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The Power of Personalization in an Increasingly Digital World

When’s the last time you spoke to a friend about a product, only to see it advertised on Instagram moments later? Or the last time you opened an e-mail from your favorite store with personalized product recommendations that seemed to know your exact preferences when it comes to color, style, and size? As a businessperson, and as a consumer, you know that personalization heavily influences loyalty, engagement, and revenue.

Over the past decades, the fashion industry underwent a technological revolution, reshaping the way retailers and brands engage with their customers. Personalization lies at the center of this transformation. By customizing the shopping experience for consumers, retailers stand out from their competition and foster greater customer loyalty. Seventy-six percent of consumers say personalization directly influences their decision to purchase from a brand, and 78% say it impacts their likelihood of making repeat purchases and referring the brand to friends and family.

Historically, fashion retailers relied primarily on traditional marketing techniques, such as print advertisements and in-store displays, to attract customers. However, with the rise of e-commerce and the Internet, customers now want and expect a personalized shopping experience that meets their individual needs and preferences. Customers are looking for seamless integration across multiple channels, including brick-and-mortar stores, online Web sites, mobile apps, and social media.

Omnichannel retail provides customers with the flexibility to shop whenever and wherever they want, and it provides businesses with in-depth data on customers’ shopping habits and preferences. With this information, fashion retailers can build a comprehensive profile of each customer, which can then be used to create targeted marketing campaigns, product recommendations, and personalized shopping experiences. Artificial intelligence (AI) and machine learning also enhance the customer experience. By analyzing customer data, AI can predict the likelihood of a customer making a purchase, offer real-time suggestions, check in post-purchase, and follow up for customer feedback. Enhanced customer understanding leads to better marketing decisions and better business outcomes.

SAP solutions play a prominent role in the execution of timely and impactful personalization, connecting customer data from demand to delivery and bringing sustainable, intelligent enterprises to life – from the back office to the front office.

Dive deeper into five solutions shaping the future of customer experience – in fashion retail and beyond.

Curious how your business can leverage the full potential of these five solutions, and others, to improve your customers’ experiences and drive long-term business success?

On February 15th, during New York City’s Fashion Week, SAP opened the doors of the redesigned SAP Experience Center, home to the S.Fashion Experience Lab. During the opening event, Andre Bechtold, senior vice president and head of Solution and Innovation Experience at SAP, shared that, “SAP Experience Centers offer visitors a visual and immersive experience that makes innovation tangible.” From a personalized perfume machine and augmented reality (AR)  displays to virtual fitting rooms and AI-powered personal shopping assistants and robotics, the retail store of tomorrow reimagines the future of fashion.

Visit this permanent location year-round, physically or virtually, to discover how SAP helps retailers optimize their businesses and connect with their customers in a digital-first world. Deep dive into the solutions above, along with many others, to learn how you can offer unique and personalized customer experiences that reinforce long-lasting customer relationships and grow lifetime value for your business.


Kelly Cannon is part of Content Creation and Strategy at SAP.

Images via Andreas de Groot, Purple

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