CXO Bytes

Customization – Driving Growth in the D2C Space

Increased internet penetration, smartphone use and awareness around technology have changed the way new-age consumers shop. People are increasingly turning to online shopping for the convenience, better selection, competitive prices, ad personalization and customization that tech-backed D2C brands have to offer.  A few years back, customization was limited to t-shirts and mugs. However, today consumers expect everything, including the shopping experience, personalised to their specific interests.

According to Invesp’s report, 53% of online shoppers believe brands that personalise the purchasing experience provide a beneficial service. So, if you want to thrive in a global marketplace, you need to demonstrate a strong understanding of customers’ needs and add value to every stage of their shopping journey.

 

Benefits of Customization in the D2C space

Stand out from the crowd

The D2C space is becoming more and more competitive. D2C brands have forayed into multiple sectors, including fashion, cuisine, personal care, cosmetics, and much more. As per a recent industry report, India has over 800+ D2C brands, a part of the market poised to touch a USD 100 Billion valuations by 2025. With a clutter of brands available, building an identity can be challenging, and this is where customization can help.

 

Improve customer loyalty

A personalised user experience is a way to show your customer that you care about them and you are willing to go out of your way to make their life easier. A satisfied customer is more likely to become a loyal customer. According to Epsilon, customers are 80% are more likely to make a purchase when brands provide personalised experiences. Above all, rather than focusing solely on short-term wins, personalisation also helps you focus on long-term growth drivers and emphasises customer lifetime value.

 

Give a boost to sales

Undoubtedly, effective customization drives increased sales. For example, if a brand’s marketing staff meticulously uses customer data to construct a personalised profile and then sends user-specific offers or discounts for preferred products directly to the consumer, it will increase engagement and conversion. According to Hubspot, 77% of customers have chosen, recommended, or paid more for a brand that provides a personalised customer experience. Thus, it is clear that customers value personalisation, as it is unique to them. Customization promotes word-of-mouth marketing because if one customer is delighted with your services, they will undoubtedly tell others about your brand. You should expect a greater count in your sales figure if you do it in this manner.

 

What is the role of data and AI in Customization?

Data helps to understand shoppers’ buying behaviour

Eventually, every brand strives to provide an exceptional customer experience. However, understanding what appeals to customers requires understanding of how customers interact with your products. Brands may track their customers’ preferences through data and analytics based on location, demographics, and online browsing behaviour. Unlocking valuable insights related to specific actions of the users and other significant behaviours of each website visitor enables brands to make informed decisions and thoughtfully prepare to achieve their objectives. As a result, the brand can provide a more personalised experience, increasing customer satisfaction and strengthening the brand-customer relationship.

 

AI assists in creating personalised shopper journeys

AI can assist a brand in creating a personalised shopper journey by displaying products based on consumers’ past browsing history, purchases, and pages visited. Brands can show customers combo offers that will complement the product selected by them as well as options based on what similar personas have purchased. Additionally, brands can highlight recently viewed products on product pages. Allowing customers to view products they’ve previously clicked on encourages them to continue browsing, increasing the chances that they will make a purchase. Once the customers see recommendations based on their preferences, they will understand that the brand knows their needs, which will have them coming back for more. Also, it enables brands to provide a stellar experience that is immersive, hassle-free, efficient, and streamlined.

 

AI helps to track the performance of the product

In addition to providing insights about customers, AI enables brands to understand how well individual products perform and identify the bestsellers and the low-performing products. Besides this, keeping track of returns and refunds helps improve the product’s quality. Thus, it allows brands to make well-informed decisions and plan thoughtfully, enhance their services and quality, increase revenue, and improve operations.

 

Personalised customer support

Consumers nowadays are looking for more authentic and engaging conversations, and an AI-powered chatbot enhances and improves the user experience. It helps the brand provide a consistent experience to customers 24/7. It enables the brand to increase trust and credibility, as well as increase engagement. As a result, brands use it to create a more personalised experience and improve customer-brand relationships.

 

Conclusion

Given how the COVID outbreak has altered digital consumer behaviour, customization is critical for brands to grab and retain their attention. As a result, D2C firms that understand their customer’s demands and personalise their offerings accordingly will endure. And for this, these businesses need to have one system that can analyse all relevant data, i.e. behavioural data, financial data, demographic data and several other data sources, and provide you with actionable insights.

 

 

(This article is written by Prem Bhatia, Co-Founder and CEO, of Graas, and the views expressed in this article are his own)

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