Page 36 - RLI September 2019

RLI RETAIL INSIGHT

The Paradox of Choice

Sarah Cameron, Director of Customer Experience
at Conversity takes a look at how personalisation
can help retailers to increase their conversions in the
current market.

here is no denying the fact that consumers today While the gap between the two is clear here, it is not as wide
are spoiled with the variety of products and services as many may expect. Even for the more tech-savvy millennial
available online. The variety of choice has also meant generation, 37 per cent still opted to make their final purchase in a
Tthat consumers are much more unpredictable than physical store. This underlines just how dynamic customer behaviour
ever before as they can choose what they want, where and now is, and how there is plenty of life left in the high street if retailers
when they want it. For example, a recent survey by Barclaycard are prepared to be smarter in the way they implement, manage
revealed that British shoppers abandon online baskets worth and evaluate the experiential aspects of the service they offer.
£30 per month, which potentially results in more than £18bn This is where effective monitoring and evaluation of the
in lost sales each year. As a result, technology advancements in whole customer experience – across both in-store and online
retail and e-commerce have put significant pressure on online channels – plays a key role if retailers want to break new ground
as well as the traditional brick-and-mortar retailers. However, it in terms of enriching the overall experience for consumers.
has also brought a huge amount of opportunities for traditional Being able to accurately monitor and track customer behaviour
retailers to digitise their in-store experiences alongside online. across all touch points is essential for any retailer looking to
Recent research has shown that 85 per cent of consumers stand out from the crowd. This personalisation can be provided
still see visiting a physical store as a vital part of their shopping at any point in the journey, whether it’s a shopper’s first or fifth
experience, and 78 per cent prefer to see and feel a product time visiting a store and can also be used across online channels.
before making a purchasing decision. This is a clear indication
that physical stores are very much alive and play a crucial role AvOIdINg ThE pARAdOx Of chOIcE
in consumers’ lives. However, retailers must embrace new The modern consumer lives in a world where an array of choice
technology and use it effectively across all channels in order to is the norm rather than the exception, with the success of services
take their customer service experience to the next level, while such as Netflix acting as a barometer of customer expectation in
avoiding overloading customers with excessive product choices. this regard. However, overloading consumers with options – rather
than focusing on a niche range that is proven to be popular with
ThE ImpORTANT ROLE Of pERSONALISATION customers – will inevitably lead to what Barry Schwartz described
Many in retail talk about personalisation but what is it really and in his 2004 book as a ‘paradox of choice’. This is especially true
how can retailers make the most of it? For the modern consumer, if these are accompanied by multiple calls to action and other
shopping interactions today often take place across a number of marketing messages and is likely to actually lead to confusion and
direct and indirect touch points: this can start from a basic online will put would-be customers off making a purchase.
search to in-store browsing then potentially back to online and in- Some retailers are leading the way because they’ve gone
store again. Whatever the journey is, if a retailer is able to monitor to great lengths not just to provide a huge choice of product
each and every one of these interactions effectively, they can help options, but also because they’ve implemented features designed
to capture them and turn them into potential conversions. to bring that added level of guidance and personalisation that
The need for a more holistic understanding of customer helps customers make up their minds. Think recommendations
interaction is summed up in the fact that consumers use a for similar products, relevant cross-sell opportunities appearing
combination of both in-store and online channels when making on-screen or suggestions for repeat purchases – all of these have
their final purchase. According to recent research we conducted, made a difference in driving purchases and customer loyalty
half of consumers (50 per cent) made their most recent
complex purchase online, while 38 per cent made it in-store. TEchNOLOgy TOOLS TO hELp
In order to guard against choice overload, technology should be
used to help customers to cut through the confusion that being
inundated with products can cause. Technology solutions such as
intelligent guided selling have an important role to play here, as
they assist companies in personalising the customer experience
in a way that is easy for both customers and staff to follow, while
making it specifically relevant to the individual, whether shopping
online or in-store. Therefore, it is vital for retailers to utilise their
data in a way that helps them to understand their core audience
which of course is a key part of personalisation efforts.
Technology can go a long way towards eliminating the
paradox of choice, by narrowing down choices and providing
needs-based recommendations to customers in real time. That
said, the potential of tech can only be maximised if retailers use
it wisely. This means gaining a strong grasp of the products that
are popular with customers and make them unique as a retailer,
and then building their customer experience around this.

36 RETAIL & LEISURE INTERNATIONAL OCTOBER 2019