News

Ignoring personalization can cost a retailer, reveals survey

February 23, 2017

Better customer experience can boost a retailer's revenue by 5 percent and retailers missed out on $150 billion in payback last year in failing to provide personalized service to consumers.

That's because consumers want such service and millennials, in particular, would pay up to 20 percent more for a better retail experience, according to the latest latest TimeTrade State of Retail 2017.

The survey notes consumers polled would boost in-store spending by 4. 7 percent if they were getting better and more personalized service.

Just about half, 49 percent, stated they "never" or just "sometimes" were provided personalized services, yet earlier TimeTrade reports on retail executives' views indicate store operators believe they are providing a personalized experience.

"This disparity is financially damaging for retailers," said the survey. "For example, 71 percent of consumers surveyed said they sometimes or always abandon dressing rooms and leave stores if they can't obtain help with sizes, color, etc. On the other hand, 88 percent said that when helped by knowledgeable associates they are 'somewhat likely' or 'extremely likely' to make the purchase."