Technology trends that build customer loyalty
Building customer loyalty is becoming increasingly difficult for clothing brands and retailers as the industry becomes more competitive, but embracing certain tech trends like blockchain and AI could be key, according to one. new report from GlobalData.
Customers will quickly switch to a competitor if a retailer does not meet their expectations in terms of price, product or experience, which is negative for retailers who depend on customer retention.
GlobalData has outlined five key technology trends that can help build customer loyalty:
Many retailers are now embracing blockchain technology to address issues like low refund rates, high costs, low customer incentives, and security concerns by connecting retailers to users of multiple programs. It allows customers to receive and redeem interoperable loyalty tokens between multiple programs. Open systems, less footprint, more flexibility, reduced costs, transparency and security are some of the benefits of using blockchain technology.
Artificial Intelligence (AI)
Several retailers, especially e-commerce players, have built deep learning into their platforms to predict exit based on data entry. AI enables retailers to categorize customers based on their behaviors and demographics, deliver a personalized shopping experience, and improve customer loyalty. Retailers are also using data obtained from AI to offer customers personalized incentives and predict future shopping behaviors.
Digital wallets (mobile wallets)
Retailers can capitalize on the growing use of mobile wallets to build customer loyalty. Retailers are partnering with different digital wallets to provide store coupons, discounts, reward programs and loyalty cards to shoppers with the aim of improving their loyalty.
Customer relationship management (CRM)
CRM is a tool used by multiple retailers to track and manage a customer’s entire shopping journey from a central location. Technology allows retailers to strengthen their relationship with shoppers by having a better understanding of their needs and requirements. Retailers can leverage the tool to gain critical insight into trends, consumer behavior, and sales patterns by gathering and evaluating sales data. Subsequently, retailers can collaborate on customer insights to formulate better strategies, make critical decisions, and develop programs to improve customer loyalty. Zara and Amazon are two of the retailers that use CRM technology in their operations.
Customer Experience Management (CEM)
The CEM is the set of processes that retailers use to track and manage all of the interactions that occur between them and a customer throughout the customer lifecycle. CEM collects experiential data from customers and analyzes their feedback to obtain information that can be used to optimize the customer experience. Common features of CEM include survey forms, A / B testing, personalization settings, and customer support.
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Some clothing companies are also incorporating sustainability efforts into their loyalty programs, such as MySize which is rolling out a new virtual coins feature that will allow online retailers to entice consumers to make purchases with MySizeID in an effort to reduce costs. costly returns and reduced carbon footprint.