Personalization as a conversion booster

In an environment where online shopping has become commonplace and where the number of average visitors to global websites is only increasing. Optimizing and improving online sales sites is no longer enough to stand out from the competition.

E-commerce sites are therefore confronted with visitors expecting an optimal customer experience with a simple user journey that meets their expectations.

The observation is that, at present, e-merchants are still struggling to meet this personalization challenge. Thus in 2019, nearly 75% of visitors to e-commerce sites leave in less than 2 minutes because they cannot find what they are looking for (source e-commerce nation “personalization and e-commerce”). There is therefore a problem of optimizing the customer journey, in the capacity of the site to deliver the right products at the right time. A problem partly due to a still unbalanced distribution of marketing budgets. Indeed, “90% of the marketing budget [of e-merchants] is allocated to the acquisition budget” (Nosto: “Exceeding user expectations”), completely neglecting retention. Forgetting to focus on their real customers and their expectations (on average representing 3% of their visitors).

 

microsoftteams image11111 Personalization as conversion booster
E-merchants must therefore adapt in order to be able to offer an optimal customer experience and be able, at the same time, to start their marketing efforts in a more balanced way in order to focus on the 3% of visitors bringing them income.
For this, the ACRO model should be used:
- Attract (bring traffic)
- Convert (inspire visitors with consistent products/promotions)
- Hold back (build customer loyalty and make them want to stay & come back to the site)
- Optimize their campaigns (by proposing complementary products relating to their centers of interest. And by constantly improving the performance of the site (KPI analysis, A/B testing, etc.).
It is in this context that many personalization/marketing automation solutions have appeared.
Its solutions will in fact make it possible to optimize the purchasing process of visitors by collecting the valuable information left behind by them throughout their browsing. By processing its information, it will allow you to implement several measures in reliable and automated ways:
– Offer the customer products relating to their previous purchases-Display additional products likely to interest them in the basket according to their selection of purchases.
– Use geolocation to suggest the nearest stores or pick-up points if the desired product is no longer available-Use predictive targeting to adapt the home page.
– Relaunch your former customers with products relating to their purchasing habits.

By collecting, processing, and using this DATA in this way, e-commerce sites thus record, on average, a 20% increase in their turnover and 10% in orders on abandoned baskets (Source Oasis-commerce) . This while allowing you to focus your marketing efforts on other fronts while saving your marketing teams considerable time.

However, and although personalization and marketing automation are on the rise, some methods are still decried. Because, either not having yet proven their usefulness in terms of ROI, or because they can be considered invasive by the potential customer:

  • Overall the aesthetic evolutions of the pages and your buttons (although a minimum is expected) have no impact on the Revenue Per Visitor.
  • Too large pop-ups in proportion to the product page being viewed, considered too invasive.
  • Product proposals in a price range that is too high, not corresponding to the real needs of the customer

Finally and although the personalization of the customer experience can arouse envy by its potential. It is appropriate for e-merchants not to give in to excessive robotization and recommendation so as not to suffocate the consumer and harm the reputation of your company.

The challenge is therefore to give in to “depersonalization” (Benett & Al – 2012) if necessary in order not to generate dissatisfaction and lose credibility.

It is therefore necessary to perfectly master your data in order to develop good measures to determine the impact of personalization on your consumers and detect dissatisfaction behavior. In order to calmly approach depersonalization on the segments concerned and find the desired virtuous circle.