Leverage Buyer Personas to Boost Your Customer Lifetime Value

It’s no secret that customer experience is fundamental to attracting more customers, increasing revenue, and building brand loyalty that turns guests into lifelong repeat customers. Online retailers around the world are (or should be) obsessed with creating simple, convenient, and personalized customer experiences—the kind of customer experiences that people tell their friends about.

Obstacles to a positive customer experience

The road to differentiated customer service can be rocky; however, retailers must find new ways to meet rising customer expectations and the desire for personalized experiences while restoring trust that has been eroded by recent supply chain disruptions. Throw in inflation, the threat of a recession, and a labor shortage, and the code becomes harder to crack.

As many work to rebuild relationships and turn guests into famous customers, ecommerce vendors must address a variety of customer-related issues, from “ghosts at the checkout” to disgruntled customers dissatisfied with their home delivery experience. For example, did you know that 70% of customers throw your carts before the purchase?)

In terms of last mile delivery, a recent study found that 67% of consumers experienced home delivery problem in a three-month survey, with 68% of those consumers taking action against a retailer or delivery company. What brand can withstand this level of retaliation?

Connected: 5 Ways to Ensure a Positive Customer Experience in Ecommerce

Home delivery is a missed opportunity

Don’t make the common mistake of underestimating the power of a positive shipping experience to differentiate your brand, drive sales, build loyal customers, and contain shipping costs. On the other hand, be aware that poor delivery can compromise customer experience and cause irreparable damage to your brand.

Indeed, a 2022 study found that customers who experienced Problems with delivery no longer ordering from a retailer (23%), and 16% advised family and friends to avoid the retailer – a number that could be detrimental to a brand given the speed with which these experiences can be shared across social media and messaging platforms.

Connected: Buyer personas: what they are, why they matter, and how best to create them

Going beyond customer portraits

While every decent retailer recognizes the value of creating shopper personas to inform marketing strategies, many don’t know anything about delivery personas. But delivery agents are just as efficient, able to nurture brand loyalty, increase revenue, and cut operating costs to boost overall and net productivity.

Simply put, customer delivery characters include a combination of delivery speed, accuracy, value-added services, and an understanding of shipping options (such as the most environmentally friendly) to help retailers create a range of delivery options tailored to their customers’ individual preferences.

Here five deliveries which e-commerce companies should consider when shaping delivery strategies and helping to personalize the customer experience to turn guests into repeat customers:

1. Pricing: For these customers, price is critical. These people are very price sensitive and will put shipping charges above everything else. They will choose the slowest shipping method if it means they can save some money. Delivery time is also not of great importance to them – they are ready to wait for their package for days (provided that it arrives within a reasonable time).
2. Parcel Oriented Thinking: These customers prefer fast and hassle-free delivery of their small items such as clothing and accessories, which usually arrive quickly without the need to be present during a specific delivery time. For example, they are happy that their package is left at the door at any time of the day, and usually do not worry about delivery by a certain time. 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.
3. Main convenience: These customers value accuracy over speed. They have a specific time window in which they need to deliver their goods and prioritize convenience over fast delivery. This character often includes customers buying larger items such as appliances or furniture that require delivery coordinated with the date of installation and availability of other vendors. For them, hassle-free delivery is critical and can make a big difference in their overall purchase satisfaction.
4. Time is money: This group of consumers value their time above all else and are willing to pay more to have their high-value purchases or replacement products delivered as soon as possible. They want their delivery to fit their busy schedules and are willing to pay for the convenience of delivering their purchases on time and efficiently—and it doesn’t take too many of these customers to make up a significant portion of your total revenue. shipping cost.
5. Green Focus: With a strong desire to reduce their carbon footprint, these consumers are looking for companies that prioritize sustainability and environmentally friendly delivery options. They are not just interested in the product, but also want the companies they buy from to be environmentally friendly. These customers are willing to be flexible with terms and speed of delivery, especially if it is in line with their environmental values. They may even be interested in grouping orders when you have delivery in their area, or may be interested in you recommending the most sustainable delivery option.

Considering that 65% of consumers consider the environment when placing an order – and some customers, especially Gen Zers and millennials, are willing to pay more for green delivery – sustainable shipping represents a great opportunity to reduce shipping costs by reducing the number of deliveries, increasing delivery density, and providing for better planning with more long lead times for orders.

Related: How to Increase Customer Lifetime Value and Increase Profits

Using delivery people to give customers what they want

By offering checkout delivery options, shoppers can choose which option best suits their needs for any given purchase, which can lead to a welcome boost in revenue. Case in point: A 2021 study shows that 71% of consumers expect businesses to provide personalized interaction — and 75% get upset when it doesn’t.

Personalizing shipping options with delivery personas opens up new possibilities for satisfying your customers. While low cost and speed are obvious choices, shipping preferences differ depending on what type of product is being purchased (such as groceries or home appliances). Offering value-added services such as contactless delivery and sustainable options, or the ability to book a specific delivery date or window, are extremely valuable delivery preferences that drive customer loyalty and sustainable growth.

Not every persona is relevant to every customer, and there is no one that comes out on top – rather, their combination will create an exceptional customer experience, considering the speed of delivery, its accuracy and its cost. Seize the opportunity to use customer images to protect profits, increase customer retention and enhance customer value throughout the lifecycle.