In the world of retail, delivering value for shoppers extends far beyond competitive pricing and promotions; it hinges on how well your retail experience aligns with the shoppers’ needs and desires. Research conducted by McKinsey shows that personalization is highly valued by shoppers, with 71 % of shoppers expecting brands and retailers to deliver personalized experiences. When a shopping experience offers a tailored assortment of products, personalized messaging, or customized in-store interactions, shoppers feel understood and valued. Personalization based on a shopper’s past behaviors, preferences, and demographics makes the shopping experience more convenient and efficient, ultimately leading to increased satisfaction and loyalty.
But the power of personalization extends beyond simply shopper satisfaction. It helps brands and retailers build lasting customer relationships, as most shoppers claim that personalized products, services, and communication influence their purchase and re-purchase decisions. Research has demonstrated that personalization can have a positive impact on sales as well, having evolved from an additional feature to an indispensable factor in fostering sustained business success.
The mass retail giants have been embracing personalization for years, with Walmart having recently revamped its e-commerce platforms to offer more customized interactions that make shopping quick and engaging. Every shopper’s homepage on the Walmart app and walmart.com is tailored to display products and offers that are most relevant to them, whether it is for a special occasion, a popular trend, or even a holiday. Their new simplified architecture and customized assortment put the shoppers at the forefront, making their shopping experience convenient and intuitive.
Source: Walmart
Target has made similar personalization efforts, using its Target Circle program to create a tailored shopping experience by leveraging data from the shoppers’ preferences and behaviors. Through the app and online platforms, members can explore personalized product suggestions, access customized deals and offers, enjoy a birthday gift, and accumulate loyalty points, making their shopping journeys more convenient and rewarding.
Source: Target
In addition, the Target app enables shoppers to find products easily within the store and suggests relevant products or deals in the same aisle.
In the apparel space, Levi’s has taken a leap in delivering a personalized experience through their Levi’s Tailor Shop (pictured below). This innovative service provides several options for shoppers to tailor clothing to their preferences. In the “Alter” module, Levi’s tailors their products to fit their customers perfectly. The “Repair” option involves refreshing owned pieces through professional patchwork or stitching, extending their life. They also offer the option to “Customize” where shoppers can participate in the design process. They take this experience one step further with the “Lot 1” service, enabling shoppers to create custom-made jeans from scratch, reflecting their unique personality. These initiatives, focused on customization and upcycling, particularly resonate with the younger generation’s love for personalization and with shoppers seeking sustainable alternatives.
Source: Levis
In the beauty space, Sephora provides personalized skincare solutions to shoppers both in-store, online, or through their app through a partnership with Proven. Customers can complete a quick Skin Genome Quiz, after which they will receive tailored product recommendations. The algorithm adjusts formulations every eight weeks, considering factors like changing seasons, lifestyle, tolerance, aging, pregnancy, location, water hardness, humidity levels, and UV index.
Source: ProvenXSephora
Personalization is not exclusive to large retailers, it is a scalable strategy that can be applied by businesses of all sizes, as long as the shopper needs remain at the core of their efforts. To harness the full potential of personalization, brands and retailer should focus on understanding the needs and desires of their shoppers.
Explorer Research can help you identify the underserved needs of all your shopper segments, expectations around specific categories and opportunities to improve website and app navigation, ultimately driving conversion and shopper satisfaction. Contact us to explore these opportunities further.
