Personalisation is an increasingly important pillar of effective ecommerce. It is embraced by sectors well beyond its retail roots: in utilities and logistics, financial services and automotive. But, why is it so hard to get right?
Know your customer – How identity drives effective personalisation, customer acquisition and friction-free sign-on
Customers’ enthusiastic embrace of online, mobile and omni-channel commerce, along with social media, produces great lakes of data. Cloud computing and big data solutions have given businesses of all sizes greater processing capability than ever before.Even simple personalisation can yield results.
- 6% increase in sales when Marks & Spencer’s homepage reminded returning visitors of what they had previously added to their baskets.
- 12% uplift in conversion when clothing retailer Burton (part of the Arcadia group) tailored its site to a visitor’s local weather.
- 33% increase in revenue, and 34% increase in conversion, when fashion retailer Missguided implemented its personalisation strategy.
In fact, McKinsey & Company found that “personalisation can deliver five to eight times the ROI on marketing spend, and can lift sales by 10% or more”.
But, there are risks. When asked, many customers are ambivalent about personalisation. In practice, most tacitly accept effective personalisation. When it goes wrong, however, it jars. Personalisation done badly is either expensively ineffective or, worse, positively toxic.
It feels intrusive and “creepy” and that creepiness factor can cause a 5% reduction in intent to purchase.
Personalisation is hard to get right when strategies don’t go deep enough. You can only personalise if you know the person.
Too often, organisations have the data they need, but in separate silos on both sides of the corporate firewall. To be effective, personalisation needs to be identity-driven – bringing all the information on an individual together to enable intelligent, context- sensitive interaction.
To learn more and find out how to put identity at the heart of your customer acquisition and retention strategy, check out our report ‘Know Thy Customer.’