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Why eCommerce Stores Need Personalization Software
eCommerce personalization software increases revenue in three distinct ways. It
Unfortunately, many eCommerce stores are not using personalization software to it's full potential.
This article goes deep on how personalization tools can help eCommerce stores create a better shopping experience and generate revenue at the same time.
And, as a bonus, we detail a few advanced personalization examples and concepts, complete with screenshots. Let's begin!
eCommerce Personalization Software Meaning: What is it?
We've covered the basics of eCommerce personalization software in a previous article titled "What is eCommerce Personalization".
As opposed to a static, one size fits all experience, eCommerce personalization allows stores to change site elements based on the customer.
A site element can be anything: an image, text, popups, recommendation widget, or page layout.
The software recognizes if the visitor is new or returning, and uses a variety of demographic variables and on-site behavior to create offers.
More advanced software uses a combination of machine learning and merchandising rules to dynamically create these offers in real time.
Personalization Software Benefits and Capabilities
Personalization software varies dramatically.
Some personalization tools are basic. They enable you to do nominal personalization techniques, such as category based recommendations or simple pop-up messages, but not much else.
Other personalization software like Barilliance is more advanced.
Barilliance uses a variety of machine learning and artificial intelligence techniques to create the best user experience such as using based on previous site history, past purchases both offline and off, and in-session behavior.
Below we highlight some of the best use cases for personalization software.
Personalization Software Examples that Increase Revenues
The primary benefit of personalization software is increased conversion rates and revenue.
We created an in-depth guide on how eCommerce stores can improve conversions. In it, we showed how the cost of customer acquisition is increasing across the major marketing channels.
For example, one study performed by MarketingDrive showed that the cost for Facebook ads has increased by an average of 43% over the last 3 years!
For eCommerce stores, this means there is less and less margin for error when converting marketing generated leads into converted sales.
Below are a few examples of how personalization software does just that.
Personalization Software Example 1: Product Discovery
Product discovery is a term used to define the process of customers coming onto your site and finding a product they are interested in.
Unfortunately, as stores expand their product offerings, the amount of time it takes a customer to find the products they are most interested in increases.
Personalization tools combat this by matching relevant offerings to each customer.
One incredible technique to overcome this paralysis is to create bundles of products that lesson the decision making needed by the buyer.
In this example, one client is using a gift box to convert customers who can't decide what to get a loved one.
Defining the Customer Segment
The first step is to define what segment you would like to target.
Each personalization software will have its own set of parameters to define a segment by. In Barilliance's case, eCommerce operators have complete control, and are able to create a segment based on dozens of parameter types.
Below is a screenshot of our back end. A segment can be defined with any combination of these parameters.
In this case, we want to target shoppers who can't decide what to purchase.
The final segment is below.
How Personalization Tools Display the Relevant Offer
With the customer segment defined, we can now choose to include or exclude this segment to the offer. In our case, we are electing to show the offer to this segment, and prevent everyone else from seeing it.
Barilliance gives complete exposure control. You can select where the personalized offer is presented - whether it be across the entire site, or restricted to specific pages.
You can also define when an offer is presented. This is especially helpful for time sensitive offers, such as Black Friday, Cyber Monday, or other holiday shopping times.
Below is the final result!
Personalization Software Example 1: Personalized Landing Pages
Landing pages are often the biggest opportunity to improve conversions on your site.
Every single prospect must pass through a landing page before they buy. And, they are often some of the most visited pages on your site.
Software tools can help improve conversion rates on landing pages in a number of ways.
Below, we see how one of our clients is changing the welcome offer they present to visitors based on where they are coming from.
Choosing the Customer Segment for a Personalized Landing Page
As in the first personalization software example, we need to define the segmet.
In this case, we want to treat visitors who are coming from an affiliate partnership with a tailored message and image
First, if they are coming from one of their affiliate partnerships, they personalized the copy and code to create a seamless transition from the affiliate offer to their site.
Further, we only want to present the discount offer if it looks like they won't convert at full price.
Here's our final segment.
As you can see, we first define our affiliate (blurred for privacy). We then add an additional criteria based on customer in-session behavior (targeting when the mouse movement indicates they are about to leave the website).
Crafting the Offer for a Personalized Landing Page
With the segment in place, we can now create our offers.
In this case, the eCommerce store wanted to present the offer to all visitors, but have a more personalized approach to the segment.
If they come from the affiliate, here is what the offer looks like.
However, if the visitor isn't coming from an affiliate sales partner, they are presented with a different version.
eCommerce Personalization Software can transform how you treat customers. You can create detailed, personalized experiences. Better yet, you can allow machine learning to optimize the experiences of every customer in real time.
However, personalization comes with it's own challenges.
If you'd like to learn about how to select a personalization vendor that is right for you, click here.
And, if you would like a personal, 1:1 walk-through of Barilliance's personalization software, you can request a demo here.