Retailers in the United Kingdom could be missing out on 94 million euros in additional revenue as they are failing to personalize the shopping experience. More than half of British consumers said they are more willing to choose for a retailer if it offered them a good personalized experience.
This is revealed by new research from Webloyalty, that put the study online. In the study, Webloyalty talks abot how reviews are not the only way in which a more connected sector has changed the interaction between consumer and retailer. “Using data gathered from online and mobile has allowed retailers to personalize communications and offers to shoppers. This may take the form of an email that is tailored to take account of what a particular consumer buys or it could be a discount that is focused on a product the retailer knows the shopper will like”
Personalization leads to loyalty and more spending
Personalization could really improve a customer’s loyalty and stimulate his spending. About 56% of consumers said that if a retailer gave them a good personalized experience, they would make an effort to use their site more. “If this number is worked through it could, ultimately, deliver a 7.8% uplift in sales for an average sized retailer with a turnover of 1.2 billion euros. In monetary terms this translates to a 94 million euros uplift in sales across the course of a year. Obviously for larger retailers the uplift may be significantly more”, the researchers conclude.
When looking at personalization in-store and online, such as recommended products, tailored deals and adverts according a consumer’s likes and needs, 28.1% says they sometimes take notice of them and they sometimes influence a purchase. One in ten consumers say such personalization has a big or major influence on them.
Guy Chiswick, managing director of Webloyalty Northern Europe, thinks personalization is the future of online shopping. “Retailers need to be aware of the appetite within the consumer community and respond to it, if they are to reap the rewards.”