While retail giants have seemingly unlimited resources and scale — and they certainly matter — their smaller competitors can tap into one of these giants’ key performance drivers — personalized and emotional experiences with their customer base.
In an era where choice is unlimited, and price or location no longer create a competitive edge, authentic customer experiences and community have become a huge differentiator. People increasingly expect brands to interact with them in a personalized, emotionally intelligent fashion, with communications and offers that are timely and relevant. Retailers are using a scientific approach to deliver the experiences that resonate with specific customers and keep them loyal. This loyalty is translated into an increase in all customer KPIs, including conversions, LTV and churn reduction. While this personal approach is one of the strong suits of e-commerce behemoths with Amazon at the head, smaller digital-first brands are adopting it in droves, and it is already widely trickling into the wider realm of e-commerce.