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In recent years, consumer behavior of American consumers has changed dramatically, and they no longer buy just a product, but the experience that the product brings them.
This trend of personalization is even more striking in e-commerce. However, McKinsey research indicates that only 15% of companies have an implementation plan when it comes to personalization. And yet, according to the U.S. Department of Commerce, 64% of American consumers believe that customer experience is more important than price.
Consumers are ready to pay a premium price
An insightful survey conducted by Promocodius reveals that over 96% of consumers are willing to share information to obtain products that are truly tailored to their needs, but 88% also say they would stop using a personalized service if they had any doubts about how their personal information was being used.
Paradoxically, 25% also believe they should get a discount on a product or service when they share their data! Consumers are also willing to pay more – on average, an extra 25% – for a personalized product or service. But not just any personalized product or service: personalization is better accepted in the health and safety sectors than in the retail sector.
In the final analysis, personalization must, above all, “improve the customer experience,” concludes the PromoCodius survey. And the younger consumers are, the more sensitive they are to this argument, anxious to differentiate themselves from others with products or services designed just for them.
In search for discounts on personalized products
However, personalized products are inevitably more expensive. With a higher price, consumers are also more inclined to get a discount on the product, whether in the form of a promo code or a discount coupon. This is especially true for electronics such as smartphones, tablets, laptops, or even electrical home appliances.
Online retailers are responding to the increased demand for discount coupons by emailing their customers personalized discounts, promotional codes, and offers tailored to individual preferences.
Data is the key to personalization
In today’s highly competitive market, it is essential to know the customers. It’s important to have data on the customers to know them well and to segment them. Segmentation is a division of the target market into groups of customers with similar needs and behaviors. Visitors to a website can be segmented according to their profile, path, buying habits, preferences, and so on.
A tool like Google Analytics, Adobe Analytics, or Hotjar, which is easy to use, can help retailers obtain this information by collecting data on user origin, type of device used, bounce rate, or demographics.
This data will enable the retailer to offer content with greater added value and that will be more relevant, depending on consumer behavior. For example, with more personalized offers and recommendations. Retailers can even target users who have viewed their pages, but not converted, to offer them targeted advertising.
Personalization in e-commerce enables to:
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Deliver an exceptional customer experience that puts the customer at the heart of the relationship
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Increase sales and maximize the conversion rate
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Increase customer loyalty and commitment to the brand
Customers’ loyalty increases thanks to the combination of marketing strategies
Consumers who feel that their needs are being met by a retailer’s brand will strengthen their relationship with the company. Retailers who personalize their exchanges show that they are talking to their loyal customers by demonstrating that they know who they are.
Also, they ask their customers for their opinions, satisfaction, and advice on how they can improve. They also involve their customers in their business and listen to them. What’s more, if their loyal customers are satisfied, there’s a good chance they’ll tell their friends and family about you.
Personalization is a marketing strategy with a lot of potential. The customer and his or her experience are now at the heart of online transactions. It’s no longer just product and price judgments that have an impact on consumer behavior.
Once retailers integrate their new personalization marketing techniques, they will even be able to measure the difference in consumer interaction, clicks, and response rates, to check that your new strategies are working.
About
PromoCodius is an online platform that offers current coupons, deals, and discounts for thousands of well-known and leading retailers. Founded in 2016. Operated in Ukraine, Czech Republic, Poland, Slovakia, Romania, Sweden, Denmark, Finland, Norway, Spain, Mexico, United States, Turkey.