E-COMMERCE

How to personalize your web store

Introduction to the report

This report will delve deeply into personalization, especially for the online stores that are now hosted on Shopify. In particular, this report will:

  • Give an overview of personalization
  • An example of the main areas for personalization for e-commerce
  • How to decide if your company is ready
  • Tips to get started

What is personalization in the context of e-commerce?

Personalization, when it sounds out of context, can mean a variety of things, from adding a customer name to an email to confusion with a setting.

When it comes to e-commerce, personalization, the biggest players like Amazon and Zalando come to mind. Personalization, in fact, creates the feeling of having sales partners in your online store. Based on each customer’s shopping history and views the algorithm tries to predict what they will buy next. This reduces the number of options available and simplifies purchasing decisions, effectively removing any paralysis of analysis. Personalization can be incredibly effective for improving e-commerce conversions and sales.

How personalization looks in practice

Personalization may seem overwhelming, especially if each part of your web page can become automated and optimized for a specific person. However, we have broken it down into four main areas to consider when starting a personalization:

  • Banners
    • Change the banners of the characters on your home page depending on the person viewing. This can be based on: location, seasonality, gender, etc.
  • Notifications
    • Create FOMO and urgency using countdown timers and related notifications for that person
  • SMS
    • Personalizing SMS for a person is fast becoming a key part of digital strategies, and users are more likely to use SMS. Personalized communication, which includes their name and is based on a place or story with a brand, will be important to create a sense of individualism.
  • Product recommendations
    • This applies to forecasting and offering the most relevant products for each person. When it comes to product recommendations, the scope and purpose of each recommendation is crucial. You can use product recommendations in any situation, but some of the most common include:
      • Home page
        • The main purpose of the product recommendations on the home page is to promote diversity to quickly determine the user’s intentions for that particular visit, which is done by tracking which items are clicked.
        • Dreamland created a “Discover” carousel on its home page and was able to achieve a CTR of 1.5% to 3% during the year.
  • Product page
    • Once the user clicks on the product, the recommendations on this product page will become the contextual point for all other recommendations. Perhaps your goal is to show similar items, items to complete the package, or items purchased by other users with similar behavior.
    • Dreamland introduced “Others Also Viewed” on its product information pages and was able to increase its CTR by 4.7%
  • Shopping cart page
    • Once a user gets to the Recycle Bin page, it’s important to use personalization tactfully. It is important that any recommendations you provide do not distract the user from completing the purchase. The most common type of recommendations that can be used here are impulsive purchases (similar to the environment in the store), which do not think
  • Email
    • The main purpose of recommending a product in these types of communications is to encourage the user to return to your store. By showing relevant items to items in your cart or popularity, combined with human behavior you are more likely to lure them back to your store.
      • Remaining cart: items related or free to items in the cart
      • We miss you: recently viewed, popular products or sales. Intentions are not clear, so it is important to ensure diversity for re-participation.
      • Emails after purchase: This type of communication usually has the highest frequency of opening at touch points, as the user is very happy to receive the goods. This is a great opportunity to recommend additional or “bought by other users” products to attract the user back.
        • Veepee implemented a similar idea as e-mail, except that they used a QR code, linking the landing page to product recommendations related to the purchase that was made.

Why personalization is needed

Personalization is fast becoming the main buzzword when it comes to e-commerce, and theoretically it sounds like something that can be implemented at every point of contact of your customer. However, it is important to note that not every store needs personalization at such a detailed level, and the reasons below explain why

Number of products

Online stores with lots of merchandise can very quickly become preferred for a new or returning user. Personalizing product recommendations manually is unlikely to appear to most users. Therefore, using artificial intelligence to make these decisions smarter will not only improve conversions and CTR, but also increase customer path. Usually stores with 50+ SKUs provide enough data for proper algorithm training.

