February 20, 2023
5 benefits of clienteling: How retailers can deliver personalized service to boost loyalty and grow sales
In the competitive world of retail, providing a personalized shopping experience has become essential for standing out, building customer loyalty, and growing sales. And one simple question can make-or-break a sales interaction. In this blog we’ll explore how retailers can enhance the store experience, and use clienteling tactics to deliver exceptional service that leads to sales.
Retail is hard, we feel you
- Only 32% of customers say they enjoy the store experience.
- 83% of shoppers think they know more about the products than store associates.
- Sales associates are inexperienced, many are working their first job, most receive little to no training.
- Inflation is high, store traffic is inconsistent, consumer confidence is down, and retailers are being asked to do more with less.
But, there is hope
- Customers are willing to pay up to 16% more for customized shopping experiences.
- Customers who experience one-to-one clienteling are likely to spend 3-4 times more each year and have a 63% higher AOV than those who do not.
- 74% of store associates say that having in-store devices to help enable clienteling would have a positive impact on their productivity.
Have you shopped with us before?
While it may seem like a simple question, it can provide a wealth of valuable information for the sales associate from the outset, and help start the interaction with the best possible chance to be a success.
Armed with the knowledge that the customer is either new to the brand or returning, the sales associate can engage in the most relevant, meaningful way to deliver value for that customer.
The best interactions are the real ones
It's more important than ever for stores to create meaningful connections with their customers. One way to achieve this is through clienteling, a strategy that focuses on building personalized relationships with shoppers.
Clienteling can provide numerous benefits for both the retailer and the customer. Here are five key benefits of clienteling in a retail store.
1. Increased customer loyalty
Clienteling allows retailers to create personalized experiences for their customers, which can lead to increased loyalty. By taking the time to get to know a customer's preferences, interests, and purchasing habits, retailers can make targeted product recommendations and offer tailored promotions. This can make customers feel valued and appreciated, which can encourage them to return to the store again and again.
2. Improved sales performance
Clienteling can also have a positive impact on a store's sales performance. By understanding a customer's needs and interests, retailers can suggest products that are more likely to be of interest, and therefore more likely to be purchased. Clienteling can also help increase in-store conversion, by turning “just browsing” into paying customers, and help speed up time to conversion for each interaction too.
3. Enhanced customer experience
Clienteling can help retailers create a more enjoyable shopping experience for their customers. By offering personalized service and product recommendations, retailers can help customers feel more comfortable and confident in their purchases. This can help reduce the likelihood of returns or exchanges and improve overall customer satisfaction.
4. Improved customer insights
Through clienteling, retailers can gather valuable data on their customers, such as their shopping habits, preferences, and feedback. This data can help retailers better understand their customers and make informed business decisions. For example, a retailer may use customer data to make decisions about product development, store layout, or marketing strategies. Data captured in-store can also enable omnichannel re-targeting opportunities to help convert customers post the store experience.
5. Competitive advantage
In a crowded retail market, clienteling can provide a valuable competitive advantage. By offering personalized service and a unique shopping experience, retailers can differentiate themselves from their competitors and build a loyal customer base. Additionally, by utilizing customer data to make informed business decisions, retailers can stay ahead of the curve and remain competitive in a rapidly changing industry.
Know your customer, grow your business
Clienteling is a powerful strategy that can provide numerous benefits for retailers and customers alike. By building personalized relationships with shoppers, retailers can increase customer loyalty, improve sales performance, enhance the shopping experience, gather valuable customer insights, and gain a competitive advantage. Clienteling is an essential tool for retailers looking to succeed in today's competitive retail landscape.
Lexer is the CDXP of choice for over 150 leading retail brands including Kathmandu, Supergoop!, Cotton On, Billabong, Velvet and True Religion. We transform disconnected data into actionable insights, and provide the tools to automate and optimize the customer experiences that drive sales.