How Personalization Can Boost Luxury Ecommerce

Apr 06, 2018


BEST PRACTICES SERIES

Article ImageIt’s no secret that e-commerce is going to play a huge role in the future (and present) of shopping. In 2016, e-commerce sales accounted for less than 9% of total global retail sales. While this doesn’t seem hugely substantial, the penetration of e-commerce on the retail industry is increasing by around 20% every year. By 2020, e-commerce will represent close to 15% of all retail sales. And as this trend continues, there will be more money to be made in the online sales space.

While this growth is significant for players in the e-commerce sphere, it can also pose some challenges. As the market gets bigger, more competitors will want a slice of the profits. That is why it's essential for serious e-commerce store owners to differentiate themselves from the rest of the pack. Personalization is an excellent way for luxury e-commerce merchants to boost their business.

Fighting Cart Abandonment

Cart abandonment is a major issue. People, on average, leave their carts without completing a purchase about 70% of the time. Nobody has come up with the secret recipe for solving this problem. However, there are a few ways personal touches can decrease cart abandonment rates.

Some sellers have found calling customers who leave large-ticket items in their carts to be an efficient way to redeem sales. Even if it only produces an additional ten conversions per week, that can add up to a lot of extra revenue when you’re selling high-end goods,

You can also use automated messaging to bring back customers after they have left their carts. Advanced enterprise ecommerce platforms have this capability built in. However, you must be careful to personalize these follow up communications. Address shoppers by their names and offer them something based on their prior purchase patterns to entice them to come back—perhaps a freebie, or the chance to win a high-end prize.

Incorporate Social Media

Social media should be the best friend of a luxury e-commerce retailer. Many people purchase luxury items specifically for the recognition that accompanies owning nice things. It would be imprudent for your luxury brand not to take advantage of this phenomenon.

One of the best ways to create customer personalization through social media is by using hashtags. You can create hashtags for shoppers to tag themselves after they have purchased something from your store. It’s possible to aggregate these posts onto your website—highlighting and reinforcing your most loyal customers. You can also profile one or two of your best customers each month. Create a short Q&A template, have them send you a picture of a few of your store's products—and voila; you have created a highly personalized way to boost customer loyalty.

Offer Curated Packages

Luxury retail is the perfect realm to offer customers custom-curated packages. This means that you put together a variety of items you believe they will want based on individual preferences. It can be a highly effective strategy when used on enterprise e-commerce platforms that offer specific, targeted consumer data. Many high-end buyers are too busy to do their shopping, and also prefer the rich experience of having someone put together a look for them. Taking advantage of this can be hugely rewarding for your upscale online store.

Personalization is going to become increasingly important in the e-commerce world, as more parties vie for customers. Especially in the luxury space, which has a more limited supply of shoppers, it’s essential you strive to give people individual experiences tailored just for them.


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