Personalisation has become the marketing buzzword of today, yet too many businesses are still not aware of how to implement personalised offers and promotions to boost customer loyalty, improve brand engagement and, ultimately, drive spend.
With 75% of consumers saying they are unhappy with generic and blanket promotions, tailored offers are no longer viewed as a bonus, but a necessity. With the opportunity to access a wealth of customer data - from social media “likes” to online purchase histories - businesses have the means to know their customers better than ever before, enabling them to create effective, relevant offers to influence purchasing behaviour.
As CEO Tim Mason said at Eagle Eye’s recent event, Personalisation: Beyond a Name: “Brands must capitalise on data in order to compete.” Tim continued: “There’s one thing worse than not knowing, and that’s knowing and not doing.”
Perhaps unsurprisingly in a world of big data, 81% of consumers consider the relevance of an offer’s content to be an important factor in whether it is redeemed.
With businesses vying for customer engagement in clogged letter boxes, inboxes and social feeds, those who send customers relevant and personalised promotions have the best chance to establish stronger connections with their customers and stand out from competitors.
By collecting and analysing data from previous purchases, businesses can better understand their customers’ habits. With these insights, brands can optimise their promotion and communication strategies to send consumers the most relevant offers, thereby boosting the likelihood of redemption and additional purchases.
Today, there is an ever-growing number of ways to engage with customers, meaning businesses must ensure they are communicating with each individual customer through the channels that suit them best. It is this customer-centric approach that creates positive brand experiences, leading to a more loyal and engaged customer base.
Eagle Eye’s research found that digital delivery methods are the most popular choice with customers for receiving brand communications. They are also the most effective; 58% of consumers said they were most likely to redeem promotions sent via digital channels such as mobile, email and social media. This preference was even greater in younger consumers, with 67% of 16-24 year olds opting for tech-enabled channels.
Not only are digital channels the most effective in boosting redemption rates, but they enable businesses to gather real-time customer data. This data is crucial in identifying consumer behaviour and optimising marketing messages in line with purchasing habits.
Using data-based insights, businesses can pinpoint when consumers are at their most receptive, choosing the best moment to send a personalised offer, therefore influencing purchasing behaviour.
Eagle Eye’s research also revealed an increasing demand for ‘predictive offers’. Nearly three quarters (73%) of respondents said they would find it useful for retailers to anticipate when they would run out of a product and send relevant promotions accordingly.
By collecting and analysing previous purchase data, forward-thinking businesses can predict a customer’s repeat purchases and incentivise extra spend when they are running low on an often-bought item. With 79% of customers saying they are open to trying options other than their usual brand if they are on offer, merchants can capitalise by sending targeted offers to upsell a more expensive brand or a relevant supplementary product.
With ‘near me’ searches booming, and 88% of those done via mobile, it’s increasingly important for businesses to prioritise mobile-enabled, real-time marketing. The research found an increasing demand for real-time promotions, with 58% of 16-24 year olds finding it useful to have offers delivered to them when near a store. This highlights a trend for spontaneous purchases, with customers moving away from keeping vouchers aside for a planned weekly trip with a fixed destination.
Real-time offers are an important addition to the promotional armoury, particularly for driving footfall and basket spend. Businesses must invest in mobile to enable them to deliver offers straight into a customer’s hand at the right moment.
Personalisation in the modern digital landscape is no longer a simple question of knowing a customer’s name, businesses must truly understand their customer in more meaningful ways.
It’s essential for retailers, restaurants and brands to understand the importance of using customer data for a successful marketing strategy. Too much investment is usually lost on rewarding rather than changing behaviour. Data provides marketers with the insight to determine which offers will incentivise purchases, enabling them to tailor their promotions to fit each customer’s profile.
One thing is clear – in personalisation, as in so many other aspects of business today, digital is the future. Only through these channels can businesses personalise, optimise and drive greater ROI.