A status quo marketing strategy will inevitably fall short and innovation is essential for business growth. This is central to the findings of a report from CleverTap (“Fit for the Future of Retail”). The report explores why brands using hyper-personalization have realized conversion rates as much as 250 percent higher than one-size-fits-all campaigns.
Hyper-personalization is business jargon for an approach that taps into human wants and needs individually. To make use of this approach, a combination of data, analytics, artificial intelligence, machine learning, and automation are fused. The focus for a business undertaking this journey becomes one that is customer-centric, using data-driven marketing as so to reach individual customers in new ways.
According to Forrester, 77 percent of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience.
To determine how brands can meet these expectations, the report analyses a data set of more than 140 million devices of 121 million unique users and conducted exclusive interviews and workshops with over 100 customers.
The report reveals a nuanced view of the customer journey and equips marketers with actionable strategies that play across the entire customer lifecycle. These are based on four business objectives marketers must need to achieve to deliver hyper-personalized experiences. These are:
Increase new user retention
This is important because only 19 percent of new app users stay engaged in the first month. An automated onboarding journey can increase new user login rates by as much as 53 percent.
Increase customer engagement
This matters since just 15 percent of users convert from onboarding to engagement. Brands can achieve a 10-35 percent increase in conversions for dormant segments by using predictive analytics.
It appears only 8 percent of customers make the majority of repeat purchases, and they account for more than 40 percent of sales. Whereas, 75 percent of consumers favor brands that offer loyalty programs which are great for encouraging repeat business.
Reduce customer churn
Here, 86 percent of new users stop using an app within two weeks of the first launch. Promotions that encourage new users to make a purchase can reduce the uninstall rate by 10 percent in the first week.