Article

Study: Personalization key to retail growth

In-store technologies can boost customer satisfaction, according to two new consumer reports.

March 22, 2011

Personalization of the in-store customer experience will be a key objective for retailers over the next two years, according to two Aberdeen Group reports sponsored by HP and released today.

According to 100 senior retail executives surveyed from industries such as apparel, grocery and department stores, 76 percent of retailers do not possess the technology tools or the business processes for executing Web, catalog or special orders from stores. This challenge is being fueled by rising consumer expectations of rich, multimedia in-store shopping experiences.

The research advises retailers to make customer-centric store improvements that utilize digital signage, point-of-sale systems and kiosks to further in-store product information, promotions, sales and service personalization for customers.

"To remain competitive and profitable in today's connected society, retailers must be able to engage with consumers at all points of service throughout the shopping experience with real-time, personalized information," said Ray Carlin, vice president, Retail Solutions Global Business Unit, HP.

According to the Aberdeen reports, interactive solutions located throughout a store will play an increasingly important role in delivering a highly personalized sales strategy. Forty percent of retailers reported plans to adopt digital signage to deliver the right message at the right time.

The evolution in consumer preferences, and the increased expectation of a multichannel experience, has put pressure on retailers to bring Web-style technology into stores.

According to the findings, 27 percent of retailers will look to deploy interactive solutions that enhance audio and video communication, which in turn will help shoppers find products more easily and provide retailers with another chance to interact with consumers.

One-third of retailers surveyed also are likely to invest in kiosks designed for customers who want to experience Web commerce and check inventory while inside a store.

According to the Aberdeen research, retailers that provide customers with this type of in-store activity (for example, the ability to place Web or catalog orders in the store) are 1.4 times more likely to see higher than 80 percent customer satisfaction in stores, compared to retailers that do not provide cross-channel order capabilities in stores.