New research from Klaviyo reveals that trust is vital to consumers’ attitudes towards personalisation and how retailers can better power smarter digital relationships.
Want to win with personalisation in 2024? The era of simply adding a recipient’s first name to a subject line is over, according to a new report from Klaviyo that captures the perspectives of over 2,448 active Australian and New Zealand consumers.
Download the full report here.
With growing concerns over data privacy and more brands jostling for attention than ever before, personalisation 2.0 is anchored in handpicked recommendations from trusted retailers. While personalisation influences 59 per cent of consumers to buy when they otherwise wouldn’t have, it needs to be implemented strategically, informed by a shopper’s recent online behaviours and product preferences.
Far from a box-ticking exercise, data-driven personalisation has the potential to improve user experience (and 75 per cent of consumers agree). Brands are already taking advantage, with 70 per cent of consumers currently receiving emails containing personalisation content driven by their previous purchase data.
While 90 per cent of respondents across all ages named email as their preferred method for receiving personalised communications, brands shouldn’t feel limited to only leveraging email marketing. In fact, 65 per cent of shoppers are being retargeted with ads on other websites based on their recent shopping activity.
But one crucial ingredient needs to be in place first before personalisation enters the picture: trust.
This stat says it all: 80 per cent of consumers agree or strongly agree that they’re concerned about how brands use their data for marketing and messaging purposes. Plus, only 21 per cent of shoppers want to receive on-site recommendations from new or unknown retailers, with just 14 per cent wanting to receive personalised SMS and email messages from unfamiliar brands.
However, the narrative flips for trusted retailers. 53 per cent of shoppers love receiving on-site product recommendations from brands they know and shop with regularly, with a further 43 per cent happy to receive tailored SMS or email campaigns from these brands.
Establishing a connection with customers first will set relationships up for success. Before going in for the sale, showcase the benefits of your product or service, build confidence in your offering, and be receptive to what consumers are interested in.
Customer engagement data enables this at scale, allowing brands to deliver content that speaks directly to the interests and needs of unique audience segments. From there, trusted retailers can deliver the right message to the right audience at the right time, laying the foundations for meaningful interactions and long-term customer loyalty.
One solution to helping brands showcase relevant products to consumers is incorporating personalised product recommendation feeds driven by purchase and engagement history data. Whether it’s adding a limited edition item to their cart or redeeming a VIP discount code, leveraging these insights with timely, relevant communications is key to driving action through personalisation.
While email and paid advertising are well-established personalisation channels, other opportunities are emerging for brands to tap into. SMS and streaming service ads are two placements offering less saturated remarketing channels to harness.
Currently, just 32 per cent of consumers have received an SMS from a retailer with content based on their previous purchases. Similarly, only 32 per cent have been shown streaming service ads after visiting a retailer’s website. Now is the time to experiment with new ways to connect with customers using timely, personalised messages across these emerging channels.
Regardless of placement, brands need to give consumers the option to opt out of personalised communications as this has become a baseline expectation for 97 per cent of consumers.
With Google continuing to phase out third-party cookies throughout 2024, exploring new personalisation tactics is key to fostering long-term relationships, boosting customer retention, and driving an uptick in a customer’s lifetime value. That could mean adding new channels into your marketing mix or leveraging in-store and online zero-party data to create relevant, timely remarketing campaigns.
Ultimately, capturing and holding shopper attention is becoming increasingly difficult in today’s crowded digital landscape. However, pivoting your approach to focus on building trust first and following through with time-sensitive, curated product recommendations (powered by a unified data and marketing automation platform like Klaviyo) can help you fuel faster growth, gain better cut-through, and stay ahead of the competition.
