Article Deliver an Unforgettable Customer Experience
Learn how personalization, AI, sustainability and more are shaping the retail landscape.
By Insight Editor / 14 Dec 2023 / Topics: Customer experience Digital transformation
We live in an algorithmic age.
In technical terms, an algorithm is a finite sequence of instructions that are executed to solve complex problems, automate processes and achieve a specific goal. In everyday life, algorithms have come to inform nearly every aspect of our behavior. Search engines show results based on typical behavior, social media feeds populate based on preference, healthcare providers predict and prevent diseases, and financial institutions make investment decisions all based on algorithms.
They’ve also shaped the way we shop. Customers now have endless digital options and tailored algorithms that cater to their unique needs and desires. Shoppers expect a personalized experience, conveniently suited to their lifestyle and taste. As a result, Customer Experience (CX) is a major focus for modern retailers.
SuperOffice — a cloud-based Customer Relationship Management (CRM) solution — recently asked business professionals to share their number one priority for the next 5 years. Nearly half (45.9%) answered customer experience, beating product and pricing for the third time in a row.
The good news is that technology has evolved right alongside customer expectations. With the right tools tailored to your needs, you’ll build lasting relationships with your customer base and unlock added business value. Keep reading for innovative solutions to enhance CX, build loyalty and increase sales.
Create a more intelligent persona.
Customer personas have long been used by retail companies to predict consumer behavior. But now, there’s an even better strategy: synthetic customers. These virtual shoppers can simulate shopping patterns and better inform the desired customer experience.
You may have heard of a synthetic identity — a process combining real and fake personal information to create an identity. But what’s a synthetic customer? This is a type of customer persona or profile created with AI and machine learning algorithms. Retailers can use synthetic customers to better understand their customer base and make data-driven decisions on product development, marketing and merchandising.
These intelligent personas are created by analyzing large amounts of customer data (such as purchase history, preferences and behavior patterns) to identify common characteristics and trends. By understanding the wants and needs of synthetic customers, retailers can tailor their offerings to better meet the needs of their actual customers.
Personalization still reigns supreme.
Today’s customers expect a tailored, individualized experience — both in-store and online. But how can you create a unique experience for each shopper? By tapping into the wealth of customer data available today.
Collecting and analyzing customer data gives retailers valuable insights into shopper preferences, behaviors and needs. With the right data tools, retailers can tailor everything from product offerings to marketing messages.
These personalization strategies must be agile and adaptable as they reflect the changing customer landscape. Ecommerce retailers can use customer data to create personalized recommendations, email campaigns and website experiences. Brick-and-mortar retailers can use customer data to improve service levels, create personalized promotions, and customize the shopping experience through events and in-store signage.
Worried about overdoing your communications? Studies show that shoppers like to hear from you. According to Square’s 2023 Future of Retail report, 86% of consumers want to communicate with the businesses they frequent. With personalization, you’ll share relevant information with each consumer and create stronger, lasting relationships.
Tech up your retail game.
The latest tech trends are shaping the future of CX, and embracing innovation helps ensure that customers are excited to shop with your business. Take Augmented Reality (AR) and Virtual Reality (VR), for example. With just a smartphone, shoppers can scan products for more information, enter virtual fitting rooms or visualize items within their own homes.
They now have the chance to experience a product and trust that they’ll be satisfied before spending their hard-earned money. Offering new ways to interact with merchandise increases customer loyalty, excitement and engagement — ultimately leading to more sales.
AI-powered chatbots can also enhance the shopping experience. Once an annoying pop-up, these smarter assistants can provide personalized recommendations and targeted promotions while offering prompt replies any time of day. And don’t count out voice shopping. This is a type of online shopping where customers can place orders through voice-enabled devices such as Amazon Alexa or Google Assistant. Incorporating voice commerce tools into your business offers customers a convenient, hands-free shopping experience.
Modern tech will also aid your omnichannel strategies. Customers are no longer confined to a single channel when shopping — they might browse online, check out products in-store and then purchase on their phone. Having a strong presence across the retail landscape will keep your business top of mind.
Embrace greener retail.
If sustainability isn’t a key focus of your 2024 CX strategy, you’re missing a major driver of success. Not only are sustainable practices good for the planet, they’re also beneficial for brand reputation, business operations and your bottom line.
Customers are demanding more sustainable practices from their favorite brands. According to The Economist Intelligence Unit, searches for sustainable goods have increased globally by 71% since 2016.
There are several ways to enhance sustainability and impress consumers:
- Embrace the use of eco-friendly technology solutions like renewable energy sources and biodegradable packaging materials.
- Use AI-powered inventory management systems and energy-efficient lighting to reduce carbon footprints.
- Implement smart transportation systems for logistics and supply chain management, reducing fuel consumption and carbon emissions.
- Offer recycling and repurposing services to customers for their old products.
- Provide VR and AR experiences to reduce the need for physical stores and lower carbon emissions.
Smarter retail starts here.
The right technology can help differentiate your business, grow revenue and earn customer loyalty. Not sure where to start? That’s where Insight comes in. Our retail experts will identify a wide range of custom technology solutions for your unique needs — from cloud-based services and modern devices to mobile applications and digital storefronts.
Take full advantage of the latest innovations to optimize your business and boost the customer experience. Talk with an Insight expert to learn more.
