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Creating Meaningful Personalizations
UX
April 3, 2020


CREATING MEANINGFUL PERSONALIZATIONS

Published by:
Jags Krishnamurthy
8
Minute Read
Minutes Read

The reason online retailers' attempts at personalization so often fail is lack
of attentiveness in regards to content delivery. While creating meaningful
personalization is challenging, it's not impossible. It's also critical for
success.

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While the concept of personalization is bandied about among online retailers
quite frequently, we often completely miss the mark. 

Unfortunately, it seems like there is no cohesive solution that puts the user at
the center of the personalization process. Yet the reason that personalization
fails is due to lack of attentiveness when it comes to content delivery.


THE WRONG WAY TO PERSONALIZE

Consider Amazon, the world’s largest online store. Of all companies, Amazon
should have the necessary data to create a personalized customer experience.

Despite their all-powerful brand, Amazon still recommends products to customers
that frequently do not make sense. For example, you might search for a camera
battery, and then for months on end, Amazon will try to sell you standard AA
batteries via targeted ads or personalized product recommendations. 

Or perhaps you browse for pasta, but don’t purchase any. Months later you are
still getting pasta-related email marketing. 

It’s not just Amazon whose eCommerce site is often aggressively promoting the
wrong personalizations. 

Once, after searching Lowe’s for a Blackstone product via its model number, I
then perused the product recommendations based upon that search. Lowe’s did a
beautiful job of indicating which products were in nearby stores, but they also
repeated several of the same exact products over and over, including the one I
had initially searched. 

Showing related or similar product pages is helpful, but carelessly sharing
identical products is not. 


SEARCHING FOR MEANING

Clearly, this kind of personalization for online shoppers is not a 1:1
dialogue. 

When it comes to personalization, customers want the same kind of experience
that they get from their Peet’s Coffee barista, whom they see every morning.
That barista knows precisely how they take their latte. 

Ironically, while Amazon has far more data on customers than a barista does, it
doesn’t use what it has as effectively. 

Why does this happen?

Marketers and user experience designers alike know that personalization is all
about the customer journey, not about the business. So we map out the journey,
design accordingly, and track for conversion rates to see if it’s effective. 

Yet this only gives us short term ROI. It doesn’t allow us to measure the
overall long term value of a customer, just singular purchases. Long term value
remains elusive, and so in the absence of meaningful, ongoing personalization,
we stick something easy in for returning visitors and hope it works. 

This is because personalization is very challenging. A Peet’s barista needs to
remember long and complex customized orders. Similarly, all of the data
eCommerce brands collect needs to be analyzed down into actual insights, not
just bottom-line goals, which tend to remove the customer from the equation.


DATA IS THE KEY

If you’re still not convinced that meaningful personalization matters, consider
your ideal customer. What do they all have in common? Loyalty.

Ultimately, all retailers want to maintain and grow their loyal customer base.
Smart eCommerce brands cultivate loyal customers by continually improving
products and continually improving the shopping experience. 


START WITH BASIC DATA POINTS

Fortunately, there’s a lot of great data at your fingertips. Put it to work.

> If you want to develop meaningful personalized experiences, you’re going to
> need equally meaningful data. 

Consider what data points give you the necessary insights:

 * Email addresses
 * Web traffic 
 * Frequency of visits (first-time visitors, returning, etc.)
 * Website interactions (did they abandon their cart; what product pages did
   they visit; what did the search)
 * Paid advertising (social, Google Ads, retargeting, etc.)
 * Purchases (what did they buy; did they come via a discount or referral code;
   how much did they spend)
 * Personal data (what information did they share with you)

In addition to identifying what data points you need to track, you’ll also need
to consider when you’re tracking (likely in real-time) and how you plan to track
it (what tools do you need).

Until you’ve got the tools in place, it’s impossible to deliver meaningful
personalizations.

> Most eCommerce sites are using a combination of technologies to collect and
> analyze data in real-time. They can then deliver personalized to shoppers also
> in real-time. 

Once the tools are in place and working properly, you can begin to segment your
customer base.


DATA-INFORMED SEGMENTATION

Thanks to your data, you can begin segmenting your audience. The deeper you’re
able to segment, the more personalized the experience.



There are a number of ways to break up your customers:

1. Frequency

One easy way to personalize this segmentation is by showing “previously browsed”
items to returning and repeat customers.

Or perhaps you include a “welcome” or a “welcome back” discount code, depending
on if the person is a first-time visitor or returning browser who has yet to
make a purchase.

2. Location 

This is incredibly helpful for global brands. Use location segmentations to
detect where your customers are browsing, and suggest the appropriate language,
currency, shipping, and sizing information. 

