How To Augment Customer Experience With Omnichannel Personalization

Omnichannel personalized marketing is no longer just “nice to have” in today’s marketplace, especially with customer experience becoming a key brand differentiator.

customer experienceImage source

Consumers are now interacting with brands across multiple channels. Not only do they expect relevant content but they also want the ability to “pick up where they left off” when they switch from one channel to another.

Many retailers consider implementing omnichannel personalization as one of the key strategies to generate growth and increase revenue through providing a customer-centric brand experience. In fact, many retailers see an increase in revenue and new customer conversion rate when they start offering personalized customer experience.

A study by Invesp has shown that personalization has been proven to improve customer loyalty and increase conversion:

  • 53% of online shoppers consider customization valuable.
  • 45% of shoppers prefer to shop on sites offering personalized recommendations.
  • Personalized ads have a conversion rate 10 times higher than “one-size-fits-all” ads.

customer experienceImage source

However, there are many moving pieces to ensure the successful implementation of such strategy, including the collection, integration, and synthesis of a large amount of customer data and the ability to turn it into actionable insights.

Thankfully, there are many tools you can use to help gather customer data and apply them to improve customer experience. Here are a few helpful features to look for:

Customer Data Management (CDM)

Information on your customers’ behaviors and preferences will help you cultivate relationships and increase retention rate. Data collection is the first step to implementing a personalization strategy.

To see CDM in action, look no further than online retail giant Amazon.com. Customer information is collected and utilized for making recommendations that leads to increase in sales, as well as improving customer relationships with more personal services.

To get the most out of your customer data, you should:

  • Decide on the critical data to collect so you don’t end up having to parse through irrelevant information
  • Clean up your data to avoid duplication
  • Funnel all information into one centralized database to construct 360° customer profiles
  • Avoid siloed internal practice and encourage collaboration between departments
  • Make the information and customer profiles easily accessible to sales personnel in the field.

Customer Relationship Management (CRM)

After you have constructed 360° Customer Profiles that aggregate your customers’ unique preferences, brand interactions, and habits, it’s time to take that information to the next level.

You can leverage the analytics capabilities of your software to make data-backed business decisions based on the level of brand interaction and projected lifetime value of each of your individual customers.

To leverage the power of CRM, follow these best practices:

  • Create targeted content for specific customer segment to help your brand stay relevant and top of mind. For example, P&G developed the Being Girl microsite to share relevant content with a specific customer segment
  • Use geo-location to target customers who are in the vicinity of a physical store
  • Learn customer habits and preferences to create offers and deliver services that are timely, customized, and relevant
  • Implement Omnichannel marketing and customer care to deliver a seamless customer experience across all touch points

Automated Personalization

You can also leverage the information about your customers to create personalized campaigns and communications that help you deliver the most relevant information to specific customer segments in a timely manner.

This will not only allow you to nurture customer relationships and improve retention rate but also entice new customers to engage with your business by sending out highly relevant offers at the critical moments of their customer journey.

These are some of the ways you can leverage automated personalization to increase sales:

  • Segment and target high-quality leads that are likely to convert
  • Implement personalized lead nurturing campaigns to deliver the most relevant content and offers
  • Increase customer lifetime value by improving customer satisfaction and loyalty with relevant offers
  • Leverage your social media presence to deliver a seamless experience that moves customer along their purchasing path

The Best Marketing Speaks To What Makes Your Customers Tick

The effectiveness of one-size-fits-all marketing messages is plummeting as consumers are becoming increasingly savvy and expect for customized content and offers from brands.

As a marketer, you need to deliver a personalized customer experience across all channels and make sure your copy, content, and offer are highly relevant while appearing in front of your audience in the right place at the right time to get the highest ROI on your marketing budget.

Kohl’s is Winning With Omnichannel Strategies  

combining digital and in-store

As the retail industry is changing, many brick-and-mortar retailers are employing omnichannel marketing strategies to fend off digital giants like Amazon. When it comes to successful omnichannel, a complementary relationship between brick-and-mortar and digital assures companies greater success.

