At this year’s DMEXCO conference, Bruce Buchanan, Rokt’s founder, and CEO, spoke with DMEXCO’s Anna Patterson about how ecommerce companies can double their profitability and unlock value in the transaction moment—a point in the last stages of the purchase journey when consumers are most receptive to messaging and most likely to engage with relevant offers. Bruce shared why the transaction moment is critical to ecommerce growth and how all online businesses can unlock incremental value by using AI to personalize messages and offers during the purchase journey. We’ve highlighted the three key takeaways below:
1. Connect at the right Moment
The digital world can often be confusing and overwhelming. Users are constantly bombarded with ads, offers, and messages while they are trying to navigate the internet. As a result, customers tend to ‘tune out’ almost all of these messages. Goo Study found that 82% of Americans ignore online ads completely, which makes the transaction moment even more relevant. Shoppers are at their peak engagement during this moment, and it serves as the best opportunity to connect with customers online.
This moment during checkout tends to be overlooked, but research shows this is when customers are at their happiest and most engaged: on average, 86% of consumers are happiest online when they finalize a purchase. After completing a transaction, 27% of users are open to offers from the same brand, 22% want to receive offers from new and undiscovered brands, and 20% express interest in signing up to loyalty programs showcasing the untapped opportunity to further engage with shoppers. The transaction moment allows businesses to connect with customers while they are in a buying mindset, minimally distracted, and at their happiest.
2. Personalize the Experience for Customers
Online shopping, by nature, is not as personal as shopping in person. In person, retailers are able to provide relevant experiences and recommendations to customers. The recent surge in ecommerce is forcing brands to find ways to use technology to personalize the online experience for each customer. The most successful ecommerce brands today focus on providing the most relevant offers to customers on an individualized level, as they would in a brick-and-mortar location. When you personalize your customer’s experience, it pays off in better engagement rates, higher conversion rates, and increased customer loyalty and satisfaction. According to a 2020 Forrester report 85% of customers would reward sellers who provide relevant personalization with increased lifetime value.
“The only way you can really generate value in the interaction is through relevancy [and customer-first personalization],”
says Bruce to Anna during the DMEXCO session. In addition, research on the Paradox of Choice suggests that consumers get easily overwhelmed by too many options. Bruce explains this further in Scaling Up Podcast, he says “most businesses would naturally assume if they had a broader range of products or services that they would win in a category, but consumer behavior is such that the leading players typically have to do the complete opposite.” Businesses should only be showing a small number of messages and offers to consumers, so it is essential that they are relevant.
By giving customers a personalized experience with offers that are relevant to them, brands are able to show customers that they care about them on an individual level.
3. Leverage Technology and Data
The hardest part of personalizing the transaction moment is analyzing customer data to identify the best next offer for the customer in real-time. What’s relevant to each customer? What messages, offers, or products would best fit their needs? It is important to be able to prioritize customer preferences in real time using machine learning to leverage their data without compromising the customer’s privacy and still providing a personalized experience.
Rokt uses AI and machine learning to analyze a customer’s preferences and takes that information to present personalized offers that the customer is more likely to engage with. Whether it’s providing an airplane seating upgrade for a frequent flyer customer or offering a free trial for a streaming service that piqued the customer’s interest before, technology can make personalization much easier for brands and increase customer satisfaction as well.
Setting new priorities for your business means going back to what matters most: the customer. Prioritizing customer-first personalized experiences is the best way to take advantage of the transaction moment and increase profits while ensuring customer satisfaction.
Bruce and Anna also discussed how ecommerce is evolving and how to address digital pain points for customers and brands alike. View the full conversation here.