receiving personalized service requires retailers to identify them. While this has been the normal standard online or via mobile, identifying the customer in the store is a little more difficult and not as common.

Most retailers who identify customers in the store use the customers’ mobile phone as the identification tool paired with a combination of beacons, WiFi, MAC address, etc. While 64% of consumers are comfortable with retailers identifying them via their mobile phone when they enter a store, as long as it means they are offered a personalized experience, only 37% of retailers are able to identify their customers prior to checkout.

Customer identification is a requirement for any type of personalization of the shopping experience and if a retailer can’t identify the customer until she is at the checkout then it’s too late to empower the associate to influence the current purchase decision. Without early identification of the customer, retailers miss critical engagement opportunities to deliver a personalized customer experience and increase sales. And in today’s crowded and highly competitive market, personalization is a critical component for optimizing the customer’s shopping experience.

The customer has spoken and she wants a personalized shopping experience in the store, how are you going to provide her that experience? Download the report now to understand how retailers are measuring up to consumer expectations.

I appreciate your opinions on this topic.  Please share your thoughts and comments below.

Ken

Ken Morris

Principal
Ken was CEO and President of LakeWest Group and founder of CFT Consulting and CFT Systems, a retail software company. Earlier in his career, he held retail information technology executive positions at Lord & Taylor, Filene’s (Macy’s), Talbots, Stop & Shop Supermarket Company, and Sears. His experience is with strategy, selection development and deployment of retail management systems and processes.

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