Study reveals Sephora offers most personalized shopping experience

By

Cassidy Mantor

Published
Sep 22, 2017

A recent study has revealed that Sephora is the top brand offering the most personalized customer experience across all channels. JustFab and Walmart came in second and third, respectively.

Net-a-Porter came in fourth and there was a three way tie for fifth between Ebay, Nordstrom and REI.

Sailthru conducted the first annual Retail Personalization Index study. It looked at data from 13,000 consumers in the US and UK, and rated their experience with 100 brands. Personalization of customer experience was studied on the brands' websites, emails, mobile and other channels.

Sephora came out on top, delivering the most personalized consumer experience based on data collected from its loyalty program. Customers can enhance their in store experience by enabling reminder beacons in the app. Notifications are then sent via Bluetooth when customers are physically in store near products they have previously left abandoned in their virtual carts.

JustFab came in second and was particularly strong with its email marketing. When a new customer signs up, JustFab collects data and stores preferences for a tailored experience. Emails are timed to be delivered based on historic analytics of when the customer opens them the most. The algorithm is constantly evaluated and updated to target customers with the right product at the right time.

"Modern retail relies on strong long-term relationships with individual customers, and we continuously work to advance the personalization within our customer experience so that we can elevate our business and the retail industry at large," said Monica Deretich, Vice President of Marketing and CRM, JustFab.

Walmart ranked highest on mobile. It recently added a pharmacy refill option as well as a money service feature to streamline the in-store experience. It also has a coupon scanner that will help customers search for the lowest price among competitors, which the store will honor.

According to a report by Boston Consulting Group (BCG), retailers can see sales increase six to ten percent when personalizing consumer experience. This is two to three times faster growth than traditional online retailers.

Nevertheless, Sailthru's research also indicated retailers must be strategic about how they personalize their online customer experience. They must be specific and make sure they have the infrastructure and resources, including staffing, to support their online initiatives.

Jason Grunberg, Vice President of Marketing, Sailthru said, "While many retailers tout omnichannel initiatives, our research proves that very few are close to meeting consumer expectations."