Personalising products, services, and digital commerce is increasingly a key to creating a rewarding experience for the customer, but requires the right mix of data that goes beyond just demographic and behavioural information to what is genuinely personalised, relevant and in context. At the heart of this is understanding who the customer is and what the customer needs.
Think of how happy you are when you walk into a bar, are acknowledged by the staff, and they already know your favourite drink. It’s good for you, and it’s more efficient for them. Everybody wins. This is what personalisation is seeking to achieve online.
The days of forcing customers down a narrowly defined sales funnel, and expecting results, are over. “Personalisation is compelling for customers,” Vish Ganapathy, Managing Director and Global Retail Technology lead at Accenture said, “because a company has taken a process that can be tedious and simplified it to fit customers’ needs… Not only are customers satisfied with the results, but with each customer interaction, the brand gains insights into how to improve its product and targeted marketing techniques.”
According to Janrain, over 74% of customers get frustrated with non-personalised promotions. However, it is essential to strike the right balance between being targeted and being invasive. “There’s a clear dividing line between smart, savvy, and cool, on the one hand,” Ganapathy added, “and intrusive and creepy on the other.”
Correctly implemented, personalisation will not only enhance the customer experience but also increase revenue. A report by Segment on personalisation showed that 40 per cent of United States customers bought something more expensive than originally planned, due to personalisation, while 49 per cent of customers bought something other than what they originally intended. Gartner analysts have predicted that by this year personalisation will “enable digital businesses to increase their profits by up to 15%.”
When implementing personalisation, here are six factors to consider:
You need to know who your customer is. You need data on whether they are new or returning, what’s their location, what are their buying preferences and online behaviour. Tracking this information allows for individual product and pricing offerings.
– Omni-channel Engagement
You need unified interaction across channels, providing a consistent customer experience regardless of how or where they interact with the brand. By combining offline and online data, where relevant, businesses can create comprehensive customer profiles that deliver better, personalised experiences across all touch points.
– Machine Learning
Machine learning will increasingly assist retailers in personalisation, learning from customer behaviour to provide a personalised experience. The implementation of machine learning into real-time applications remains a challenge, but is the future and is achieving success with its implementation on platforms such as Spotify.
– Keep Shopping
When a customer is returning to your site, it is important that it lets them continue shopping where they left off. In the same way that Netflix lets you pick up halfway through the movie you were watching last night, eCommerce personalisation allows returning customers to rejoin their previous sessions seamlessly.
– Personalised Pricing
This is an emerging trend in personalisation. By analysing customer buying behaviour, it is possible to anticipate price sensitivity and buying propensity. Feeding this information into your CRM allows for customised promotions and incentives to increase conversion rates.
– Smarter Recommendations
Social retargeting is a proven method of conversion. However, what is necessary are smarter recommendations. There is nothing worse than being served up countless ads for a product that you’ve already purchased, especially when the ads are coming from the retailer you purchased from. Personalisation avoids this and allows for the presentation of complementary ads.
Get in touch with our team and we can talk to you about this or any other other eCommerce questions you may have.