Thursday, April 18, 2024

Retailers falling short on personalisation

Only 32 per cent of retailers have the full ability to turn data into personalised prices, offers, and products in real time, according to a new report. This is a worry as customers have many more options and far less patience than ever before.

The Connected Shopper Report from Salesforce and the Australian Retailers Association (ARA) surveyed 1,600 global shoppers and more than 1,000 retail executives across five continents to analyse the tension between shopper expectations for unified engagement and the current state of retail.

The research found globally, 29 per cent of shoppers are more likely to purchase from a brand or retailer when they offer a tailored customer experience, however just 47 per cent of retailers have a completely defined customer experience strategy that will enable them to deliver connected, relevant and personalised experiences.

Paul Zahra, CEO, Australian Retailers Association says the way consumers are engaging with businesses today is very different compared to a few years ago.

“We’ve seen a dynamic shift in consumer behaviours, and retailers need to be agile and innovative to keep up. Maintaining genuine and personalised connections with customers and keeping them at the epicentre of a retailer’s decision-making is key.”

Key findings

Return of the store: despite shoppers turning to digital channels throughout the pandemic, the store will continue to play a critical role. 57% of shoppers have purchased a product online to pick-up in store, 29% have researched a product online using a mobile device while in-store, and 25% have scanned a QR code to learn more about a product.

Customer loyalty the key brand differentiator: when it comes to the top traits of shoppers’ favourite brands, loyalty programs top the list (50%), with incentives like free shipping (75%) and simple and/or free returns (60%) all increasing their likelihood to buy.

Digital innovation central to evolving the customer experience: to help untangle complexity and democratise data and insights, local retailers are investing in unified engagement platforms to make data-driven decisions (48%), increase in-store staff productivity (48%), deliver personalisation in real-time (43%), and create seamless customer experiences across channels (43%).

Shoppers continue to define new rules of engagement: the need to unify engagement has never been more important with shoppers expecting brands to meet them on their terms. Social media (46%), influencers (22%), and messaging apps (20%) are among the most popular digital methods for brand discovery. When it comes to purchasing, mobile wallets (40%), email (39%), and social media (15%) are the top digital destinations.

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