The role of personalisation technology in driving customer loyalty
As the old adage goes, it’s much more costly to acquire a new customer than to keep an existing one. Sources, such as Bain & Company , report the premium to acquire a new customer to be somewhere between five and twenty-five times more expensive.
Personalisation makes your brand more relevant and increases customer satisfaction – as 82% of shoppers feel more positive about a brand post- personalised experience engagement.
While personalisation is a clear path to driving results, the cost of getting it wrong can be high. In fact, 76% of shoppers express their frustration when they are recommended products that aren’t relevant to them. What does this all mean? How can you make sure your personalisation strategies are truly relevant to every customer? How do you deliver personalised experiences that actually inspire a purchase?
This article will guide you through the most important aspects of personalisation for building customer loyalty. You’ll learn how you can start providing personalised content to drive better results and explore how the right platform can unlock this potential.
Signal > Noise. Insight > Data.
Raw data is not insight.
The data you collect, how you score interactions, your personalisation algorithms and customer segments, are all required in an effective personalisation strategy.
Every interaction with your brand has the potential to be both unique and powerful. To deliver true personalisation, brands need to gather a clear picture of every customer. This means capturing shopper preferences, understanding them and their buying habits. Only then can you devise personalised experiences that inspire, inform and incentivise purchase.
This information supports you in building meaningful segments in your customer base, allowing you to focus your energy (and algorithms) on serving customers that are ready to progress along their purchasing journey. These segments can be created based on your commercial priorities, merchandising objectives or even to support the launch of a new product range.
Convert more, more quickly.
An effective segmentation approach will help you identify customers that are most likely to convert quickly. With technology that allows you to do this in real time, you can test personalisation strategies to optimise conversion.
Effective segmentation can tie into your merchandising strategy. Personalised recommendations can be used to promote cross-selling and upselling. For example, you can recommend accessories for products a customer has already purchased – or even added to their basket – as well as suggest alternatives to provide your shoppers with options and a better overall product discovery experience.
Every channel matters.
Personalisation shouldn’t be exclusive to your website. 90% of us switch screens to complete tasks so a huge portion of your customers demand seamless journeys across channels. You can extend personalisation strategies to drive engagement at every digital touchpoint.. Think personalised email content, birthday messages and discounts. You can then use these insights to build strong interpersonal relationships with your customers.
You should explore:
1. Bespoke email content. Personalised emails deliver improved conversion rates and boost customer loyalty. For example La Redoute used personalised follow-up and re-engagement milestone emails which boosted click-through rates by 25.5% and 30% directly from recommendations. You can create targeted workflows which deliver tailored messages depending on the action a customer takes; reinitiate the purchase process after cart abandonment, roll out rewards to every new sign up and much more.
2. Personalised advertising and content. Continue to engage shoppers even after they have left your site by retargeting them on social media with dynamic ads. The contents of these ads can be tailored the same way as your on-site personalisation as they also take into account segmentation and cart data.
3. Relevant product search. Leading ecommerce platforms incorporate AI search capabilities to serve the most relevant results. By combining real-time shopper behaviour with natural language processing (NLP), search algorithms and synonyms, you can enhance personalisation for every search to boost your bottom-line.
4. App notifications and experiences. Persuading shoppers to use your brand’s mobile app can present a host of opportunities. If customer profiles are maintained across all channels (desktop, mobile, in-store etc.), you can gather even more data to drive better personalisation and engagement.
Better personalisation, all it takes is Crownpeak.
Looking to level up your personalisation strategy? Our out-of-the-box algorithms make it simple to introduce personalisation to your ecommerce site for the first time.
The Crownpeak personalised recommendations solution uses a combination of machine learning and a library of algorithms to bring the power of personalisation to your fingertips. Join hundreds of the world’s leading brands to drive more conversion, build better relationships and develop customer loyalty.
Don’t miss out on the chance to see the difference Crownpeak can make –
request a demo today.