Skip to main content

Engaging CE Consumers by Lifestyle, Interests

According to JupiterResearch, retail merchandisers are continually looking for ways to get key items in front of online shoppers to effect conversion and impact average order value. Recently, to influence consumers, retailers have tried "top seller" lists -- such as lists of merchant-suggested items, and lists of products that get the highest review ratings from consumers.

Unfortunately, consumers rank all these efforts low on the scale of features they find most useful when making a purchase decision. In fact, according to a recent JupiterResearch consumer survey, no more than 9 percent of online shoppers rate these features as most useful.

Though such lists are probably a good idea in terms of presenting a merchandising point of view and gaining credibility via the presence of consumer-created content, they may not be moving the needle on incremental sales. This may be because more than one-half of online shoppers don't know what they want when they begin researching their purchases.

Therefore, these lists can only be relevant to the minority of shoppers who do know what they want, but only if they include the items the customers are interested in, and that's unlikely. It's more probable that the lists retailers provide will be irrelevant to most shoppers, unless they are prone to online impulse buying. Less than one-quarter of online buyers will make an unplanned purchase to receive a promotion, and only 11 percent will make one based on site suggestions.

The addressable market is too small for such product lists to dramatically influence decision making. Retailers should evaluate the effectiveness of these features in terms of the addressable market and test their use among customer segments where a product preference might be inferred from past purchase and path behavior.

I believe that consumer electronics (CE) retailers, as an example, would greatly benefit from 'persona-centric' recommendations to their online shoppers. Granted, this is difficult to implement when website visitors can't be identified. However, when a consumer has signed-in to a customer support website, there is an opportunity to ask consumers to share details in their customer profile.

What's the motivation for the consumer? Initially, relevant and timely technical support, plus application tutorials that ensure that they can extract the maximum value and enjoyment from their purchase. Later, as the consumer shares lifestyle and interest details, then the interaction can evolve to meaningful persona-mapped offers -- "customers like you have selected this item, and here's why..."

My point: we know that selective peer group recommendations are more credible and relevant than other cross-sell suggestion techniques. Therefore, if a retailer is unwilling or unable to support an online community forum, then the automated persona-centric approach is a valid alternative. Moreover, this policy and rules-based approach can complement other word-of-mouth marketing and customer care efforts.

Popular posts from this blog

Worldwide Contactless Payments will Exceed $1 Trillion

There's a huge upside opportunity for digital payment innovation in America. As of December 2017, Juniper Research estimates that only 9 percent of the total payment cards in circulation within the U.S. market was contactless-enabled -- this translates into just over 100 million cards. While this is a significant installed base -- around 13 percent of total chip cards issued in the U.S. market -- Juniper estimates that only 5.5 percent of the cards were actually used to make contactless offline point-of-sale purchases in 2017. This translates into about 6 million contactless cards used for payments. That's relatively low in comparison with more advanced markets such as Canada (60 million) and the UK (108 million). Contactless Payment Market Development Juniper Research forecasts that driven by payment cards and mobile wallets, in-store contactless payments will reach $2 trillion by 2020 -- that represents 15 percent of the total point of sale transactions. Furthermore

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente