Today, for a large section of consumers, e-commerce is becoming the primary shopping platform. The global e-commerce market is expected to touch a staggering $4 trillion by 2020. With household broadband penetration in Asia expected to touch 55 per cent by 2022, the conveniences of online shopping has extended much beyond the middle income to affluent demographics in large cities. Everyone – from the urban yuppie in a big city to her retired parents in her home town – is buying everything from groceries to large appliances, fashion to leather goods online. This rapid rise of online shopping has brought new opportunities for e-commerce brands, but at the same time, complexities have increased manifold too. Here’s how location graphs can help these brands break through these complexities.
Breaking through new audience means discovering new realms to audience personas
One of the primary challenges that e-commerce brands are facing is access to fresh, real world insights about their audience personas. At a time when personalization has become the holy grail of marketing, these insights have the power to make or break brands and businesses. Traditionally, brick and mortar stores have relied on years of personal relationships in order to understand customers’ needs and in turn, earn their loyalty. E-commerce brands also need to tread a similar path. But with fewer physical world touch points, these brands need new tools to uncover insights about the physical world behaviours of their customers.
Traditionally, brick and mortar stores have relied on years of personal relationships in order to understand customers’ needs and in turn, earn their loyalty. E-commerce brands also need to tread a similar path
Where people go defines who they are, what their lifestyles are like, where they shop, what their shopping needs might be in the near to mid-term future. This is where location graphs can be a major boon for e-commerce brands. Using data solutions such as Lifesight’s Placesense Graph, brands can now enrich their customer data with insights about their offline behaviour. Using these insights, e-commerce brands will be able to find meaningful connections between how their customers navigate their platforms and how their real world behaviour impact their online behavior.
Location graphs power personalized experiences that are similar to physical stores
Traditionally, households around Asia have that one store they rely on for their appliance shopping, another for their grocery needs and so on. These relationships are based on years of understanding family values and purchase needs. For example, during Diwali in India, when a family in a small town walks into an appliance store, the owner would know not only their purchase history but also where they live, what they do, and how much their average spends in the holiday season amounts to. With this information, these stores can then predict what this family might need this festive season and how much they would be willing to spend on it.
The ability to translate real world behaviour can further refine e-commerce recommendation engines, enabling more accurate contextualisation and boosting sales
E-commerce needs to have a similar hold on their consumer personas, especially with newer audience segments joining their customer base. By enriching their customer data with location graph data, e-commerce brands will be able to get a 360-degree view of their customers. The ability to translate this real world behaviour can further refine e-commerce recommendation engines, enabling more accurate contextualisation and boosting sales. This accuracy is good for business because it results in increased conversions and higher per-unit sale. It also enables a far more personalized experience for customers. When a business – online or offline – understands their customers well and is relevant to their life moments and buying needs, it earns their trust and loyalty. E-commerce brands need to be armed with such insights in order to be timely, contextual, and personalized in their customer touch-points not just in advertising but also on POS. This is exactly where Location Graphs can prove to be a goldmine for e-commerce brands.
New customer acquisition gets more refined with Location Graphs
For an industry like e-commerce, new customer acquisition is one of the biggest business objectives. In the blue ocean where these “new customers” exist, it is a challenge for e-commerce brands to identify which specific individuals are most likely to buy from them and consequently, become loyalists. This uncertainty results in new customer acquisition campaigns that literally shoot in the dark without any real understanding of their target audience and their needs and buying journeys.
However, Location Graphs hold the key to making these campaigns more targeted towards individuals with the highest chances of becoming long-term customers. Marketers can now also build custom audience segments through Lifesight’s Placesense Audiences based on their offline affinities. Combine this with Location graphs, and you have a winning combination where you can tailor your advertising to the right customer, at the right time, and at the right place. This translates to higher ROI on new customer acquisition campaigns. Combine this with Location graphs, and you have a winning combination where you can tailor your advertising to the right customer, at the right time, and at the right place.
Clearly, we are entering a new era for e-commerce and location graphs are a vital part of it. This era promises to make e-commerce brands far more customer-centric, contextual, and ROI-driven. Are you ready to be part of this transformation? Request a demo – let’s get talking.