Did you know that more than half of online consumers don't mind sharing their personal information to help enhance their shopping experience? To top that, 76% of consumers expect companies to personally understand them and their unique desires. How can you make this happen? By effectively leveraging your customer data, and using it to predict what your customer wants.
Keep your hands off my data-unless you’re using it to help me shop
Welcome to the rapidly changing world of personalized marketing. Personalized marketing refers to the use of data collection, analysis and automation to make customized, relevant offers to consumers. Benefits include better ROI, increased customer loyalty and improved customer experience. Consumers today don't only prefer personalized shopping, they downright demand it. Retailers are expected to anticipate customer needs and suggest product solutions.
The customer data used for personalized marketing is usually collected in these three ways:
- By directly asking customers
- By tracking customer browsing and purchasing
- By supplementing your customer data with other sources
Optimal data collection is made using all of these, and more. This becomes even more important if your target demographic is millennials; they consider data collection a small price to pay in exchange for product recommendations that match their needs and save them time.
We're Talking about Serious Shoppers
90% of consumers find personalization appealing. These Shopper VIP's make an average of 15 transactions per year (3 times more than the average Joe). They expect to find what they want quickly and easily because their favorite sites know who they are and what they like. Fair enough, but what does that mean to you and your business? Benefits galore. The optimal use of personal data collection benefits include: opportunities to upsell, increased customer loyalty and fewer abandoned shopping carts, to name a few. Let's look at these 3 benefits a little closer.
Here are 3 Ways Personalized Marketing Boosts Sales:
1. Increased Opportunities to Up-sell and Cross-sell
Customer data may create easy up-selling opportunities. If your customer Jenny purchases the same hair product every 2 weeks, offer a timesaving up-sell to a larger size. Sure, it benefits you, but an overwhelmed shopper may appreciate your effort to save her time and money. 49% of consumers report having spent more than they had planned on because the company they did business with made a customized recommendation. Even better, these consumers were happy with their buys. 85% of impulse buyers were happy with their purchases and reported a return rate of only 5%.
85% of impulse buyers are happy with their purchases.
One size DOES NOT fit all. Today's technology allows for a custom approach that is more effective for 78% of consumers. A customer with a purchase history of football pants and football pads may need a helmet or mouthguard or cleats. Make a faster and more pleasant shopping experience by suggesting relevant items. Relevant offers turn “lookers” into buyers.
2. Personalized Shopping Choices mean Less Shopping Cart Abandonment
Consumers are busy. They want to find what they need as quickly as possible. Personalization allows for presenting meaningful and relevant products. Almost 40% of consumers have abandoned an online purchase because they were overwhelmed by too many product options. 59% of consumers say it is easier for them to find interesting products when retailers limit choices by implementing personalization.
Don't forget to make checkout as painless as possible too. Offering to save customer card details during a purchase makes the next purchase easier. Your customers will appreciate the streamlined approach and will remember that they can shop hassle free on your site.
Why waste customers’ precious time?
3. Increases Customer Satisfaction & Loyalty
63% of consumers feel more loyal to companies that understand their needs and wants. Know your customers well enough to understand what they want before they do. Anticipate their needs and 56% will thank you with a return visit.
Marketers and consumers both benefit from a personalized approach. The more data you have the better equipped you will be to customize shopping experience. Being entrusted with personal data means you must be trustworthy. Fatal mistakes like barraging new customers with meaningless ads are deal killers. When you ask a consumer for information, let them know that their data is safe and will be used for their benefit. If, like most companies, you are relying on outdated forms of personalization, it may be time to update your personalization strategy. Your customers will be delighted by the kind of service that makes them feel like people, not just a revenue stream.
If you'd like to know more about what delights your customers, call SurveyMe or just click on the image below. We are here to help!