January 25, 2023

The online-offline connection: How retailers can leverage data to boost the customer experience

5
minute read

In the age of e-commerce, retailers are constantly looking for ways to provide the ultimate customer experience. One way they can do this is by using data collected from online interactions to enhance the offline experience. In this article, we'll explore how retailers can leverage online data to improve the in-store experience for their customers.

What data can be collected online?

There are several ways retailers can collect zero-party and first-party data about their customers online. Some examples include:

  • Tracking website visits and clicks: This can include data on how long they spend on the site, which pages they visit, and which links they click. This data can be used to understand customer behavior and preferences and help retailers optimize their website and marketing efforts.
  • Gathering information from social media interactions: This can include data on which posts they engage with, what content they share, and any comments or feedback they leave. This data can be used to understand customer behavior and preferences and help retailers optimize their social media marketing efforts.
  • Monitoring customer reviews and ratings: This data can be used to understand customer satisfaction levels and identify areas for improvement. It can also help retailers understand which products or services are most popular among customers.
  • Collecting data from email marketing campaigns: This refers to collecting data on how customers interact with a company's email marketing campaigns. This can include data on which emails they open, which links they click on, and any actions they take resulting from the email. This data can be used to understand customer behavior and preferences and help retailers optimize their email marketing efforts.
  • Analyzing online purchase history: This data can be used to understand customer preferences and behavior and help retailers make personalized product recommendations and tailor their marketing efforts to specific customers. It can also help retailers identify trends and patterns in customer purchasing behavior.

How can online data be used to improve the offline experience?

Once retailers have collected data about their customers online, they can use this information to tailor the in-store experience to each customer. Some ways retailers and brands can do this include:

  • Personalizing product recommendations: Retailers can make personalized product recommendations when they visit the store by analyzing a customer's online purchase history. This can lead to more successful upsells and cross-sells.
  • Providing more efficient customer service: By knowing a customer's preferences and purchase history, retailers can provide more efficient customer service in-store. This can include directing customers to specific products or providing personalized assistance with any questions or issues they may have.
  • Enhancing the overall in-store experience: Retailers can create a more personalized and enjoyable in-store experience using online data. This could include customizing in-store displays and signage or offering personalized discounts and promotions.
  • Personalized marketing campaigns: Data collected from this campaign can help retailers create targeted marketing campaigns that are more likely to appeal to specific customers. This could include sending personalized emails or direct mail campaigns with tailored product recommendations or discounts.
  • Improved store layout and design: By analyzing known customer data collected online, retailers can gain insights into the most popular products and categories among their customer base. They can use this information to design the layout and design of physical stores in a way that is more appealing and effective for customers. This could include placing popular products in prominent locations within the store or designing the layout to better showcase specific categories.

Examples of retailers successfully using online data to improve the offline experience

To see how retailers are successfully using online data to improve the offline experience, let's look at a few examples of brands that are winning by being customer-centric:

  • Nike: Nike has several initiatives in place to use online data to improve the in-store experience. One example is the Nike App, which allows customers to access personalized product recommendations, reserve items online, pick them up in-store, and track their workouts. By using the app, Nike is able to gather data about its customers' preferences and behavior, which it can then use to tailor the in-store experience.
  • Sephora: The Beauty Insider loyalty program allows customers to earn points for both online and in-store purchases. This data is used to make personalized product recommendations and offer customized discounts and promotions to members.
  • Amazon Go: Amazon Go is a cashier-less convenience store concept that uses sensors, computer vision, and deep learning algorithms to track customer purchases. By analyzing customer behavior and purchase history, Amazon Go can make personalized product recommendations and offer tailored discounts and promotions.
  • Target: Target uses personalized product recommendations through the Target Circle loyalty program. Target can make personalized product recommendations in-store by tracking customer purchases and preferences and offer customized discounts and promotions to its loyalty program members.
  • Macy's: Macy's has implemented several initiatives to use online data to improve the in-store experience for its customers. One example is Macy's rewards program. By tracking customer purchases and preferences, Macy's can make personalized product recommendations in-store and offer customized discounts and promotions to its rewards program members. Additionally, Macy's has implemented beacon technology in select stores, allowing the retailer to send personalized push notifications to customers' smartphones while in-store. This allows Macy's to provide personalized assistance and recommendations to customers while they shop.

Grow your business with great customer experience

In the age of e-commerce, it's more important than ever for retailers to find ways to improve the customer experience. By using data collected from online interactions, retailers can tailor the in-store experience to each customer, leading to more successful upsells, cross-sells, more efficient customer service, and an overall more personalized and enjoyable in-store experience.

Lexer has got you covered if you're looking to take advantage of excellent customer experience to grow your business. Our team of experts can help you leverage online data to improve the offline experience for your customers, leading to increased satisfaction and loyalty. Take advantage of the opportunity to drive growth and success for your business.

Interested in learning more about how Lexer can help you improve customer engagement and retention? Book a demo with one of our retail experts.

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Aaron Luxmoore
Head of Sales (ANZ)
Aaron Luxmoore is Lexer’s Australian sales leader. Having started his career as a primary school teacher many moons ago, he transitioned into the corporate world in 2007. He has more than 15 years of experience working with companies off all sizes - start-ups to large global businesses - within the publisher, digital agency and technology industries. He enjoys working closely with innovative retailers to provide commercial outcomes with their technology. When Aaron is not working, you can find him at the gym or pool or taking his dog, Bradley for a run at the beach.