In this third and final retail installment, let’s take a look at how Kohl’s is using omnichannel strategies to create a customer-centric approach.

MOBILE APP

According to STORES Media Editor Susan Reda, “retail’s balance of power resides firmly in the hands of the consumer.” With e-commerce gaining more momentum, many consumers have shifted toward online shopping. The Kohl’s Mobile app is playing a key role in helping the retailer keep up with tech-savvy consumers. Kohl’s effectively leverages the mobile app as an in-store partner and offers a customized shopping experience.

App users who walk into a Kohl’s store have the option of using a feature of the app that tailors to that specific store. The ‘Store Mode’ function personalizes to each customer’s store location and allows shoppers to search for store inventory and see in-store promotions while shopping. Customers can also check the price of store items and see other related goods. The Store Mode function gives Kohl’s a synthesized digital and in-store landscape.

Kohl’s also offers enhanced payment capabilities through the mobile app. Customers can pay with Apple Pay, a one-tap checkout option, in the brick-and-mortar stores and mobile app. Shoppers also have the choice of adding a Kohl’s credit card as a form of payment within Apple Pay. Consumers further have the option of scanning and saving gift cards to the Kohl’s mobile wallet.

Thus, paying for items in the brick-and-mortar stores blends seamlessly with mobile payment features, and customers are provided with a convenient shopping experience. Kohl’s gives shoppers more online and offline purchasing choices, thereby increasing the traffic to stores. The Kohl’s mobile app is a powerful tool which encourages online browsing and in-store sales. The app infuses digital into the in-store experience, creating a smooth customer experience.

STORES AS WAREHOUSES

Kohl’s continues to leverage its physical stores with the implementation of click-and-collect. Shoppers can make purchases online or through the mobile app, and pick them up at a convenient Kohl’s location. The company utilizes the brick-and-click concept, to make the brick-and-mortar stores act like warehouses for online orders. In turn, Click and Collect makes customer shopping more convenient. Click and Collect provides flexibility and ‘real time’ fulfillment for consumers. With consumers coming in store to pick up items, foot traffic to brick-and-mortar facilities is increasing.

The retailer is also using inventory at its brick-and-mortar stores to fulfill online shopping demands. Using local inventory, Kohl’s moves goods that are not selling in stores. Consequently, this speeds up fulfillment since the stores are closer to customers’ homes.
Kohl’s is creatively using its brick-and-mortar stores to make online and offline more connected. As consumers shop online, the retailer uses brick-and-mortar stores as makeshift warehouses, and in turn, makes the shopper’s experience easier and more convenient.

Kohl’s adapted the mobile and brick-and-mortar stores to become highly leveraged and synchronized units. The retailer has used the mobile app and brick-and-mortar adaptations to boost sales and create an inclusive customer experience. Previously, we looked at the successful omnichannel strategies implemented by Nordstrom and Neiman Marcus. We have finally rounded off our omnichannel trilogy by taking a look at Kohl’s and how this retailer has implemented omnichannel successfully. While these three retailers are ahead of the curve with omnichannel marketing, it will be exciting to see where other retailers take omnichannel.

 

Neiman Marcus: Omnichannel Strategies to Bridge the Gap

Integrating Brick-&-Mortar and Digital  

Technological advancements are redefining the way customers interact with retailers.

Customers now expect much more from brands they love, and omnichannel strategies are driving development within marketing departments to meet these expectations. A plethora of companies and retailers have introduced a seamless shopping experience across mediums by implementing omnichannel marketing strategies. From brick-and-mortar to website to mobile app, shopping has become a fully integrated experience, thanks to omnichannel.

Last week we dove into the Nordstrom’s world and reviewed the different ways the retailers use omnichannel to enhance the customer experience. Today, we are continuing this and looking at how luxury retailer Neiman Marcus is integrating brick-and-mortar with digital to create a heightened customer experience.

