Customer acquisition is essential for any eCommerce business. It entails attracting new customers and converting them into repeat customers. Personalisation is an effective way to improve customer acquisition.
We will discuss the importance of personalisation in customer acquisition for eCommerce businesses, the benefits it provides, and best practices for successful implementation in this blog.
A Brief Overview of Customer Acquisition
The process of acquiring new customers and converting them into paying customers for a business is referred to as customer acquisition. It is an essential component of any company’s growth strategy because acquiring new customers is critical for increasing revenue and expanding the customer base.
Various marketing and advertising efforts, such as social media advertising, search engine marketing, content marketing, and email marketing, can be used to acquire customers.
The goal of customer acquisition is to create a customer journey that leads to a positive customer experience and encourages customers to buy and do business with the company again.
Importance of Personalisation in Customer Acquisition for eCommerce
Personalisation has always been a critical consideration for businesses because up to 80% of consumers say they are more likely to buy from a company that provides tailored experiences. Personalised eCommerce experiences make people feel more connected.
Brands can boost their profit margins by cultivating loyalty through relevant communication, such as product recommendations based on previous purchases.
Meanwhile, a customer who has given a brand personal information (such as an email address or permission to keep their browser data) but has not received relevant contact may become dissatisfied with the experience and be more likely to churn.
How has COVID-19 played a key role in boosting the relevance of personalisation?
Personalisation is valuable because it allows you to target the right consumer with the right offer at the right time. Given that eCommerce has grown ten years’ worth in just three months, the ability to stand out from the crowd is more important than ever.
Because of the fierce competition among online businesses, personalisation is one of the most sought-after tools in an eCommerce marketer’s toolkit.
Although personalisation is on marketers’ agendas and buyers demand unique experiences, eCommerce companies are not always ready or able to provide it to their customers.
Yieldify polled 400 eCommerce leaders from the UK and the US in July 2020 about the challenges of website personalisation and its future development.
According to the study, the majority (37%) said they lacked the knowledge needed to optimise their customization strategy.
A further 36% of respondents said they lacked customisation tools or had limited capability, and a final 35% said they lacked the time to develop a plan.
These findings are concerning when combined with data from market research firm Forrester, which revealed that 77% of consumers have either chosen, recommended, or paid more for a brand offering tailored experiences.
Furthermore, a recent McKinsey study discovered that consumer perception was shifting following COVID. Consumers are beginning to place less emphasis on brand loyalty and more emphasis on getting the best value for their money.
Personalisation tactics are very beneficial in retaining customers and boosting sales efforts, so refusing to accept them could be costly.
Also Read: The Ultimate Guide to Customer Acquisition in 2023
Benefits of Personalisation in Customer Acquisition for eCommerce
Personalisation has a significant impact on customer acquisition for eCommerce businesses. Here are a few key advantages:
1. Increased customer loyalty
Personalised experiences aid in the establishment of a personal connection with the customer, which leads to loyalty. Customers feel understood and appreciated, which leads to repeat business and positive word-of-mouth referrals.
2. Enhanced customer engagement
Personalisation improves customer engagement by providing relevant content and offers that match their interests and preferences, increasing the likelihood of them making a purchase.
3. Better customer experience
By tailoring product recommendations and other aspects of the customer journey to each customer, personalisation contributes to a more streamlined and effective shopping experience.
4. Improved marketing effectiveness
Personalisation enables businesses to target the right customer with the right offer at the right time, significantly improving marketing effectiveness and ROI.
5. Increased sales and revenue
By improving customer loyalty, engagement, and overall experience, personalisation can lead to increased sales and revenue. Customers are more likely to purchase when they feel valued and understood, resulting in increased revenue for the company.
Also Read: Future of Customer Acquisition: Trends and Predictions
Best Practices for Personalisation in Customer Acquisition for eCommerce
Here are some best practices for personalisation in customer acquisition in eCommerce:
1. Collect relevant customer data: Gather information such as purchase history, preferences, and demographics to better understand your customers’ interests and behaviours.
