An overwhelming majority of e-commerce website managers accept the grim reality that over 97 percent of visitors will abandon their site without ever making a purchase.
The increasing minority that's challenging this status quo is looking to the innovators. Amazon.com, still the biggest e-tailer on the planet, consistently reports conversion rates of 30 percent or more. While a strong brand contributes to these staggering figures, consumer trust can never account for such overwhelming repeat purchases. The growing realization in the e-commerce community is that smart, multipronged personalization is at the core of Amazon's track record.
Netflix, whose business model makes heavy use of a personalized shopping experience, provides further evidence. When the online digital entertainment distributor wanted to let its customer base know that the reasons why they keep paying $8 a month was for the ultimate viewing experience, the message was "House of Cards." Just like that, Netflix had transformed itself into a production company catering high-level shows appreciated by its audience and proving its worth. Netflix completely disrupted the way entertainment would be delivered in the 21st century.
While few e-commerce operations have the resources Amazon or even Netflix can command, consider these seven easy fixes any e-commerce site can implement to personalize their users’ experiences:
1. Geo-targeting: Consider the difference between an offer targeting just any visitor, and a 10 percent discount available only to residents of your neighborhood — and only if you act NOW. Throw in some more information about a local event, and your customer will know you're speaking directly to them.
2. Dynamic keyword insertion: While many e-commerce websites will include landing pages optimized to attract high-volume search traffic, an exact match keyword strategically inserted into the headline can make all the difference. Compare a generic cardigan landing page to something along these lines: "Of course we have that green polka-dotted cardigan in size 8! In fact, buy NOW and we'll throw in a matching skirt for 20% off. But hurry, this special offer is only good until 10 PM Sunday night (and we only have 3 left in stock)."
3. Return browsers: Returning visitors are much more likely to buy, so why not make it easier on those folks who keep coming back for more? Acknowledge that connection you've already established, and the end result of product purchases will dramatically increase.
4. Mobile: People today are busy and on the go. Unless your visitor is chained to a desktop, tailoring the buying experience to a specific device sends a personalized message that you care about their business and needs. Taking further advantage of extra geo-location information can boost your chances of making a sale (or increasing the purchase amount). Plus, if your customer previously made a purchase from a desktop computer and now they're browsing your site from a mobile device, you can tailor their shopping experience accordingly. That's the power of omnichannel personalization.
5. Social cues: Consumers are considerably more likely to buy if they know their friends have purchased a similar item. A strategically placed pane indicating several friends have bought a particular item will contribute to a faster and easier buying decision.
6. Date or time of day. Depending on your business, specific dates or times could boost sales. Consider tailoring sales or promotions to times which are most suitable for your customers. For instance, based on consumer behavioral data, having an 11 a.m. flash sale could increase conversions, or a date-specific discount has the potential of reaching more people due to the personalized nature of your approach.
7. Marketing automation integration: A visitor may have clicked into your site as a result of a marketing email or ad campaign. Match the landing page to the original link that led to the visit and your browser will be even more likely to convert to buyer.
If you think implementing these personalization fixes requires expensive technology or intensive in-house engineering resources, think again. There are personalization tools designed specifically for e-commerce sites. They're easy to test, try out and launch in a matter of days. The return on investment is quite simply too good to ignore.
Liad Agmon is the CEO of Dynamic Yield, a provider of personalization and automated conversion optimization tools for online retailers.
- Companies:
- Amazon.com
- Netflix