Mobile App

Despite having only 42 brick-and-mortar stores, compared to most luxury retailers with anywhere from 60 to 100 stores, Neiman Marcus is still the biggest luxury retailer in the world.The 42 brick-and-mortar stores play host to a large number of fashionable and high-end items. According to CEO Karen Katz, however, the luxury retailer has a “robust selection of products online that [they] don’t have room for in [the] brick-and-mortar store.” Consequently, Neiman Marcus’ efforts to bridge the gap between the products available virtually and physically, have given way to a successful mobile app. The mobile app serves as a larger commerce platform, as well as, a conduit for customer engagement with Neiman Marcus by making shopping easy and convenient for customers.

Customers have a way to shop on-the-go and find more products that cannot be found in Neiman Marcus stores. In-store associates are equipped with tablets featuring the app and help customers quickly find products online and offline. Sales associates are also encouraged to direct customers to browse through the online and mobile stores. Customers can access these same sales associates via text, email, phone call, or FaceTime while on the app. Neiman Marcus also has a solution for finding any item, from anywhere, within minutes. The mobile app has introduced a new feature called “Snap. Find. Shop.”. The feature allows shoppers to take photos of clothing and accessories they see at any store, and the app will find the exact or similar product on the Neiman Marcus mobile store. The mobile app provides customers with a smooth blend of online and brick-and-mortar services, heightening the customer experience.

Virtual Dressing Room

Another way Neiman Marcus digitally transformed the in-store experience is by adding digital dressing rooms. The retailer deployed the “Memory Mirror,” a device which enables shoppers to digitally compare outfits and items of clothing while in the physical store. Acting as a large video screen and camera, the Memory Mirror allows customers to see outfits from 360 degrees. The mirror is password-protected and connected to shoppers’ Neiman Marcus account. Customers log into the mirror and can browse outfits they previously tried on and captured in 360-degree, eight-second videos. These “try-on videos” can be saved to the customer’s mobile device, emailed, and shared on social media. Shoppers can also compare clothing options side-by-side, as the mirror remembers what the customer has already tried on. This initiative enables customers to experience flawless digital integration and increased interaction with Neiman Marcus. The Memory Mirror is a complementary blend of brick-and-mortar and digital shopping.

Neiman Marcus relies equally on mobile and brick-and-mortar stores. The seamless incorporation of online and offline has kept customers highly engaged with the retailer. The customer-centric philosophy has propelled Neiman Marcus into implementing innovative and different omnichannel strategies. Neiman Marcus has truly made the digital shopping experience and physical shopping experience seamless. 

Tune in next week as we take a look at the third and final retailer in our omnichannel trilogy – Kohl’s.

Nordstrom’s Omnichannel Success

Culture of Innovation

Innovation is risky business, but not innovating is even riskier. In a world where technologies are rapidly changing, companies must be willing to evolve in stride. Several companies are doing so by shifting to an omnichannel marketing strategy. Omnichannel approaches are synchronizing the shopping experience across mediums for retailers.

Some retailers have successfully incorporated omnichannel strategy into their marketing strategy. Over the next few weeks, we will examine a trilogy of retailers and the wins they have achieved through an omnichannel approach.  Today, we are going to focus on one of the most popular luxury retailers- Nordstrom.

Part I: Nordstrom

Nordstrom worked to reinvent itself around the omnichannel shopper. According to the President of Stores, James Nordstrom, retailers need to focus more on the total experience than strategy for specific channels; “[At Nordstrom, we] don’t think the customer is loyal to channels. We don’t hear customers talk about channels very much. Customers value experiences.” Consequently, this belief is guiding Nordstrom’s omnichannel strategy towards creating a synchronized and seamless customer experience.

Rewards Program

The omnichannel focus of the Nordstrom Rewards loyalty program gives customers a chance to gain points regardless of which channel they purchase items.These loyalty members can also then track their activity from anywhere. Shoppers can use their mobile number as identification instead of memorizing a loyalty account number. An omnichannel approach to the rewards program has given Nordstrom a more open policy focus. The open policy focus allows shoppers to pay in whichever method they choose, shop whichever way suits them and still gain more loyalty points and rewards. Nordstrom shoppers are winning more, ensuring customer loyalty.

