Creating a Personalized User Experience for Ecommerce Sites

“I’m losing money on my Facebook ads campaign”

“No matter what I do, I can’t lower my Google CPC anymore. My business is unprofitable”

“What used to work a while ago, just stops working all of a sudden. Argh.”

Sounds familiar?

It happened to us all before.

You probably have an ecommerce website which brings you a considerable amount of traffic and sales every month. You would also probably have already figured out some advertising campaigns and channels which could consistently bring you sales. That’s the good news.

Now here’s the bad news. Plenty of businesses out there have also identified digital platforms as a critical part of their strategy and are looking to aggressively expand in this area.

“89% of organizations have adopted or have plans to adopt a digital-first strategy”

Source: State of Digital Business Transformation 2018 by IDG

And with the current situation, more businesses are accelerating their digital strategy to de-risk themselves from relying on solely traditional sales channels. As the barriers to entry are becoming lower, it gets easier for more people to sell online.

What does this mean for you?

1. Your advertising campaigns are less effective.

More competition means advertising dollars become more expensive. Competitors are throwing money into ads and you have to increase your bids to keep up. This ends up making your campaigns less profitable and lowering your overall ROI.

2. Your margins drop.

More competition means you may have to engage in price war to attract potential customers, and you would know this is not ideal. 

3. Your customer loyalty and engagement drops.

As the king of ecommerce, Jeff Bezos, once pointed out “Customers are always beautifully and wonderfully dissatisfied.” You can’t figure out a way to get your customers to repeatedly buy from you and this creates a stress on your business because all great businesses are built on a loyal customer base. Think Apple, Nike, Amazon.

This is the reality today. Building an ecommerce business in today’s era is rapidly becoming more difficult.

So the question is…

When those symptoms happen to you, are you prepared?

Or worse still, is it already happening to you currently?

Fret not, because we will help you to combat the problems faced above, allowing you to:

1. Increase your basket size.

Yes, you get to earn more per sale. As straightforward as that.

2. Increase customer loyalty.

Yes, finally, your customers are triggered to buy from you over and over again.

3. Increase ROI on your advertising campaigns.

Yes, you don’t need to pump in more money, but you could still milk your campaigns more.

This concept revolves around using Artificial Intelligence (AI) technology to “personalize” your users’ experience.

It’s entirely possible, and we provide 7 executable actions you could implement right away.

1. Targeted Content for the Targeted User

As an ecommerce shopper, there is nothing more frustrating than being bombarded with products that you have zero interest in. Agree?

Imagine promoting canned sardines to a vegetarian, or stilettos to a male user. Why not target your users with the products that they would want to buy? What you should do is to target your users with targeted content that will pique their interest.

Firstly, you would already have their purchase and browsing history. All you gotta do is to leverage on Machine Learning (ML) to learn about the characteristics and habits of the users. With a proper profile in place, it will be easy to identify their needs and preferences moving forward.

Did you know that all you need to do is to build in a recommendation engine?

A recommendation engine generates relevant product recommendations on an ecommerce site to target users.

Source: Amazon

It is estimated that 35% of all Amazon’s sales are generated by the recommendation engine.

This is an incredibly powerful personalization tool because it helps your users to discover new products – products that you know they will like but they are unable to discover on their own. This greatly improves the user experience on your website due to the personalized recommendations at the right time and at the right place.

As Steve Jobs used to say, “People don’t know what they want until you show it to them”.

Use a recommendation engine to do that.

2. Tackling Cart Abandonment Rates can reclaim lost revenue by at least 15%

According to a study by Baymard Institute, an average documented online shopping cart abandonment rate of 69.57% is reported.

This means that for every 100 potential customers on your website, 69 of them walk away close to the finishing line. Successful businesses do not strike when the iron is hot, they make the iron hot by striking. You have to do something to your abandoned carts to reclaim your lost revenue.

It is not uncommon for customers to add items to their cart before they eventually decide to abandon their cart and leave the website. Rest assured that your website is not the only one facing abandonment issues. However, if you put some effort into reclaiming all these abandoned carts, then you’re already ahead of your competitors.

By using Artificial Intelligence (AI) to track the website footprints of users, you can analyze the dwell time that users spend on the product as well as the checkout page. This gives you a clear indication of the users’ interest in the products. You can then make use of the findings and entice users into completing the transaction using the products that they have high interests in.

How so? By following up with personalized and targeted emails to serve as reminders that they have left something important behind. Something that they really want.

With that, you’re on the path to improving users’ shopping experience, reducing your cart abandonment rate and recovering your lost revenue.

3. Leverage on personalized social proof to drive conversions
A long queue of customers is a form of social proof.

Source: Hardwarezone

As a classic example, whenever Apple launches a new iPhone, snaking queues will appear outside the Apple Store all over the world. This is social proof at its best.

