Leverage Buyer Personas to increase your customer’s lifetime value
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It’s no secret that the customer experience is the foundation for converting more customers to generate revenue and creating brand loyalty to convert guests into regulars for life. Ecommerce retailers around the world are (or should be) obsessed with creating a simple, frictionless, and personalized customer experience – the kind of customer experience people tell their friends about.
Roadblocks to a positive customer experience
The road to a differentiated customer experience can be rocky; However, retailers must find new ways to meet increasing customer expectations and their desire for personalized interactions, while restoring trust damaged by recent supply chain disruptions. Throw inflation, the threat of recession and labor shortages into the mix and cracking the code gets trickier.
With many people working to restore relationships and convert guests into known customers, e-commerce vendors face a variety of customer-related challenges, from “checkout ghosters” to dissatisfied customers dissatisfied with their home delivery performance. For example, did you know that 70% of customers leave their carts behind before completing a purchase?)
When it comes to last-mile delivery, a recent survey found that 67% of consumers experienced a home delivery problem in the three months surveyed, with 68% of those consumers taking action against the retailer or delivery company. What brand can withstand that level of retaliation?
Related: 5 ways to deliver a positive customer experience in ecommerce
Home delivery: missed opportunity
Don’t make the common mistake of underestimating the power of a positive customer experience to differentiate your brand, drive sales, create lifetime customers – and control delivery costs. On the other hand, keep in mind that poor delivery performance can compromise the customer experience and irreversibly damage your brand.
Indeed, a 2022 study found that customers had experienced those delivery problems had stopped ordering from the retailer (23%), while 16% told family and friends to avoid the retailer – a figure that can cripple a brand given the speed at which these experiences can be shared across social media and messaging platforms.
Related: Buyer Personas: what they are, why they matter and how best to build one
Go beyond buyer personas
While every retailer recognizes the value of creating buyer personas to underpin marketing strategies, many are in the dark about delivery personas. But delivery personas are equally powerful, with the ability to nurture brand loyalty, add incremental revenue, and reduce operational costs to improve top and bottom-line performance.
Simply put, customer delivery personas include a mix of delivery speed, accuracy, additional services, and insight into delivery choices (for example, the most environmentally friendly) to help retailers create a range of delivery experiences tailored to their customers’ individual preferences.
Be here five delivery personas what ecommerce businesses should consider when shaping delivery strategies and helping personalize the customer experience to turn guests into lifelong customers:
- Price-conscious: For these customers, cost is the most important thing. These individuals are highly price sensitive and prioritize delivery costs above all else. They will choose the slowest shipping method available if it means they can save some money. The time of delivery is also of little concern to them – they are willing to wait days for their package (as long as it arrives within a reasonable time).
- Package-oriented mindset: These customers prefer fast, hassle-free delivery of their smaller items, such as clothing and accessories, which are typically delivered quickly without requiring them to be present for a specified delivery time. For example, they are happy to have their package left at their doorstep at any time of the day and usually do not worry about a time-bound delivery. This particular person also appreciates the convenience of receiving their package quickly without having to wait for a specific delivery time and is satisfied with the fast delivery cycle offered by most e-commerce companies.
- Convenience is key: These customers value precision over speed. They have a specific time window in which to have their items delivered and prioritize convenience over speedy delivery. This persona often includes customers who buy larger items, such as appliances or furniture, who need their delivery in line with the installation date and the availability of other merchants. For them, a seamless delivery experience is crucial and can have a major impact on their overall satisfaction with their purchase.
- Time is money: This group of consumers prioritizes their time above all else and is willing to pay a premium to have their valuable purchases or replacement items delivered as quickly as possible. They want their delivery to fit into their busy schedules and are willing to pay for the convenience of timely and efficient delivery of purchases – and it doesn’t take too many of these types of customers to offset a significant portion of your overall costs . delivery charge.
- Environmentally friendly focus: With a strong desire to reduce their carbon footprint, these consumers are looking for companies that prioritize sustainability and eco-friendly delivery options. They are not only interested in the product, but also strive for environmentally friendly practices from the companies they shop with. These customers are willing to be flexible in terms of delivery time and speed, especially if this aligns with their environmental values. They may even be interested in grouping orders when you have deliveries in their area or want you to recommend the most sustainable delivery option.
Given that 65% of consumers think of the environment when placing an order – and some customers, especially Gen Z and millennials, are willing to pay more for eco-friendly delivery – the sustainability delivery persona presents an excellent opportunity to reduce delivery costs by reducing the number of deliveries, increasing delivery density and allow for better planning with longer lead times.
Related: How to increase customer lifetime value and increase profits
Using delivery personas to give customers what they want
By offering delivery options at checkout, customers can choose which option best suits their needs for a given purchase, which can translate into a welcome increase in sales. Case in point: A 2021 study suggests that 71% of consumers expect companies to do just that provide personalized interactions – and 75% get frustrated when this doesn’t happen.
Personalizing delivery options using delivery personas opens up new possibilities to delight your customers. While low cost and speed are obvious choices, delivery preferences differ depending on the type of product purchased (e.g., groceries vs. appliances). Offering value-added services such as contactless delivery and sustainable options, or the ability to book a specific date or delivery window, are extremely valuable delivery preferences that drive customer loyalty and continued growth.
Not every persona is relevant to every buyer and not one comes first. On the contrary, a combination of them will create an extraordinary customer experience that takes into account how fast a delivery can be made, the accuracy and the cost. Don’t miss the opportunity to leverage customer delivery personas to protect margins, drive customer retention, and increase customer lifetime value.
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