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Where Do Personalized Promotions Rank on Brands’ Mobile Radars?

Posted by Alex Samuely on Feb 23, 2018

Not all shoppers are created equal. That’s one major constant that all retailers can count on, making the notion of the “average consumer” feel like it stems from the olden days.

Some consumers are mobile-only shoppers, preferring to shop during their commutes or lunch breaks; others are a mix of mobile and in-store shoppers, using the former to research products or prices and the latter to check them out in person. Meanwhile, a third subset of consumers—though dwindling these days—opts not to rely on technology as much as the tried-and-true bricks-and-mortar experience they grew up with. All of these types of shoppers exist for nearly every brand, meaning that retailers must customize their promotions to the individual shopper, based on past purchase history and preferences, instead of marketing to the “average consumer.”

Yet, only 3% of brands send personalized promotions through their mobile apps. That statistic feels almost unbelievable, especially considering the amount of resources and development that most retailers are pouring into mobile these days. But according to NewStore’s Omnichannel Report, just 3% of retailers currently leverage personalized follow-ups through push notifications to customers, and only 55% send personalized follow-ups via email. The missed opportunity for sales is startling. Research from Experian showed that targeted emails drive six times higher transaction rates with customized data, while insights from Kahuna revealed that push engagement can be demonstrably higher if personalized based on shoppers’ past purchases or location.

I’m personally one of those shoppers who enjoys browsing clothing items on my smartphone for fun, but easily gets distracted before completing the checkout process. One or two of my preferred retailers do send a follow-up email or in-app notification to me about a day after a browsing session is abandoned, reminding me of the items in my shopping cart and often including an incentive (a lower free shipping threshold, for instance) to cinch the sale. Many times, that strategy works. However, for every one of those personalized follow-ups, there are 10 retailers that don’t make the effort to follow up on a potential sale, or even suggest complementary products for a sale that did take place. While this is undoubtedly great news for my wallet, it’s not for those brands.

Personalized promotions do not necessarily need to be indicative of items in a person’s abandoned shopping cart; they can be proactive rather than reactive. A retailer could send a notification to a customer who recently shopped in its flagship store, and invite them to the launch of a new line at that same location in a few weeks. Alternatively, a retailer could send a promotional email to a shopper who recently purchased a new business suit with suggestions for accessories to pair it with, such as new shoes or a briefcase. Consumers appreciate smart, tailored suggestions that will make life more convenient, and customized promotions are in the business of doing just that.

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