This blog post contains excerpts from the whitepaper Using Artificial Intelligence for Effective Customer Retention, by Retail Pro and AppCard. Download the whitepaper to learn more about how artificial intelligence can help retailers improve customer experience and retention.
The era of customer experience
In the past 4-5 years, the retail industry has undergone major changes and retailers are acknowledging that it is 6-7 times more costly to acquire a new customer than to retain an existing one. This same research shows that boosting customer retention rates by as little as 5% can increase profits up to 95%.
With such incentives at hand, brick and mortar retailers are urged to leverage eCommerce-like data collection and analysis to create a unique customer experience that will keep customers coming back for more.
But this is often easier said than done.
For years, retailers have looked for ways to influence customer behavior, from the early days of paper punch cards to sophisticated, big box SAP and SAS based CRM and ERP systems.
Some retailers pinned their hopes on daily deal sites like Groupon and LivingSocial, only to find out that customer acquisition is significantly more expensive than customer retention and once acquired, they have virtually no useful information about the newly acquired customers.
Since then, loyalty programs have evolved from basic check-in solutions to more sophisticated check-in solutions that were able to communicate with customers via mobile app, text or SMS messages, and email.
While such solutions garnered some initial traction, retailers still yearned for a greater understanding of their customers, including SKU-level transaction details.
Retailers face two critical challenges in their quest to leverage data for better customer experiences: increasingly demanding shoppers and technology limitations.
To continue reading more about the challenges and opportunities for improving the retail customer experience, download the whitepaper now. In this whitepaper, we’ll cover:
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