Personalization in Retail
As retailers and CPGs continue to innovate in the age of AI, customers increasingly expect personalized and relevant experiences at every interaction. According to the Salesforce 2020 State of the Connected Customer Report, customers are, on average, 70% more loyal to brands that offer personalized in-store and digital experiences compared to their competitors. Furthermore, brands that personalize experiences see a 23% higher conversion rate (BCG, 2019). These statistics clearly demonstrate that customer acquisition, retention, and satisfaction are intimately tied to the customer journey.
But how can an organization gain insights into that journey? How can retail brands possibly sift through the massive number of interactions to discover the moments ripe for personalization? And to what extent do personalization and product innovation need to partner to drive outcomes?
The answer is simple: Listen to your customers. Social media is a gift to brands, as customers often vent frustrations or share ideas about products and offerings on these platforms. With 66% of all customers expecting companies to understand their unique needs and expectations, the clear imperative is for brands to hear pain points on social media and adapt to feedback.
Listening to Customers
Ultimately, listening to feedback at scale requires Social Listening, a unique strategy and solution that allows for insights and monitoring of social media data signals for brand interactions. Using this approach, brands across the globe leverage strategies and tools to collect, filter, and search through brand mentions, contextualizing brand mentions. This allows brands to best understand how to serve their customers and deliver more compelling reasons to buy. Working with the largest brands on social listening platforms, we often see that using AI to infer sentiment, loyalty, and propensity to buy results in more loyal and satisfied customers.
As I have written before, our Journey Science framework is the most effective way to implement such data-led strategies. By combining social listening with advanced analytics and AI-driven insights, brands can create truly personalized experiences that resonate with their customers, driving both loyalty and business growth.
In conclusion, as we navigate the age of AI in retail, the key to success lies in understanding and responding to customer needs through personalization. By leveraging social listening and advanced analytics, brands can stay ahead of the curve and deliver the experiences that modern consumers demand.
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