Social Media Influence

The luxury retailer is also approaching shopping from a multichannel perspective, and one of their innovative initiatives has been integrating with the mobile application, Instagram, and social media/organization platform, Pinterest. Nordstrom has made it possible to buy items from Instagram and find items based on Pinterest favorites. Instagram has been a modeling platform for retail items. However, a grievance shoppers have, is the inability to locate and buy the items presented on Nordstrom’s Instagram account. The retailer’s Instagram account now features a link which directs customers to Like2Buy, a platform that makes Instagram shopping easy. All of the items available for sale from the retailer’s feed are displayed as an elegant grid of photos. Shoppers can then scroll and “like” items, which are curated into a personal wishlist or shopping cart. 

Pinterest is a social media platform which allows users to “pin” things they like or want to “boards” for later reference. It indexes all the different items, ideas, and interests we come across online. Pinterest gives Nordstrom insight of which items are popular among shoppers. Nordstrom has brought these “pinned” items to their physical stores. Stores display commonly tagged or “pinned” items from Pinterest. The luxury retailer also adopted that feature on their website. Shoppers can now see a “Top Pinned” landing page on the site. Nordstrom doesn’t limit themselves to a single channel. The retailer has effectively leveraged their social media user base to enhance the shoppers’ experience by including the favorite and trendy items on Instagram and Pinterest in their stores.  Not only do customers see more products, but they are buying more at one time and are coming back for more of the items they love.

Nordstrom had experienced success by understanding that customers value an enhanced experience. Nordstrom has provided its customers with a retail experience that spans online, offline, and social media outlets. Shopping has become a synchronized and seamless experience – Customers can easily find the products they love and find them from anywhere. Tune in next week as we take a closer look at Neiman Marcus and how they are using omnichannel marketing to benefit their shoppers.

 

The Best in Banking Personalization: USAA’S Innovative Customer Service

Legendary Service in the Digital Age

USAA is known for providing great service. Don’t believe it? The Temkin list of companies with the best customer service ranks USAA as No. 1 and has done so for the past five years. Why is USAA so highly ranked? USAA is passionate about providing the best in financial services to the men, women, and families involved with the military. According to the President of Property/Casualty insurance, Wayne Peacock, “that passion is what fuels our focus on delivering an exceptional member experience by listening to our members and constantly innovating to meet their needs.”

USAA’s goal is to bring the best customer service experience to each and every member. USAA has worked to create a heightened customer experience through enhancing services available in their mobile application as well as omnichannel customer service. Let’s explore how USAA is leading the way in using omnichannel personalization to create a better customer experience.

Mobile App

USAA has changed their mobile application to make it easy for members to navigate. Members can now easily access all features and functions within the mobile app; however, there is a focus on what each member does most frequently.

USAA begins the personalization from the moment a member opens the mobile app. The interface of the USAA app looks the same. However, the iteration per member differs. Personalized landing pages are a key feature of the app. These pages show the tasks each member does most frequently and their accounts. The products and services a member may see on the mobile app coincide with the products and services they have with USAA. If a member has a financial account with USAA, they will be able to see only relevant banking information on the account.

USAA has also made their app more user-friendly by integrating personalization and omnichannel interactions to the mobile app. Within the mobile application, customer context provides highly personalized information that the company and its members share between each other. This information is synced up across channels. For example, a member can make a payment online and see that same activity on the mobile application. By having the app customize to each member’s omnichannel interactions, USAA can better serve and help its members by highlighting that which matters to each member.

Functionality

Sharing information across channels has given USAA a way to effectively provide omnichannel customer service to its members as well. Members can now get immediate service anywhere, at any time, and from any device.

USAA has implemented a contact handoff system. When a member clicks “Contact Us” in the mobile app, they are connected to a service representative. These service representatives are provided information about the member and what they were looking for, before actually speaking to the member. Service representatives greet members by name and can immediately start helping without having members reiterate their questions.  Having this knowledge of the member’s information gives USAA the ability to create an experience that demonstrates to the member that USAA knows them.

