E-commerce Personalization Increases Sales Up to 15%
Top Online Shopping Trends: E-commerce Personalization
- Beabloo (the retail tech and online analytics company) shows how the COVID-19 crisis accelerated online investment growth.
- Personalization improves ad campaign performance and customer loyalty by enhancing the customer experience.
The coronavirus pandemic has caused big changes in the digital ecosystem and online purchasing habits. E-commerce use in Spain shot up, pushing brands to increase their investments in online marketing strategies. Personalization can increase sales by an average of 5 – 15%. The same strategy can also increase ROAS by 10 – 30% according to a McKinsey study.
Several studies have shown that online buyer penetration reached 74% in Spain, a 3% increase since the beginning of lockdown. “To face these significant changes, brands are redirecting large portions of their budgets to optimizing their e-commerce sites,” underlines Enric Quintero, Beabloo General Manager. However, the key to providing an excellent e-commerce customer experience is understanding how shoppers behave online. Amazon calculates that 35% of its sales are due to personalization.
“The art of online personalization is providing customers with content based on their needs and tastes in a way that feels natural and beneficial,” explains Quintero. “Beabloo wants to bring our clients this value, because we’ve seen cases where sales increase by 200%.”
Personalization represents around 20% of Beabloo’s turnover. Many clients don’t stop at online personalization, and also seek to connect their physical spaces with the online world to create a more immersive and sensory shopping experience. “This crisis has shown that companies who put off personalization lag behind. While companies who tailor their marketing see increased sales and customer loyalty.” says Quintero.
Understanding customer tastes boosts sales
Customers know that salespeople play an important role in physical stores. By providing personal attention and learning what customers like, employees can help them make decisions and improve their experience.
However, customizing the online customer experience is a more complicated affair because there’s no direct contact. Implementing a personalization strategy is becoming a necessity, with various studies citing a 5 – 15% increase in sales.
“The art of personalization lies in the immediacy of offering customers the right products based on their preferences. This makes shopping a fluid, optimized experience” explains the General Manager of Beabloo.
Metriplica (Beabloo’s consultancy department) currently assesses the personalization strategies of big brands like Camper, Iberostar, and Orange. They recognize personalization as a fundamental strategy for optimizing points of sale.