The Power of Personalisation in Digital Commerce

Imagine receiving a birthday present from a close friend that perfectly matches your personality, tastes, and interests. How did they know exactly what you wanted without asking?

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The answer lies in the power of personalisation. This is the ability to create tailored experiences that cater to each individual's unique needs. In digital commerce, personalisation provides a similar level of attention. It leverages data and algorithms to deliver:

• Customised product recommendations.
• Personalised content.
• Targeted promotions.

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This creates a win-win situation. Customers feel understood and valued. Meanwhile, brands drive shopper loyalty, revenue growth, and a competitive advantage. However, personalisation also raises challenges such as:

• Data privacy.
• Accuracy of recommendations.
• Meeting high customer expectations.

What is personalisation in digital commerce?

Personalisation in digital commerce means tailoring the buying journey to each customer's unique preferences. You can use data analytics and artificial intelligence to provide targeted help based on past interactions.

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Consider this example:

A returning customer browsing for new shoes clicks to chat with your agent. The agent warmly greets them by their first name. The customer asks about the fit of a new design. Because the agent has access to their purchase history, they can recommend sizing up for a better fit. This demonstrates a truly customised approach to customer service.

Benefits of personalisation in digital commerce ‍

According to SmarterHQ, 72% of consumers say they only engage with marketing messages that are personalised! Personalisation provides several key advantages:

• Increased customer engagement and loyalty.
• Higher revenue growth.
• A more satisfying shopping experience.
• Access to valuable customer insights for optimization.

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Example: Coffee Subscription Service

‍A service can use a customer's sleep patterns and daily routine to suggest the ideal blend. By analysing data from wearable devices, the service could:

• Recommend high-caffeine blends for morning consumers.
• Suggest decaf blends for evening drinkers.
• Deliver coffee at the customer's optimal time.
• Increase repeat orders and customer satisfaction.

Ways to personalise the digital commerce experience

1. Offer a uniform customer experience

To achieve personalisation, you must offer a smooth experience across all platforms. This includes social media, email, mobile, and the web.

• Consistent experiences encourage customers to become loyal.
• CINNOX integrates traditional and digital telephony for a complete omnichannel experience.
• Regardless of the channel, your agents will know what was said earlier (e.g., in Facebook Messenger) so customers don't have to repeat themselves.

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2. Don’t forget social media

Businesses are rapidly adopting social commerce. In 2021, 64% of social media users reported purchasing something through a social channel!

• CINNOX helps you consolidate all your social data in one place.
• You can provide seamless offline-to-online experiences.
• Use intelligent chatbots for faster answers.
• Add web links and QR codes so customers can get instant help without being online 24/7.

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3. Leverage customer data

Collecting interaction information is a primary way to achieve personalisation. In fact, 91% of consumers are more likely to shop with brands that offer relevant recommendations.

• Gather data through website cookies, chat history, and email engagement.
• CINNOX unites all your touchpoints and data in one place.
• This prevents data fragmentation. For example, your customer service team can see sales data to understand the customer’s buying journey.

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4. Explore artificial intelligence

AI and machine learning analyze behavior and preferences to suggest relevant solutions. These insights improve over time and can drive up to 31% of retailer revenue.

• Use chatbots to capture and qualify leads at scale.
• Free your agents for more value-added tasks.
• Tailor the experience based on a lead's interactions and browsing behavior.

Best practices for data-driven personalisation

1. Remove departmental and data silos

A unified view of customer data improves satisfaction and growth.

• Mining data gives you a holistic view of customer likes and behaviors.
• Break down silos between marketing, sales, and customer service.
• This helps track preferences effectively. For example, a complaint about a product might reveal a mismatch between marketing messages and customer expectations.

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2. Save all customer and employee interactions

Recording interactions provides valuable insights for targeted personalisation.

• Data reveals opportunities to make interactions more efficient.
• Consistent record-keeping allows for faster issue resolution.
• Analyzing agent interactions can help you take corrective actions to avoid reputational risk.
• Reviewing customer chats can help identify suspicious activity to prevent fraud.

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3. Include dark data that may be overlooked

"Dark data" is information that is collected but not used. It can provide unique insights.

• Analyzing geographical location data can reveal untapped markets with high demand.
• This allows you to expand your product selection for specific regions.
• You may also choose to recruit agents who speak the local language to gain a foothold in those markets.

Challenges of personalisation in digital commerce

While powerful, personalisation poses several challenges that must be addressed for success.

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1. Balancing personalisation with privacy concerns

‍Customers want tailored experiences but also value data protection. To find the right balance:

• Implement clear privacy policies.
• Obtain explicit customer consent for data use.
• Provide transparency and control over personal data.

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2. Ensuring the accuracy of data and algorithms

‍Accurate personalisation requires error-free and unbiased data. To achieve this:

• Implement strict quality control measures.
• Conduct regular data audits.
• Use transparent algorithms with human monitoring.

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3. Managing customer expectations

‍Customers demand hyper-personalised experiences. However, you must ensure they are realistically achievable.

• Communicate clearly about how data will be used.
• Offer transparent opt-in and opt-out options.
• Build trust and loyalty by setting realistic expectations.

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Personalisation is critical to the digital commerce experience. Delivering unique experiences that delight your customers builds loyalty and differentiates you from your competitors.