Adapting to Consumer Expectations: Why Personalisation in Retail Matters
15th August 2024
Belle Williams
Introduction
Personalisation is beginning to be integrated into almost every industry as consumers are now used to custom experiences within their day-to-day lives. This means that they now expect more than just generic interactions in stores, they demand experiences that are tailored to their individual preferences, needs, and behaviours. Whether it's personalised product recommendations, targeted promotions, or customised shopping journeys, today’s consumers want to feel recognised and valued by the brands they engage with. As these personalised solutions are already being implemented by some retailers, the ones who fail to offer elements of personalisation will inevitably fall behind. The Merlin Cloud Team will explore the importance of personalised experiences in retail…
Blog Overview
Introduction
The Role of AI and Computer Vision in Delivering Personalisation
Examples of Personalisation in Retail
Benefits of Personalisation
Conclusion
The Role of AI and Computer Vision in Delivering Personalisation
Flawless personalisation doesn’t happen easily, especially in the retail world where you have multiple customers, each with unique preferences, all expecting a tailored shopping experience simultaneously. That’s where Merlin Cloud’s Solutions come in… retailers won’t have to rely on just human interaction to deliver a personal experience.
Using computer vision, Merlin Cloud’s systems can track and analyse customer movements, interactions, and preferences as they navigate through the store. This data is then processed by AI algorithms that can instantly generate personalised product recommendations, suggest complementary items, and even adjust in-store displays to reflect individual customer tastes. For example, if a customer frequently browses a particular section of the store, the system can highlight relevant promotions or suggest similar products, enhancing the shopping experience without the need for direct human intervention.
By automating and enhancing the personalisation process, retailers can focus on providing exceptional service and building long-lasting customer relationships.
Stores equipped with computer vision can track inventory and customer interactions in real-time, leading to 30% more efficient restocking and better product availability, enhancing the personalised shopping experience.
Examples of Personalisation in Retail
There are many ways that personalisation is already being used within the retail world and this will only continue to grow as technologies advance, along with the demands of consumers. Here are some ways that personalisation is already being offered to customers…
Amazon uses AI algorithms to analyse a customer's browsing history, purchase history, and items in their shopping cart to suggest products that are likely to interest them. For instance, after purchasing a book, Amazon might recommend other books by the same author or within the same genre.
Airlines and Hotel booking sites sometimes adjust prices based on a customer’s past searches, current demand, and competitor pricing. This means that a customer who frequently checks for flight prices to a particular destination might see a different price compared to another customer who is searching for the first time.
ASOS sends personalised emails to customers based on their past purchases or browsing behaviour. These emails might include product recommendations, exclusive discounts, or alerts about sales on items the customer has previously viewed.
Starbucks uses geofencing technology to send personalised offers and promotions to customers' smartphones when they are near a store. For instance, a customer might receive a notification offering a discount on their favourite drink when they walk past a Starbucks location.
Sephora use AI-powered tools to offer personalised product recommendations based on a customer’s previous purchases, browsing history, and preferences. In-store tablets or mobile apps suggest products that align with a customer’s unique beauty profile, enhancing the shopping experience.
Nike’s flagship stores allow customers to personalise products like sneakers and apparel in-store. Using digital stations, customers can choose colours, materials, and designs that fit their style, creating a highly personalised shopping experience.
Some stores use digital signage that changes based on who is in the vicinity. For example, stores might use facial recognition technology or mobile app data to display personalised greetings or product recommendations on digital screens as customers approach.
These are just some examples of personalised retail experiences. As technologies continue to grow, retailers should choose companies like Merlin Cloud, who are continuously working to stay on top of trends.
Benefits of Personalisation in the Retail World
Personalisation provides benefits to both customers and retailers. Merlin Cloud’s solutions are designed to not only increase profitably, but also allow for a better relationship between retailer and consumer…
Problem | Solution |
|---|---|
Customers often encounter a one-size-fits-all approach in retail, leading to a lack of engagement and lower conversion rates. | Personalisation allows retailers to tailor the shopping experience based on individual customer preferences, increasing engagement, and improving conversion rates by offering products that align with the customer's tastes and previous behaviours. |
Retailers often spend resources on broad marketing campaigns that do not resonate with all customer segments, resulting in wasted effort and budget. | Using data-driven personalisation, marketing campaigns can be more effectively segmented and targeted, ensuring that messages are relevant to the audience, leading to higher ROI and customer satisfaction. |
Retailers may struggle with overstocking or understocking products due to a lack of insight into what customers are likely to buy. | Merlin Cloud’s solutions can predict trends and customer demands more accurately, allowing retailers to optimise inventory management by stocking products that are more likely to sell, reducing waste, and improving profitability. |
80% of consumers are more likely to make a purchase from a brand that provides personalised experiences.
These examples show how personalisation can address common problems in retail, leading to enhanced customer satisfaction, improved sales, and more efficient operations.
Conclusion
The integration of personalisation in the retail world is no longer just an option but a necessity. Consumers today expect a shopping experience that not only meets but anticipates their needs, offering them products, services, and interactions that are uniquely tailored to them. The retailers who use personalisation advanced technologies like AI and computer vision—will not only meet these heightened consumer expectations but also gain a competitive edge in the market. Merlin Cloud’s solutions exemplify how personalisation can be seamlessly integrated into retail operations, driving engagement, loyalty, and profitability. In a time where customer experience is paramount, those who invest in personalisation solutions will see stronger relationships with customers and ensure long-term success.
