‘Individualised Interactions’ Good For Customers…And Conversion

Customer-centric business approach with a focus on individualised interaction with consumers is key to better conversion rates in the short term and positive long-term revenue growth.

In today’s consumer-driven landscape, brands are frequently matching each other on pretty much every area, whether it’s price, delivery, service, or perceived quality of product. So what can marketers do to make sure they still stand out from the crowd? The answer—customer experience.

The millennial consumer generation, for instance, have always known the “look-click-deliver” shopping environment. You can buy practically anything you need at the touch of a button without having to consider things like store opening times. Whether you choose a desktop, tablet, or smartphone, the huge rise in shopper connectivity and confidence has completely changed the business/consumer relationship, and both parties know it.

However, it’s essential for marketers to know every customer individually, with the ultimate goal of one-to-one personalised experiences. According to Gartner, 89% of businesses now expect to compete mainly on customer experience, versus just 36% four years ago. Brands that can elevate their customer experience in this very crowded market will quickly see the benefits internally, for example through reduced customer complaints, as well as through improved conversion rates.

A more individualised interaction with consumers not only increases the chances of a better experience, healthier conversion rates, and helping to reduce basket abandonment rates; it also, from a long-term perspective, fosters greater customer loyalty and genuine brand advocates, because consumers feel that you, as a brand, know them.

For instance, if a fashion brand can target individual consumers with relevant content about a new line of shoes that a particular designer has brought out, based on that consumer’s previous brand affinity or choice of style of footwear, then it massively increases the chances of the consumer completing a purchase. At the very least, there is a higher tendency for the consumer to return to the retailer, because they are served with relevant content.

These experiences should be specifically tailored to that particular customer’s likes, dislikes, and preferences. However, even though knowing your customers is a great start, it’s just that, the start. The real aim is to not only know every customer, but understand the intention behind every single interaction.

A customer doesn’t engage with a brand unless they have an intention. Whether it’s to browse or buy, marketers should always consider the reason behind an interaction before taking any action. Not only does this help create a better-rounded, complete view of the individual, it enables brands to better serve the needs of the customer.

No matter how big or small the engagement is, understanding and adjusting the customer experience to suit the individual is what not only makes customers want to return, but also determines the future of a brand’s success.

Recently, Monetate found that returning shoppers spent nearly double online (66%) compared to new visitors (34%) following the close of the 2015 peak trading period, giving brands a clear reminder (in case they needed it) of the importance of retaining customers.

Many marketers feel they don’t have the right data or resources to create an experience that is different from that of their competitors, but pretty much every business has data that can be used to create tailored, targeted experiences.

Customer experience should be a part of the entire buying process: from the store, to delivery, and, most importantly, the digital touch points, including the brand’s website. Marketers should begin with what they already have—taking consumer data from the website to explore the way customers interact online. Whether it’s the type of device being used, their location, or how they reach the site, whether it’s through Google, an email campaign, social media, or through a promotional offer, this can be used to personalise the customer journey.

Marketers should know what a stand-out customer experience is, and what it isn’t. An email greeting the customer by name doesn’t make them want to shop with that brand any more than they would if no name were included. However, sending the customer an incentive to purchase a preferred brand or category, or a timely reminder to remember to replenish an item they may be about to run out of, typically results in the retailer being rewarded with increased conversions, higher basket values, and improved brand loyalty.

Instilling a customer-centric business approach early results in positive long-term revenue growth. Establish some meaningful benchmarks—what does success look like? What is an improved customer experience, in terms of measurable metrics? This could be lower bounce rates, higher customer conversion levels, greater customer retention, or increased average order value. Once these goals are decided on, focus on tracking progress over time creating different KPIs and revisiting them on a regular basis.

The positive long-term revenue growth will result from the consistent experience the brand provides for its customers. This is heavily based on trust and willingness to engage with the brand. If the brand is seen as a reputable and trustworthy entity by the customer, then the chances of repeat purchasing will increase. If this can be achieved at scale, then the revenue forecasts in the longer term will look even healthier.

Experience is quickly becoming the way businesses differentiate themselves. When a brand doesn’t move towards personalising the customer journey, sooner or later it could face losing out to a competitor offering the same items, at the same price, just because they invested more time in the customer experience in the short term, to strengthen the position of the brand in the long term.