Sourcing Journal – As retailers try some of everything in an attempt to boost sales, they may be overlooking one valuable resource that’s right in front of them: repeat shoppers. As the 80/20 rule goes, 20 percent of shoppers account for 80 percent of revenue. Since these avid fans are already enthralled with the goods, it only stands to reason that they’d be the most likely to reach deeper into their wallets—but only if retailers can figure out how to cozy up to them.
A new report from retail management consulting firm BRP reveals how good retailers are at identifying these shoppers and personalizing their messages, merchandise and methods to them.
“Personalization is the best way for retailers to enhance the customer experience, especially for those customers who are already invested in your brand,” said Perry Kramer, senior vice president and practice lead at BRP. “Identifying and rewarding your most valuable customers with personalized offers and services is imperative to cultivating loyal, brand enthusiasts.”
It all starts with amassing information about each shopper—a practice that typically entails dangling a big enough carrot to convince them to entrust you with their details. For more than 50 percent of respondents (53 percent), that incentive is a special offer. Stores also solicit shoppers’ information with product incentives (34 percent), an easier returns and exchanges process (32 percent), the promise of personalized services (32 percent) and a credit toward a future purchase (29 percent).
Read Full Article: Personalization Only Works if Retailers Get the ‘Who’ Right