Unlocking Data: The Key to Retailer Thrive in the 2024 Shopping Season

The peak holiday shopping season is a crucial time for retailers and e-commerce brands as they look to increase their revenues, expand their customer base and increase brand recognition among consumers.

But with holiday shopping expected to look a little different this year, retailers are under pressure from customers to implement holiday strategies that help them stand out to shoppers.

This year, consumers are spending more, buying less and looking for value, with two-thirds of shoppers holding off on making large purchases until Cyber ​​Week in anticipation of better deals. So how can retailers get ahead in what promises to be a tough and competitive shopping season? By reaching your loyal customers now.

Keeping shoppers happy is becoming increasingly difficult: 65 percent of customers expect brands to adapt to their changing needs and preferences, and for many shoppers, it takes less than three negative encounters to abandon a brand.

Consumers now expect a personalized experience and excellent service, where they get the right products and enjoy a seamless shopping experience both online and in-store. A recent survey of more than 14,000 consumers found that 84 percent believe the experience is as important as the product they buy.

It’s clear that personalization is key to customer loyalty, even more so during peak holiday shopping periods when additional pressures such as finances, family needs and time constraints can influence shopper behavior. As retailers prepare for another season of competition, data and artificial intelligence will be key to increasing customer loyalty and ensuring that their shopping experience is both easy and unique.

Beauty brand Mecca specializes in delivering an exceptional and consistent customer experience both in-store and online, using customer data to tailor every interaction. MuleSoft enabled the retailer to seamlessly integrate online and in-store data, creating a comprehensive, 360-degree view of each customer. This enables the team to recognize and meet customer needs at every stage of their journey and take into account their unique needs and preferences.

Mecca’s example shows how important accurate data is for any AI-powered purchasing initiative that enhances personalization and customer centricity. However, the above study shows that 60 percent of retailers still say they are unable to fully use data to make decisions. This is undoubtedly a risk: bad data can lead to missed opportunities, lost revenue and breaches of trust. Organizing your data reduces costs, improves efficiency and delivers a consistent, personalized brand experience.

By leveraging data from a variety of sources – online interactions, purchase history, demographic information and social media engagement – ​​retailers can build a comprehensive picture of their customers. This holistic view allows for personalized marketing strategies, tailored product recommendations, and improved customer service, all of which increase customer satisfaction and loyalty. The challenge is not only to collect data, but also to use it effectively. Many retailers struggle to integrate and harmonize their data sources to derive actionable insights, missing out on opportunities to improve customer experiences and increase revenue.

To harness the power of data, retailers should consider targeted investments in advanced analytics and AI-based technologies that can analyze data in real time, predict consumer trends, optimize inventory management, and personalize marketing efforts. Using these technologies, retailers can exceed customer expectations by offering tailored promotions and recommendations that match individual preferences, unlocking the true potential of their data in the process.

Seamless integration of digital and physical retail channels is also key. Consumers expect consistency, whether they shop online, in-store or through multi-channel options such as click and collect. Real-time inventory updates, seamless checkout processes and personalized shopping experiences across all touchpoints contribute to a seamless customer journey that increases satisfaction and loyalty.

Australian footwear company RM Williams is one brand that excels in creating this unique customer experience. To improve the experience and remove friction, the retailer is using artificial intelligence and machine learning to improve product recommendations both online and in face-to-face interactions with customers. The retailer provides customers with a personalized experience through the content they interact with online, including tailored product assortments and campaigns.

Equally important to providing exceptional customer service is equipping your staff with the right tools and knowledge. With comprehensive customer data, employees can anticipate needs, quickly resolve issues, and provide personalized recommendations. RM Williams achieves this with Service Cloud and Service Cloud Voice. These tools provide agents with instant access to caller information, consolidating all necessary details to efficiently handle order status inquiries, coordinate returns and manage repairs, thereby improving the overall shopping experience.

Retailers that manage to unlock and leverage their data can expect to not only survive, but thrive during the holiday season and beyond. By focusing on data-driven strategies, Australian retailers can meet and exceed customer expectations, turning holiday shoppers into loyal customers all year round. The key to success is leveraging technology and data to deliver personalized, efficient and memorable shopping experiences.

• You can learn more about how to harness the power of data and AI during the holiday shopping season to increase revenue and in-store relationships 2024 Retail Holiday Planning Guide.

About the author: Roula Psomiadis is Regional Vice President of Retail and Consumer Goods at Salesforce Apac.