Growing Shopper Loyalty: From Personalization to Retention
Is growing customer loyalty part of your strategy?
Retailers understand that consumers are shopping more than ever. However, the ways in which they are purchasing and engaging with items and who they are purchasing from has continued to shift as we see new advancements in technology.
So, what can retailers do to increase customer retention?
Personalization in Retail
In discussions with retailers across the US, a common theme has cropped up – personalization. Personalization while not a new concept, the way in which consumers expect to receive a personalized experience has indeed shifted.
Consumers while interacting online, engaging with and purchasing from their mobile devices (38% of eCommerce’s web traffic comes from smartphones), now expect their preferences to be recorded or saved to help with future purchases. This level of information provides retailers with that added insight into customers and their purchasing habits to help devise targeted campaigns, products and offers.
By demonstrating that you know that little bit more about each customer, you can enhance their experience and ultimately the relationship they have with your brand. This insight can also help with retention, preventing them from going to a competitor who doesn’t know about that customers’ style or product history in the same. Especially with 79% of customers admitting they would take their business to a competitor following poor customer service, retailers need to be leveraging all they can in order to retain customers.
In our experience, we have seen businesses across a variety of industries all consider which is the best way to increase customer loyalty and retention.
While you can never completely stop a shopper from deciding to stop purchasing your products, there are ways you can help to increase the odds of retaining their business. This is supported by a recent IMRG article, who identified that in the last 6 years, there has been a 67% increase in online retail customer retention.
Using personalized profiling and purchasing habits, retailers can understand and identify potential at risk customers who may churn. Targeting these ‘at risk’ customers with targeted and personalized offers means that companies can decrease the chances of a customer leaving for a competitor. In our experience, we have seen successful precision rates of 90-98% for predictive churn.
Grow your Customer Loyalty
With competition emerging across all areas of the retail industry, retailers need to ensure they are leveraging the tactics and technology which help to retain customers.
Get in touch with our industry experts to find out how to embrace personalization, continue to drive revenues and grow customer loyalty.