3 Ways Data-Driven Personalization Turns Losses into Gains

Personalization is another buzzword we all understand but have trouble delivering successfully. More than half of retailers struggle with personalizing the customer’s shopping experience and a key problem is data. With the right data, personalization has endless possibilities for marketers. However, it must be used accurately in order to achieve success.

1. Turn Loss into Gains

You can use data to personalize at any touchpoint during the customer shopping journey whether it’s online or offline. According to Business Insider Intelligence, an estimate of $4 trillion worth of merchandise will be abandoned in online shopping carts this year. Although this number is relatively high, online retailers can overcome this challenge and turn their loss into gains. Use data-driven personalization by tracking behavior and prior purchases to target those that abandon their carts. Cross sell and up sell products they’ve either searched or purchased recently. In addition, target customers with personalized content such as special offers, promotions, and messages to incentivize them to complete their transaction.

2. Behavior is Valuable

Customer behavior often goes unnoticed, but this is valuable information to leverage in order to personalize their experience. Every action your customer takes is a piece of the puzzle in understanding their behavior as a whole. Tracking behavior means focusing on how they’re shopping in order to deliver a much more engaging experience. Aside from understanding who your customers are, look at what they do on your site. Do they view a product detail page more than 5 times a day? Or open every email you get, but never click the call to action. From such behavior points, build personalized email campaigns to segment individuals with similar behaviors. Complete and comprehensive data reflects the entire customer life cycle and interactions from every touch point.

3. Use Actionable Data

As a retailer, you have a wealth of data hiding in your data systems or analytic tools. Data has the potential to further engage with your customers and increase revenue. By connecting all of the data, create a dynamic, more engaging shopping experience for customers. Serve your customers with tailored and relevant content to maintain their loyalty. If your current loyalty program only offers a 25% off promotion randomly to customers, you’re not doing enough. By using your own data, expand your loyalty program by delivering tailored promotions to multiple customer segments. For example, let’s say your customer recently purchases a pair of jeans on your site and searched for more jeans a few days later. As part of your loyalty program, send that customer a special offer on denim jeans to incentivize them to make the purchase. The more you are able to delight customers with relevant experiences, the more likely they are to keep shopping and buying from your site or store or app.

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