Besides the obvious convenience that online shopping affords, most consumers have come to expect an experience that caters to their unique requirements when browsing and buying products. In a Shopify report, it was reported that 75% of consumers prefer brands to personalize messaging, offers and experiences. The same report also identified the decline in customer loyalty due to market fragmentation as a tangible threat to e-commerce.
On average between 80-85% of convertors will only purchase once, which means there's a massive opportunity to increase the frequency of purchase. However, that won't be overnight and brands need to pay special attention to VIP customers in order to maximize revenue generation. In this blog, we discuss techniques to utilize data to increase and retain your VIP customer base.
Segmentation and personalization
The needs of customers when visiting ecommerce sites can differ based on a myriad of factors, ranging from demographic and location to their browsing habits. This customer context is what makes segmentation an important aspect of personalization, as grouping customers via certain criteria could increase the effectiveness of marketing strategy threefold.
By separating and specifically targeting VIP customers, you can retain loyalty by surfacing exclusive offers, promoting experiences (such as early access to private sales and events) and bringing relevant or sought-after items to the foreground. With Qubit, visitors can be segmented in real-time, allowing customers to transition between them in real time as their journey progresses to ensure a seamless and positive interaction with your brand.
Using data to aid discovery and inspiration
The need for instant gratification affects the way we shop; if we lack inspiration or finding the right item takes too long, we’re more likely to abandon a brand in favour of a competitor who can offer an efficient and engaging customer experience. In order to maximize financial intake, VIP customers should be able to explore your product catalog through different platforms with ease.
By considering customer context (history, preferences and products they’re likely to purchase), you can engage shoppers by recommending items when they’ll have the most impact during their on-site journey. Social proof badging provides reassurance about what the customer is placing in their basket by labelling certain products as “popular” or “on-trend”. Upselling will take advantage of impulse purchases at the checkout.
Considerations with luxury personalisation
VIP customers carry the most importance within luxury industries, as purchasing higher priced items often incites a significant level of consideration beforehand. This means that strategy regularly employed to a high degree of success in other retail areas, such as fast fashion, may not be in line with luxury brand values.
As opposed to focusing on discounting items (which could be detrimental amongst your brand audience), collecting email at certain points in the customer journey can be much less intrusive and will ensure that visitors who haven’t visited recently receive tailored offers and product recommendations based on their history.
Looking to get the most out of personalisation for your luxury brand? Qubit for Luxury can provide your customers with an omni-channel experience that can emulate and enrich your celebrated in-store service.
Both context and relevance are integral in successfully nurturing relationships with VIP customers. Employing personalization techniques to deliver customer loyalty with Qubit will increase lifetime value and ensure that both brands and consumers are getting the most out of their on-site journey.
Sophie HibbertRead More