Increasing Repeat Purchase Rates With Personalization: To Know a Customer is to Sell a Customer

Happy couple in a coffee shop surfing internet on digital tablet. Young man and woman in a restaurant looking at touch screen computer.

The modern digital consumer not only wants but expects personalized service and communications that reflect their behaviors and interests. It’s the difference between being given a baseball cap from your favorite team with your name stitched on the inside or a one-size-fits-all cap with the logo of your favorite team’s main rival.

It’s not hard to guess which one would be worn enthusiastically and which would go into the donation pile. Consumers presented with products and offers tailored to their interests are far more likely to engage because the information is just more, well, interesting. And when engagement means purchasing, personalization becomes a clear path to growth.

Personalization as a Growth Strategy

Personalization is a central strategy at Amazon, which serves up “recommended for you” for any and all product categories on personalized home pages, among other tactics. Much of the 10,000-pound gorilla’s revenue growth has been attributed to using personalized recommendations and communications across the purchase journey, from discovery to checkout. In fact, according to MarTech Advisor, 35% of their sales are estimated to be generated through these personalized recommendations.

Personalization as a growth strategy is being used successfully many others in the online retail ecosystem as well. Sailthru customer Betabrand, an online clothing retailer, increased repeat purchases by 42% after implementing personalized communications. “Betabrand’s unique challenge is its new roster of products launched each day, making personalization for retention and the ability to continually increase revenue from existing customers,” our CEO Neil Lustig noted in a release.

Two Avenues to Effective Personalization: Consumer Behavior and Interests

Effective personalization comes through combining two distinct sets of personal data: behavior, such as browsing, purchasing patterns and email engagement, and cross channel interests derived from website, app and in-store information. With this powerful combination of actions and interests, marketers can create content and product promotions that reflect unique customer desires, making individual consumer much more likely to engage and buy.

The following tactics, which are described in greater detail in our guide Increasing Repeat Purchase Rates, offer foundational and sophisticated methods for personalization to increase repeat purchase rates:

Foundational Personalization Tactics

  • Include dynamic product recommendations, based on browsing and purchasing behavior, in emails.
  • Automate email send times to reflect customer’s browsing and purchasing time patterns.

Sophisticated Personalization Tactics

  • Populate home pages, category pages and more with with personalized recommendations.
  • Offer personalized discounts based on purchase histories and conversion data.
  • Limit feeds to products within an individual’s actual and/or predicted price range.
  • Use behavior and interest data to create personalized product feed for both emails and website pages.

In addition to personalization, Increasing Repeat Purchase Rates includes other strategies and tactics for growing sales and revenue.

Download your guide today and learn about cross-channel strategies used by 100s of retailers to increase repeat purchases.