5 Brands That Get Retail Personalization Right6 min read
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Personalization is one of the strongest chapters in the retail industry’s history. The positive connection between personalization powered by data, AI & intuitive analytics and revenue results has been acknowledged by retailers, industry experts, and stakeholders.
Case in point: Vue.ai’s Personalization Engine has helped retailers to increase engagement by 8X, web ROI by 4.5X, order size by 40%, and revenue per visitor by 180%!
But is there a right way and a wrong way to personalize your products, services, and brand messaging? Yes, there is. While the right approach tailored to suit your offerings would yield the above mentioned results, an ill-prepared personalization strategy without a roadmap could alienate customers.
Here, we present five retail brands that have mastered the art of one-to-one personalization. From beauty to resale, from e-commerce to luxury, these brands know how to treat each consumer as unique by relying on data, technology, and automation.
Sephora
The French multinational beauty brand wins at creating a truly unmatched customer experience. On Sailthru’s Retail Personalization Index, Sephora ranks number one, thanks to the deep personalization it offers.
Brands run the risk of hard-selling by plastering the ‘buy now’ message at all channels, which is a huge turn off for customers. Sephora has disassociated itself from ‘hard-sell’ by focusing on understanding its customers, capturing their unique traits & needs and delivering personalized customer experience. The beauty retailer delivers this experience through its hyper-personalized mobile app, Beauty Insider loyalty program and brand messaging across all touch-points.
A few of Sephora’s personalized offerings include shade-matching skin care tool Color IQ, online quizzes, customized make-overs, free beauty classes, the Virtual Artist make-up app and Play subscription box.
Hermès
When whimsical meets luxury, the end result is as eccentric and engaging as Hermès Sur-Mesure. It is a secret bespoke arm of the French high-fashion brand that actualizes customers’ dreams and wildest ideas.
From surfboards to foosball tables, from motorcycles to private jets, The Hermès Sense of Measure is a unique personalization service that serves its premium clientele who want the signature Hermès experience translated into non-Hermès products. Founded in the late 2000s, these customized objects are crafted by skilled elite artisans who work in complete anonymity. The team works on about 300 special commissions every year and customers pay a steep price for each project. For instance, a picnic basket costs $14,700 and boxing gloves cost $44,100!
The element of secrecy and privacy is what makes this service most sought after. Luxury buyers value exclusivity over wide availability, which the luxury label has managed to deliver through its under-reported Hermès Sense of Measure service.
Milaner
The Italian bespoke luxury DTC retailer replicates the ‘farm to plate’ concept by democratizing access to luxury manufacturers in Europe and making custom-made luxury available to customers. Milaner was born when co-founder Elisa Rossi, who grew up in the main hub of luxury shoe manufacturing in Italy, couldn’t find custom luxury products after moving to the US.
The company relies on data and AI to empower its team of manufacturers in order to fulfil made-to-order commissions. “Experimenting with Intelligent Retail Automation is something that’s been very exciting for us at Milaner. The big challenge has always been around how we can use data to inform our product design process. Through AI, we’re actually able to slice different types of shopping data to create amazing experiences for our shoppers,” Rossi shared while talking about her experience of infusing AI and bespoke luxury. You can listen to more insights about Milaner’s customized luxury journey on the Vue Podcast.
thredUP
Fashion resale platform thredUP is efficiently running the circular economy by upcycling (a whopping 576,000 in 2018) fast-fashion items without missing a beat. Thousands of users of the online thrift shop have access to curated product catalogue of pre-loved clothing items running in millions. The retailer has been able to run its platform like a well-oiled machine, courtesy AI-powered personalization.
“At thredUP, creating personalized shopping experiences for our customers is a top priority. With over 2M unique items in inventory at any given moment, we are constantly innovating on ways to help each customer locate the perfect needle-in-a-haystack item. Vue.ai’s AI stylist allows us to personalize the end-to-end customer experience. AI algorithms take into account each individual’s visual style preferences, brand affinities, price sensitivity and more, creating a significant impact on multiple touchpoints in the thredUP customer’s journey,” asserted Chris Homer, Co-Founder, and CTO, thredUP.
ThredUP capitalizes on growing $24B 2nd hand mkt using @vue_ai to bring efficiencies & scale to its operations https://t.co/69UxwFtETM Real privilege to partner w/this leader in sustainable fashion, moving mountains to reduce wasteful consumption! Very thoughtful piece @sandramp
— ashwini asokan (@LadyAshBorg) August 28, 2019
Revolve
The e-commerce fashion brand is next and last on our list of retail brands who know how to execute personalization strategy without losing the true essence of their brand.
Revolve is an excellent blend of a tech and fashion company that leverages modern tools to deliver a unique shopping experience. Their recommendation algorithms create personalized shops for each individual customer on their web and app. The ‘recently viewed’ feature is integrated at all shopping channels of the brand, which ensures that recommendation stays relevant throughout the purchasing cycle.
These were our five favourite brands across a range of retail categories who are winning in the personalization department. Owing to its versatile nature, there are millions of right ways to integrate this strategy into your retail business. Connect with us to know the right AI tools for your business.
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