We’re discussed customer-centric marketing a lot here on the screed over the years. This morning there’s a piece of research out that reinforces many of the points we’ve brought up in those discussions. The good folks at MyBuys have released a study which is…
primary research across more than 1,100 consumers that examined how personalized marketing across channels impacts shopper attitudes and buying behavior. Survey results reveal that customer-centric marketing—the ability for retailers to engage consumers in one-to-one conversations across the customer life cycle and all touch points—increases buyer readiness, engagement and sales activity, with a record 40% of respondents now stating that they buy more from retailers who comprehensively personalize the shopping experience across channels.
What I like about this is the recognition that purchasing is a process. People have to be ready before they’re going to ring the cash register and part of the marketing process (a big part as it turns out) is fostering that readiness. In fact, one thing the study show is that it can detrimental (at the very least to your conversion rates) if you get people to your website in an attempt to buy before they’re ready. When people leave websites without purchasing it is most often because they were “still in the research process” (44%). So much for the “hard sell.” It speaks to the notion of an ongoing conversation as well as to the abandonment of a “one size fits all” marketing plan. More complicated? For sure. Better payoff? You tell me:
When customer-centric marketing is implemented across channels, retailers typically realize a full 100% increase in purchase frequency, a 50% increase in average order value and a 25% increase in conversion of cart abandoners to buyers. These and other improvements stemming from customer-centric marketing equate to delivering a 25% increase in total online sales and a 300% improvement in customer lifetime value.
So how does one go about this? Well, “readiness” requires finding the right product (67%) at the right price (55%). In addition, personalized promotional emails (57%) and personalized online advertising (35%) were shown to be the top vehicles to prompt consumers to purchase. Not surprisingly, Amazon was the site to which people turned after quitting other sites while shopping. Amazon is textbook customer-centric marketing. My experience on the site and yours will be totally different, as will the marketing materials we receive. Any wonder they’re the biggest?
Throw away your marketing megaphones – they might be doing more harm than good. I suspect this behavior is going on offline as well but that’s another post. Does that make sense? Does the research?