You can also use it to ensure that you’re promoting sweaters in December in
Britain and swimwear in Belize.

You can even promote in-store events if you’re able to segment by smaller
regions.

3. Device 

Make the display as seamless as possible for customers by personalizing based
upon device. For mobile customers, offer easy account setup and checkout options
(i.e. Login and Pay with PayPal). 

Deliver an omnichannel experience where someone browsing on their desktop can
pick right back up where they left off on their tablet.

4. Activity

For returning logged in users, welcome them back with a “Hi Roger!” greeting, or
a similarly personalized touch.

For those who abandoned their cart, perhaps a “pick up where you left off”
gentle reminder that may result in conversions.

5. Channel 

Knowing the channel through which your customers found you helps you guide their
path to purchase.

If they found you via Facebook, retargeted social ads may be useful if they
don’t make a purchase.

Or if they’re accessing your site via referral or sale codes, specific landing
pages geared towards that campaign can start off the shopping experience in a
very personal way.

These are just a sampling of ways to segment audiences. Use your data points to
determine what makes the most sense for your brand.


BEHAVIORAL DATA

Another way to personalize your customer experience is via behavioral targeting.

Behavioral targeting isn’t demographic targeting (i.e. age, gender, etc.) but
rather targeting based upon specific actions customers take on your site.

For example, if you’re a shoe store, and your customer keeps browsing running
shoes, has generally purchased high-end brands in the past, and typically
browses on a mobile device, this gives you good insights to make more
personalized recommendations. 

Developments in artificial intelligence (AI) have allowed sites to take their
behavioral targeting next-level. AI tracks and analyzes all on-site behavioral
data (as well as off-site ads and emails), segments the customer accordingly,
and makes unique, personal offers based upon that data.


PERSONALIZED MARKETING

Once you have good data practices in place, you can start personalizing your
marketing. 

> Properly managed, email marketing remains the strongest weapon that eCommerce
> brands have in building customer loyalty.

When you personalize emails for customers, that impact increases almost
exponentially. Here are just a few eye-opening stats that indicate the
significance of personalization:

 * 82% of brands had an increase in open rates through email personalization.
 * When an email is not personalized, 52% of customers go somewhere else.
 * Segmented personalized automated email messages average 46% higher open rates
   than standard emails.
 * Brands using email personalization generate 17% more revenue through their
   campaigns than the average marketer.



Again, it’s important to provide meaningful personalization. So rather than
simply saying, “Don’t leave these items behind!” you could send an abandoned
cart email specifically addressed to your customer that showed precisely which
items they’d left in their cart, as well as some additional suggestions based
upon their tastes. Better yet, if they completed their purchase, you could send
a post-transaction email that thanked them for coming back for their items. 

All of that time spent on data collection and identifying and implementing
appropriate tools (like AI solutions) is what allows you to send 1:1 emails.

Specifically, you’ll need to:

 * Get as much customer information as possible. This can be accomplished when
   they register for an account, sign up for your email list, etc. Use these
   initial points of contact to collect useful data. If you allow customers to
   do social logins (i.e. “Login using Facebook”) you’ll be able to collect even
   more helpful information - location, age, gender, etc. 
 * Track customer interactions. This can be their on-site interactions, their
   click-throughs on your emails, the kinds of items they purchase, etc.
 * Segment out your top customers and invest more time in personalizing their
   content.

Start by personalizing email, perfect your system, and then consider additional
ways to use data to create meaningful, personalized marketing content for your
customers.


WRAPPING IT UP

Email personalization is just the tip of the iceberg. There are numerous other
ways to make your marketing personalized for customers and potential customers,
from specific on-site behavioral targeting tactics to off-site social media
behavioral targeting.

The data you collect digitally transfers to non-digital strategies as well, such
as personalized direct mail, and even personalized in-store experiences, should
you have a brick-and-mortar shop.

Ultimately, careful personalization results in customers who not only loyal, but
champions of your brand.

> Brand champions are the gold standard in eCommerce marketing. 92% of consumers
> trust recommendations from people they know directly. 

It’s worth investing in solid data collection and meaningful personalization,
because it results in brand advocates who influence people your business
otherwise can’t reach.

If you need help securing the elusive 1:1 customer conversation that
personalization can attain, reach out to the team at Object Edge. We’d love to
brainstorm with you.



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ABOUT THE AUTHOR




JAGS KRISHNAMURTHY


COO



Jags is a passionate tech vigilante. As CEO of Object Edge, he follows how
technology changes the landscape for businesses across the world. He’s motivated
by happy, engaged people. His motto: financial yesterday, commerce today,
eagerly waiting for tomorrow every day.





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