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New study: health and beauty retailers failing to embrace personalisation opportunities

A new study has found that health and beauty retailers are failing to embrace personalisation opportunities throughout the online shopping process.

GENERAL MERCHANDISE

New study: health and beauty retailers failing to embrace personalisation opportunities

A new study has found that health and beauty retailers are failing to embrace personalisation opportunities throughout the online shopping process.

The research by retail marketing agency Leapfrogg analysed ten of the UK’s health and beauty ecommerce operations, looking at consumer data collected and how it is used to offer a personalised experience across all digital points.

Two studies were carried out concurrently over one month. The first researcher made a purchase on each site, while the other followed the same path but did not make the final purchase. Each then followed a set of interactions with the ten retailers.

Overall, half of the health and beauty brands researched gave shoppers personalised content while they were browsing on site by showing recently viewed or recommended products.

Some 20% collected hair, skin and beauty preferences during the purchase or email sign up process.

Less than a third of retailers collected customers’ gender as they signed up for marketing and special offer emails. All emails subsequently received were female-focused.

When sending emails, 30% addressed respondents by their first name. 20% personalised email communications to shoppers according to previous purchases, while a further fifth sent trigger emails influenced by on-site behaviour.

Meanwhile, 40% of health and beauty brands showed consumers personalised retargeting or display ads on other websites including Facebook, based on products viewed or purchased.

Rosie Freshwater, managing director of Leapfrogg, said: “The health and beauty sector has ample opportunities for personalisation during the browsing and shopping experience, given every existing and potential customer will be interested in different products based on their age, skin type, hair condition and brand preference.

“Our research shows there is currently a real lack of targeting. Minimal data and preferences were being collected and we saw little evidence of tailored content or offers, with most retailers taking a general approach to communication across multiple channels.”

The elements of personalisation analysed in the study included data collected pre, post and during purchase, online communication, packaging, trigger emails, offers and content based on onsite behaviour plus personalised retargeting.

Freshwater added: “While some were collecting shopper preferences, there often wasn’t any indication as to how data was being used. Retailers have the potential to upsell and encourage repeat business by showing that they recognise and understand customers with relevant content.”

 

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