Being interviewed at the 9th April 2025 LEADERS OF TRADE event in Warsaw, I had the opportunity to share my viewpoint on Retail and store experiences, considering that today we have 6 generations of customers, each of them with specific expectations, and from a sales & marketing perspective, this is a great challenge.
Here a summary of my points:
1. Personalization as a Must-Have
– Customer Expectations: Over 80% of customers prefer personalized experiences, and 76% feel frustrated when these expectations are not met. Personalization influences purchasing decisions, loyalty, and satisfaction.
– Revenue Impact: Retailers using personalization see a 25% increase in revenue, as it drives higher conversions, average order values, and repeat purchases.
– Hyper-Personalization: Advanced AI-driven personalization tailors offers and interactions to individual preferences in real time, creating unique shopping experiences that are difficult for competitors to replicate.
– Data-Driven Insights: Personalization generates valuable data on customer behavior, enabling retailers to refine strategies and improve customer experiences.
2. Customer Experience (CX) Equals Employee Experience (EX)
There is a strong link between customer experience and employee experience, making both equally important for retail success.
– Mutual Influence: Organizations excelling in CX have employees who are 60% more engaged. Positive EX leads to better customer interactions, innovation, and higher profitability (up to 25% more.
– Employee-Centric Approach: To deliver great CX, employees must feel valued. Gathering feedback from employees and fostering trust improves their performance and enhances the service they provide to customers.
– Customer Loyalty: Customers who feel emotionally connected to a brand are more likely to become repeat buyers. This connection is often rooted in positive interactions with well-supported employees.
3. Digital Tools (AI and AR) for Enhanced CX
Digital tools like Artificial Intelligence (AI) and Augmented Reality (AR) are revolutionizing retail by creating immersive and efficient shopping experiences.
AI Applications:
– Personalized Interactions: AI analyzes shopping habits to recommend products tailored to individual preferences. For example, AI-powered systems can suggest items based on past purchases or predict future needs.
– Operational Efficiency: AI streamlines processes like inventory management, customer service automation, and predictive analytics, enabling faster responses and better resource allocation.
– Customer Retention: AI helps identify churn risks and provides upselling opportunities, boosting customer lifetime value.
AR Applications:
– Immersive Experiences: AR allows customers to visualize products in their environment (e.g., virtual try-ons or home placement), bridging the gap between online and physical shopping.
– Reduced Returns: By enabling customers to interact with products virtually before purchase, AR increases buyer confidence and reduces return rates.
– Brand Differentiation: AR enhances engagement by offering unique interactive experiences that set retailers apart from competitors.
Impact of Digital Tools:
These technologies not only improve CX but also encourage loyalty by making shopping more convenient, engaging, and personalized. The global AR-in-retail market is expected to grow significantly, reaching $64.6 billion by 2030.
By integrating personalization strategies, aligning CX with EX, and leveraging advanced digital tools like AI and AR, retailers can meet rising customer expectations while driving loyalty, engagement, and profitability.
In conclusion, my advice is to have a “people first approach”, use CX as compass and implement digital tools if and when they add value to the people.
The future of Retail will be an updated version of the old “client is the king”, or “the queen”.
