7 Practical Benefits of Personalization in Retail

Utilizing personalization in retail deliver significant benefits to retail business. Such experience leads to happy, loyal customer.
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By | 5 min read

For many years, based on each business model, entrepreneurs deliver their offerings to target customers through messages that consistent to from campaign to campaign.


That’s not applicable in this era anymore.

Customers are categorized into various segments, and their demand keeps changing at a higher pace than ever. They actively choose what they wish to know and mark any unnecessary information as spam if it does not fulfill their needs. As a result, more and more corporate apply personalization to deliver the most satisfied engagement and journey for customers.

It prompts to say that one size does not fit all and e-commerce sites have witnessed significant development from integrating personalization in their business.

To help you have a clearer picture of personalization, let’s dig into the matter by answering the big question:

What Is Personalization in Marketing?

According to Monetate, personalization is the practice of creating personal interactions and experiences for existing and prospective customers through the use of digital marketing technologies. You may be familiar with the term one-to-one marketing. If you visit an e-commerce site, scroll up and down and then close the site, you will most likely receive an advertisement relating to the product you were looking for, or if you have registered an email, you will receive a promotional email with customized offer for you.

If you decide to add, let’s say a lipstick, to your shopping cart, there’s a chance that after receiving a confirmation email, you will also get lots of additional offers that most customers who bought a lipstick would also add bb cream, toner…to their cart for another purchase.

So, after a quick snapshot of what personalization is. Let’s jump right into the most exciting part.

How is personalization beneficial to the business?

Conversion Rate Is Going to…Take-Off

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Let’s imagine yourself as a child. You are loved and well taken care of by your parents, but they spoil you too much. As a result, you are always nagging them for more new toys, new clothes, new phones… Personalization and conversion rate work the same way. Personalization is the parents, and your customer is the child. Personalization nurtures lead with content that is specific and targeted. The moment you catch your customer’s attention for more than 5 seconds can dramatically boost your sales opportunities. Still not believe?

Then consider this statistic from Infosys, almost 90% of consumers said that personalization has some impact on their shopping experience and eventually affect their purchase.

Drive Impulse Purchases

We all have that one moment.

The one moment we suddenly realize we have bought something out of our rationality, but we feel pleased and happy about our not planned initially purchase.

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According to Segment’s report on the state of personalization, 49% of U.S. shoppers said that in the past three months they bought a product they did not initially intend to buy after a brand made a personalized recommendation.

But wait, there’s more!

40% of U.S. consumers say they have purchased something more expensive because their experience was personalized.

Precise Product Recommendations

Before the term personalization was even considered a term, our customers receive tons of commercial advertisement every day

Some were noticeable, some were helpful, but most were not targeting the right people, at the right time.

Now, in the era where data-driven is the core of every business, consumers will receive relatable recommendations in real-time based on their behavior, their history shopping list, their online footprint. Thus, as visitors to site and store receive references that fit their need, that’s ring the bell for sale’s potential.

Increase Customer Loyalty

When we experience something we love, we tend to give them more attention and show our affection. That’s called loyalty, and it can take a while for a business or a brand to build. Thanks to personalization, retailers now have one more right hand to serve your customers. According to Segment’s statistic, 44% of respondents say that will be likely to become a repeat buyer after having a personalized shopping experience.

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A loyal customer can be the most abundant resource of word-of-mouth marketing. Ignoring or not investing enough can cause a negative impact on your business. An impersonal experience, such as mistaking your customer for the wrong gender or displaying an advertisement that is not your customer’s cup of tea, can quickly turn your potential customer turn into disloyal or rehash the experience to their friends and family.

Enhance Customers’ Engagement

Personalized experienced can give your customer an impression that you dedicate to serving them. People love ones who know them, and when your site share your empathy by displaying related content or offers, they tend to spend more time on your site and visit your website more frequent in the future. Not to mention they will leave a 5-star review and lure more leads to your site.

The more personal engagement you have with your customers, the more chances you can understand them better.

Answer the Big Question: ‘Why?’

All the personalization effort will not only serve your customers greatly but also help you figure out the question: ‘Why?’ thanks to the data you have   

Why my customers choose that product?   

Why does that product not attract any click?   


Based on your customers’ experience with your business and their pattern after the personalized experience, you will have an insightful understanding of your customer. From a C-level perspective, this contributes significantly to the decision-making process.’Data is god’ – they say.

Leverage Competitive Advantage

All through the article, you shall notice that each of the benefit mentioned above co-relates to the other. All of which contribute to leverage business’s competitive position and serve business’s goals.

Bottom Line

Personalization is just that easy. It brings the practical benefits; it pleases your customer, it grants you a robust platform to reach higher in the future.

It’s Good For

  • Conversion rate
  • Impulse purchases
  • Precise product recommendations
  • Customer loyalty
  • Customers’ engagement
  • Answering the big question: ‘Why?’
  • Leveraging competitive advantage

Related post: How to Build up a Chatbot Suitable for Your Business?

  • Andy’s experience has ranged from working with clients in the industries of healthcare, ecommerce, retail, and education. As a Market Strategy Analyst, Andy understands the aspiration and development flow strategies…