Top online retailers are failing to capitalize on consumers’ growing expectations of receiving insight-driven, personalized brand communications, according to new research from Teradata.
A study of the UK’s top 50 online retailers reveals that, while consumers crave personalized communications, just a quarter (26%) of retailers provide such messaging. An earlier survey from Teradata and Celebrus found that nearly two-thirds (63%) of consumers, across all ages, prefer personalized communications, yet only a third (36%) employed even the most basic personalization such as name.
The survey also found that only 28% of the retailers targeted consumers by demographics such as gender and age.
According to Teradata’s ‘Top 50 Ecommerce Email Study 2015’, the results reveal that “most online retailers do have the means to collect customer data as consumers are signing up to their newsletter but are not utilizing these customer insights efficiently”.
preference.pngHowever, while 84% of retailers had a newsletter, only 36% had implemented a preference center that consumers complete after signing up. That’s a significant drop from the 64% who had one last year. Preference centers allow the collection of consumer preferences to better personalize communications and enhance user experience.
Furthermore, the proportion of retailers providing one-click unsubscribe links had also dropped, from 75% in 2014 to today’s 73%.
“By sending out offers which are targeted towards the individual, using the correct demographics, and advertising items that customers have selected in the preference center or even previously purchased, brand advocacy is greatly increased and customer loyalty increases,” says the report. “Studies have shown that loyal customers are 10x more profitable for your business.”
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