11 ways to make personalized shopping more effective and profitable

Since customer-centric digital strategies are now the norm for successful brands, the current focus should be on ways to use new tools and tech to differentiate your brand experience from the competition.

This is not so different from how brick-and-mortar shops operate: Customers walk in and are immersed in specific branding techniques, marketing strategies, and options for connection and personalized interaction.

This is a tried-and-true formula for in-person shopping, so why shouldn’t it be translated to digital storefronts as well? Let’s look at some of the ways that brands can leverage emerging tech to create a powerful, profitable personalization experience.

There are endless statistics about how important it is for consumers to feel like they are getting an individualized experience. Salesforce found that 70% of consumers are far more loyal to brands that understand their needs, and 84% say that they’re more likely to shop with brands that make them feel like a person rather than a number. Additionally, 91% say they’d prefer to shop with brands that offer relevant, personal recommendations.

Harness the power of the dopamine effect

Data-driven personalization allows you to sell more and sell more often. Why? First, it allows you to anticipate what customers want and deliver it at just the right moment. Second, it helps you leverage what experts call “the dopamine effect.”

In the simplest terms, dopamine is a neurotransmitter that drives us toward pleasurable experiences (like shopping or eating rich foods). When we do these things, we get a chemical reward that connects the activity with a positive feeling.

Consider the extreme popularity of Walmart, Spotify, Netflix and Amazon. Part of the appeal is that they conveniently offer vast options, but that’s only part of the story. What these brands understand is that businesses need to create that rewarding dopamine hit that we all crave. That’s the hook that keeps us coming back.

There is no longer a question of whether or not you should offer personalized digital experiences. Anything less is a death knell to your brand’s long-term success.

They achieve this through personalization. You can create a unique account, answer quick and easy questions about your tastes, and immediately get exciting recommendations. They continue to refine your profile by learning your browsing habits and matching you to new things that pique your interest. You might not like every pick, but you get that jolt of excitement that comes with something new and interesting to you.

Harnessing the power of this “dopamine effect” is a skill that must be trained. Companies can no longer follow a generic “copy/paste” formula and expect consumers to care. Not only do brands need to personalize the content, but they also need to personalize marketing tactics like timing and communication frequency.

7 KPIs to help gauge personalization campaign success

To ensure that you’re getting the most from your personalization efforts, use data collection tools to measure and track relevant key performance indicators such as:

  • Average ticket spend (or average order value)
  • Digital campaign ROI
  • Sentiment analysis
  • Customer loyalty

This article was originally published on TechCrunch.com. Read More on their website.

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