Imagine this: a customer clicks into your online shop, browses through a few items, then leaves without purchasing anything. The next time they see communication from you – an email or social media ad, for example – you’re letting them know how well the products they browsed would go with something they’ve previously bought. Now you’ve piqued their interest; they click through and make the purchase.
This type of high impact targeting can help customers feel like VIPs. And the key to helping them have this great experience is data-driven personalisation.
What is data personalisation and why does your business need it?
Every time a customer shops with you, they leave some breadcrumbs that you can follow to help them have a positive shopping experience. These crumbs – in the form of data – include the details of what they’ve purchased before, their behaviour on your site (the pages they visit, the links clicked and how long they stay on a page), demographics, location and how they interact with you on various channels.
With these clues, you can build knowledge of what the customer wants. The next step is using that knowledge to interact with your customer in a more personalised way: providing unique recommendations or rewards, or anticipating the next step in their shopping journey and making that step easier for them to take.
Adding this personalised relevance to the shopping experience can increase your sales: businesses say customers spend an average of 34% more when they get a personalised shopping experience1. It can also improve the customer experience and boost customer loyalty to your brand.
The importance of data security and building trust
While collecting data is the first step in providing a more personalised service, it’s vital that you respect the trust a customer has placed in you when they have chosen to share that data.
In the latest edition of our Inside Australian Online Shopping Report, Lauren Shepherd, General Manager - Customer Data, Personalisation and Loyalty at MECCA Brands, explains this is a major consideration in the personalisation trend. “The main tenant for us is anytime we're leveraging data or even collecting it, it needs to be in a way that is adding relevance to the customer, and that we do it with the least data possible,” she says.
This matches with customer expectations, with research highlighting shoppers expect something in return for their data. When handing over their details, more than two-thirds of shoppers expect personalised experiences from retailers3 and more than half want to feel part of the brand’s community4.