With retail giant Amazon taking a larger cut of retail sales these days, small competitors are looking for ways to stay relevant to their customers. Many of these operators are selling the same products as Amazon and often at a higher price. One way to improve their competitive position is to personalize the customer shopping experience in every channel.
MyBuys has been tracking consumer awareness of personalization. In the past year, this awareness has increased 25%. The firm’s latest research shows that retailers can increase sales by using one-to-one marketing to improve buyer readiness – this means the buyer has found the right product (67%) at the right price (55%). To aid a buyer’s readiness, retailers have discovered that personalized marketing can increase sales when they use:
- Personalized emails 21%
- Website recommendations 11%
- Cross channel recommendations 8%
Consumers don’t mind personalized website recommendations (55%) and emails (54%). About 59% say that these forms of marketing help them find what they’re looking for. A retailer only has a limited time to make a good impression on a customer, though. In 33% of cases when a customer leaves a website without purchasing, it’s linked to having trouble finding what they want. Unfortunately, 60% of these customers move on to Amazon and 42% to a search engine like Google.
When retailers do get personalization right, they can experience significant improvements:
- Purchase frequency increase 100%
- Average order value increase 50%
- Conversion of cart abandoners to buyers 25%
Have you or your clients had similar successes using personalized pitches?[Source: Customer Centric Marketing Drives Purchases. Mybuys.com. 27 Feb. 2013. Web. 28 Mar. 2013]