In 2018, the customer is king. With so many available options, consumers can be as particular as they please in choosing where, how, and when they shop. As a result, retailers are adopting retail personalization to better serve today’s consumer. A research report published by Marketing Insider Group found that 78% of U.S. Internet users said personally relevant content from brands increases their purchase intent.
Personalization increases AOV
It is no secret that shopping habits are changing. People are no longer flooding malls on the weekends, heading to one-stop shops, or even making weekly grocery trips. This does not mean, however, that customers are shopping any less; they are changing the way they do it. With the integration of the digital and retail worlds, consumers have more options. A decade or two ago, consumers shopped exclusively at big box retail stores. You would travel to your local Walmart and hunt down aisles of pre-selected merchandise to find what you need. This was not a customer-centric experience. It was conforming to what retailers needed to sell. Customers have started using shopping tricks such as comparison shopping, “showrooming”, and online shopping to bypass traditional shopping. Forbes reported that 49% of customers who received personalized services bought more than they had intended to. In addition, 44% of customers said that they will shop at a retailer again after receiving personalized services.
Retail Gets Personal
There are several retailers who have attempted to make the shopping experience more personalized. JustFab, an online shoe and accessories retailer, has started offering style preference quizzes to online shoppers. eCommerce giant Target recently acquired a start-up that integrates a physical store with a customer’s mobile phone to help customers find items in-store. Shop Direct, a British retailer, has announced plans for a collaboration with IBM to create an AI powered chatbot that can detect customer’s moods. As personalization becomes more relevant, the demand for sophisticated technology solutions increases.
Artificial Intelligence and Retail Personalization
Artificial Intelligence (AI) and machine learning technology has only recently been applied to the retail world. Shoptelligence uses AI-powered technology to fuel our Style Discovery (SDX) Platform. Using basic product data from an etailer’s full catalog our machine learning algorithm with image and text processing capabilities understands products on a granular level. This allows us to provide shoppers accurate and contextual cross-category product recommendations. Each customer is given a shopping experience exclusive to them.
So, what does the consumer’s desire for a personalized shopping experience mean for the retail world? For retailers, it means adapt or risk being left behind. In a retail environment fueled by innovation and technology, creating a personal experience and bond with today’s choosy consumers will ensure success.
Shoptelligence is the first retail tech provider of an artificially intelligent (AI) STyle assistant that delivers STyle-based shopper experiences that surprise and delight shoppers, individually. As a trusted STyle Discovery Platform for apparel and home furnishing retailers, Shoptelligence bridges the gap between physical and digital and integrates outfit/decor inspiration into both digital and brick and mortar shopping channels. The solution translates retailers’ most basic product data into an interactive STyle discovery experience for shoppers. Shoptelligence has proven to enhance shopper engagement, provide valuable shopper insights, and measurably increase average order value (AOV) for retailers large and small. Shoptelligence makes shopping fun again by developing intelligent technology and intelligent STyle experiences that shoppers and retailers love.
Author: Noelle Haubert, Merchandiser-in-Residence