2022 is the year of rising costs. The UK is experiencing its highest inflation rate in decades, the cost of living across the world is increasing dramatically, and the growth of the privacy era has pushed advertising into a spiral of rising costs and diminishing returns.
In a challenging climate, how can brands respond in order to deliver ecommerce success?
At Increasingly, our core mission is to help traditional retailers deliver more convenient shopping experiences online through better product discovery and attachment. Obtaining new customers is a huge challenge for retailers currently. Brands should be focusing on AOV and customer retention strategies, by looking at the on-site customer journey and how it can be optimised to deliver more memorable experiences – which leave them wanting more!
So how can you do this?
Technology is giving retailers an opportunity to drive more realistic and relevant experiences for their customers online.
For example, L’oreal used AR technology across social media and search to help customers try-on items prior to purchasing. IKEA’s Place App has helped customers visualise furniture in their own homes with just a few clicks. Likewise, Increasingly’s AI-powered product bundling technology is helping retailers focus on revenue-boosting metrics such as average-order-value by helping customers purchase the entire DIY project or skincare routines in one go.
How is product bundling different to recommendations?
Product recommendations are a great way to drive the discovery of products that see less traction than others. However, it doesn’t help customers identify other relevant items to purchase in addition to the items they are already viewing.
Located most often at the bottom of a product page, recommendations often showcase similar items rather than complementary products. So your customers are unlikely to purchase multiple products from your site through recommendations – in most cases, it would be an either/or decision as opposed to both.
Product bundling, however, drives better visibility of complementary items that complete a project/look/routine/mission. Using beauty as an example, many beauty brands are famous for one particular item – often their bestseller. However, it is likely that the same brand has a variety of complementary products that can be purchased together to ‘complete the look’. Product bundles allow beauty brands to deliver relevant bundles that encourage customers to purchase the whole look from them.
So, brands can strike whilst the iron is hot, by driving product discovery and convenience to customers who are already engaged with their brand. On average Increasingly has helped brands deliver +33% increase in their average order value, whilst also playing a role in driving customer loyalty.
Taking it back to the beauty example, if a customer who would usually purchase a foundation from your brand, has discovered a new concealer and powder through a product bundle – and likes it – then you have increased the average order value of this customer for life!
We offer a solution for both Product Bundling and Product Recommendations.
A lifeline to rising costs
As customers become more conscious of their spending due to rising costs of living, it is naturally going to become harder to convert new customers online. Product bundling technology will allow retailers to capitalise on current purchase interest, whilst also providing a convenient and personalised experience for their customers – some even say it’s ‘a no-brainer!’
Want to learn more key tactics to combating rising acquisition costs? Download our exclusive guide featuring insights from the experts at TokyWoky, Awin, Pimberly Mention Me & Lengow and of course Increasingly!