USAA works to be aware of its members’ daily lives. Personalized customer service drives efforts to increase the service efficiency a member gets. Members no longer have to wait to speak with someone, nor are they bombarded with unnecessary questions. The assistance they need is at their fingertips.
USAA’s dedication to providing legendary service has allowed them to provide highly personalized support over multiple mediums. Sharing context about members across channels is enhancing the member experience. Members save time and get the assistance they need when they need it. USAA serves its members well by providing a better experience based on their personal needs. As an innovative leader in technology within banking, it will be exciting to see where USAA decides to explore next within the technology landscape.

Combining the Art and Science of Retail: JC Penney’s Digital Evolution

Omnichannel Evolution: From Magazine Catalog to Online Catalog

JCPenney was once one of the most influential catalog retailers and an original omnichannel retailer. JCPenney’s efforts to evolve the brick and mortar business has the company advancing omnichannel execution.The introduction of the digital age has provided JCPenney an incentive to create a more sophisticated and modern view of this catalog.  The evolution of the catalog is connecting with customers on how, when, and where they prefer to shop.  

According to JCPenney CEO Marvin Ellison, the company has “developed true omnichannel capabilities” by advancing the brick and mortar store. JCPenney’s omnichannel strategy focuses around the creation of a successful mobile app and the implementation of a buy-online-pick-up-in-store method. Let’s look at each part of JCPenney’s strategy and how these elements are helping JCPenney’s digital expansion.

Mobile App

As part of JCPenney’s evolution, the company has focused largely on created a user-friendly mobile application, taking advantage of the massive growth of mobile channels. The JCPenney app features a sleek design and easy to navigate interface which connects to each shopper’s personal account. The JCPenney app is designed to connect the digital and in-store experience, as seen in the image above. Consequently, the user base rates the app at 4.5 stars, with over one million users. 

The app is a single mobile hub, facilitating online shopping at the customers’ fingertips. As a result, JCPenney creation of a mobile app has allowed them to connect with digitally savvy customers. JCPenney’s app helps shoppers locate items in stores, apply coupons, and also access their JCPenney Rewards. The app customizes to each shopper’s account, personalizing the app based on browsing history, purchase history, and even location. Customers can also make purchases based on what is available in nearby store locations and can even check available inventory.   Consequently, the user base rates the app at 4.5 stars, with over one million users. The evolution of the brick and mortar store to include a mobile platform maintains a personalized omnichannel experience. 

Buy Online pick up in store

JCPenney is also powering their omnichannel experience with the introduction of buy-online-pick-up-in-store option, also known as BOPUS. BOPUS allows shoppers to complete online and mobile purchases with a variety of pick-up options. BOPUS is available in all 1,000 physical locations and synchronizes with the location capability on the mobile app and online platform. Shoppers can make purchases based on the online catalog or available inventory in select locations. The shoppers can even choose which kind of pick up option they would like.

The shipping options include shipping to any location, same day pickup, and fast home delivery. JCPenney has a history of operating through catalog service desks. The direction towards digital catalog enhancement makes JCPenney is one of the biggest retailers to offer online orders to be shipped to any of its 1,000 locations. JCPenney’s successful blend of online retail and in-store pick up has evolved the purpose and functionality of the brick and mortar store.

The BOPUS option that JCPenney provides has also expanded the consumer market. Shoppers who come in to pick up orders have a higher attachment rate. A high attachment rate means shoppers are more likely to buy an additional item in-store when picking up an online order. Because of the integration of the digital and physical market through omnichannel, JCPenney is seeing greater returns .

JCPenney has implemented new omnichannel tactics to bring their catalog into the digital age. By marrying the physical and online experience, they have successfully rejuvenated their customer journey. JCPenney plans to continue their evolution through next year with the replacement of point-of-sale units with mobile devices. It will be exciting to see how JCPenney further develops through 2017.

 

How Omnichannel Retailers Are Changing the Marketing Game

Starbucks, Sephora, and Disney’s Omnichannel Approach

 

The good old days of customers coming from one channel are over.  With the rapid rise of social and mobile channels as valuable marketing platforms, omnichannel business strategy has become necessary approach for a successful brand.  While it is easy to understand “Why?” the “How?” is less clear.