The amount of traffic

When using artificial intelligence to make product recommendations, you need to make sure you give AI enough evidence to learn about your audience’s behavior. Typically, online stores with 10,000+ sessions per month generate enough data points combined with the number of SKUs to train the algorithm in a way that predicts recommendations that will create the impact or user experience you are looking for.

Conversion

Understanding whether to implement personalization, before you start, you need to understand whether to understand your conversion. The industry average, according to Shopify, is around 0.5% -1.5%, however keep in mind that this may vary depending on your industry and product. If your conversion is lower than this, it’s important to understand if there’s a more serious issue that needs to be addressed before implementing personalization.

Types of solutions

After considering the above considerations, there are two key types of vendors when deciding on personalization, which should be considered depending on your needs and size:

Without excess, plug and play

These providers are usually native to Shopify and can be found through the app store or through the landing page. It will take a few clicks to launch and use the existing Shopify platform to design and bill them. Prices may vary depending on the technology, features and support you are looking for, but there are options for all budgets and sizes.

Enterprise

A great way to find out if a vendor is targeting enterprise-level customers is to check their pricing page either in the app store or on their home website. If the only option is “Custom” or “Contact Us”, this is usually a good indicator. If you are looking for an individual solution, have a very high income (usually $ 500,000 or more per month), have multiple stores or stakeholders, enterprise level will be a great approach as they will be open to working with you to create just that that you need.

What data do they need?

When evaluating a solution, the key question to ask is what data they need access to. Due to recent changes regarding third-party cookie data and Apple data that connects to apps, there has never been a more important point to make sure your primary data is updated. This includes:

  • Click events
  • Add to cart events
  • Ordering events
  • Profile history (if any)

Ideally, such data will be configured in an easy-to-use way to make it easier to send this data to your provider as often as possible to ensure that any artificial intelligence used is constantly trained by your audience.

How do you measure the impact of your decision?

Now that you’ve chosen a solution and they’ve been operating for a long time, it’s important to understand how to accurately measure the impact of a solution. Of course, a key criterion will be how they choose to report these results, such as weekly emails or a real-time control panel. You will also need to determine your key KPIs as this may differ from the company. Some of the most common KPIs include:

  • Conversion
  • Click speed
  • The average cost of the order
  • Referred Revenue from Referrals: When a visitor clicks on a referral and subsequently buys in the attribution window, the click applies to the solution. It is important to note: if you have the opportunity to create a wish list, then in order not to be misled, you will need to distinguish this list and “add to cart”.

How to get started!

After reading this report, you will probably want to start personalizing your site! However, summing up, we suggest answering the following questions to assess your maturity and need for personalization.

  1. What key KPIs do you want to improve?
  2. How big is your product catalog and how big is your traffic?
  3. Do you have the data needed to properly prepare algorithms to take advantage of AI-based personalization?

If you get answers to these questions, contact Froomle to find out how we can help achieve your goals!

A brief overview of Shopify & Froomle

Shopify

“Shopify is a subscription-based software that allows anyone create an online store and sell their products. Shopify store owners can also sell in physical locations through Shopify POS, our application at the point of sale and related equipment. If you’re a Shopify seller who is present both online and physically, your inventory and inventory are synced so you can manage your stores from a single account on any device.

Shopify is an e-commerce platform that offers a way to quickly start your dream business and start selling to your customers wherever they are. And if you want to set up your store or even build it from scratch, the Shopify App Store and our APIs make it easy. ”

Fruml

Froomle, founded at the University of Antwerp in 2016, was created with a mission to bring the tactics of personalizing giants like Netflix and Apple to the masses on a large scale and affordable. With a combined 20 years of academic and commercial experience, Froomle is constantly improving its artificial intelligence to keep customers at the forefront of personalization tactics. Working with a plugin and modules that combine in a strategic way specific to each of their customers, Froomle modules can be used on any page and channel to create maximum effect.

https://ecommercegermany.com/blog/how-to-personalize-your-webshop How to personalize your web store

Back to top button