Even though ecommerce is now part of regular buying habits, engaging consumers online is still a difficult task. Bounce rate and abandonment of the basket remain very high among traders. In 2018, the rate of visitors entering the conversion tunnel without validating their order at the end of the purchase journey was estimated at 75%.
As over 83.9% of consumers buy only once and never return, customer acquisition and retention must become more of a priority for retailers. Despite the increasing number of unpredictable customers, 81% of consumers would be open to switching loyalty to sites that provide a personalized experience.
Avoid Unnecessary Acquisition Costs
Although over 80% of customers are casual, one-time buyers, the 20% proportion of regular customers generate a massive 80% of turnover, so loyalty is not to be neglected.
Acquiring new customers can cost five times more than keeping existing ones, so having customer retention processes in place is essential to limiting acquisition costs. With this in mind, developing a personalization strategy will have a significant impact.
Adopt a Data-Driven Approach
Recent improvements to UX have contributed to increasing conversion rates and boosted retention, which is why most sites are now optimized on both desktop and mobile. To encourage a real commitment on the customer’s part, retailers must abandon generic messages in favor of a “data-driven” vision.
Each visitor has their own distinct preferences and needs, which require personalized interactions. To keep the attention of your visitors, this personalization must be applied to the entire customer journey, from the arrival on your site to the end of the conversion tunnel.
This is possible through the collection, processing, and analysis of large amounts of data. The information gathered, such as consumer preferences, will make it possible to offer more impactful experiences, where visitors can become recurring customers and, in the long term, brand ambassadors.
Focus on the Commitment
Consumers visit an ecommerce platform with high expectations of brands, so introducing personalized communication as soon as they arrive on-site can create an emotional link to your brand. This privileged relationship will encourage them to invest more in the experience and eventually increase their customer lifetime value (CLV).
While loyalty is impalpable, the commitment, strongly linked to profits and turnover, is measurable. Customer engagement helps identify what is working and provides insight to inform future and more refined experiences.
Knowing indicators, such as time spent on your site, frequency of purchase and average basket value of your customers, will allow you to evaluate their level of immersion in your experience and their affinity towards your brand. By focusing on these indicators, you will be able to tailor your experience to drive customer loyalty.
Increase CustomerLoyalty Through Segmentation
To further encourage customer satisfaction and loyalty, you need to understand the difference in value between customers through segmentation. Although every potential customer is important, those who buy a lot on your site on a regular basis are more important for your turnover than those who visit your site for several months before making a simple purchase.
Once this differentiation is made, a loyalty strategy based on collected data can be deployed. The challenge is to ensure that the cost associated with implementing this strategy is offset by a positive impact on their buying behavior: if they spend more, they will generate more revenue for you.
Using a multi-tier loyalty program can be very effective in achieving this. These programs, which are based on rigorous selection criteria, encourage customers to be more invested and cleverly incentivize them to spend more in order to benefit from exclusive advantages that make them loyal to the brand.
The Future of Retail
To successfully engage customers and make interactions more relevant, brands need to implement a personalization strategy based on the data they collect. Retailers must go beyond generic and impersonal messages to distinguish themselves from the competition and capture the attention of visitors.
Offering a tailored customer journey increases your chances of selling more: customers will be more likely to buy and spend more in exchange for a more relevant experience. Without this context, you risk losing the value that loyal customers could bring you.
The future of retail lies in the continual improvement of the customer experience. Brands must focus on building relationships of trust and loyalty in addition to acquiring new customers.
Offer a personalized customer experience at every touchpoint! Read all about it in our Ultimate Guide to Personalization in Ecommerce. And learn more about segmentation in our blog post How To Use Visitor Segmentation To Build A Successful Personalization Strategy.