3 ways to use data for driving conversions in 2019
“There’s so much data available, but only a few companies know how to use it effectively,” declares Robert Sangers, CEO of Online Heroes. “As a result, most online flagship stores look more or less the same. All of them are built according to the principle of what retailers think looks best, instead of focussing on what the customer wants, what he or she is looking for and personalising their experience according to their needs.” Improving the customer experience will namely increase your conversion rate. Robert Sangers points out three ways in which data can be used to drive conversions in 2019.
1. Personalising site content
Wouldn’t it be nice to predict what a customer would be likely to buy and target him or her with those products and content? Look no further, because data is making your dream a reality. Personalised landing pages that automatically show the content a user’s browsing history states he or she will like, is a technology that Online Heroes is already investing in. Results namely show three out of four consumers would prefer a personalised website, eventually leading to a higher conversion rate.
This personalisation technology can also play a role in delivering a better customer experience throughout your other marketing channels. Premier omnichannel retailer Macy’s has seen tremendous results with the implementation of a technology that combines customer buying behaviour with email and website marketing campaigns. With predictive analytics, Macy’s can understand the likelihood of customers spending money in a certain product category, which results in sending their registered users more targeted emails.
StichFix, the American online retailer sending hand-selected clothing and accessories to your doorstep, even built its business model around data. A visitor needs to fill in a style questionnaire before the algorithm can get to work. This algorithm matches customers’ expectations and wishes with the available products. The more products the customer receives and evaluates (keeps or returns), the more data is created and the smarter the system gets.
Results show three out of four consumers would prefer a personalised website, eventually leading to a higher conversion rate.
2. Identifying rockstar clients and giving them the royal treatment
It should come as no surprise that 20% of your customers represent about 80% of your revenue. Since winning over new customers is harder than retaining existing one, identifying your rockstar clients and giving them the royal treatment will definitely pay off. Google Analytics is a great source to list those big spenders. But what about that royal treatment? How can you pamper them in a way that convinces them to return to your store? Offering them early access to new collections or sales periods is a strategy commonly used in the luxury business. Another one is to reward them for being loyal with a special offer or coupon or a better deal than you would give other customers. Data can help you decide whether your client would be most tempted to buy with a 30 euros coupon or a 20% discount. A more advanced option, but certainly one that will become more important in the future, is to personalise the shopping experience for your different client groups, especially for those biggest spenders. Not only will they appreciate the attention of showing them the content and items you predict they will love, it will eventually result in more revenue.
Here’s an extra tip: Consider creating a lookalike audience of your highest spenders to keep on growing your customer base for instance via social media!
3. Predicting trends and buying patterns
One of the biggest challenges fashion businesses face is inventory management. Predicting which products will sell well, which won’t and which ones will run out of stock quickly, is so much easier with some data at your disposal.
Several retailers already use data from social media sources like Pinterest and browsing histories to predict trends. Pinterest tries to meet these needs by publishing a report at the end of each year with some predictions for the following year, based on the more than 250 million people all around the world who each month look for inspiration and ideas about fashion, travel, wellness, beauty and more. (For those interested, the report with the 100 Pinterest trends for 2019 can be found here.)
We’re sure you’ve already heard the story of Walmart figuring out that their customers often bought beer at the same time they bought diapers. Analyse the buying patterns of your target audience to identify whether you’re missing out on opportunities to cross-sell or promote add-on products.
Showing a consumer which shirt or accessories would look great with the trousers he or she just added to its basket or promoting a bag that really matches the shoes he or she wants to buy, are techniques to increase your shoppers’ basket size.
Obviously, big data opens doors to big opportunities in fashion and ecommerce. Curious to know how data can help your fashion business grow? Don’t hesitate to contact us today.