Any advertisement professional will tell you one thing about the best advertisements – they speak to the audience personally. We can all relate to this because we tend to like the adverts that make us feel special. The ‘Share a Coke’ advertisement was hugely successful because it took personalization to a higher level.
E-commerce businesses should not be any different. They should engage with their clients in a personalized manner using personalization tools for e-commerce. As the next part of this post shows, there are reasons why this approach makes sense. Read on to discover them.
Let’s first look at the concept of e-commerce personalization
When it comes to e-commerce personalization, the focus is on how an e-commerce business can optimize its dynamic web pages according to the source, gadget, location, and channel. Custom offers and personalized product listings are also part of the idea. The goal is to capture the attention of the visitors so that they can eventually spend on the site, and more importantly, come back for more.
Businesses use all manner of strategies to personalize their e-commerce. Some will use product visualization for targeted promotion while others send automated messages.
E-commerce business personalization is important because it could benefit the business in several ways, which we now cover in brief next.
1. Its Positive Impact On Customer Experience
With the conventional customer journey rendered obsolete for all types of customers, the digital customer experience is now the main distinguisher for your business. So, if you feel that the customer experience in your business is not at the level that you wish, try online personalization. The basis of this idea is that every customer is unique, and so are their experiences.
Therefore, it is no longer tenable to rely on aggregated or average data when dealing with customer experience. Who left their cart after just a few minutes? At what section of the visit do most people abandon the site? Answers to such questions can help the management to retarget and possibly have visitors complete their sales in the future.
2. Larger Average Order Size
Did you know that with a nice online personalized experience for your e-commerce site, more visitors are likely to buy on impulse? A Segment Survey showed that at least 49% of people will buy an item if the site offered personalized recommendations. Retailers who have implemented personalized e-commerce have reported an increased order value, so you may need to try this strategy for your business.
3. Need For A Higher Conversion Rate
How far have you gone with your e-commerce business conversion rate optimization (CRO)? The CRO for your business matters for several things including leveraging the site traffic and reducing the customer acquisition cost. Yet, many e-commerce businesses are lagging in this area.
Online personalization of the business is one of the straightforward ways of improving the conversion rate. A customized online experience makes sure that customers are presented with items that they are likely to buy – which can increase the conversion rate.
Customized emails and videos to customers have also been shown to contribute to a higher conversion rate, sometimes even with a success rate of five times higher click-through rate.
4. Retaining High-Value Customers
Consider this: high-value customers give an average of three times more money to a business compared to regular customers. In other words, it pays to increase your efforts to keep your high-value customers. The next question would be how to go about it.
When you build personalized online experiences for this group, for instance, through special product discounts, the value of your brand is likely to extend over a lifetime. Personalization helps build a lasting relationship with the people that support your business the most.
Time to Leverage Personalization in Your Business
Big brands like Naked Wines and Amazon are already implementing online personalized strategies, which are working for them. Even if your e-commerce business may be smaller, the benefits of personalization equally apply. You should consider making online personalization part of your e-commerce business strategies this year. Customers want to know and see that their interests are at the heart of the business.
If you need guidance implementing online personalization, contact an expert today.