“69.57% of people will trust a recommendation from someone they don’t even know.”

Source: Nielsen: Trust In Advertising – Paid, Owned And Earned

It is not rocket science that social proof is also an important aspect for ecommerce businesses due to the high reliance on reviews from past buyers. Major ecommerce brands like Alibaba and Amazon have long established social proof into their platforms.

The question is – how do you replicate this snaking queue onto your ecommerce website and how to make it better than your competitors? The key is personalized social proof. Personalized social proof contributes to an overall positive user experience due to the relevance in content and is a major key to bringing users one step closer to the checkout page.

By using AI and ML, the needs and preferences of the users can be better identified. With that vital piece of information, personalized social proof in the form of relevant product reviews or testimonials can be served to the users.This not only increases the credibility of the products in the eyes of the users, but also provides a better user experience and pushes the users to make a purchase.

4. Personalizing the Order Bump can drive basket size up by at least 19%
Testimonials and reviews are important forms of social proof on an Ecommerce site.

Source: Ping Proof

While shopping at the supermarket, you would have seen sweets and snacks placed near the checkout counters or along the aisles of the queue. This is a trick that brick-and-mortar stores like to use to encourage impulse purchases, enticing customers to add on more items into their cart without too much consideration. 

This is a splendid concept that should not be limited to a physical store. Ecommerce businesses like yours ought to implement such “sweets and snacks” at your checkout page too. In an ecommerce context, this comes in the form of an Order Bump. The magic of an order bump is that it encourages users to add on additional items into their baskets just before completing the purchase, bringing up the Average Order Value (AOV).

Personalizing the order bumps to each individual customer increases the average order value.

But how can you make it even better? By personalizing these order bumps to each individual customer. Now, this is something that is impossible for a physical store to replicate, and you should quickly use this as your advantage as an online store.

Similarly, utilizing AI can give you a clear indication of their needs and preferences and based on the findings, personalize the order bump by displaying potential products that they might add into their basket at the last moment.

By doing so, you’re on the path to improving users’ shopping experience and increasing your AOV and revenue.

5. Impress your visitors with a Personalized Landing Page to Reduce Bounce Rates

“Over 63% of shoppers state that personalization on the landing page impact purchasing decisions” – 2018 Consumer Trends Report by KIBO

Your landing page is the first thing that users interact with. First impression counts, so it is vital that you make it an amazing experience for your users. Ultimately, you want users to shop around and explore other pages, spending more time on your website. This translates to a higher tendency to convert and possibly higher AOV after looking through multiple product pages.

With the power of AI, you can easily identify the location and other geographic features of your users to deliver such personalized experiences. By reaching out to them in a personalized manner, they are more inclined to stay on and explore the other features of your website. With the reduced bounce rates, it also helps in driving up conversions on your website.

6. Create Personalized CTA for Users with Different States of Interest

“Personalized Call-To-Action Perform 202% Better Than Basic CTAs”

Source: Hubspot

As a long-time ecommerce player, you would have known that different users who enter your website are at different stages of the marketing funnel and have different levels of knowledge of your products. Some of them may be first-time visitors, some of them are repeated customers, some may just be browsing for leisure.

This brings a huge challenge for website owners like yourself because different users require different solutions or resources to bring them closer to converting. AI can once again be your solution.

We all know that a Call-To-Action (CTA) button plays an important role in converting customers, bringing users one step deeper down the funnel. Many users may be at the same stage, but they may not advance to the next stage all together. This is where AI can be used for a personalized experience, providing a tailored CTA for each individual. For instance, for a first-time visitor, a “Learn More Here” CTA will be a lot more appropriate than a “Buy Now” CTA. It is also a less aggressive and softer approach to convince visitors to make a purchase.

This is a game changer because the message displayed to them accurately reflects their current state of interest and knowledge of your products, and the personalized CTA helps lead each individual user one step deeper into the funnel.

This prevents a mismatch in information and action, targeting users with the correct information at the right time, providing a much better user experience for your website visitors.

Some Final Thoughts

“75% of consumers are more likely to buy from a retailer that recognizes them by name, recommends options based on past purchases, or knows their purchase history.”

Source: Accenture

We cannot stress enough about the importance of personalization in an ecommerce setting today. Customers today are pampered, well-informed and have the luxury of choice. We all need to give customers a solid user experience and a reason to return. What worked in the past simply doesn’t cut it anymore. Start implementing personalization into your ecommerce website. You already have the required data in place. Don’t waste it!

Remember, in every crisis lies an opportunity, here’s one presented to you.

To find out how you can increase your Conversion Rates by 22.7% (*depending on your data), request a call from us today!

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