Ecommerce Personalization Strategy
Sometime, customization may seem like a good next step to level CRO efforts. But companies-if and when customization does makes sense, often try immediate use algorithms, relying on AI and machine learning to create personalized experiences.
Many also start with marketing tools that have data gathering and artificial intelligence built in., resulting in a fragmented customer experience and suboptimal results for the company.
Rhett Norton advises caution : “Tool strategy first is one of the worst because it puts your strategy in the back seat as your tool pushes you off a cliff”.
In fact, personalization isn't just about data and algorithms. To do it correctly, you need:
Of course, if you show early results, it's easier to earn resources that can scale and automate your customization. The incremental steps towards that level of customization are similar to those of CRO: investigation, hypothesis, creation test, test run, evaluation.
The aim of this article is to show, using a hypothetical example, a pragmatic way to move forward to the personalization. In doing so, the various stages of the process and what to expect in each are highlighted; It also simplifies some aspects.
Starting with segmentation
Let's take a fictional company, “The Garden Company”, that sells gardening equipment ranging from a shovel to a parlor game. They have a great product portfolio and spend a lot of money on marketing.. They are also continually optimizing their website with A tests. / B.
For them, customization can be the next logical step. Many things can be customized, like which channels to choose for which users, In what order, in what period of time, with what content, what products
In this hypothetical case, we will address a common user experience issue on large e-commerce sites: the possibility of finding products.
Research to identify and prioritize potential segments
Just like when creating a test A / B, research identifies potentially valuable segments.
If you are already doing CRO, a lot of consumer research and knowledge is now available. Everyone, from product experts, purchasing departments and analysts, have assumptions supported by customer base data.
Existing research plus internal conversations alone can help identify potential attributes for segmentation. The Garden Company,
Searching for broad data-backed divisions within your audience is different from immediately choosing and customizing a single segment.
Analyze potential segments based on a few data.
Check your proposed segments with some data. It is not necessary to have a complete view of the client in 360 ° (than, let's be honest, Really does not exist) to start this analysis. Customer purchase data and some analytical data should suffice.
The Garden Company uses your order data to do a cluster analysis on the product categories purchased for the lounger vs. hobbyist segments. Surprisingly, does not show two groups but three: loungers, decorative gardeners and food gardeners.
An analysis of conglomerates on brands shows that, in fact, certain customers prefer high-end brands or cheaper options. To determine the discount segments, you can choose a discount percentage for the segments, or you can use a set of containers
Create a test
To set up a segmentation test, choose a channel. The easiest option depends on existing technology and tools. If your website is heavily cached, you may need a lot of help from the developer to deal with this, what is not ideal for a proof of concept.
But if the website runs a good marketing tool (for example, Bloomreach , Algolia , Magento ) which allows custom segments, it could be pretty easy. Email is often a good channel to start, since you don't experience caching problems, users logging out and other events that make it difficult to analyze the tests.
En The Garden Company, the test is run by email and a targeting attribute is added to classified users on their email platform. As there are limited resources for content creation, email team is asked to create an additional email beyond their default newsletter: an email for the sunbeds
When several segments have shown that they work, a combination could make the customer experience more personal. Combinations of product category segments and brand segments could work together (p. Not., Sunbeds with a preference for high-end brands).
Combining segments adds complexity when it comes to creating content and managing tests. The number of variants grows rapidly. Simply testing the brand and product category segments you get six user segments and six different emails.
Sometime, scalable content center or digital asset management required to scale content creation along with personalization. When content can be easily reused and combined into multiple templates, creating content for personalization becomes feasible.
Add activation behavior.
Based on what you learned from segmentation, it may be worth considering recent behavioral data. The sunbeds that begin to look for a new barbecue should be directed based on that product in lounger general communication place, it could be based on a category of product .
With the combination of segments, Reasonable assumptions can be made about what online browsing behavior is significant and what is not.. If a deckchair looks at four barbecues, of which two are premium brands and two cheaper brands, What should be the main objective?
It depends on the segment that the user has for the brands. And it is a premium brand user, target the user with premium brand BBQs and accessories. This orientation can, Of course, apply through multiple channels, as described above.
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