Peak is more important than we thought
We’re all aware of how consumer habits are evolving, and how this change is translating into increased expectation and demand for discounts and regular sales. I’m sure we’re also aware of the fact that, as a result, Black Friday is no longer just the Friday and has now spread over several weeks. Despite the fact that 30% of yearly sales take place in the final 3 months of the year and therefore make peak integral to success, high acquisition costs and increased pricing competition mean that margins are ever thinning.
However, with this comes an untapped opportunity; to understand your peak traffic and customers, identify your valuable ones, and make them work harder for you throughout the year - not just at peak. In this blog, I'll present the ways in which you can employ the data you collect during peak times in order to increase retention rates and build a loyal customer base year-round.
Peak brings untapped opportunity
Since it costs five times more to attract a new customer than to keep an existing one, increasing customer loyalty is key to brand success through peak and beyond. Across all of retail, 84% of purchasers will only ever convert once. This one-and-done mentality represents a massive opportunity for any retailer; if you're a $65mil revenue brand in the beauty and cosmetics industry, for example, moving just 1% of one-timers to a second purchase is a $1million opportunity.
Personalization is a solution to this - in a recent survey, it was found that 81% of consumers were open to switching loyalty to sites that provide them with a better, more personalized service.
Personalization as a solution
Personalization can help to deliver customer loyalty by utilizing and actioning the data gathered in peak with the aim to encourage that repeat purchase, providing an opportunity to make those peak purchasers more lucrative in the long run.
Segmenting customers by understanding their context; in this case, segmenting those who have only purchased during peak and personalizing their experience with your brand accordingly, can encourage them to convert outside of peak. For example, landing pages can be personalized with “welcome back” offers and messaging tailored specifically to those who have only shopped peak, or we can surface products that are popular with those peak purchasers who went onto purchase outside of peak.
You can also increase retention rates by reaching out to peak purchasers through omni-channel personalization; engaging customers with the same impactful message via abandonment emails, deploying push notifications and ads. As 52% of customers say they would share more data in exchange for a personalized experience, it is hard to ignore the benefits personalization would provide.
Through a context driven understanding, you can create bespoke experiences around the consumer which helps them fulfil their purpose, ensuring that they purchase beyond peak periods and throughout the year.
Thank you to Johnny Treasure, Abi Wendt and Will Bowman for your help in collating the statistics for this post.