When COVID pushed people inside closed confines of their homes, they went digital. From attending meetings online to kids attending classes online, the internet found a place - right in everyone’s hand.
Majority of purchases started happening online, from fruits & vegetables to fashion. The e-commerce sector in India is predicted to grow at a 27% CAGR over 2019-24 and is expected to reach $99 billion by 2024, according to a report released by EY-IVCA Trend Book 2021. Grocery and fashion/apparel are said to be the key drivers of this growth. India is expected to have 220 million online shoppers by 2025.
This rise in number of online shoppers may take the customer acquisition cost (CAC) down, but the real challenge would be to increase the brand loyalty of these customers. A company can only create value if the customer lifetime value (CLV) exceeds the CAC. In simpler words, the amount of money you spend on getting the customer to make the first purchase should be lesser than how much they spend on your website throughout the lifetime. No doubt there’s a huge pool of people shopping online, the game now lies in making them stick to your brand. That’s where good campaigns and brand equity comes in place.
Why is personalization necessary?
Lots of products, lots of shoppers and lots of campaigns. That’s what post-COVID internet looks like.
As a result, only brands or companies who respect the customer in quantity and quality of communication will be able to retain these new shoppers. Gone are the days when one messaging was expected to get clicks from all customers.
A campaign now gets conversion only if it is suited to a customer on three parameters:
Timing
Content
Relatability of communication
Do not expect Mr. X to buy from you in future if you send him a super exclusive discount code on his cart at 3 in the night. Mr. X might in fact go ahead and bash your customer service for bugging him. However, if MR X got this discount code at a sweet time of 8 PM in the night when he is the most active on his phone, voila! That cart gets completed alright!
Source: Neilpatel.com
Where to start personalization?
Personalisation starts right with the data. When a customer signs up on the web store, the amount of data you capture opens up the world of personalization for you. Some of the key attributes that can help in successful personalization are geo Location, age, typical cart size, typical time of internet activity and the customer's most bought items
The list is endless and the combinations of attributes are unlimited. Once the data points are in place, campaigns can be set to maximize conversion.
How to implement personalization?
For personalization to work effectively, it needs to be set into a model:
Step 1: Data creation: building a rich, comprehensive customer profile in real time
Step 2: Decision making: Identifying signals and patterns to start decision making
Step 3: Design: Acting on the insights to create right offers, communication and designs
Step 4: Delivery : Sending out and measuring designed experience across mediums.
Step 5: Review: Reviewing the performance of campaigns and weeding out the non performers and adding on the stalwarts.
It becomes a continuous process from collection of data to delivery of campaigns. The more it works, the more refined it gets. The key lies in continuously changing and improvising based on performance.
How to send personalized campaigns?
One of the key contributors to success in personalization is the choice of medium.
Our favorite customer might be responding to our campaigns on text messages. However, if we pass on information to him on email, it might just end unread. Also, we lose the customer because of missing communication from our side on his choice of medium.
The choice of medium for e commerce remains email, owing to it cost and deliverability. However, new marketing automation tools have brought in new mediums of communication that support personalization
Text Messages
Push Notifications
Website content
Search results
Emails
All said, personalization may seem a cakewalk but majority of companies fail to incorporate it into daily practice.
Where do we fail to personalize?
While more than 90% of retailers already agree that personalization is a top priority, only 15% of these companies are satisfied with their efforts. Irrelevant ads or outdated offers still bug the customers.
Source: marketingweek.com
While occasional campaigns testing personalization have created small wins for organizations, few have cracked to do it consistently across channels.
Driving sustainable growth through personalization would require winding it into the marketing gene of the company. It cannot be an add-on to the existing marketing function; it has to be a pillar of the operation.
That’s where Sale Story comes in. Understanding the consumer trend and demographic and tailoring campaigns for them will create big wins in the future.
We not only give you star performing campaigns, we ensure that becomes a way of communication for your brand for times to last!
Contact us now to get on this journey towards sustainable performing campaigns
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