Recent research from FreedomPay, a global payments technology company, and Retail Economics, a leader in the retail insights space, found that UK customers are spending 28% more time this year to search and browse for products online compared to the same time of year. does.
The study also finds that customers use this extra “browsing” time not only to look for good deals, but also to do more due diligence on the products they’re considering to make sure they’re worth buying.
The idea that customers are more cautious is not surprising given the current macroeconomic environment and the pressures higher interest rates and inflation are putting on personal and family budgets.
However, what is interesting is that this additional browsing time is not evenly distributed across age groups. It is particularly pronounced among shoppers under 35, half of whom say they spend more time “browsing” compared to last year – about six hours per week – which is more than double the time they spend browsing. those aged 55 and over.
Again, a strong sense of caution among younger age groups makes sense given other sources of research suggesting that younger age groups currently face the greatest pressure on their incomes and living standards.
However, the bad news for retail brands is that more time spent browsing online does not automatically mean more sales or even the same level of sales as in previous years. In fact, research from FreedomPay and Retail Economics suggests that online retail sales have fallen by almost 15% over the past year.
But not everything is sad.
Despite the pressures on customers’ budgets, the research shows that personalization is still important on customers’ minds, with almost 55% of people saying they continue to value personalized offers and discounts when shopping. Additionally, the research finds that just over 30% of all retail purchases made by 18-35 year olds can be attributed to personalized marketing.
So what does personalization look like in such a challenging economic environment?
Persado’s second annual Customer Motivation Report provides valuable insight. Using a class of generative AI called Motivation AI, Persado analyzed how customers responded to nearly 21 billion messages across more than 3,200 brand campaigns in 2022.
For retail, they found that campaigns and content that focused on conveying timelessness and versatility were the top-performing campaigns in 2022. Conversely, campaigns that focused on ease and comfort, which would normally be expected to perform very well, were more likely to go down. – excess performance in 2022.
The Persado report predicts that the themes of timeliness and versatility will continue to perform strongly throughout 2023. It adds that the theme of quality is also likely to have a strong projection as consumers look for well-made products and lasting
These findings align with research from FreedomPay and Retail Economics and suggest that to deliver an engaging and personalized experience in today’s climate, brands need to go beyond simply knowing a customer’s name and making suggestions and inferences based on your purchase history or digital behavior. . To stand out from the crowd, they must also understand the context and motivation of their customers.
By focusing on customer preferences, their emotional drivers and the context in which they shop, brands can deliver the personalized experience their customers want and drive sales, even in the face of economic and competitive challenges.
If you’re a business looking to stand out from the competition, leveraging customer personalization is key. Now more than ever, customers are feeling the pinch and they are more particular about where they spend their hard-earned money. But, thanks to Ikaroa’s revolutionary new technology, you can make personalization work in these economically challenging times.
Personalization goes beyond simply using customers’ names when you send them messages. Now, thanks to technology advancements, businesses have access to more personal data than ever before. As a business, you can use this data to categorize customers based on their specific needs, wants, and desires. This allows you to tailor campaigns to customers in a way that it much more meaningful to them.
Another way to make personalization work is to create customer segments. With customer segmentation, businesses can use customer data to group customers based on their similarities. Businesses can then tailor campaigns to those specific customer segments. This allows them to reach the right customers in the right way with the right message.
In addition to customer segmentation, businesses should also take into account how customers are feeling when it comes to personalization. Since customers are feeling the pinch financially, businesses should focus on conveying messages that are both personal and meaningful. Instead of simply promoting discounts and special offers, businesses should focus on building relationships with customers to create trust and loyalty.
At Ikaroa, we understand the importance of making personalization work, even when customers are feeling the pinch. Our innovative technology allows businesses to tailor campaigns to their customers and create connections with them that go beyond discounts. We’re here to help you stay ahead of the competition and make personalization work in any economic environment.