Personalisation has become an expected part of customer experiences. American Express share consumer and retailer insights around optimising your personalisation efforts to see maximum returns.
Delivering a personalised customer experience is no longer optional for retail brands looking to drive loyalty and spend.
American Express surveyed 1,000 UK consumers, exploring expectations around personalised retail experiences and offers, and the impact this has on their spending and loyalty. The findings were revealing; personalised offers are now an expectation for almost three quarters (74%) of consumers.
In tandem, American Express spoke to 750 UK retail decision makers to probe how they are rising to the challenge. The research revealed clear recognition of heightened customer demands for personalised offers and experiences, but 85% said driving and sustaining this level of personalisation ‘at scale’ to large and often diverse audiences, is one of their biggest challenges.
Incentivising customers to purchase for the first time was also revealed as a top priority for 95% of the retailers surveyed. Encouragingly, 85% of consumers said a deal or incentive based on their preferences, delivered at the right time, would persuade them to buy from a new retailer.
The customer retention challenge
Offers are clearly a powerful motivator for brand trial, but what about repeat custom? The vast majority (94%) of retail decision makers told us that retaining current customers is a business priority over the next 12 months, alongside fostering a strong sense of connection; 94% of retailers said they want their customers to feel like they really ‘know’ them.
Personalised offers can prove invaluable in delivering against these objectives; 87% of consumers said they’re more loyal to retailers who give them something in return for their spending, compared to those who don’t – but these rewards must feel relevant, as almost two thirds (63%) admitted that they discard non-targeted offers such as promotional codes or store wide sales.
The potential of card-linked offers
Dwindling engagement in generic offers means minimal return on investment for merchants.
In contrast, 94% of retailers see personalised card-linked offers - digital offers from retailers which are directly linked to a particular payment method like a credit card - as a great way to win new customers and drive up incremental spend.
A similar number (93%), believe these types of offers help reach a wider customer base. From a consumer standpoint, four-fifths (81%) are more likely to redeem personalised card-linked offers than traditional sales or generic offers, which many admit to ignoring.
Growing business with Amex Offers
American Express partners with merchants across all sectors to develop scalable and bespoke campaigns via our Amex Offers platform. These can be designed to meet a wide range of objectives, from engaging our high-value Cardmembers, increasing spend, driving repeat custom or re-engaging lapsed customers. The campaigns are easy to set up, with support and updates on progress and performance available throughout.
For Cardmembers, the offers are well timed, relevant and easy to redeem, with no codes or landing pages. The promotions they receive are tailored to their interests and purchasing behaviours and only require a single click to sign up.
The results of these powerful data-driven campaigns speak for themselves. American Express partnered with a leading UK grocery merchant looking to drive spend and increase loyalty. Across the three-month campaign period, the average purchase size more than doubled. The newly acquired customers made an average of 1.8 transactions during the campaign, but this increased to an average of 4 transactions in the following three months.
Unlike other card-linked offers providers, with Amex Offers merchants only pay for the offers redeemed. We agree a budget with merchant partners up front and provide regular updates on how redemptions are tracking against it. There are no other hidden fees, making it cost-effective, easy to deploy, and no-risk for merchants.
As demands for personalised shopping experiences show no signs of abating, Amex Offers can help retailers meet the challenge – providing a compelling addition to existing marketing activities which is proven to engage and incentivise the customers they want to reach and retain.