Before we can discuss what techniques are being used to optimize omnichannel marketing, we need to take a look at what omnichannel marketing really means. Omnichannel is an approach to sales that utilizes multiple channels and outlets of shopping. The primary goal is to create a seamless customer shopping experience, whether the individual is shopping on a mobile device, desktop, or in a physical store. 

Now that we have established a what omnichannel is, let’s take a look at how three companies use it to their advantage.

Starbucks

Starbucks is an omnichannel expert

The Starbucks Rewards program is a perfect example of omnichannel marketing in practice. Starbucks is one of the biggest coffee retailers in the world. Their market reach is incredible, and they have harnessed the power of omnichannel to leverage that huge customer base. The Starbucks Rewards system uses an omnichannel approach to make the coffee buying experience more convenient for customers.  Customers can use the rewards card to make purchases without taking out their wallets and to also reload the rewards balance online, in-store, by telephone, or by mobile app. All changes to rewards accounts immediately update across all channels.  Thanks to the omnichannel approach, Starbucks customers can satisfy their caffeine cravings at any time, on any channel.

 

Online bags can become actual bags when purchasing in-store

Sephora

The makeup retailer has also changed the way consumers interact with products. Sephora utilizes the omnichannel shopping process to create an enjoyable experience for customers. Sephora has implemented the “My Beauty Bag” program to allow customers to manage their beauty products and see purchase history. The “My Beauty Bag” program makes it easy and accessible for Sephora customers to add items to their shopping carts, peruse their browsing history, make savings on purchases, and re-order items. Sephora’s rewards program also allows members to use their Beauty Bags on their mobile device, computer, and send digital gifts.

While making in-store purchases, customers can use the Sephora app to complement the brick and mortar shopping experience. Sephora is also changing the in-store experience as well, by introducing the Beauty Tip Workshop. Customers now have the opportunity to access their Beauty Bags, see recommended items and looks, and make purchases based on the items shown in the store. Sephora is expertly using omnichannel to revolutionize the cosmetic shopping experience.

Disney

Disney brings omnichannel to the world on tourism and retail. The magic of Disney is brought to multiple channels thanks to their approach. Disney’s process pays attention to even the smallest of details to make a flawless and consistent shopping environment across channels. When booking a trip through Disney’s website or app, customers have access to the My Disney Experience tool to help plan the logistics of the trip. From dining options, to park attractions, to securing passes, the My Disney tool helps customers plan for the entire trip. Once customers get to the amusement park, the Disney mobile app can locate the attractions and performances across the park and gives an estimated waiting time for each attraction and show.

Disney takes the magic even further with the implementation of the Magic Band program. These wristbands not only act as theme park entrance passes, but also act as hotel room keys, Fast Pass check in, food ordering tools, and photo storage devices. These wristbands also include personalized surprises for each band holder. Disney uses omnichannel to make traveling a connected, all-in-one experience.

 

Omnichannel initiatives like these enable brands to create the ideal customer experience across all channels. Starbucks, Sephora, and Disney approaches are great examples of brand’s solving for the ever-evolving needs of the digital age.

The Business Imperative: Personalization

This Wednesday, the DFW-Retail Executives Association ended its season on a timely topic for retailers: Personalization.  If you missed out on this panel or are one of the 77 percent of companies saying, “In 2016 we need to be doing personalization,” have no fear we have the panel highlights for you.

Cover Photo Amrit Speaking at REA Personalization Panel
DFW REA Personalization Panel

The panel consisted of three experts,

  • Jeff Rosenfeld-Vice President of Customer Insights & Analytics at The Neiman Marcus Group
  •  Veeral Rathod- Chief Executive Officer & Co-Founder at J. Hilburn Clothiers
  • And NectarOM’s very own Chief Executive Officer & Founder Amrit Kirpalani.

Panel Moderator Steve Dennis kicked off the panel discussion setting the stage for why personalization is quickly becoming a business imperative.  Explaining that personalization is  “an imperative because the battle has shifted from market share to share of attention- and it’s increasingly difficult to be the signal amidst the noise.”

