Improving Personalisation Across the Customer Journey
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Personalisation has become the industry's main focus as it emerges from the tumult of the global pandemic. Putting more investment into personalisation is how forward-thinking retailers can ensure future growth. According to our 2022 report, 1 in 5 heads of retail plan to raise investment by 20-40% in the coming year.
Keeping Omnichannel and Digital Strategies Up to Date
With the physical and digital realms blurring together, retail is becoming increasingly 'phygital'. Omnichannel will be a key area for retailers to focus their personalisation advancements. They need to go beyond 'omnichannel basics', such as 'buy online and pick up in-store’.
Instead, retailers need to advance the personalisation cause from across the web all the way to the shop floor. Retailers can do this by collecting data effectively on-site, feeding it to the cloud, and subjecting it to AI-driven analysis.
According to our survey, 41% of respondents highlighted the importance of the connected store experience. In particular, beacon-triggered incentives and smart mirrors that provide personalised experiences along the shopper’s journey, were noted.
It is important to also focus personalisation efforts on the eCommerce strategy. Our survey revealed that 51% of respondents are tailoring email newsletters with personalised product recommendations. While 41% are personalising the search experience based on their customers’ preferences. Investing in digital personalisation will help to build success with both customers and meet business targets.
Using AI to Create Personalised Customer Journeys
AI is reshaping the customer experience for retailers. Experts predict global spending on AI in the industry will hit $7.3 bn in 2022. 49% of the retailers we surveyed said creating an AI-driven customer journey is the most important area for their technology stack.
Some examples of using AI are predicting consumer preferences and analysing shopping trends. On the omnichannel side, AI can even be used in-store to increase personalisation. One example is the use of facial recognition technology to notify store associates of their purchase history.
Gathering data on customers across physical and digital touchpoints, merging them in the cloud and then creating 360-degree profiles, is a critical step toward unleashing AI’s full potential. It will allow retailers to understand individual behaviour, eradicate friction along the shopping journey, and target customers with hyper-personalised offers.
However, realising AI's full potential for personalisation does have its challenges. 39% of our respondents said offering personalised content is the biggest barrier to achieving their CX goals. Inefficacy of content management platforms, the high costs of production and a lack of in-house resources all contribute to this.
Our survey also revealed, data analysis and segmentation are key challenges according to 38% of our respondents. Having holistic customer visibility is critical for retailers to deliver a personalised experience, and effectively capitalise on AI.
Keen to Catch Up in Retail’s AI Arms Race?
Behind on the AI curve? Or maybe you have a cutting-edge case study you want to share with your peers during an in-person networking session?
Take part in the conversations shaping the future of retail and join us at eTail Nordic. Register now.