Four Ways Personalization Increases Sales [For Retailers]


When you get personal with your customers, really great things happen!  Retailers who use personalization to create tailored customer experiences, both on-line and in store, are increasing engagement, driving sales, and becoming brand leaders.

According to a study by MyBuys and the e-tailing group[1], 40% of survey respondents said they buy more from retailers that personalize their shopping experience across channels. The study also revealed that 41% would buy more from retailers that send them personalized emails, and 39% said they buy more from retailers that personalize Web recommendations.

Personalization drives results. Based on sales data from MyBuys' database of over 250 million shoppers, customer-centric marketing delivers a 25% increase in total online sales and a 300% improvement in customer lifetime value.

Here are 4 ways you can get more personal to improve sales:

customer experience

1. Personalized Product Recommendations

According to a recent study by Listrak and Harris Poll[2], 80% of Americans want to receive product recommendations through email based on previous purchases. Likewise, 71% of consumers value messages featuring items based on their online browsing behaviors.

Consumers appreciate personalized recommendations in other channels as well. 69% of respondents appreciate online retargeting ads that showcase products previously viewed on a brand's website. 67% of respondents also enjoy seeing product recommendations on a retailer's website while shopping.

Consumer data must be analyzed to create highly targeted product recommendation offers. Analyze consumer data such as demographics, lifestyle, products purchased by category and type, frequency of purchase, and purchase value. Recommendations based on any set of these variables help retailers identify new cross-sell opportunities and help consumers discover new products or services.

2. Personalized Discounts

Discounts increase sales, but personalized discounts take this to a new level. For example, offer cart abandonment incentives to high-value customers as a way to increase their lifetime value (LTV). Or by using behavioral data, retailers can identify which customers may be most interested in certain offers.

Car dealership increased sales by offering personalized discounts to targeted customer segments[3]. They analyzed their customer data to identify repeat customers, geographical location of their customers, and channel preference. They found that 13% of mobile visitors were within 600 feet of one of their dealerships. By targeting these visitors with personalized quotes, they increased their conversion rates by 18%.

3. Personalized Emails

Personalized emails are 6 times more effective than bulk emails at lifting transaction rates and revenue-per-email[4]. Your emails need to be 100% about your customers and prospects. What are their lifestyles and interests? Based on their past purchases, what offers will be most appealing?

Email marketing has huge potential to boost your sales, customer loyalty, and customer acquisition – however, personalization is key. The top reasons for U.S. email users to unsubscribe from a business or nonprofit email subscription are content that is not relevant (56%)[5].


When customers are segmented for more personalized offers, the results speak for themselves. According to a report by Lyris[6]:

  • Email open rates increased by 39%
  • Emails were seen as more relevant by 34% of email recipients
  • Unsubscribe rates reduced by 28%

4. Location-based Personalization

62% of adults under 34 are willing to share their location get more relevant content[7]. Consumers share a good deal of their personal information with brands when they download their apps – information such as location, shopping preferences, demographics, and interests. When using location targeting technologies such as iBeacon, this personal data can be used to target consumers with the right offers at the right time.

For example, imagine the benefits of sending personalized coupons based on past purchases to your customers when they are shopping in your store. Or, imagine sending notifications to customers when they are near your store, such as tailored advice and offers based on their demographics or other personal information.

Consumers are willing to share their location for the right incentive. According to a report by Marketing Land, nearly half of mobile users will share their location for personalized offers.

CX, Customer data, location, gps

Retailers that focus on delivering personalized experiences and offers will win every time. In the age of the customer, retailers are learning that discriminating customers want companies to know who they are and what they want. However, if a customer doesn’t feel like you know them, they will just move on to the next.

To learn how to analyze customer data and develop predictive analytics to create personalized experiences, download this free Retail Marketing Data Solutions Guide.

Retail Marketing Data Solutions Guide



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