How Retailers Can Promote Personalized Growth and Build Strong Shopper Relationships

What kind of personalization is effective in creating loyal, long-term relationships between retailers and their customers?

The answer is truly individualized personalization that creates a real value-add for shoppers across various aspects of their life, including their finance and fitness goals. At the end of the day, personalization accounts for more than just who a shopper is today, but also accounts for who they’ve been and who they want to become.

Here’s how retailers can take data-driven personalization to new heights.

Review Customer Behavior Individually

Today, much of what retailers call “personalization” is actually segmentation. Segmentation is based on the behaviors of a group of similar shoppers, as opposed to individual customers. Yet, despite the similarities, no two shoppers are the same and segmentation doesn’t adequately address the unique needs of each shopper.

On the contrary, with true personalization, retailers can predict the shopping trends and preferences for individuals, creating higher accuracy for promotions and outreach. True personalization will have a stronger impact on margins and customer relationships than segmentation.

Understand Your Shoppers and Their Goals

Retailers that provide a real value to their customers will stand out amongst the competition. If a shopper has a financial or fitness goal in mind and a retailer incorporates these goals into their promotions and outreach, the shopper will likely engage with the retailer. A retailer can learn about these goals by reviewing purchasing behavior or asking strategic questions on customer surveys.

For example, a shopper may be trying to purchase healthier food alternatives, but since these products are often more expensive, they may be struggling to stay within their typical price points, resulting in smaller basket sizes. Retailers can counteract this by offering discounts on these products, creating a clear value for that shopper and encouraging them to devote more loyalty to the retailer as they strive to meet their fitness goals on a budget.

Bring Your Value to the Next Level

Shopping can be an intimidating experience. In a department store, for example, shoppers may be overwhelmed by the number of apparel options throughout the store. In a grocery store, consumers may struggle to identify which food brands adhere to their diet. Retailers that implement recommendations and promotions that anticipate these concerns will find the greatest success.

For example, if a shopper typically buys shirts from a specific brand and within a specific price range, the retailer should tailor their promotions accordingly. It should take this one step further and let the shopper know where in the store they can find that item and the sizes available in their nearby location. Or, if a grocery customer consistently buys gluten-free bread they should be notified if the grocer rearranges the store and moves the bread’s typical location. By taking this extra step with personalization, retailers will foster irreplaceable connections with customers through value that goes beyond the traditional segment-based promotions.

Customer Relationships Must Be Personal

In the crowded retail industry, every opportunity to stand out can make a difference. Personalization can be used to bring the retailer into the customer’s daily life and find new ways to drive value. The more creative a retailer is with its personalization tactics, the more likely it is to build connections that stand the test of time.

Shekar Raman is CEO and co-founder of Birdzi, a grocery retail AI solutions company that was inspired by an idea his 11-year-old daughter had about locating products in the supermarket.