How personalization is transforming retail

As consumer data becomes more readily available, a host of new opportunities (and missteps) has opened up for retailers that want to tap into the potential of rich shopper data. And on the top of that list is personalization.

Personalization is a versatile tool. For marketers, it means being able to better target sales offers and advertisements — using data about a customer's previous purchases and search history to inform what they might be looking for next. For retailers, it can mean everything from offering curated product recommendations to tailoring stores and larger branding to a specific demographic.

For the shopper, personalization is something different entirely. It's the feeling that a product was made specifically for them or the sense that a brand knows them well enough as an individual to send along only the most relevant products and offers. The relationship between shopper and retailer becomes much more like a conversation between friends — at least that's the idea.

As the pandemic hit retail in 2020, the conversation around personalization changed slightly. In some ways, it became less important, as retailers shelved marketing efforts to focus on simply surviving. In others, however, personalization was as much at the forefront as ever. DTC brands flew to greater heights as consumers moved online, and many well-positioned brands were able to gain share by targeting new consumers with timely products. Retailers like Nike also continued to expand store concepts that rely on personalization to drive the experience. 

Marketers throughout all of retail likely felt they were personalizing brand messages to the masses, oxymoron though it sounds, as systemic racism and safety threats from COVID-19 impacted consumer sentiment and made traditional messaging impossible. In the pieces you see below, we explore personalization from many angles, including:

  • How retailers are targeting specific demographics, like Gen Z and millennials, with unique marketing efforts

  • The store concepts that are putting data first

  • How successful data collection and personalization efforts really are for retailers

  • The individual ways certain retailers are creating personalized shopping experiences

We hope you enjoy our curated selection of stories exploring all the different ways personalization is shaping the retail space.