Why Personalize? So Customers Find It Easier to Buy
Marketing Research Team
Jan 30, 2020
Digital commerce motivates almost half of personalization engine purchases, according to the Gartner Magic Quadrant survey. To earn a return from those investments, marketers should leverage personalization to make purchase decisions easier or to encourage bigger purchases.
Easier means different things at different stages of the customer journey. When a customer starts to explore product options, easier means personalized product recommendations and easy to understand specs. Late in the process, easier might mean reducing the effort required to complete a purchase. For existing customers, a notification that a renewal or reorder is due can motivate repeat purchases.
Brands can also leverage personalization to increase the amount a customer spends, known as the average order value, or AOV. 49% of all retail customers that use “buy online, pick up in store” services make additional purchases when they pick up their items—brands can use that knowledge to drive use of BOPIS. Brands can also boost AOV by offering tiered loyalty programs and providing information about in-store availability using customer location data.
Personalization can lead to strong returns, but only if companies don’t overdo it. Personalization that makes the reordering process easier fits within customer views of value add. Personalization that automatically enrolls customers in autoship, in contrast, removes customer control over the process—a line brands shouldn’t cross.