Retailers want their next sales pitch to feel like it was meant just for you.
Merchants are looking to make their stores and clerks capable of delivering the same kind of hyper-curated approach to sales that algorithms have made possible in e-commerce. An army of tech firms are eager to accelerate the pivot: They’re hawking body scanners that can create digital doubles of shoppers and tools for customizing everything from the content of drive-thru menus to the stuff you get coupons for in a supermarket.
It’s happening with the help of consumers who willingly hand over their info, retail experts say. Shops are using cameras that recognize visitors and encouraging visitors to open apps in store aisles as a way to collect the needed data, according to Kelly Pedersen, retail lead for consulting firm PwC, helping store staff know what shoppers have bought before and what they’re eyeing now.
“The possibilities are endless,” Pedersen said. “They could have things waiting for you in the changing room. They could send you personalized offers to your phone.”
Evolving cultural norms have helped “personalization” become one of retail’s buzzwords. For years, some 60% of surveyed consumers have said they are willing to share biographical info in exchange for a more bespoke shopping experience, Pedersen said, but more recently that number has topped 90%.
Experts say younger Americans are especially comfortable with companies building dossiers on them, especially as they’ve grown accustomed to online merchants using their data to customize offerings. Many even expect a customized experience that relies on data-tracking, said Rachel Hardy, director of consumer product marketing at Pinterest (PINS).
Tech firms are pitching AI products as key to personalizing the consumer experience—whether that’s a message used in marketing or the merchandise included in promotions.
At a retail convention this week, sales reps described how the iBody scanner can quickly collect a consumer’s body measurements, as a way to steer product design and recommendation. A sign company said it can help drive-thrus curate menus for various diners. One firm discussed how supermarkets could use its “smart” device to gauge what people put in their shopping cart, and then show them more relevant discounts and ads.
This may even affect retail-industry M&A and spending priorities. Some brands are so intent on individualizing their sales strategy that they may bring tech teams specializing in this in-house, Pedersen said.
“Companies are looking beyond just ‘retailer acquiring retailer.’ They’re looking at ‘How do I acquire technology companies? How do I accelerate some of these things?’” he said.
About 40% of Pinterest’s active monthly users are Generation Z, according to Hardy, and many use the platform to find shopping ideas.
Users “have this heightened expectation of personalization because they’ve grown up on a smartphone,” Hardy said. “They’re really into curation; they’re really into themselves.”
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