5 challenges of web shops around email
Personalization is a must for web shops. On the webshop, in emails and even in advertisements, a personal message is a must. Yet many web shops stay away from personalization possibilities. It is too complicated, too expensive or takes too much time. Recognizable? Below are the five biggest challenges around personalization for your emails. Including the solutions.
Challenge 1: Lack of time
The first challenge is immediately the most frequently heard. To apply personalization effectively in emails, you need enough time. Because, personalization data varies enormously.
Think of personal data and corresponding purchase behavior, but also your entire product catalog. Suppose your webshop has over 500 products. Each product is divided into several sizes or variants. Segmentation based on purchase behavior alone is a huge time-consuming task. Add to that other work (because chances are you have multiple tasks and responsibilities). The result is that there is simply no time to set up good email flows and therefore left unaddressed.
The solution to this challenge: email automation. By choosing an automation tool you can easily set up email flows, such as win-back and abandoned cart campaigns. Enrich the email flows with personalization that is often already waiting for you in the same tool. This combination saves time and increases ROI (return on investment).
Challenge 2: Lack of data
We've said it before: as a webshop, you're sitting on a big pile of valuable data. Data on which you can use super effective automations. But, then you have to collect, store and interpret all this data in the right way. And that is exactly where the shoe pinches.
Many webshops have problems using their data. Because of the enormous amount, it is difficult to keep an overview. In addition, a separate link must be made for each marketing channel to make the data usable. Not to mention the shift from third party data (based on cookies) to first party data.
The solution to the lack of structure in data is a CDP (Customer Data Platform). In a CDP all webshop data comes together. This gives you insight into customer behavior and their needs. Insights you can capitalize on with personalized campaigns.
Challenge 3: A limited target group
Many web shops ignore personalization because it means you are targeting a limited audience. Namely: existing customers. Customers who have already made a purchase and therefore know how to find your shop. Why would you invest in this group when you can use the same money to attract new customers? That these new customers forget about your shop after one purchase is something you take for granted.
The main reason to focus on existing customers is that they are more profitable than new customers. That sounds illogical. We'll explain it to you using an example.
Compare investing in new customers to fishing at a lake. You hang your fishing pole in the lake and wait (preferably not too long) for a bite. Every fish that bites is one. Even if it's a guppie. You throw the caught fish into a bin and move on. You are not satisfied until that tank is completely full. Mass is cash! At the end of the day you inspect the catch. You see many different kinds of fish. A handful of big ones, but mostly lots of small ones. Did you work so hard for that?
Then take up tuna fishing. This requires more time and effort. First, you have to learn about the tuna's natural behavior to locate them. In such a large sea, this can take a while. Once you know where the school of tuna is, you need patience to catch one. Did you finally get a bite? Reeling it in requires another dose of strength. A lot of time and effort for less catch, but more yield. And that's what you do it for!
Approaching existing customers can be compared to tuna fishing. Once you've invested in getting to know your customers, it's much easier to retain existing customers. You have a better understanding of their behavior and needs and can therefore offer them what they want. Besides, the customers already know your webshop. So you no longer have to convince them of your USPs. There is trust. That trust increases the chance of more purchases and thus more growth.
Challenge 4: Good segmentation
Personalization starts with segmentation. That is, dividing your target audience based on data. Without segmenting your target audience, you send the wrong message to the wrong people at the wrong time. You're shooting with hail. And that's exactly what you want to avoid with personalized emails.
Segmenting a customer database can be complicated. What characteristics do you filter on? And when does a customer fall outside the segmentation? To answer these questions you need insight into all the data. Something that - again - requires a lot of time, and sometimes technical knowledge. Two challenges that make web shops choose to send e-mails to their entire customer database.
Segmentation does not have to be difficult. As mentioned before, a CDP gives a lot of insights into your database. There are often ready-made segmentations ready for you (e.g. based on RFM) or possibilities to set up extensive filters yourself. This makes it easier for you to develop personalized flows.
Challenge 5: Manual operations.
The last challenge is one that can also be linked to the lack of time. Much around emails still needs to be done manually. Take composing the e-mail.
Apart from the images and text placed in the email, you also want to show the right recommended products. These recommended products should be tailored to the recipient, for example, or based on a specific category. Figuring out specific products is time consuming. Designing them correctly for the email adds to that. This is one of the operations automated in email tools. You only need to set the requirements of the products. Placement in the e-mail happens completely automatically.
The automation, whether or not in collaboration with AI, allows scalability of email flows. Personalization is also accurate and leaves you time to engage in the creative and strategic processes surrounding e-mail marketing.
The solution to all challenges: a CDXP
You've actually already read the solution to the above challenges: a CDP. Reloadify takes it a step further with a CDXP. The X stands for Xperience, or direct use of all the data you collect. In the same platform. This means that ín the CDP you can also set up campaigns for different channels. Send e-mails, SMS and create target groups for social ads. What does that look like? Take a look at all our features or schedule a demo right away.
