Customers notice when they're not valued. Retailers should focus on keeping their loyal customers by making digital a priority and delivering omnichannel, personalized customer experience.
Loyalty is hard to come by, especially in the consumer packaged goods market. In fact, only 8% of global consumers consider themselves loyal to the brands they use.
It boils down to differentiation of experience. If all brands offer essentially the same experience, it’s easy for consumers to try out a new brand.
CPG brands need to offer a unique experience to encourage shoppers to buy from them exclusively. A solid omnichannel personalization strategy helps make that happen.
Omnichannel personalization for relationships that last
Acquiring new customers is great, but will those shoppers come back? Customer acquisition costs vary widely across verticals, but it’s well worth the investment if a shopper makes multiple purchases over time.
Brands are investing in the post-purchases experience to make sure those shoppers are incentivized to return. To accomplish this, they have to gather plenty of customer data to understand the desires, experiences, and opinions of their customers.
Getting customer retention right can even lead to the holy grail in retail: word-of-mouth marketing. This retail marketing strategy drives $6 trillion in annual consumer spend, accounting for 13% of sales. And it comes with the added bonus of trust, as 90% of shoppers are more likely to trust and buy from a brand recommended by a friend.
Beyond being a strong indication of trust, word-of-mouth marketing also lowers customer acquisition costs over time as customers encourage first-time buyers for free. But getting to this stage takes a considerable amount of time and focus.
Learn how to personalize customer experience and see massive direct-to-consumer success. First-party customer data provides the insight brands need to deliver.
The data-driven loyalty loop
The key to building long lasting relationships in retail is investment. Shoppers want to know that you understand them on a deeper level; this is often the result of targeted, omnichannel personalization campaigns.
When a brand can prove that they can align with a customer’s hopes and wants, that shopper is much more likely to return for more.
It’s an endless loop: when retailers have more data about their customers, they can market to them on a more personal level. And when a shopper feels a connection thanks to personalization, they are more likely to browse a site more and, deliver more intent data on a golden platter, and check out again.
The shopper journey has so many touchpoints along it. The moment of purchase matters, but it can’t be the only goal. Brands must take a holistic view and continue to provide delightful experiences along the entire customer journey.
There are now countless ways to interact with consumers and, with the right amount of effort and mix of channels, engagement can be continuous. Brands can have a steady stream of interactions with shoppers to further build the relationship and nudge them toward taking another action.
A retail balancing act: Omnichannel personalization
Omnichannel personalization requires massive flexibility because each customer might need a slightly different experience across each sales channel. Succeeding in the direct to consumer realm means knowing what to and what not to present to them.
It’s easy to bombard shoppers with offers on many channels. That makes having a deep understanding of what they really want and what channels matter most to them that much more important. An effective omnichannel personalization strategy strikes the right balance and changes it when data suggests a new approach might work better.
Optimizing for omnichannel means getting these three factors right:
- commerce everywhere
- real-time engagement
When perfected in unison, they form an effective personalization engine that enables brands to differentiate themselves for competitive advantage, a more personalized experience across channels, and ultimately accelerate growth and profitability.
By unifying data across channels to gain real-time insights into what consumers want, CPG companies can engage in real-time engagement based on the buying signals and individual preferences.
Omnichannel personalization is the new frontier for brands. Not only do they have to be present on the channels their target customers enjoy, but they also have to meet them there with an experience that customers find personally fulfilling.
Old direct-to-consumer marketing playbooks don’t work today.
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