Is Personalizing Enough to Keep Customers Coming Back?

Is Personalizing Enough to Keep Customers Coming Back?

As retailers look back on what worked well and what didn't last year, they're focused on building trust with customers and getting them more involved.

Today's market is tough for retailers. They're spending more on ads, facing tougher competition, and customers can easily compare prices. So, getting customers to spend money with them is hard.

A survey of over 1,000 American shoppers found that 69% want offers and experiences tailored just for them. To get through to their customers, retailers need to treat them as individuals, not just part of a big group. Here are a few ways they can do that:

1. Make Special Deals for Customers
   Retailers know that using data is key to success. By understanding what their customers like and how they shop, they can offer deals that make sense. For example, they can give discounts on things customers have shown interest in before.

Research from CapitalOne Shopping shows that 80% of Americans would try a new brand if they got a discount. And people who use coupons tend to spend 37% more. Retailers can use tools like NetSuite and Salesforce to collect data from their websites and apps. Then, they can use that data to offer personalized deals, like discounts on things left in online shopping carts.

2. Reward Customers Who Keep Coming Back
   Most retailers know that customers who come back are really important. Two-thirds of the money a store makes often comes from repeat customers. Big companies like Starbucks and Sephora spend a lot of money on programs that reward people for shopping with them again and again.

With so many options out there, retailers can't afford to lose their best customers. Loyalty programs keep these customers coming back and also encourage them to tell their friends. These programs might give points for every purchase, which customers can later use for more rewards. They also let retailers learn more about their customers, like what they like to buy and when their birthday is. This helps retailers send them emails and texts with deals they'll like.

3. Give Great Customer Service
   Some retailers are letting their customer service slip, but that's risky. Almost half of customers say they won't shop at online stores with bad customer service. If a retailer can't fix things like slow shipping or returns, customers will go somewhere else.

To give good service, retailers need to see what their customers are doing and what they've bought. This can be hard if they're using different systems that don't talk to each other. It's important to use systems that give a full view of the customer.

4. Use Data to Talk to Customers
   Big social media and ads can be good, but they can also be overwhelming. Retailers need to talk to customers more directly.

Emails and texts are a good way to do this. Retailers can send deals based on what customers have bought before. This can help with things like reminding customers about items they've left in their online carts or letting them know when something they want is back in stock.

Retail is tough these days, both online and in stores. People are spending less, and they know more about what's out there. To do well, retailers need to listen to what their customers want and give them deals that show they're important.

Mark Simon is a vice president at Celigo, where he helps retailers with their strategies. He's been working in tech for more than 20 years and has led teams at a few different companies, like Explore Consulting and Evo.