In an increasingly digital age, consumers are often left feeling that there is less personalization in their everyday interactions. As online ordering and delivery apps replace meals out at local restaurants and e-commerce shopping competes with visits to retail stores, customers may be left craving a personalized experience.
Personalized transactions are the perfect way to meet consumer demand for a more intimate shopping and spending experience while simultaneously increasing overall sales and improving brand recognition and loyalty. Here's what you need to know about why personalized transactions are important and how to implement a personalized transaction strategy into your business.
The increase in digital and touch-free transactions is changing everything about how customers shop and how businesses interact with them. Often customers make their purchases without ever talking to a real person, much less getting to know somebody through everyday personalized interactions.
For businesses, this change in consumer habits has both advantages and disadvantages. Businesses can operate more smoothly and at a higher output when they don't need to handle as much customer interaction.
On the other hand, standing out and competing can be harder without a personal touch, especially if your business relied heavily on it in the past. Personalized transactions are a powerful way to create a more intimate experience for your customer, making it more likely that they'll remember and trust your brand.
Customers expect you to provide personalized interactions. In fact, 71% of customers hold this expectation. An overwhelming majority of customers are frustrated by a lack of personalization when interacting with a company, and over half of consumers will supply personal information if they believe it will be responsibly used to their benefit.
As with brick-and-mortar interactions, convenience and organization should be priorities for your online shopping experience so that customers can navigate it with ease. A customer who is constantly pestered by irrelevant emails and text messages or suggested unhelpful products is unlikely to add items to their cart and increase their order total. They may be left with a bad taste in their mouth for your brand as well.
After all, today's consumer is accustomed to personalization in everything from fitness tracking to pizza delivery. If you want to keep consumers happy and provide the same quality of experience in transactions with your company as they’re accustomed to with your competition, you'll need to invest in personalized transactions.
A personalized transaction strategy can dramatically increase your profits. Forbes reports that 40% of executives found that their sales were maximized and profits increased as a result of applying personalization to their business practices. Consumers are a whopping 2.1 times more likely to view an offer if it is personalized. Revenues can increase by as much as 15% and marketing spending efficiency can go up to as much as 30% when personalization is properly applied.
Personalization enables businesses to apply marketing and upselling techniques so they are most likely to have a positive impact on consumer behavior and least likely to hurt customer opinion of the brand. By targeting your messaging to particular customers, you can increase the likelihood that a customer will make a purchase.
Personalized transactions are paramount to building customer loyalty and upselling, because they are a great opportunity to collect information to use for personalized marketing and customer service projects. You can collect standard information about your customer at the point of purchase with simple prompts for contact information.
Blend this information with other useful data—including the items they clicked on and what landed in their shopping cart—and you’ll start to generate a strong understanding of your consumers’ general preferences, along with potential pain points in their buyer journey with your brand.
You can even look at how many of the suggested products customers click on in addition to which they purchase to help inform future suggested products. Once you start looking at ways to use the transaction process to gather information, you'll find all kinds of ideas.
Personalization is a fundamental tool for modern business throughout a customer's interaction with your business, both online and in store. So why do measures to personalize checkout demand special attention?
Customers may ignore or disallow email or text message communications, and they may skip through to the item or service they want without looking at your other suggestions. However, when a customer is ready to buy, you have the opportunity to tailor the transaction, build brand recognition, inspire loyalty or even upsell.
If you know what customers have bought in the past and what is in the shopping cart when they are ready to checkout, you’re perfectly positioned to make the most relevant suggestions. It's easy for guests to add a suggested item to their order that works well with the purchase they're making if you personalize checkout.
There are few opportunities to upsell as good as the transaction point. Pairing an upsell with a discount is a great way to make a customer consider purchasing more than what's currently in their shopping cart.
Just as a cashier may be especially friendly to a customer making a big purchase at checkout, you can utilize personalized transactions to thank your customer for their purchases online, too. Offer a coupon for an item the customer has previously clicked on, or tell them that, as a thank you for their purchase of the product in their cart, you’re giving them a discount on the total purchase. Alternatively, prompt a customer who hasn’t provided their email to do so in exchange for a special deal.
Customize transactions depending on the customer’s relationship with your company. Consider what they have purchased, how often they “visit” and how they've interacted with your online presence so you can offer appealing rewards.
Customers who expect intermittent rewards during transactions with your business will learn to look forward to transactions, which can prompt additional shopping. Making these kinds of rewards a fun game for customers is a great way to simultaneously increase spending and build loyalty to your brand.
You may not be ready to start with complex data gathering—like tracking which products customers have clicked on throughout their visit to your website—but you can immediately personalize checkout. Put a system into place that offers suggestions to customers based on relevant information about what other customers have purchased. With the right rewards program in place, special discounts for a birthday or large purchases are also easy to offer.
Ready to take advantage of personalized transactions in your checkout process? This is a great way to get started with personalization as well as a superb way to gather the information you'll need to apply custom messaging to other marketing projects. Here are a few easy ways to get started:
Personalized transactions are the perfect place to start with a meaningful customer engagement strategy at your business. There's no better place to implement personalization to increase brand recognition, improve customer satisfaction, and boost sales than during the transaction process.
There are so many ways to personalize checkout that you’re sure to find a technique that works well for your business. You will be amazed by how much a little bit of personalization can improve your bottom line, brand recognition, and customer loyalty.