2. Create detailed buyer personas: Create detailed buyer personas to learn about your target audience’s specific interests and behaviours.
3. Use AI and machine learning: Implement AI and machine learning algorithms to analyse customer data and provide personalised product recommendations, pricing, and content.
4. Leverage segmentation: To deliver targeted messaging and promotions, segment customers based on their behaviour and interests.
5. Personalise the customer journey: Provide a seamless, frictionless experience by personalising the customer journey with customised product recommendations, messaging, and promotions.
6. Implement A/B testing: A/B testing can help you determine which personalisation strategies work best for your target audience.
7. Ensure privacy and data protection: Transparency in how you collect, store, and use customer data is essential, as is compliance with relevant data privacy regulations.
eCommerce businesses can create personalised experiences that increase customer satisfaction and loyalty, drive sales, and improve customer retention by implementing these best practices.
How has Amazon’s Personalisation Strategy Helped the Brand Acquire a Loyal Customer Base?
Amazon is a behemoth in the eCommerce industry, and its success has been attributed to a variety of factors, including its effective personalisation strategy.
Amazon has created a personalised shopping experience for its customers by leveraging customer data collected through its website and other touchpoints, which has helped it attract and retain customers.
Product recommendations are a key component of Amazon’s personalisation strategy. Amazon analyses a customer’s purchase history, search queries, and other online behaviour to recommend products that the customer is likely to be interested in.
Customers benefit from discovering new products they might not have discovered otherwise, and Amazon benefits from increased sales by promoting products that are more likely to be purchased.
Amazon’s personalisation strategy also includes tailored email campaigns. Amazon sends customers targeted emails based on their purchase history and online behaviour, such as abandoned shopping carts.
These emails may include personalised product recommendations or promotions to entice customers to return to the site and make a purchase.
Personalisation is also used by Amazon to improve customer service. It may, for example, use data to pre-populate a customer’s delivery address, saving them time during the checkout process.
Personalised landing pages, which can be customised to reflect a customer’s interests and preferences, are also part of Amazon’s personalisation strategy.
Overall, Amazon’s personalisation strategy has been a major driver of its customer acquisition success.
Amazon has been able to create a shopping experience that is both convenient and engaging by tailoring its marketing and customer experience to each customer, which has helped it to build a loyal customer base.
Frequently Asked Questions
Q1. What does good customer acquisition look like for eCommerce brands?
Every eCommerce business will have a unique definition of what constitutes a healthy and sustainable rate of customer acquisition. The nature of an eCommerce business, the size of the market, and the target audience’s online habits will all have an impact on how quickly a brand can attract and convert new consumers.
Q2. What is the eCommerce customer acquisition process?
Stage 1: For the first time, a new prospect visits your website.
Stage 2: The prospect expresses an interest in the second stage.
Stage 3: Your potential customer has been ‘activated.’
Stage 4: Your prospect is successfully converted into a customer.
Stage 5: Your current customers make use of your products or services.
Stage 6: Your loyal customers reaffirm their support for your company.
Q3. What distinguishes customer acquisition from marketing?
Marketing raises brand awareness, and customer acquisition raises conversions and sales, which generate revenue. On the other hand, customer acquisition is concerned with the measures undertaken to nurture customers towards a purchase, such as emailing a coupon or displaying targeted ads (e.g., Google ads).
These actions may happen right away or months later, but the goal is always to turn visitors into customers.
On a Concluding Note
Personalisation is an important aspect of acquiring customers in eCommerce. It enables businesses to provide their customers with unique and tailored experiences, increasing customer loyalty, driving sales, and improving customer retention.
eCommerce businesses can reap the benefits of personalisation by implementing best practices for personalisation in customer acquisition.
Amazon’s case study demonstrates how a successful personalisation strategy can improve the customer experience and result in significant sales growth.
In the post-COVID world, personalisation is more important than ever, as customers are looking for value and unique experiences.
To remain competitive in the rapidly evolving eCommerce landscape, businesses must prioritise personalisation in their marketing strategy.
You can discover more about customer acquisition by reading our knowledge base blogs and applying what you’ve learned to your business.
