PROMOTIONAL RESEARCH
No longer just a buzzword, personalisation offers real opportunity for growth, American Express’ Dan Edelman examines four ways retailers can use it to the greatest effect
Personalisation has become essential for retail brands looking to drive loyalty and increased spend. The more merchants can tailor tools like promotions and offers to shoppers’ individual needs and interests, the better experience they can provide.
But delivering this kind of personalisation to a large, diverse audience is not easy.
As revealed in research1 commissioned by American Express, just under three-quarters (74%) of consumers now expect brands to provide personalised offers based on what they like and have purchased previously. Additionally, almost two-thirds (63%) say they tend to ignore offers that aren’t personalised to them – meaning retailers need to step up to stay competitive.
Below we have outlined four key findings from our research to help retailers leverage offers and promotions tailored to customers’ interests to greater effect.
Personalised offers really do drive engagement
The vast majority of retailers are prioritising either attracting new customers (95%) or retaining existing ones (94%) in the next 12 months – and personalisation has a crucial part to play.
Over four-fifths (85%) of consumers would be compelled to try a new retailer that gave them personalised offers, whilst 87% said they would feel more loyal to a retailer that provided them.
Personalised offers foster a greater sense of connection too, with 82% of shoppers saying they’d feel ‘seen’ by a retailer that provides them.
Personalisation at scale remains big challenge
Retailers acknowledge that delivering and sustaining a programme of personalised messaging, promotions and offers to a large audience is difficult, with success often hinging on the quality of customer data analytics and automation to deliver this at scale to customers.
None of these technologies come without significant investment and skills to manage effectively. That’s why almost all (94%) of retailers agree that their business needs new solutions to help them customise offers at scale.
Retailers see huge potential in card-linked offers
Traditional promotion mechanics, such as vouchers, codes or landing pages, are expensive for retailers and, according to consumers, ineffective.
In contrast, 94% see personalised card-linked offers – digital offers from retailers that 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%) also believe personalised card-linked offers help them reach a wider customer base than they’d otherwise have access to.
The power of well-targeted, well-timed and relevant card-linked offers in driving repeat customers was also evident in the consumer survey, with 85% saying they’re more likely to return to a retailer that provides them.
Data helps power business growth
Data is the backbone of personalisation and harnessing its power can drive measurable business growth. But it doesn’t have to be difficult to leverage.
For example, American Express partners with merchants across all sectors to develop personalised card-linked offers based on our deep Cardmember insights, with easy-to-launch campaigns that drive both new and repeat spend. We work with retailers to devise the right bespoke offer for their objectives, creating promotions that we know our Cardmembers will find appealing – requiring just one click for them to sign up.
The results speak for themselves; one of our retailer partners, an internationally renowned apparel brand, engaged thousands of new Amex Cardmembers during the offer period, with almost a third (29%) returning post campaign to spend with an increased average transaction size.
Discover more about the business benefits of Amex Offers
1. The research consisted of two studies conducted in partnership with a third-party vendor on behalf of American Express, surveying 1,000 UK consumers and 750 retail decision makers between 10-20 May 2024.
Dan Edelman is general manager, UK Merchant Services, at American Express.