Every retailer knows that delivering an exceptional customer experience is crucial for success. However, bridging the gap between collecting customer data and using it effectively to enhance the shopping journey is a persistent challenge. Many retailers are turning to personalisation as a solution, but without a clear strategy, it can feel like a guessing game. Here’s how retailers can use their customer data to drive growth while creating a truly human-centred shopping experience.

The Common Struggles with Customer Data

Retailers often find themselves sitting on a mountain of customer data but lack clarity on how to use it. For some, it’s about not knowing where to start; for others, it’s about understanding the effectiveness of their current personalisation efforts. Many worry about the accuracy of their data models, fearing that customers are being misidentified and given irrelevant experiences.

This lack of confidence can create hesitation in investing in data-driven strategies, even though personalisation holds great potential to improve the customer experience and increase conversion rates.

Why Measuring ROI on Personalisation is Tricky

Personalisation is widely regarded as essential, but its impact can be difficult to quantify. Many retailers focus on surface-level personalisation, such as product recommendations. While these can be effective, they often miss the mark if they don’t align with the customer’s shopping intent. For example, a customer casually browsing may be shown products they aren’t ready to purchase, leading to a disconnect.

To truly measure ROI, retailers need to look beyond basic metrics and focus on progress through the shopping journey. Metrics like increased product page views, reduced drop-off rates, and higher basket values provide clearer indicators of personalisation success.

Making Personalisation Work

Personalisation isn’t just about tweaking isolated parts of the shopping journey. Retailers need to step back and analyse the entire customer journey—from first interaction to post-purchase engagement. This involves empathising with real customers, identifying pain points, and understanding what drives their behaviour.

Key strategies include:

• Mapping the customer journey: Follow customers across channels and touchpoints to identify friction and opportunities for improvement.
• Segmenting meaningfully: Group customers based on what truly differentiates their needs, such as their stage in the shopping journey, shopping context, or primary values.
• Designing end-to-end experiences: Move beyond isolated personalisation efforts and create cohesive journeys that reflect customers’ unique needs at every touchpoint.

By understanding the nuances of customer behaviour, retailers can create experiences that feel personalised and relevant without being intrusive.

Building a Customer-Centred Data Strategy

A successful data strategy starts with asking the right questions. Retailers should identify the key differences between their customers that matter most to their business goals. For instance:

• Who are your most valuable customers?
• Are they browsing or ready to buy?
• What drives their purchase decisions (e.g., savings, convenience, or discovery)?

Once these differentiators are identified, retailers can evaluate the data they currently have and identify gaps. This backward approach—starting with customer needs and working towards data collection—ensures that the strategy remains customer-centred.

Collecting the Right Data

To segment customers in meaningful ways and address their unique needs, retailers should focus on collecting:

1. Stage in the shopping journey: Knowing whether customers are in the inspiration, discovery, evaluation, or purchase phase helps tailor the next steps to keep them engaged.
2. Attitudinal segments: Understanding what matters most to customers—like savings, convenience, or product quality—can guide the overall experience.
3. Contextual shopping needs: Asking customers how they intend to use a product can open up opportunities for cross-category recommendations and value-added suggestions.

While historical and behavioural data are helpful, asking customers directly can often yield the most valuable insights. Involving customers in their journey—whether through quizzes, surveys, or guided shopping tools—makes them feel valued and builds emotional loyalty.

Beyond Ecommerce: Personalising the In-Store Experience

Many retailers still treat the in-store experience as a blind spot, relying solely on transactional data. However, stores are a goldmine for understanding customer preferences in real-time. By integrating in-store data with online insights, retailers can offer seamless omnichannel experiences, ensuring that customers feel known and valued no matter where they shop.

To leverage customer data effectively, retailers need to shift their focus from collecting more data to using it more meaningfully. By putting the customer at the centre of their strategy, retailers can create personalised experiences that drive loyalty and growth. Whether it’s through understanding shopping journeys, differentiating key customer segments, or refining metrics, the goal is the same: creating experiences that connect with customers on a human level.