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Personalisation Matters

Personalisation Matters

The e-commerce industry is a competitive landscape, and standing out from the crowd is crucial. One of the most effective ways to achieve this? Personalisation.

Customers want to feel valued.

Tailoring the shopping experience to individual preferences and behaviours online is much harder to do and take action on. Craig Savage, the founder of FERO, emphasises the importance of personalisation in e-commerce as it significantly impacts customer satisfaction, loyalty, and ultimately, sales.

Why Personalisation Matters

The days of generic one-size-fits-all experiences are gone. Today’s consumers crave a shopping journey tailored to their unique needs and preferences. In fact, Mckinsey states that 80% of shoppers are more likely to buy from a brand that offers personalised experiences. Personalisation in e-commerce refers to the customisation of the shopping experience based on individual user data, preferences, and behaviours. This can range from personalised product recommendations to targeted marketing campaigns and tailored website content.

Data-Driven Decision Making

Another significant benefit of personalisation is the wealth of data it provides to retailers. By analysing customer data and behaviour, retailers can gain valuable insights into their customers’ preferences, trends, and shopping habits. According to PwC, 82% of consumers willing to share personal data for personalised experiences. This data-driven approach enables retailers to make informed decisions regarding inventory management, marketing strategies, and product development. By aligning their offerings with customer demand, retailers can optimise their operations and stay ahead of the competition.

Understanding your customers

To be able to target your customers individually one has to understand the different kind of shopper behaviours. In its recent report, Worldpay has identified six common shopper types:

  • Big Spenders: These trend-loving shoppers enjoy the thrill of the purchase. They’re influenced by social media discounts and prioritise a fun shopping experience.
  • Trendsetters: Early adopters who crave the latest and greatest. Trendsetters appreciate a seamless, tech-advanced shopping journey.
  • Aspirational Shoppers: Shopping is an experience for them, regardless of budget. They love researching products and brands, and appreciate a smooth checkout process.
  • Conscientious Consumers: Sustainability is their top priority. They value brands that align with their ethics and environmental concerns.
  • Bargain Hunters: Price is king for these value-conscious shoppers. They’re drawn to deals, loyalty programs, and pre-loved items.
  • Basic Buyers: Practicality reigns supreme. Basic Buyers focus on quality and trust, sticking with familiar brands and prioritizing good prices.

By understanding these shopper personas, retailers can tailor their approach to meet each customer’s needs. Even simple segmentation of shoppers by gender and age can already significantly boost conversion rates. This means creating a shopping experience that’s both convenient and enjoyable.

Personalisation in Action

So, how can you leverage personalisation to power up your e-commerce conversions? Here are a few ideas:

  • Product Recommendations: Use data on customer history and past purchases to suggest relevant products that complement what customers are interested in.
  • Dynamic Content: Tailor the website content and promotions based on user demographics, location, or past interactions.
  • Personalised Emails: Send targeted email campaigns with special offers.
  • Abandoned Cart Reminders: Send targeted email reminders about forgotten carts, and checkout options.
  • Segmented Promotions: Cater your promotions to different customer segments based on their purchase history or interests.
  • Cost Optimisation: If a shopper is set on buying, recommend the most affordable payment method.

In conclusion, personalisation is a game-changer for the e-commerce industry. By tailoring the shopping experience to individual preferences and behaviours, retailers can enhance customer satisfaction, drive sales and revenue, build customer loyalty, and make data-driven decisions. As the e-commerce landscape continues to evolve, personalisation will remain a key differentiator for brands looking to stand out in a crowded industry. Embracing personalisation not only benefits customers but also empowers retailers to thrive in an increasingly competitive and dynamic environment.

Sources: McKinseyPwC Customer LoyaltyWorldpay

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