Marketing Darwinism - by Paul Dunay
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Marketing Darwinism - by Paul Dunay
eCommerce, Personalization

3 Reasons Online Customers Never Return

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It doesn’t take a record-breaking holiday shopping season to realize that most online shoppers are vulnerable to the advances of competing online retailers. But when it comes to a decline in return customers, blaming a lack of customer loyalty on the competition is the easy way out. Now is the perfect time to commit to tracking the number of first-time shoppers who actually come back in months to come—not to mention, those who don’t. And from there, put a plan in place for increasing customer loyalty.

There are many reasons customers will only buy from a site once. It could be that you offered them something they couldn’t get anywhere else, but didn’t give them a good reason to return when they were there. It could also be the overall usability of your site, a lack of necessary information, a poor checkout process… The list goes on. The bottom line is that they didn’t find the shopping experience memorable—and you may never see them again.

But fear not, there is a proven method for visitor retention. And it’s called personalization—aka using what you know about your online visitors to create highly individualized experiences for them. Personalization can be simple, based on one or two collected insights, or a highly complex interaction of detailed formulas and algorithms. Either way, it’s better than just ignoring tailored content altogether.

Because many marketers aren’t taking advantage of personalization techniques—or they’re doing them wrong—there is a lot of opportunity for those who are. So, instead of blaming a lack of loyalty on the aggressive competition, get ahead of competing sites using testing and personalization to avoid making these three common mistakes:

Misinformed website updates

Companies often invest tons of time and money into a complete website overhaul each year (or even every few months), only to find that the new site fares no better—or even worse—than the old. Instead of being attracted to the sparkly new changes, consumers often feel alienated by the inconsistent and constantly shifting branding. After all, if they don’t recognize you, how will they know you’re, well, you?

Even more, companies often don’t fix the actual problems; instead, they focus on the superficial elements they perceive to be the problems. Solving a problem requires first knowing what it is. Let the actions of your visitors show you what works and what doesn’t using A/B and multivariate testing. Testing your website elements and pages will not only reveal your problem areas, it will reveal where on your site you’re experience positive visitor behavior. All of this information should then go to informing minor (or major) site updates, which can lead to significant lifts in conversions. But our end goal goes beyond initial conversion—we’re focused on retention.

Neglecting mobile and tablet

It’s especially sad when a brand goes all out updating their website, but doesn’t take mobile or tablet responsiveness into consideration. There’s little point in having a gorgeous website that’s impossible to navigate on a smartphone. Consumers now expect the same look and feel across web, mobile and tablet-specific apps or sites, yet each platform has its own unique capabilities—and opportunities to learn more about your customers. This additional knowledge can then be used to personalize user experiences across channels. And vice versa.

Landing page tunnel vision

Landing page optimization is a go-to tactic for many marketers looking for a quick fix, but even the best landing pages can’t sustain customer loyalty on their own. Focusing on single pages distracts from the larger picture, which should be the 360-degree customer experience. Knowing what individual customers do, what they like, and how they prefer to engage with your brand can help accomplish this. This knowledge can come from multiple data sources, online and off.

Behavioral targeting is a form of personalization that relies on using these user actions and preferences to inform custom experiences for individual visitors as they navigate each and every page of the site—including landing pages.

March 20, 2013by Paul Dunay
Behavioral Targeting, Conversion Optimization, Online Testing, Web Analytics, Web Design

4 Ways Your Website Can Replace Focus Groups

While focus groups attempt to simulate and gain insights on what the customer potentially thinks, nothing can substitute truly anonymous, honest and unbiased feedback. Websites, however, can now provide this level of data in real time. Using a combination of online testing, web analytics and CRM data, today’s marketers know what actual people, doing actual searches, on their actual sites are actually thinking—and responding to—when in the browse and buy mode. It’s this level of insight that can spur improvements to product offerings, social media, in-store efforts, other offline experiences and overall marketing efforts.

No, testing and analytics won’t eliminate old-school focus groups altogether, but now that marketers have access to a lot of rich real-time data and insight into their products and marketing efforts already available to them, it’s much easier, scalable and more cost-effective. So how are websites replicating—and advancing—the traditional focus group? We look at four ways that your website can replace focus groups:

1. They’re producing data that can inform overall branding and in-store shopping experiences

We’re all aware that an online store experience has to mimic some of the same elements consumers expect in a physical store: easy-to-find products, items positioned strategically on the “shelf,” helpful customer service and so on. But where we may fall short is the reverse: using online data to improve brick-and-mortar efforts.

For example, testing and personalization insights can reveal that a particular product recommendation is effective at converting more visitors into buyers. From this, a company could reproduce this experience in its stores—whether through its associates or with product displays placed near checkout. Or if a brand notices online visitors are consistently gravitating toward a certain editorial tone or responding positively to distinct button colors, these things could also be integrated into in-store signage, advertising, direct mail and beyond.

2. They integrate in-store purchase data to customize online experiences

Just as your site is continuously collecting customer data, so are your physical stores. And the two worlds must collide in order to mutually benefit from one another. For instance, if a customer buys a TV without a warranty, the purchase may trigger an email or site promotion that highlights coverage for the TV. Ever bought something from the Apple store, like an iPhone? If so, a few days later you inevitably receive an email about your new iPhone.

In the end, it’s about making smart recommendations based on the user’s known activity, no matter where that activity originated. And unlike a focus group, this activity is really happening, in real time.

3. They’re leveraging social media and loyalty data

Social media and loyalty programs are gold mines for customers’ activity in the real world: What do they do? What do they like? What are their preferences while engaging with a brand they return to again and again? Now this data is being used to create unique individual profiles, and tailor their online experiences accordingly.

Take a hotel website: some are using social and loyalty data to enhance the customer experience from booking through checkout. Information such as program status, recent travel activity, “likes,” travel frequency, prior or frequent destinations can be fed directly into an automated targeting model and greatly improve the precision and appeal of any offers displayed to this valuable customer—such as a free room upgrade, tickets to a nearby event or a car rental. By already knowing the customer’s background, the website can take care of the rest.

4. They’re using online reviews and site engagement wisely

Shoppers don’t only share their preferences by purchasing products, they do it through their product reviews and other activity on the site. Over time and across customers, this activity can tip marketers off to items customers are likely to purchase in the future, specific problems they’re trying to solve, and even nuanced life situations—all of which can trigger different direct marketing efforts.

A good recent example of this was Target’s teen pregnancy discovery. While this particular situation led to debate, the customer’s patterns were so consistent that the store was able to flag her for a triggered direct mail campaign personalized for pregnant women. Focus groups just can’t compete with situations like this.

 

November 28, 2012by Paul Dunay

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Welcome to my blog, my name is Paul Dunay and I lead Red Hat's Financial Services Marketing team Globally, I am also a Certified Professional Coach, Author and Award-Winning B2B Marketing Expert. Any views expressed are my own.

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