Consumer-tailored experiences will keep the retailer’s finger on their customers’ pulse
Engaging retail experiences are crucial for connecting with today’s target buyers. If they’re going to shop until they drop, consumers need more meaningful and personalised retail interactions. Yet, a staggering 70% of retailers are not confident in their efforts to engage consumers through personalised experiences. Growing consumer data privacy fears and increasing third party restrictions are making it a challenge for retailers to access the crucial data insights that drive personalisation. But if they can meet these challenges, the payoff is worth it. Here, Rupert Firmstone, Senior Advisor and Global Head of PIM & DAM at Columbus, identifies four ways retailers can implement hyper-personalisation strategies to create stronger relationships with their target consumers and reap the benefits – from retail-tainment, reimaginating social, and gut feeling – it’s all here.
Customer loyalty in 2025 must fit a new mould as consumers want shopping to speak their language. A huge 80% of consumers are more likely to buy from retailers that personalise experiences to their own preferences. Customer loyalty needs a makeover. Beyond traditional point schemes, retailers need to focus more on emotional connections that are meaningful and not only drive sales but support long-term brand trust. The pay off? Customers are significantly more likely to become loyal advocates when brands excel in personalisation.
So, what is a good starting point for retailers to implement hyper-personalisation?
1) Getting in the mood for in-store shopping
Today’s customers are open to spending more money for brands that don’t just sell a product but cater to an experience, which is crucial post-pandemic as shoppers are starting to ditch accessible online shopping and return to in-store experiences. In fact, 61% of online shoppers miss the ability to touch, interact, feel and try on products, while over a quarter (26%) miss the overall experience of physical in-store shopping. Witness to this shift is the arrival of new trends such as retail-tainment, which are keeping the shopping experience meaningful and emotionally engaging.
The LEGO group has used retail-tainment strategies recently with their free-to-attend pop-up campaign ‘Le Florist’, in Covent Garden, London. The retail-tainment experience consisted of a floral mural and eye-catching backdrops which allowed visitors to interact with workshops making their own botanicals.
Interestingly, the key driver of retail-tainment is themed pop-up stores, with research suggesting that the global pop-up retail industry will seize a market size of $50 billion by the end of 2025. Retailers can meet this need for providing tailored experiences with the use of AI and machine learning technology to predict customer needs and deliver new innovative ways of catering to the in-store shopping demand.
2) Shifts in experience-driven commerce – don’t dig your own social media grave!
Instagram and Facebook used to be experiences, but now they are digital graveyards and TikTok was probably their grave digger. Behind TikTok’s success is its algorithm, which tracks user interactions such as searches, views, comments, likes and watch time, and then generates each user their very own personalised ‘for you’ page. No two feeds are the same and it provides a perfect example for retailers to replicate.
The most efficient cases of personalisation will provide a unique experience that draws customers in beyond the standard shopping journey. If retailers do this well, they won’t just sell products, they’ll become a trusted part of a consumer’s life. Maintaining a contextual understanding is vital when planning the launch of a new strategy or campaign. A new TikTok strategy for instance, requires retailers to internally communicate why it matters, show results, and create a feedback loop to keep employees engaged in the process. It’s about making change feel like a shared mission rather than a top-down directive.
3) Relationships must be built – transparency for clarity
Hyper-personalisation requires quality data but there’s a catch that retailers can’t avoid. The UK are a privacy-conscious nation and 68% of consumers won’t share their data without clarity. There’s also the recent challenge of increasing restrictions on third-party data. So how can retailers address this conundrum head on?
Gen Z are a key demographic that understand the trade-off. Younger shoppers aren’t as sceptical of sharing data with retailers because they understand that in the data-driven world they have grown up in, data helps provide personalised experiences. For instance, 38% of Gen Z are optimistic for sharing data, compared to only 22% of Baby Boomers. The potential for growing this percentage especially for GenZers is there, the issue is retailers haven’t figured out this young demographic’s desires in catered experiences.
Retailers must be transparent with other generations such as the Baby Boomers, and experiment with new effective ways to provide younger consumers with personalised experiences.
Customers can’t expect hyper-personalised shopping experiences if they are data shy. Instead, it must be a trade-off based on trust between retailer and consumer. Here, transparency can bridge the divide. Often it’s the case that consumers simply don’t understand the benefit of data sharing, so it’s the retailer’s job to make terms and conditions of data usage as clear as possible and to highlight the benefits of sharing data at every stage in order to gain consumer trust.
4) A culture of experimentation and choosey consumers need agile business processes
With all these shifts, retailers must have the power of agility under their belt. But how can retailers be agile while meeting changing consumer needs? Retailers need updated, flexible technology. If systems are severely outdated, this will also impact the processes. Retailers can implement adaptable systems to mould around changing consumer wants and tech-driven changing retailing processes. In doing so, retailers will have more streamlined processes among internal teams, which allows them to perform their duties effectively and freely, whether it is supporting a launch, analysing consumer journeys, or using a new social media platform.
Maintaining streamlined processes however, is only half of the story as many retailers should embrace a culture of experimentation. Brands can constantly A/B test, gather feedback, and refine their strategies. Here metrics are important, but so is gut instinct. A company like Shein for instance, relies solely on its rapid agility for product turnaround. Many legacy retailers are stuck in outdated structures but for retailers like Shein, they are able to achieve a level of responsiveness that traditional retailers simply can’t match unless they fundamentally change how they operate.
Hyper-personalised shopping experiences are essential for everyone
Personalisation ultimately outweighs convenience. Now more than ever, consumers want a catered experience when shopping to not only strengthen a connection but to put them at ease in wanting to spend money. Failing to provide personalised shopping experiences is a greatly missed opportunity for retailers, whether that be online or in-store.
About the Author
Rupert Firmstone is Senior Advisor and Global Head of PIM & DAM at Columbus.
