The vast majority of online retailers might talk a good game when it comes to employing permission-based targeted marketing but are clueless when it comes to using their customer data to do so, according to a study of the UK’s top 50 online retailers.
With nearly all (96%) of the firms surveyed having an app, the research – carried out by Teradata – suggests most retailers are simply not using mobile comms effectively to engage customers, despite almost half (44%) sending in-app notifications. Only a third actually use the data at their fingertips.
Only 31% of the apps analysed were using any form of personalisation in their messages, with just 13% using customers’ names when sending messages. Despite this, 67% of online retailers are recognising the importance of geographical targeting by asking for a customer’s location.
Meanwhile fewer than half (44%) of online retailers welcomed new customers to their app with an offer and of those in the top 50 which have stores, only half encouraged app users to visit.
In addition, none of the apps sent ”abandoned cart” push notifications to alert customers to incomplete transactions, which, the study suggests, means retailers are missing out on both in-store and in-app sales opportunities.
Teradata Marketing Applications country manager for UK & Ireland Jon Williams said: “It’s imperative that retailers recognise the opportunities app communications provide, not only for increasing sales, but for increasing brand loyalty and improving customer experience.
“Currently, they are not engaging their customers across multiple digital channels. Our research into both emails and app messages shows they are failing to truly join the dots across their communications technology to serve customers effectively. It’s time for personalisation to be at the core of customer communications, and retailers must use push notifications more effectively to influence purchasing decisions.”
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