Data is a little word that carries a big punch. It does so much for so many people, but for the sake of simplicity in this article we’ll focus on retailers. If you’re an online retailer and you’re not using data to your advantage, 2015 is the year to really get going on it.
Competitor data is useful, but you can’t forget about your customers’ data either. Predictive analysis, like changing prices or ordering inventory, is possible with competitor’s data. These are useful, but are not enough to effectively run a business. Sure, they help you internally, but what about externally? How can you attract customers and keep them from leaving? It’s simple, the answer lies in the data they already provide you. Data can help improve the customer experience and help online retail catch up to their brick and mortar counterparts’ success.
Provide Personalized Offers & Discounts
Customer data can lay the road for a personalized experience. As competition between brick and mortar retailers and online retailers intensifies, it’s more important than ever to offer the ultimate customer experience for shoppers online. Of course, you can’t see the actual shopper online like you would in a physical store, but you can read their data. Use their cart contents to make recommendations, or send them in the form of an email based on previous purchases. Product recommendations are responsible for an average of 10-30% of eCommerce site revenue, and they can help the customer feel like a rockstar.
Use their purchase history to sweeten the deal even further than before. Roughly a third of customers aged 25-34 want discounts, so be sure to promote them for your younger shoppers. Demographic data like age can make sure you’re offering the right deal to the right people. Did you know that 35.5% of customers aged 55-65 actually want free shipping more than discounts? Oblige them kindly with limited-time free shipping at checkout.
Keep Them On Your Site
A downside of shopping online is how easy it is for a customer to go from one store to the next. It takes very little effort, so use data to make sure they stay. Around 50% of online shoppers visit more than 4 sites before making a final purchase, mainly to check prices of similar products. Make it easy for them, and put a “compare to” price underneath a product listing using competitor pricing data. Prove to them that you have the right product at the right price.
If someone appears to be stuck on a page, offer live chat to aid them with their journey to the checkout screen. Tracking their data can make sure you keep them on your page, and confirm they haven’t completely given up yet. Sometimes product descriptions aren’t enough to convince a customer to go ahead and buy the product. Live chat provides a 73% satisfaction level, so use it to act as a helpful employee to answer any questions they might have. And if the customer chooses to leave for whatever reason, set up retargeting ads. Retargeting ads can bring back 26% of abandoned carts, so remind customers who left your site about that purchase they abandoned.
When a customer is checking out, always offer an option to let them check out as a guest. Although you may be missing some important data points, such as demographics, you will have their email. Use that data to send emails about flash sales to bring them back to your store. Email click to open rates are 56% higher when regarding flash sales compared to regular email campaigns. As stated before, it will build a sense of urgency for customers and keep them loyal to your store. Exclusive discount codes relevant to prior purchases will come in handy, as well. According to RetailMeNot, 64% of shoppers want more discounts in 2015.
Lastly, make sure you’re looking out for the customers’ needs with data. Unfortunately, half of customers experience buyer’s remorse. Keep that number down by offering a credit for the price difference to keep them from feeling like they got ripped off.Approximately 84% of customers site price as the largest influencer of a purchase decision, so if your price changes after a product was purchased, email them an alert.
As you can see, data is a beautiful thing. Online retailers may lack the physical presence that is often crucial to the customer experience, but they are certainly rich in data. Roughly 90% of enterprise data goes untouched. If only 10% of your data boasts this much success, imagine the results after digging for more. Pave your road to success with data, it will be smooth sailing for you and your customers.
Brian Smyth is a Content Writer at Wiser. Wiser is a dynamic pricing and merchandising engine that monitors, analyzes, and reprices retail products in real-time. Wiser enables retailers to boost profit margins and revenue, price with confidence, and improve merchandising through powering the development of a sound pricing strategy.