Personalization means delivering relevant content to a shopper based on what is known about them. Relevance is defined as that content that is most appropriate to the user’s needs. We know the goal of personalization is to deliver content which best meets the user’s needs.
But what about the business needs? Ecommerce companies must also focus on maximizing key metrics like engagement, revenue, conversion rate and average order value. Hence, personalization should display that content which meets the visitor’s needs but also seeks to maximize key metrics that the business cares about.
Personalization is a means to an end, not the end itself. The logic goes like this: If a single, generic experience for all users produces a given set of results like a 1.5% conversion rate, and targeting content by segments produces better results like a 2.2% conversion rate, then delivering unique content or experiences to each user should produce the best possible results to maximize key metrics.
This logic is reasonable but based on a false premise that one to one personalization is required to see this sort of conversion rate lift. Delivering the most relevant content for a given user in their current session can produce great results. Whether this content or the experience is entirely unique is irrelevant.
Website Personalization, Personalized Email and Recommendations Deliver ROI
Baynote recommendations users typically convert at anywhere from 2 to 6 times the rate of non-rec users. So it follows that the more an ecommerce site delivers personalized content or product recommendations, the greater the chance for increases in conversion rate becomes. All retailers have the opportunity to personalize recommendations throughout their site. From the home page, to category, product detail pages and on through to cart pages and follow up emails, there are many opportunities to deliver a cross sell, an up sell or even a special promotional item option to your shopper. Why let those opportunities slip by without personalizing? In each case, with contextual personalization, the recommendations are dynamic and follow your shopper on their journey – facilitating a satisfying experience for them, and improved KPIs for you.