Personalized merchandising is a marketing tactic that can have a big impact on sales. Many studies corroborate the idea that personalized merchandising on online stores can dramatically improve conversion rate optimization. It will also boost sales substantially.
So, what is personalized merchandising? It involves providing customized product suggestions and offerings based on a customer’s unique browsing habits, geo-location or demographics. Personalized merchandising can even take external factors into play such as the weather. For example, an online store can suggest customers buy umbrellas, rain coats or jackets if the weather in their location is currently rainy.
The idea behind personalized merchandising is to give the customer products that he or she may be more inclined to buy based on certain information that is gathered about them. Analytics software is often used in this process. The software gathers data about them and then tries to show similar or relevant products that it thinks the visitor will be likely to buy or consider buying.
A big part of personalized merchandising has to do with cross-selling. If a person buys a t-shirt for the beach, they will most likely need some shorts as well. If you have personalized merchandising software in place, then the program should automatically suggest that the customer consider adding some shorts to complement their t-shirt purchase.
So, does personalized merchandising work? The answer is yes. Conversion rates can increase by two or threefold for retailers that incorporate personalized merchandising in their online stores. Conversion rates refer to visitors becoming buyers when they visit a site.
Not only will you get more buyers with the use of personalized merchandising software on your online store, but you should also be able to sell more stuff as well. This is because personalized recommendations greatly increase the number of items you can cross sell. Up-selling can also see a major increase with personalized recommendations. You can suggest upgrades or premium services to customers and chances are some of them will agree.
The use of personalized merchandising software can be an excellent investment in conversion rate optimization. It also almost always provides an excellent return on investment as well. One major retailer in the UK saw hundreds of pounds in additional sales from every pound they spent on the merchandising software.
It is easy to implement personalized merchandising in an online store. The return is often many times more than what is put in. Many of the biggest online retailers have been using such software for many years now and smaller retailers are encouraged to follow suit.