Consumers are making impulse purchases in stores and spending big amounts of money online, according to recent research. The rise in buy-now-pay-later services is also being credited to this trend. The US has seen a significant increase in usage and interest in such services. A way forward for both online shopping companies and customers? Continue reading to discover ways forward. This article outlines several ways forward. It highlights the importance of personalization in online shopping.
Consumers are more likely to make impulse purchases
In a recent study by Slickdeals, the retailer’s website revealed that a segment of consumers are more likely to make impulse buys when shopping online. Of the respondents, 16 percent made a large number of impulsive purchases. Most impulse purchases were made on foods and snacks, but 38 percent also bought ice cream and frozen treats. Further, 53 percent of consumers would stick with their impulse buys if they were given the option to make a second purchase.
Various factors influence impulse buying online. A sense of urgency, social influence, and instant rewards may be the biggest drivers. Moreover, a user-friendly interface and a large number of products are known to increase the chances of impulse buying. The website’s layout and user-friendliness also play a role in increasing the chances of consumers making an impulse buy. Online shopping websites with product recommendation systems and price comparisons also enhance the likelihood of consumers making impulse purchases.
Subscription-based retailing improves customer lifetime value
The concept of subscribing to a product or service offers retailers the potential to increase customer lifetime value. A subscription model can be highly profitable, and can also help companies expand. However, implementing a subscription model is not without its challenges. In order to be successful, subscription companies must deliver on the value they promised. This means developing a strategy that improves the overall experience of customers.
To create a successful subscription business, you must consider a range of factors, including the size of your customer base. Considering the number of customers, how many subscriptions do you need to maintain? The subscription model is an excellent option for smaller businesses. In addition to ensuring that customers stay on a subscription plan, you should keep track of how many products or services your customers buy from you. Subscriptions are often highly profitable, so your subscription plan should be in line with your company’s overall strategy.
Personalization is standard for online shopping
When a customer is prompted to buy something based on their preferences or needs, the online shopping company will make it more likely to make a sale. In fact, 45% of site visitors prefer sites that offer personalized recommendations. Similarly, brands that offer personalized recommendations see revenue increase of 38%. Such personalization increases conversion rates and generates more revenue. But how do you make personalization work? Here are some ways to increase your conversion rate and revenue stream:
The key to achieving personalization is data collection. The process can include on-site interactions, paid media pixels, social and search. In most cases, the data is real-time, and tracking tools are required to gather this data. AI and machine learning are two of the most promising AI technologies and should be the core technology driving your personalization efforts. In order to maximize the impact of personalization, businesses must first define the goals and target audience.