Retailers Miss Out On $150B From Lack Of Personalization

While brick-and-mortar retail can’t always compete with the flexibility and relative ease that eCommerce experiences can offer, some retailers are beginning to bring back lost foot traffic with improved in-store experiences with a focus on customization and personalization.

A new survey conducted by software and customer experience analytics company TimeTrade Systems indicates that a lack of personalized in-store shopping is causing brick-and-mortar retail providers to lose out on revenue. Here are some of the key findings.

As part of its State Of Retail Report 2017, TimeTrade surveyed consumers about in-store experience and personalization.

Even as online shopping continues to grow in popularity, some 82 percent of survey respondents reported doing half or more of their non-grocery shopping in physical stores. Even if an item were available online, some 75 percent of shoppers surveyed said they preferred to buy brick-and-mortar.

While many still prefer in-store shopping, that doesn’t mean that consumer expectations haven’t changed. The survey found that shoppers value personalization (26.2 percent) only behind prompt service (47.3 percent) when shopping in a retail store.

“In-store shopping is far from dead — but it does have to change to keep up with the trends. Instead of telling customers how, when and where to shop, retail stores are catering to their customers’ individual shopping requirements — the shopper is in charge, and retailers must adapt,” said Gary Ambrosino, CEO of TimeTrade

On average, respondents said they would they would increase their in-store spending by about 4.7 percent if retailers provided better, more personalized in-store experiences. TimeTrade equates that 4.7 percent increase in spending to some $150 billion in unrealized retail revenue.

“Just imagine the positive financial impact on brick-and-mortar retailers if revenue jumped by 5 percent,” Ambrosino said. “A renewed focus on providing shoppers with a better, more personal in-store experience would go a long way toward stemming the tide of defection to competitors and online sellers.”

TimeTrade’s survey also found that millennials were especially keen to pay more for personalization and customization in-store — with some reporting they would be willing to pay 20 percent more for improved retail experiences.