How helpful would it be to create personalized shopping experiences for your customers using data you collected from them?
We had a chat with Gen Furukawa, co-founder of Prehook, on all the benefits gathering zero-party data from your customers would have on your store’s traffic and revenue and how you can generate this data.
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The evolution of data tracking
Marketing has evolved significantly to the point where merchants can track the activities of their users across the web by gathering zero-data; what items they like, what they are searching for, and what they might purchase sometime in the future.
What’s even better about this form of data generation is that customers choose to directly and willingly share with you what they need, everything they have their eyes on, and what they are on the lookout for.
Advertising has become tricky and expensive with a much larger consumer market and even more competitors. High cost per click and cost per acquisition costs means it’s no longer enough to advertise for everyone in hopes that they’ll be tempted to buy; you have to focus on advertising for the right person.
Gathering quality data for personalized shopping experiences
So, if your goal is to target the right person with the right message at the right time, how do you make that target? By asking them!
You can learn a lot about your customer’s interests by asking only a few questions.
A simple quiz/survey would have all the answers to your questions about what they prefer, their challenges while shopping with you and how you can make their shopping experience even better. The answers you receive in a few minutes may be the same insight you would have otherwise spent months and thousands of dollars on ads and strategies trying to gather.
Think of it as walking into a store and speaking with a sales associate or ordering a drink from the bartender. The quiz replicates this direct interaction of learning what they need and recommending the right product.
The answer to a “how can we help you?” question tells you why they logged into your site and what they might be searching for, simplifying the buying process and, in turn, improving your conversion rates.
Because as a merchant, your sole purpose is to help customers find their ideal point. And once you know what they want, you can now recommend your product as the answer.
First-party vs. zero-data
There are lot of differences between first-party data and zero-data, especially when tracking data.
With first-party data, you follow them everywhere and track everything, including previous orders and websites they have visited. But with zero-party data, your leads are more personalized to their interest in your store.
For instance, with first-party data, when Nick buys a moisturizer, you’re not really sure if it was for him. So, you’re left guessing if he has dry skin and would buy this product regularly or if it’s a one-time purchase as a gift to a friend.
But instead of spending hours trying to make sense of this data, cut that time in half by just asking:
- What products are you looking for today?
- What type of skin do you have?
- What challenges would you like to solve with this product?
His responses would tell you if Nick would be coming back soon or if you need to target other products as well to ensure he comes back again. Not to forget that they also arm you with all you need for a more compelling marketing strategy with better segments, better targeting, and greater relevance.
Merchants who have adopted zero-party have effectively created personalized shopping experiences that translate into increased conversions, repeat purchases, and ultimately a higher lifetime value. A great example is Third Love and how they used quizzes to answer the problem of inconvenience when shopping for bras online, improving their conversions and sales.
The better data you gather, the better your personalization
However, not everyone might want to take a quiz. Here’s where stirring up their curiosity with the right questions comes in.
But to form the right questions, you need to identify what data points you use to create segments? What data points are you missing? Or what challenges are they facing? Create your questions from a customer perspective and ask questions that appeal to their curiosity by offering value.
Customers are more likely to respond when they get something in return, after which you can score a goal by showing them products related to what you shared in the quiz.