Making 'Adaptive Retail' Work for Retailers of All Sizes

As the path to purchase evolves, “adaptive retail” is the latest term that's set to take hold of marketers’ lexicons. But what exactly does this term mean?

In short, “adaptive retail,” or adaptive retail strategies, refers to tailored shopping experiences that focus on giving shoppers exactly what they want through convenience, personalization and seamless shopping experiences.

A quick Google search reveals that Walmart has tried to stake an early claim on the term, first using the phrase at the Consumer Electronics Show in January to announce a broad initiative to improve the customer experience with innovative new technology.

While Walmart, the largest seller of groceries in the United States, has the technology resources and marketing budget to establish its “adaptive retail” credentials on a large scale, this doesn’t mean that smaller retailers can’t leverage technology to create personalized, adaptive experiences, too.

With the right approach, grocers of all sizes can become leaders in “adaptive retail.” Here’s how:

1. Start with a data-driven foundation.

The largest players in the retail industry have an enormous amount of data at their fingertips. This access helps massive brands like Walmart drive attention-grabbing innovation at scale. However, grocery retailers both big and small also have valuable data at their fingertips. Many regional or smaller grocery retailers have been collecting customer data for decades, through transaction data and loyalty programs, which equates to a metaphorical gold mine if leveraged properly.

Rapid advancements in data collection, price optimization and artificial intelligence have made it possible for grocers of all sizes to leverage their unique data to create true shopper personalization, one of the tenets of adaptive retail.

Grocers today can utilize shopper analytics to ingest this customer data and create unique shopper profiles that account for product and taste preferences and even price sensitivities. This approach goes beyond traditional customer segmentation, meaning grocers can utilize a data-driven approach to unlock a true, one-to-one level of understanding for each shopper that comes into a retailer’s store.

2. Realize the benefits of hyperpersonalization.

With these advanced, unique shopper profiles developed, grocers can then focus on delivering customers impactful savings on the exact items they wish to buy. There’s nothing more convenient than providing savings on the items that a shopper most frequently purchases or has yet to discover they love. Therefore, why not utilize an approach that adapts to what each customer wants?

Grocers can take this a step further by opening discounts to the entire store catalogue rather than limiting coupons to CPG and vendor-funded discounts. By creating sophisticated customer profiles and offering discounts across the entire storefront, grocers can ensure that shoppers receive coupons and targeted savings on their most desired items.

3. Create seamless, adaptive retail experiences across touchpoints.

The final step to mastering adaptive retail is to take this approach to hyperpersonalization and apply it across touchpoints. Whether a grocer uses email campaigns; in-store loyalty programs; or fully omnichannel, branded loyalty apps, the possibilities for adaptive customer engagement become limitless.

Implementing hyperpersonalization means that shoppers can receive impactful savings that are applied automatically at checkout, no matter how the customer shops. If one customer prefers to order curbside pickup, their deals can automatically be redeemed when they check out through their mobile app. If another customer makes a quick stop on their way home from work, remembering they have a coupon for their favorite snack, those savings can be automatically applied at the point of sale.

While Walmart tries to make “adaptive retail” seem like an unapproachable reality for all but the largest retailers, it boils down to a simple, data-driven approach to engaging with shoppers in the ways that matter most to them. As such, it’s time for grocers of all sizes to embrace adaptive retail.

Shekar Raman is CEO and co-founder of Birdzi, a grocery retail AI solutions company.