The rest of the discussion focused on how personalization is changing their marketing efforts, what challenges they faced when launching their personalization efforts, how it is changing marketing, and finally discussed how other companies could successfully launch their own personalization efforts.

Here are a few of our favorite topics from the panel,

Test and Learn

Don’t start off trying to personalize every message coming from every channel.  Amrit suggested that the clients with the most success started off small.  Start off testing a few channels and messages at a time, learn what worked and then test some more.

Be Prepared to Think About Marketing Differently

Personalization fundamentally changes how marketing has been done for years. Instead of a one size fits all strategy, personalization shifts the focus to marketing on a one-to-one level.  Jeff and Amrit agreed that culture change was one of the biggest challenges when companies started discussing personalization.

Not a One Size Fits All Solution.

Take the time to figure out how personalization fits into your company’s structure and into what your customers want.   The Neiman Marcus Group and  J. Hilburn Clothiers both used personalization in the retail space, however they each had a unique approach that fit their customer and business model’s needs.

Have the right partners in place

Not everyone can afford to have a team of data scientists creating custom algorithms.  However, personalization is something that is becoming more realistic for companies of all shapes and sizes to start adding to their marketing efforts. All you need to do is find the right partner.

If you are interested in learning more about sending tailored messages to your customers in real-time across all your owned channels let us know and schedule a demo to see the NectarSuite in action.

Why Personalized Websites Boast Higher Conversions

As a marketer, you understand that making every web user’s experience personal and relevant will lead to a stronger affiliation with your brand and increase your chances of making a sale. Personalization makes your customer feel like you truly understand them and massively streamlines your web experience by using big data insights to deliver unique buyer experiences in real time. When you eliminate barriers to purchases and delivering a great web experience through personalization, your site will drive higher conversions and revenue.

What’s the difference between a personalized and non-personalized website?

  • In a non-personalized website, the content presented is the same for all incoming visitors. This is alright for an informative website, but when it comes to eCommerce, making a customer enter all of their personal information (perhaps more than once), scan through items and content that they aren’t at all interested in, and making them spend unnecessary time on your site just adds another cumbersome barriers between your prospective buyer and their purchase.
  • A personalized website, on the other hand, features content that changes based on a customer’s individual preferences and habits. As a customer clicks through your optimized, personalized eCommerce website, they will encounter products and offers based on recorded data such as their browsing history, purchases made, website behavior, lifestyle, and so on. Since the products the customer is most likely to be interested in are featured prominently from the beginning, there are fewer barriers between your buyer and their next hot buy.

Given that an incredible 75% of online shopping carts are abandoned before the final checkout, website personalization can seriously benefit your ROI by reducing the barriers between your customer and their purchases. Personalization also has the added benefit of increasing a customer’s affinity towards your brand, encouraging them to return to your page for future purchases.

What tools can you include on a personalized website?

  1. Personalized Greetings – When a customer clicks through, have a personalized greeting such as, “Welcome back, Mrs. Jones.” When you remind the customer that they have an account with you, they automatically associate it with having information like credit card number, shipping address, and so on saved – meaning fewer barriers between your customer and their purchase.
  2. Personalized Profile – This includes the option to view account information, edit and update the customer’s profile, add a profile picture, and may include one-click features – such as shopping carts – that pull in targeted information.
  3. Visible Browsing History – Let’s say Mrs. Teresa Jones was shopping for workout apparel and had viewed a dozen items like running shoes, compression leggings, and a new strap for her yoga mat. Before making a purchase, she was interrupted and had to step away for a few hours. When she returns later that day to pick up where she left off, giving her a visible browsing history to pull in the items she’s previously viewed will eliminate the hassle of finding them all over again.
  4. Personalized Landing Pages – As a customer clicks through their hyper-personalized landing page, it should remind them of the need that drove them to your website in the first place. If Teresa Jones, from our last example, forgot what she was doing before she left to run her errand, the landing page should remind her why she came to your site and help her find her place. Even if it’s days, weeks, or months after she’s originally visited your site, putting your brand in a position to jog your customers’ memory will increase the likelihood of them shopping with you again and again.

