How to Increase Customer Lifetime Value With Visual Product Discovery
The global pandemic prompted a huge shift in consumer behavior — including notable breakdowns and disruptions in customer loyalty.
As supply chains suffered a shock that restricted inventory and forced long-time customers to look elsewhere, another important transformation was taking place.
Brands and retailers that hadn’t been focused on their eCommerce presence suddenly went “all-in.” And those that already had strong websites and solid operations in place to serve online shoppers took things up a notch.
The resulting advancement in customer experience created a new breed of consumers. These shoppers have sky-high expectations from brands when it comes to everything from product recommendations to fulfillment to customer service, and more.
Building Loyalty in the Post-Pandemic Landscape
Now that the initial “shock to loyalty” is leveling out, the onus is on brands and retailers to create customer experiences that are so intuitive, delightful, and memorable that they’ll entice these new, more demanding shoppers to come back time and time again.
The brands that invest in keeping the new business they’re seeing in the long-term — or those that crack to code on how to increase customer lifetime value (LTV) — are poised to be at a tremendous advantage in the coming months. Today’s blog post with BORN partner Syte helps illustrate that advantage by going into detail on LTV and how visual product discovery helps win over shoppers.
LTV is so essential because loyal customers don’t just return to your website more often, they are also more eager to spend with your brand. In fact, 39% of loyal customers will spend more on a product, even if there are other, less-expensive options available elsewhere.
Still, when looking to build lasting relationships with customers, brands and retailers often overlook the most critical element of the customer journey: product discovery.
After all, if shoppers can’t find what they’re looking for in the first place, why would they come back?
Why Visual Discovery Wins Over Shoppers
Innovative brands and retailers are increasingly using visual AI to take their product discovery experience to the next level. This emerging technology, which includes image recognition capabilities, allows retailers to pinpoint specific details about each product in their inventory and to use that unique visual data to surface the most relevant items for each shopper.
Visual discovery tools that leverage AI, including camera search and smart recommendation carousels, enable shoppers to easily find products that suit their tastes, even when they don’t have the right search terms or the time to navigate through dozens of product listing pages.
Connecting shoppers with their ideal products so seamlessly leads not only to a higher conversion rate but also to a dramatic rise in customer lifetime value.
In fact, Syte’s data analysis from July-December 2020 found that when shoppers interact with on-site visual product discovery tools — specifically those powered by visual AI — they are more likely to become long-term, high-value customers:
- Compared to high-intent “add to cart” shoppers, those who engaged with on-site product discovery tools had a 12% uplift in retention rate at the end of a 30-day period
- The higher retention rate among users of visual discovery technologies also translated to a 19% uplift in customer LTV within a 30-day period, compared to all customers.
These numbers demonstrate that today’s shoppers deeply value brands that help them find what they want intuitively and quickly — and that they see this process as a core element of an improved customer experience.
Brands that rise to the challenge of creating an outstanding product discovery experience will become a trusted destination for shoppers and drive long-term value from new customers. To learn more about how these solutions impact customer experience and drive business value, take a look at our partner Syte’s blog.
Welcome to BORN’s Partner series! Through this program we look to highlight thought leadership from our vast array of technology partners. Follow along using the hashtag #thisisBORN and #BORNpartner!
Today, we’re happy to call attention to our visual search partner, Syte, and talk about how they help transform Customer Lifetime Value with effective visual product discovery.