Sephora Named Best Retailer for Personalisation

Beauty retailer Sephora has been recognised at the world’s best retailer for customer experience personalisation according to the Retail Personalisation Index compiled by cross-channel experience management platform Sailthru.

Scores were awarded on a scale of 0-100. Sephora earned highest honours on the index on a worldwide scale, with a score of 79, followed by the top five brands, scoring:

1. Sephora, 79

2. JustFab, 72

3. Walmart, 69

4. Net-a-Porter, 64

T. Ebay, 62

T. Nordstrom, 62

T. REI, 62

Redbubble was the only Australian retailer that made the list, coming in at 68th spot with a score of 36. The Melbourne-based online marketplace, powered by artists, has through its efforts in utilising technology to power its customer experience, created a community of over 600,000 artists and designers around the world, with over two million passionate fans from over 196 countries.

Net-a-Porter came first amongst UK retailers and fourth in the global ranking of the index, which sorted through 100 top retail brands around the world in accordance to how well they personalise the customer experience.

Amazon ranked 17th, while Nike came in at 20th spot globally . Other retailers that made the cut include ASOS (14th), The Body Shop (50th), Burberry (55th) and Topshop (68rd) and Bonobos (77th).

The Retail Personalisation Index measures how retailers are personalising their customer experience to determine gaps in the approach to personalisation, as well as observe the relationship between a personalised experience, customer satisfaction, and retention to drive revenue and reduce customer turnover and optimise engagaement.

“The vast majority of the top 25 brands are growing revenues year on year, reinforcing the value of a personalized digital experience for customers as a prudent business strategy,” said Sailthru CEO Neil Lustig in a statement.

“What’s even more telling about the value of personalization is that brands in the midst of executing turnaround strategies are rapidly evolving their customer experience to once again gain traction in the market.”

Research on the Personalisation Index was conducted between April and August 2017 and scored 100 retail brands, as selected by Sailthru, on how they personalize the customer experience. Additionally, Sailthru fielded a survey of over 13,000 US and UK customers for each retailer (having shopped at one or more of the 100 retailers in the past 12 months) to quantify how those customers felt about the brand and their experience.

“For a brand to achieve the highest possible score, a customer would have to find its omnichannel experience seamless — meaning no matter how they interacted with a brand, be it on mobile, desktop, email, in store, the experience would need to be fluid and comprehensive,” said Jason Grunberg, vice president of marketing at Sailthru. “While many retailers tout omnichannel initiatives, our research proves that very few are close to meeting consumer expectations.”

Three key takeaways for retailers from the Personalisation Index include:

  • Customer experience and personalisation are inseparable; a high quality customer experience is one that is personalised, and a personalised experience likely to be high quality.
  • Size and scale are not necessary to execute and produce results; retailers should focus their personalisation strategy on what makes them – and their buyers – unique.
  • Even the top brands in the study failed to score over 79 out of a possible 100; to provide a better customer experience, brands should focus on strengthening their experience across all of their customer touch points, not just on one channel.

 

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