In the past, shopping for clothing meant sifting through endless racks. If you could not find an item in your size or preferred colour, you would need to track down a sales associate—hoping they could locate it in the back.
Today, AI-powered personalization is transforming the apparel shopping experience. These platforms help brands anticipate shoppers’ needs and curate a more convenient customer journey.
Here, we’ll explore the value of personalization in the apparel industry. We’ll also share examples of how apparel brands are leveraging personalization. And we’ll discuss best practices to deliver experiences that resonate with shoppers.
The Importance of Personalization in the Apparel Industry
Over the last year, personalization has evolved. The rise of generative AI and machine learning has streamlined the process—revolutionizing how the apparel industry meets the needs of its customers.
The benefits of personalization include:
- Boost customer engagement: Customers are inundated with choices. By leveraging customer behavior and preferences, brands build stronger customer relationships—increasing engagement and satisfaction.
- Increase customer retention: Personalized experiences make customers feel understood and valued. At the same time, they make shopping more convenient. Customers can find exactly the product they need—leading to repeat purchases. A recent study found that 56% of customers who receive personalized experiences become repeat buyers.
- Drive revenue: Personalization requires brands to gather a lot of customer data. Brands use this data to improve the customer experience and their businesses, driving conversion and sales. According to McKinsey, companies investing in personalization drive 40% more revenue than their counterparts.
How Apparel Brands are Embracing Personalization
Today, personalization is not just vital for performance. Customers expect it. A recent survey found that 71% of shoppers want companies to deliver more individualized experiences. Seventy-six percent feel “frustrated” when companies do not personalize their services.
Here are five examples of how apparel brands are embracing personalization in 2023.
Product recommendations
Retailers leverage customer data (e.g., browsing behavior, preferences and past purchases) and predictive analytics to provide more customized product recommendations. This includes recommending similar styles and colors or using customer measurements to suggest the appropriate size.
At the same time, brands can create complementary outfit bundles—saving customers time and driving average order value (AOV).
Dynamic pricing
Apparel brands use dynamic pricing to provide personalized discounts and promotions—increasing conversion rates. AI algorithms analyze demand, market trends and customer behavior to adjust prices in real-time. For example, brands can inform customers when a product goes on sale if they have viewed it multiple times.
Personalized content
Brands leverage data to personalize content—including the website homepage, landing pages, product pages, marketing emails and social media ads. For example, brands can create different “Back to School” style guides depending on the age and location of the customer.
Post-purchase personalization
Brands use personalization tools to customize the post-purchase experience. With personalization software, retailers better tailor follow-up emails, feedback requests and promotions. By curating personalized experiences after a purchase, brands boost customer satisfaction and retention.
Personalized loyalty programs
Today, personalization is critical to loyalty programs. Brands must ensure rewards align with individual preferences and purchasing history. By harnessing customer data, brands ensure shoppers feel valued—fostering loyalty.
4 Best Practices for Personalization
Personalization can be a buzzword in the retail industry. Many brands have invested in personalization tools. But as with any new initiative, a personalization strategy requires careful planning and execution.
Here are four tips to ensure your personalization efforts benefit customers and drive performance.
- Leverage Data Analytics for Customer Insights:
Personalization begins with understanding your customers. Utilizing data analytics allows apparel retailers to gain valuable insights into customer preferences, behaviors, and trends. By collecting and analyzing data from various touchpoints, such as online interactions, purchase history, and social media, businesses can create detailed customer profiles. These profiles can then be used to predict future preferences and provide personalized recommendations.
Implementing advanced analytics tools can help identify patterns and trends, enabling businesses to stay one step ahead. For example, if a customer frequently purchases activewear, the system can suggest new arrivals in that category or even provide exclusive discounts on related items.
- Tailor Recommendations and Product Suggestions:
Once you have a clear understanding of your customers, it’s time to tailor product recommendations. Implementing recommendation engines on your e-commerce platform can significantly enhance the shopping experience. These engines use algorithms to analyze customer behavior and suggest products that align with their preferences.
Consider implementing cross-selling and upselling strategies. Cross-selling suggests complementary products, while upselling recommends higher-end or upgraded versions. For instance, if a customer is browsing for a winter coat, the system could suggest matching accessories like scarves or gloves.
- Personalized Shopping Journeys Across Channels:
Today’s consumers interact with brands through various channels, including websites, mobile apps, social media, and physical stores. To provide a seamless and personalized shopping experience, it’s essential to ensure consistency across these channels. Implementing an omnichannel approach allows customers to transition effortlessly between online and offline platforms.
For example, a customer might browse an apparel retailer’s website, add items to their cart, and then visit the physical store to try them on. A personalized experience ensures that the customer’s preferences and selections seamlessly carry over between channels, providing a cohesive and enjoyable shopping journey.
- Dynamic Content and Personalized Marketing Campaigns:
Engaging customers with dynamic content and personalized marketing campaigns is a key strategy for apparel retailers. Use customer data to send targeted promotions, discounts, and exclusive offers based on individual preferences. Implementing personalized email campaigns, for instance, can significantly increase click-through rates and conversion.
Dynamic content on websites and mobile apps can also enhance the user experience. Display personalized landing pages, showcasing products based on browsing history or past purchases. This not only captures the customer’s attention but also makes the shopping journey more enjoyable and efficient.
Enhance your Personalization Strategy with Salesfloor
Today, customers expect an omnichannel shopping experience that values personalization. With generative AI and machine learning, brands curate more bespoke experiences that enhance convenience, drive engagement and foster customer loyalty.
At Salesfloor, we’re here to help. Salesfloor is an all-in-one customer engagement platform that unifies the customer journey. With virtual shopping solutions, clienteling tools and AI-assisted selling, Salesfloor enables hyper-personalized shopping experiences.
Book a demo today to see how Salesfloor helps world-class brands delight their customers.