Does Ecommerce Personalization Boost Your Conversion Rates?

TargetingMantra
TargetingMantra is a 500Strong company offering SaaS based personalization platform to online businesses. The team has previously worked in developing recommendation system for Amazon, Zappos, IMDB. It’s proprietary technology offers 15% increase in conversion rate. The company has offices in India and Silicon Valley and has clients spread across the globe.

Customers are more informed, connected and empowered than ever before. 61% of global Internet users research products online. In a traditional brick-and-mortar store, the sales staff observes and remembers the previous purchases of customers, and is often capable of suggesting products on their future visits. This has worked well in reviving many such stores. 94% of companies agree that personalization is critical to current and future success (Source: Econsultancy).

However, with increasing number of customers embracing online shopping, they expect ecommerce websites also to offer them memorable shopping experiences well tailored to their specific needs. 40% of consumers buy more from retailers who personalize the shopping experience across channels (Source: Monetate).

With incredible spurt in the number of mobile device users and consequent online shopping, huge piles of data sets are building up for retailers to analyze and deliver personalized shopping experiences to customers visiting their ecommerce store. Simply appointing a dedicated manager for each of your customer won’t cut it.

As you move ahead with ecommerce personalization, you can extend personal touches to the shopping experiences of hundreds of customers simultaneously. Not only does this strengthen your customer connect, but also multiplies your conversion rates and increases your average order value too. Personalized emails improve click-through rates by 14%, and conversion rates by 10% (Source: Aberdeen Group).

Personalization empowers customers to discover relevant products faster and increases ecommerce sales. 80% of marketers define dynamic personalization in email as highly important (Source: Adobe and DMA). It’s all about customer engagement and serving them better. This played a central role in establishing Amazon class apart from its arch competitors and emerge as a leader in ecommerce space over the last decade. Netflix also adopted personalization and rode the first wave of personalization.

As more and more Big Data builds in retail, ecommerce websites are under immense pressure to move towards data mining and leverage analytics to offer personalized shopping experiences to customers thereby improving its sales and conversions.

The Challenges

E-sellers are grappling with mounting pressure of collecting behavioral data from customers when approaching personalization. This data is available in multiple formats – implicit and explicit data. A large number of retailers are clueless about the real sense of direction to offer informed product suggestions to customers.

Clicking behavior, past purchase history, shopping cart data, social media activity with the brand’s business page, etc. – all this offers a good amount of data to ecommerce merchants, but they are confused about organizing these data sets and analyzing the same for turning this into personal recommendations.

The Rise of Me-tail shows that adding personalization experience to shopping could lift sales by 7.8%. Personalization can rejuvenate your ecommerce business by displaying right products to the right users at the right time.