How can retailers use personalisation to drive loyalty?

A shopper’s default position is now to opt out of an experience they find irrelevant or intrusive. This can make things tough for retailers: the barrier to consumers switching off has never been lower, and the barrier to earning loyalty is higher than ever.

Rob Bassett, head of UK and EU multinational advertising for eBay, says: “Cards and rewards schemes are one way to encourage repeat custom, but customer experience is also hugely powerful when fostering loyalty. And a smart advertising strategy is an important part of this.”

For retailers, it’s all about reaching the right person, at the right time, with the right message and in the right context. Achieve this and you’re being actively useful to a potential customer, which carries a strong currency.

Relevant ads

“Great advertising works when you match desire with opportunity; in it’s purest sense it has the same aim as a loyalty scheme. We know that by observing shopper behaviour online and combining this insight with demographic data, advertising campaigns can be made much more relevant to consumers,” Bassett continues.  

He adds: “Take a new parent buying a pushchair, for example. Retailers can make a real difference by understanding exactly what stage of parenthood they’re at, pre-empting what they will need in a few months or years, and presenting them with items that match when the time is right. There’s no better way to show you ‘get’ a consumer and build a lasting relationship.”

And if you’re dealing with a consumer who is never going to be loyal, Bassett has a solution: “If you know when someone’s mindset is changing from browsing to buying, you have a golden opportunity to swoop in with relevant, tailored advertising and steal a march on competitors.”  

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