Study: Retailers struggle to deliver personalization
Retailers know that personalization equates to higher sales, but companies still struggle with execution.
Specifically, retailers are eager to offer personalized experiences to achieve higher sales. Failing to remove unintended barriers are only overwhelming shoppers, who then abandon shopping carts.
This message was presented in “Personalization Pulse Check,” a report from Accenture Interactive. The study, which surveyed more than 1,500 consumers aged 18 to 60 across the United States and United Kingdom, revealed that consumers do have a positive attitude toward personalized offerings and services.
For example, 56% of consumers are more likely to shop at a retailer in store or online that recognizes them by name, and 58% are more likely to make a purchase when a retailer recommends options for them based on their past purchases or preferences. Remembering purchase histories will win over 65% of shoppers, and three-quarters (75%) of shoppers will more likely to buy from retailers that provide any of these three services, the report said.
Where the challenges lie, however, is when messages get muddied in their execution, whether through irrelevant recommendations or too many options. For example, 39% of shoppers have left a business’ website and made a purchase elsewhere, because they were overwhelmed by too many options.
With so much competition in this omnichannel landscape, retailers are in the hot seat “to make it easy for customers to engage, buy and consume what they want, how and when they want,” said Jeriad Zoghby, global personalization lead at Accenture Interactive.
Despite the availability of data and digital technology today that allows for a deeper level of personalization, “many brands are still grappling with delivering upon customers’ desire for more personalized experiences,” he said.
One issue is the creation of unintended barriers, such as onsite searches that deliver irrelevant results or landing pages don’t match known customer intent or profiles. “In an era when your brand is the experience, it’s imperative that retailers deliver the ultimate user-friendly and tailored experiences or risk sacrificing sales and loyalty,” he added.
Sainsbury’s Argos acquisition boosts digital reach
By the holidays, customers of J Sainsbury Plc will be able to take advantage of more mobile capabilities.
Leveraging its acquisition of the Home Retail Group, which closed last month, Sainsbury will begin adding Argos branches or click-and-collect distribution points inside almost all of its stores, according to a recent Bloomberg article.
The acquisition added 739 Argos outlets and three Habitat home-furnishing stores to Sainsbury’s portfolio, which already consists of 601 supermarkets and 782 convenience stores around the U.K. More than a dozen mini-stores and collection points already operate inside Sainsbury’s shops, and 19 more will open before Christmas, the article said.
Sainsbury is further raising the bar on delivery times with tests of a mobile app, called Chop Chop, which offers same-day deliveries in south London, the Bloomberg article mentioned.
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First Look: Anthropologie debuts new format, Anthropologie & Co.
Anthropologie’ s experiential retailing concept takes center stage under its new store banner, Anthropologie & Co., with the first-ever location now open in Walnut Creek, Calif.
The 30,000-sq.-ft. store is a visual treat, and features fully decorated showrooms, filled to the brim with custom furniture.
It includes a dedicated shoe salon, limited-edition apparel collections, a beauty department with items curated from cult favorites to emerging brands, and 12 fully-furnished vignettes of bedrooms, living rooms and dining rooms. In also has in-store design center.
Anthropologie’s two sister banners — wedding specialists BHLDN and the garden- and outdoor living-focused Terrain — have their own dedicated shops in the store.
A second Anthropologie & Co. location is due to open in November, at Stanford Shopping Center in Palo Alto, California. This one will include a restaurant from the The Vetri Family restaurant group, which was acquired by Anthropologie’s parent company, Urban Outfitters, last year.