Offering insights into data-driven marketing, the latest report from Circana, Personalised Commerce, identifies ways in which retailers can use personalisation strategies to convert browsers into buyers and drive customer lifetime value.
In a competitive market, the report says investment in data transfer systems is key to successful personalisation – calling out the importance of seamlessly collecting data from customers and translating communications into relevant content.
Alistair Leathwood, Head of Media Analytics and Insights at Circana, says creating authentic one-to-one relationships with customers is an impactful way to stand out, but it relies on having the right data and technology.
“Technology advances have revolutionised brand and retail personalisation strategies, driving stronger performance and better customer outcomes,” Leathwood explains.
“To successfully implement personalised commerce, it needs to encompass every customer touchpoint. Brands that do this, and do it well, will reap the rewards with stronger customer relationships, increased loyalty, and ultimately, greater revenue.”
Tailoring recommendations to drive sales and repeat purchases
In the report, Circana states that up to 95 per cent of buying decisions are influenced in some way by our subconscious mind, with personalised commerce fostering loyalty and trust and allowing a retailer or brand to stand out in a sea of marketing messages.
According to Circana, successful commerce personalisation can deliver:
- Enhanced customer engagement: Personalised recommendations, targeted promotions and customised content all foster deeper connections and increase customer loyalty.
- Increased sales and revenue: Tailored recommendations and promotions increase the likelihood of sales conversion, resulting in higher average order values and increased customer lifetime values.
- Improved customer retention: As above, tailored shopping experiences increase the likelihood of customers returning for future purchases.
- Data-driven decision making: Retailers can use customer data to gain insights into behaviour and preferences, allowing them to make informed decisions about inventory management, marketing and promotions.
As Leathwood highlighted, effective personalisation requires seamless integration of data, and just as critical is navigating the balance between personalisation and consumer privacy.
In the Personalised Commerce report, Circana states: “As personalisation becomes more advanced, the importance of data privacy and ethics will continue to grow.
“Building and maintaining trust requires brands and retailers to be vigilant about protecting consumer data and being clear about how that data is used.”
Where should you invest?
Retailers who already have omnichannel-enabled, data-driven technology in place to personalise the shopping experience for their customers are seeing great results. For those looking to invest in this space, Circana suggests three key areas to consider:
- Hyperpersonalisation: Using data and technology effectively allows retailers to anticipate consumers’ needs and deliver personalised offers and recommendations in real time. One example is sending instant recommendations to a returning customer who is browing your website based on their past purchases.
- Voice commerce: Retailers can create a more engaging shopping experience by offering voice interactions – this type of e-commerce uses voice commands such as smart speakers to create a hands-free shopping experience. It can include suggesting products, answering questions and assisting with placing orders.
- AR and VR technologies: These types of technology are already revolutionising other areas of retail, such as furniture stores by allowing customers to see how a piece of furniture would look in their living room. While this technology is still being explored in liquor retail, there is an opportunity to create virtual shopping experiences for consumers, increase engagement, and position yourself ahead of other stores.