This weeks guest blog post is from Matt Rigney, APAC Director at Barilliance. Barilliance helps eCommerce merchants to increase sales and conversion rates by providing visitors with a personalised omnichannel shopping experience.
Australians love a bargain, right? You only need to walk through any Australian shopping mall to see the abundance of “Sale”, “Clearance” or “Up to 50% off “signs in just about every store. Unfortunately for retailers, we now live in a retail climate where everything ‘is on sale” just about all year round and customers are becoming savvier as they know a discount from their favourite store is just around the corner. So in a seriously competitive market, how can online retailers be more effective in converting price-sensitive shoppers online? Personalisation might just be the answer.
Barilliance have been helping Australian Online and Omni Channel retailers to automate the shopping experience for their customers for over ten years now and with over 500+ retail partners globally have an incredible insight into the personalisation techniques that are most effective.
Here are 5 personalisation techniques for price-sensitive shoppers:
1. Capture customers when they copy a product name on site
Retailers spend significant dollars attracting customers to their site so it is critical you read potential signals when a client may be about to exit. Fortunately, consumers are always giving signals to retailers. Retailers just need to know how to read them. One common signal is when a shopper copies a product name from your site, there is a strong chance they are about to exit, search the name in Google and look to compare prices. Barilliance has built a personalisation pop up that can trigger as soon as a product name is copied. The pop up could promote a Price Mach Guarantee or possibly a secret coupon or shipping offer if the customer finalises the sale there and then.
2. Use Social Proof Messages and the Power of the Crowd to create urgency
By nature, many consumers are reactive when it comes to messaging and today one of the strong urges shoppers feel when browsing a store is FOMO (fear of missing out). Social Proof Notifications play an important role in helping retailers build trust with potential customers by highlighting how other consumers feel and interact with that brand. These notifications are also very effective at creating urgency. Price sensitive shoppers don’t like to miss deals so highlighting when a product is at the low point of the price cycle i.e. “10% price drop in last 48 hours, in limited stock and in high demand” is very effective at driving conversions. See a great example below.
3. Smart Cart and Browse Abandonment Campaigns with targeted coupons
Shopping has never been more competitive and with average cart abandonment rates still hovering around 70%+, running automated abandonment campaigns is still one of the highest performing personalisations features a retailer can run. Whilst most retailers are now running some form of Cart Abandonment activity, research indicates that many retailers are under-investing in this area with very basic solutions. The best practice is to always send a series of 3 emails although you may wish to hold back coupons or financial incentive until the 3rd email. If you do wish to offer coupons to convert price-sensitive shoppers, make sure your provider has strong control over coupon distribution – Use exclusive coupon codes where possible, limit the coupon to once for each user lifetime and ideally have the ability to limit coupons to users with specific cart volumes, new users only or maybe loyal customers only. Use the same coupon techniques in Browse Abandonment campaigns too.
4. Run tailored onsite messages to present discounts to customers who have recently browsed those categories
Personalisation is all about putting the right product in front of the right customer at the right time. Providers like Barilliance make it super easy to define a customer segment (based on past behaviour) and to serve an appropriate personalised message to that user when they are next on your site. This can be in the form of banners, message bars or pop-ups. Price sensitive shoppers can be easily defined by the way they interact with your site. They may use the low price filter on your site or regularly visit your clearance section. You can make the segment and messaging even more effective by targeting those same users with a discount specific to a category they were recently browsing. See an example below.
5. Customise your product recommendation logic for price-sensitive shoppers
If you are using a sophisticated personalisation tool like Barilliance, you have the option to run with a very powerful and automated Product Recommendation logic but you also have an ability to override the recommendations to meet a specific business goal. One common use case is the ability to default to lower-priced offers for specific users. This might be shoppers who have arrived at your site from a price comparison network or to shoppers who used the low-high price filter in that session. Having control over how and when to recommend a discounted offer can have a big impact on retailers.
About the Author
Matt Rigney is the APAC Director at Barilliance, working directly with hundreds of retailers including many of the largest omnichannel retailers in the APAC region. Keen for a chat, reach out to him via email on [email protected] or via LinkedIn