In the dynamic landscape of retail, understanding consumer behaviour and market trends is crucial for effective personalisation strategies throughout the entire customer journey, especially in the last mile and post-purchase phases, says Rory O’Connor, founder and CEO of Scurri
This is particularly relevant for younger generations, such as Millennials and Gen Z, who are reshaping traditional consumption patterns and driving the demand for personalised experiences.
Despite the growing imperative to personalise experiences, a mere 15% of CMOs feel confident in their company’s personalisation efforts, as revealed by a recent McKinsey survey. Various factors contribute to this slow progress, including the perceived difficulty and costliness of personalisation initiatives, as well as concerns about data privacy and the relevance of recommendations.
Retailers and brands are advised to personalise across all touchpoints, particularly in last-mile logistics and post-purchase interactions, while also adapting to the evolving preferences of Millennials and Gen Z. This entails leveraging AI-driven solutions to achieve hyper-personalisation, thereby enhancing service quality, reducing costs, and gaining a competitive edge.
Research underscores the tangible benefits of personalisation, with over 80% of experience leaders reporting improvements in revenue, customer experience, and conversion rates. Consumer expectations are equally high, with the majority anticipating personalised interactions throughout their buying journey.
However, consumer reactions to personalisation vary. While many welcome personalised recommendations and experiences, others express concerns regarding data privacy and the relevance of suggestions. Effective personalisation hinges on understanding individual preferences and behaviours, avoiding generic approaches that may alienate customers.
In the post-purchase phase, personalised communication becomes paramount. Real-time tracking, customised delivery options, and surprise elements contribute to a positive customer experience. Subscription models, loyalty programmes, and social media integration further enhance personalisation efforts, fostering customer engagement and loyalty.
The importance of personalisation in delivery and returns
Research in our recent Getting personal in the last mile and beyond report shows the biggest considerations impacting purchasing decisions by channel remain price and trust for in-store purchases, there is significant consumer importance attached to elements of the post-purchase experience, particularly speed of shipping and ease of returns. This is even more the case for online purchases, which shows that shipping costs are second only to price and both speed of shipping and ease of returns are also more important than for in-store. Marketplaces stand out as the channel for which post-purchase considerations are strongest because loyalty tends to be lower while there are high expectations on price and delivery.
In-store, the price of the item came top with 74% of respondents choosing it as a priority, followed by trusted brand 47%, product selection/assortment 32%, ease of returns 29% and access to loyalty points and rewards 25%.
Moving in closer to the purchasing drivers for consumers when making a purchase from a retailer they had already bought from, post-purchase considerations rise to the top of the list. Persistence and consistency pays when retargeting active customers given the higher return on investment compared to new customers.
The top six purchasing drivers when repurchasing from a retailer were free delivery – either online or in-store, free returns – either online or in-store, the ability to purchase a subscription to ensure regular product deliveries, access to exclusive product sales or advance product sales, a loyalty programme that offers rewards and discount codes.
In conclusion, retailers and brands must prioritise personalisation, particularly in the post-purchase phase, to capitalise on the immense sales potential. With AI-driven tools and data insights, personalised marketing has evolved from a promise to a reality, offering unprecedented opportunities for customer engagement and business growth in the ever-evolving retail landscape.
For more key takeaways around how taking control of the post-purchase delivery experience can build greater trust, increase customer loyalty, and deliver increased revenue opportunities, download Getting personal in the last mile and beyond.
