Top 5 ways to drive ROI through personalisation


In general, the lockdown affected brands and retailers in 2020. Despite the rise in online shopping, most businesses are facing the need to reallocate their marketing budget. Now, more than ever, return on investment (ROI) is a critical factor for e-commerce businesses.

Some companies consider focusing their efforts on customer retention rather than acquisition. Mostly, when value, convenience, and availability is replacing brand loyalty. Customers are increasingly informed and concerned about their buying decisions, so brands must provide a truly personalised experience to convince them to return and buy again, as well as to recommend your brand to their family and friends.

Personalised content alone can boost ROI up to 300% if it is included in an omnichannel strategy can enhance performance and increase revenue and invite customers to come back to start building customer loyalty. Besides, focus the brand efforts on retention rather than acquisition is more effective:

  • Rising customer retention rates by just 5% could improve by up to 95%.
  • Personalised online shopping experiences can uplift in sales by 19%.
  • Email marketing regularly sees a 440% ROI when implemented effectively.
  • Personalised videos deliver up to 164% CTR and 116% in conversion.

Five ways to use personalisation to drive ROI

It is essential to have in mind that personalisation must be data-driven. Understanding your customers’ profiles, interests, and needs while visiting your website is vital to a correct personalisation implementation. If the strategy is placed with the customers in mind and following their behaviours, the results will be outstanding. Let’s take a look at five ways to drive ROI with personalisation:

1) Tailor your website content

As we mentioned in a recent article, personalised content can boost ROI up to 300%. Also, several research studies have shown that more than 50% of consumers expect that companies anticipate their needs and provide them with relevant information –starting by gathering and analysing your website visitors characteristics: gender, age, location, device. These criteria would help your brand understand the different journeys that your customers take while reaching your brand online. A simple but effective technique is using the IP address of your visitors to tailor the homepage, combine this with behavioural data, and your customers will feel as if they are entering a luxury shopping experience.


2) Omnichannel strategy

Customer engagement is related to all the interactions that your clients have with your brand across your touchpoints. Every interaction is powerful and can drive sales. Engaged customers are more likely to come back, spend more, and invite friends and family to join them. However, personalisation is more than changing your homepage’s language or using your customers’ names on emails. Your customers are expecting the same treatment across channels. A poor customer service, for instance, can drive away up to 86% of users. Same with social media. Close to 70% of consumers go to social channels to know more about a product or service before purchasing. If your interaction is poor, your team takes a long time to reply to comments, and product reviews are also negative, it’s more likely that users will choose another brand.

3) Marketing communications

A platform such as Recommend makes the personalisation of your marketing communication easier than ever. AI powers our solution, gathering data about your visitors, creating customer segments and tailoring your messages. Our marketing automation modules allow your brand to create and manage all communication, from automated transactional emails to promotional campaigns (email and push notifications) without leaving the platform.

Email marketing is still one of the most effective marketing strategies to drive ROI. Still, when these messages are actually relevant and directed to your customers, the results are even better. If combined with push notifications, the ROI and retention skyrocket, especially, when these messages are related to your customers favourite brands’ new collections, exclusive discounts or the replenishment of certain products that your customers love.

VogaCloset Push Notifications

4) Product recommendations

Product recommendations and cross-selling and up-selling well placed can drive ROI exceptionally good. Not only it helps to increase spend and the average order value, but also it can improve the customer shopping experience. For instance, our Product Merchandising module considers the existence and conversion rate when recommending products, making the technique even more effective for your brand. A happy customer is a returning customer. A data-driven recommendation implies a better ROI and an increase in revenue at the end of the month.

Besides using traditional modules such as “Other customers also bought”, you can also include some recommendations in your checkout process to take advantage of the purchase intention. Also, add some recommendations to your transactional emails. A positive shopping experience will be more likely to be replicated if the consumer receives a special promotion or suggestions of complementary products to enhance a recent purchase.

5) Reward VIP customers

Using a platform like Recommend allows you to identify the variety of visitors that your brand attracts. Thanks to AI and machine learning, our solution can gather data from different touchpoints to help you create your buyer persona and your customer segments based on criteria such as device, browsing behaviour, favourite brands/products, frequency of visits, average spend, among others. These data can be used to reward and make your VIP customers feel extra special.

In fact, several studies have shown that 20% of a business’ customers drive about 80% of revenue meaning that while nurturing the relationship with your clients, you are also taking care of your business’s longevity. Retention is still a more effective way to capitalise customers than acquisition. When it comes to VIP, it takes just a few customers to drive and increase your business’ monthly revenue.

Personalisation, in this case, can be applied through VIP programs based on spend thresholds. These programs increase AOV by 17% while inviting the customer to keep coming back to buy more to receive a more attractive reward.



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