To Know You Is to Sell You: Increasing Loyalty with Personalization
The modern digital consumer not only wants but expects personalized service and communications that reflect their behaviors and interests. Think of it in terms of sports fans. Would you wear a baseball cap from your favorite team with your name stitched on the inside? Or would you prefer a generic hat with the logo of your favorite team’s main rival? We think we know the answer.
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, fueling much of the 10,000-pound gorilla’s revenue growth. In fact, according to MarTech Advisor, 35% of their sales are estimated to be generated through these personalized recommendations.
As a growth strategy, personalization also works elsewhere in the online retail ecosystem. Betabrand 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, marketers can create content and product promotions that reflect unique customer desires. In turn, individual consumers are much more likely to engage and buy.
Our Increasing Repeat Purchase Rates guide offers foundational and sophisticated methods for personalization to increase repeat purchase rates. Foundational tactics include personalizing dynamic product recommendations and email send times. If you’re looking for a more sophisticated tactic, limit feeds to products within an individual’s price range and creating personalized product feeds for email and website pages.