Top 4 Proven Personalization Strategies for an E-commerce App
The other day my friend sent me a forwarded WhatsApp joke about brands knowing more about of our preferences, habits and our behaviour than our spouses. I don’t remember the complete joke, but, it once again reminded me the harsh reality of our times. Indeed! Amazon knows me so well that I always end up making an unnecessary purchase whenever I log into the account to buy groceries and books.
Though, it sounds scary when an app in my phone knows about me that much, but, it is the price (by giving our data) we pay for ‘personalization’.
Would you be ok to share your data if your e-commerce store shows you the relevant stuff, doesn’t bombard you with items and discounts which are random to you; and you will never buy a lipstick, being a gentlemen, your preferences would most probably be a tie or a shaving kit?
Also, with attention spans dwindling ever so continuously, you only have few seconds to grab the attention of your customers or prospects, it only makes sense if you provide them with relevant discounts on personalized preferences. Thus, the modern game is about ‘personalization’, ‘relevancy’ and ‘user intent’. What’s more personalized to you than your smartphone which would show personalized content and offers through your ecommerce app?
In the light of these facts, let us see top 4 proven personalization strategies for your e-commerce app:
- In-app Product Recommendations:
I was browsing through the ecommerce library of Amazon to find out a book on Google Adwords by my favourite author who I follow online, I couldn’t find it. Hence, I didn’t make the purchase.
Next day, the homepage of my Amazon account was encroached with recommendations of Adwords Books from many different authors with attractive prices. A perfect example of personalization on context based on my search history.
I browsed though, and read the reviews about few of the chosen books, and finally made the purchase. Hence, relevant product recommendations.
2. Dynamic Remarketing:
How often have you encountered an ad of the same product that you just browsed on an ecommerce store on some other website you are browsing? It is called remarketing. It is the most used practice in ecommerce circles. Infact, it one of the most proven strategy to engage your customers, and cajoling them to complete the purchase.
With the help of dynamic remarketing, you can easily show ads of your products to the customers on cross platform devices as well. Example: One of your customer browsed the product on your mobile app; now he is browsing the internet on his desktop, you can show an ad of the same product or something closest to the one which was previously browsed on the mobile app; or vice versa is also true.
Remarketing works on many tangible and intangible aspects of consumer psychology:
· It reminds the consumer that he needs to make the purchase
· The product, the consumer wanted to buy comes with a new discount or he can pair it with some other relevant product at attractive prices
· There is a flash sale going on at the moment, he can avail the product at n% discount if he makes the purchase in 10 minutes
· Consumers can be served with personalized communication as the product has most probably been finalized, etc.
3. Push Notifications:
Arguably one of the most proven strategy to get customers back on an e-commerce store.
Visualize: A flash sale goes live within 15 minutes, I had already registered for the product to buy it when the sale is live. The e-commerce store sends me a push notification, 10 minutes earlier before the sale goes live. I quickly click on the notification, and it directly takes me to the page with buying options. And, I complete the payment once the sale is live!
This is the real power of push notifications. It activates inactive customers, bring traffic on the ecommerce website or app, and induce people to take an action.
Offcourse, its application can be extended beyond just a sale!
4. Loyalty Marketing:
According to a study, the cost of acquiring a new customer is 5–10 times the cost of retaining a customer. Hence, it is wise to focus your energies on retaining your existing set of customers.
The concept of loyalty isn’t new to retailers, or e-commerce stores. It is this timeless concept which has brought rich dividends to the e-commerce players. When you add the social angle to the concept, it gives viral tinge to it, and you acquire free word of mouth marketing.
Example: Amazon Prime is a great Loyalty Program.
For just $10 a year, you get free 2 days delivery of your product, get complimentary free streaming of movies and music, exclusive sale for the program members, etc. The value derived is actual and direct.
Amazon doesn’t make any profit by selling its Prime service, infact, many findings suggest: Amazon Prime members shop frequently, and shop more frequently than the non-Prime members. Certainly the loss is worth incurring when you can mine gold out of it!
Most e-commerce stores provide its users the option of a referral program from the app only. You can share the program through your social channels. The more you refer and buy, the more you and your friends earn the rewards. The cycle spirals into an infinite loop of referral, personalization (via social angle) and loyalty.
A major Indian e-commerce player does it successfully, and it is free!
Offcourse, there are numerous proven personalization strategies for an e-commerce app, it also depends on your geography, audience and their buying behaviour. The above 4 strategies were my personal favourites. What is your favourite strategy?
