According to a new study by KIBO, it appears that when done right, personalization can be the path to profit.
Ecommerce players have long been striving to reach customers in a way that resonates with them as individuals. Another study by Forrester Research study finds that 68 percent of firms says that delivering personalized experiences is a priority.
That means meeting the customer’s needs more effectively and efficiently, making interactions faster and easier and, consequently, increasing customer satisfaction and the likelihood of repeat visits.
Let’s Get Personal
Properly implementing personalization is easier said than done. While some strides have been made (tools and technology), some efforts have fallen flat or even been perceived as bordering on creepy and too intrusive. Still, when implemented correctly personalization has huge benefits for both retailers and consumers. Personalization can drive higher net promoter scores (NPS), make customers more loyal, and translate into more sales.
Whether you’re defining success by conversions, revenue, or a specific call to action (like newsletter signups or downloads), getting personalization correct dramatically improves all those metrics, according to the KIBO report.
- Higher Conversion Rates – Personalization can boost conversions by 600 percent, the KIBO report says. Additionally, research by HubSpot found that personalized calls to action resulted in a 42 percent higher conversion rate than generic CTAs.
- Larger Average Order Values (AOV) – Personalization can improve AOV by 40 percent, according to KIBO. Customers buy when presented with what they want. They purchase even more, when retailers help them discover new products, accessories or related items.
- Increased Customer Satisfaction – A satisfied customer is more likely to return. They are also more apt to share their good experience and recommend products to their social media circles. The KIBO report says that And 74 per cent of consumers get frustrated when website content appears that has nothing to do with their interests.
The reason personalization works is that consumers also want it – and in many cases, demand it. Online shoppers say that personalization greatly influences completion of a purchase. And where that personalization takes place is key.
- 92% say they were swayed when recommendations appeared in their Shopping Cart
- 85% were influenced by personalization promotions on the Homepage
- 55% say that loyalty discounts and offers influenced them
- 44% were influenced by a Product Page with targeted recommendations
Pushing Past Current Personalization
The report stresses there’s more to personalization than basic tactics like targeting, product recommendations, or related items. Those are stepping stones that can be used in combination with personalization engines to create a true connection to individual customers.
So, by creating a long-term personalization strategy, retailers can deliver an individualized experience that will pay off for them – and their customers..