Confronted with another challenging year as consumers cut back on their spending due to the cost-of-living crisis, data from Braze reveals that UK retailers could be missing out on billions in potential sales by ignoring anonymous users to their site.
An anonymous user is someone who engages with a brand’s app, website, or other digital property without logging in, which means brands cannot re-engage them after a purchase, and account for 86% of customers who shop online.
Despite customer retention being a key challenge for retailers in 2023, 98% of brands don’t communicate with anonymous users, leaving money on the table by ignoring crucial re-engagement opportunities. In fact, if each anonymous user on an ecommerce site were to make just one purchase, it would represent just over £3 billion in sales for UK retailers.
The main reason that retail brands aren’t able to capture this audience is that teams lack the skills to be able to efficiently action the first-party data they are collecting. Braze’s data shows that all retail marketers (100%) admit to facing challenges using data to engage customers. Whilst 83% say they collect more data than they can use effectively, 40% say a lack of data skills in their marketing team is holding them back.
“With inflation at its highest since 1989, customer retention is high on retailers priorities this year.
However, a lack of crucial data skills means they are missing out on the opportunity to reengage a huge swathe of their audience and turn them into loyal advocates,” said James Herridge-Leng, Head of CPG and Retail for EMEA at Braze.
“The challenge is being able to access and action this data. Capturing anonymous users can help cut back on customer acquisition, paid media costs, and bolster your brand’s first-party data collection efforts, but retailers need the right tools and skills to support them.”
To make the most of anonymous users, Braze has compiled four top tips to re-engage them:
- Offer personalised incentives: Brands can offer personalised incentives to anonymous users who have abandoned their cart, such as discount codes or free shipping. This will encourage them to return to the site and complete the purchase.
- Conduct user surveys: Retailers can use customer surveys to gather feedback from anonymous users. By asking the right questions, retailers can learn about the users’ preferences, pain points, and reasons for abandoning their cart. This data can then be used to improve the customer experience.
- Utilise retargeting campaigns: Retailers can use retargeting campaigns to reach anonymous users who have abandoned their cart. By showing them relevant ads or products, brands can entice them to return and complete the purchase.
- Optimise the checkout process: Retailers can optimise their checkout process to make it easier and faster for users to complete their purchase. This can include simplifying the forms, reducing the number of steps, and offering multiple payment options.