Why Brands Score a C- for Personalization & Engagement
Posted by Alex Samuely on Dec 14, 2017
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Despite the staggering advancements in mobile commerce in recent years—ranging from visual search to mobile payment platforms—there are still two pieces of the clienteling puzzle that many brands have yet to conquer: personalization and engagement. This is according to data from the 2017 Mobile Retail Report from NewStore.
Capturing and nurturing customer loyalty is paramount today, as shoppers have endless options to choose from and several ecommerce powerhouses—such as Amazon and Jet.com—boasting nearly every type of product. Competition is more heated than ever, and yet, brands are letting many sales slip through their grasp by not maximizing on three potentially lucrative strategies for bolstering personalization and engagement.
The push factor: Only 3% of apps send personalized promotions through push notifications, and push engagement for the retail sector rests at approximately 12%, according to Kahuna. Considering that push notifications can increase app retention by up to 7 times, this statistic is startlingly low. Personalized promotions arguable work best at driving impromptu sales, especially among already loyal customers.
For instance, if a frequent Dunkin’ Donuts customer who happens to be out walking his dog receives a customized in-app notification offering him a free treat with a purchase of his favorite beverage, he may elect to make an extra stop on his walk and indulge in a snack. This example works with many types of retailers, particularly when geolocation is used effectively to target nearby customers.
In-store, white glove service: Currently, 11% of brands offer customers the ability to make an in-store shopping appointment via native app or mobile web. Convenience is of utmost importance to most consumers these days—as evidenced by the meteoric rise of online shopping—and having the option to select a time to enjoy a personalized shopping or styling service could be the push that some shoppers need to come in-store and interact with an array of products. It also gives store employees an opportunity to upsell products or services that may suit the consumer’s tastes.
Counting on chatbots: While some brands have found significant success with their branded chatbots—such as Starbucks’ viral Pumpkin Spice Latte chatbot—widespread adoption of mobile chat has still been lacking. Twenty-four percent of brands have chat functionality on mobile web, as compared to 4% offering it in a native app.
Chat functionality remains vastly important from a customer service perspective, as consumers nowadays are unlikely to be willing to spend on hold waiting to speak to a representative. If mobile shoppers are waffling about a product, have specific questions, or have a concern, they should be able to tap to open a chat window within their browsing experience and resolve the issue with a few taps on the keyboard and minimal wait time. Conversely, chatbots can help spotlight a particular hot-selling item or service that a brand wants to highlight—perhaps a seasonal beverage with a massive following, or a new celebrity-designed clothing line.
Employing one—or all—of these tactics can make a palpable difference in fueling customer loyalty and potentially reaching a new client base. The market for these strategies remains somewhat untapped, suggesting that retailers seeking to nab an “A” for personalization and engagement on mobile might find that there’s no time like the present.
For more data on how brands scored a ‘C-’ for Personalization & Engagement, download the Mobile Retail Report.