If there’s anything you should take away from the article, it’s that website personalization is an incredible tool for increasing conversions on eCommerce sites because it saves the customer time and removes barriers between browsing for an item and finalizing the purchase.

There’s a power behind these personalization tools comes from the fact that they’re very subtle – you’re not in your customers’ faces yelling about how great your brand is, instead, the responsive and efficient design of your site will speak for itself, and remind your customer why they sought you out in the first place.

This article originally appeared in Business2Community on September 23, 2015.

Defining the Loyal Customer with Data

What is a “loyal” customer?

The loyal customer is a person who keeps coming back for more. This customer frequently browses, shops and supports your company. A loyal customer may consider other competitors, but often chooses your company when making purchases.

In other words, a loyal customer is your favorite kind of customer.

Why is defining the loyal customer with data helpful?

Companies should market to all types of consumers. However, marketing to loyal customers can give a business an edge when making sales.

The loyal customer also tends to be a more valuable customer. Selling to existing customers is about 50% easier than selling to new customers, according to Marketing Metrics. Loyal customers also churn a greater profit, according to Gartner Group. In 2012, the group found that 80% of a company’s future revenue comes from 20% of existing customers.

Brick-and-mortar loyalists

In small mom-and-pop shops or some brick-and-mortars, labeling the loyal customer can be easy. For example, I frequent my local brick-and-mortar Starbucks so often that the baristas have my order memorized. When I walk through the franchise’s doors, I am greeted with a friendly “Hello Savannah!” followed by, “Grande vanilla soy latte, right?”

Because I am face-to-face with my Starbucks baristas every day, my baristas can easily discern that I am a loyal Starbucks consumer. Because of this, they offer me a personal greeting and predict my order. This makes my experience more enjoyable and convenient.

But what about entities that aren’t privy to daily face-to-face interactions?

Digital loyalists

What is a digital loyalist?Determining loyal customers across digital entities can be a little more dynamic. With a significant portion of sales happening over the Internet, discerning which customers are loyal is important. However, it is not always as basic as face recognition.

Companies can analyze big data from their online sales to determine which customers are loyal. Integrating data and marketing can be more effective than remembering names and faces.

In the aforementioned Starbucks example, defining loyal customers can help a company personalize shopping experiences. This personalization is not limited to in-store interactions. Marketers can offer the same personalized greeting and predictive product suggestions digitally via email, SMS or website.

Marketers can use data several different ways to determine which customers are loyal. Special membership programs are the most obvious way to discern which customers are loyal. These CRM systems generally require customers to share personal information in exchange for special offers or discounts. Personal data is compiled to create a personalized customer profile. Companies can also use specific metrics to determine which customers are loyal. Metrics can track how many purchases a customer makes, and determine whether they are a one-time buyer or a loyal customer. Marketers can also use metrics to see which customers are opening, sharing, or unsubscribing to online content.

Adjusting personalization for one-time shoppers vs. loyalists

Distinguishing loyal customers can also help a company shape their marketing strategy. Businesses may change the way they market based off how likely a customer is to be a return customer.

Starbucks is one of those companies that adjusts its marketing strategy according to a customer’s loyalty. According to Business Insider, the coffee company offers most of its special offers to consumers who are not as likely to be return customers. Starbucks tries to attract these irregular buyers with these special offers, whereas it doesn’t feel the need to woo loyal customers because these loyalists do not require special offers to buy from Starbucks.

However, Starbucks does not ignore its loyal customers. Through its rewards program, Starbucks offers different types of offers for customers that are more loyal. Offers for Starbucks Gold members  – the most frequent Starbucks customers – encourage further purchases from a sect of consumers who are already frequent buyers. For example, customers at the Gold level have access to free in-store refills – a privilege reserved only for Gold members.

Through this unique type of personalization, Starbucks plays the marketing game based on the strength of its consumer relationships. If you’re intrigued about incorporating customer data in marketing, learn about clickstream data in an automated world.