6 Proven Ways to Boost Conversion Rates Through Personalization

What is Personalization?

Personalization is a robust strategy that boosts your website’s performance by making it highly relevant for each visitor based on their data and insights such as behavior, preferences, search history, purchase history, demographics, etc.

It aims to address customers’ individual needs, make them feel valued, and deliver a pleasant real-time brand experience across all sales touchpoints, regardless of the device they use to boost engagement, conversion rate, and customer loyalty.

Statista reveals the global revenue of customer experience personalization and optimization software will surpass U.S. $9.5 billion by 2024. McKinsey’s ‘Next in Personalization’ Report estimates companies can generate 40% more revenue from personalized campaigns. Likewise, the Recommendation Engine Market size is forecasted to surpass $12.03 billion by 2025.

All these statistics alone emphasize how user experiences and digitalization are driving forces for a company’s growth and boost in conversion rate.

Why Collecting Quality Data is Important to Boost Conversion Rates?

The success of your personalization campaigns heavily relies upon customer data that is precise and relevant. Gathering extensive customer data is a critical step to building powerful personalization strategies. This includes:

• Demographic data like gender, age, education, income level, etc.
• Geolocation data such as time zone, location, regional interests, etc.
• Firmographic data include company name, size, industry type, job title, and role.
• Psychographic data such as customer’s interests, lifestyle, and preferences
• Web analytics data such as click patterns, scroll activity, content interactions, page flows, on-site searches, etc.
• Behavioral data like browsing history, purchase history, cart activity, web interactions, page engagement, etc.

6 Effective Ways to Boost Conversion Rates Through Personalization Techniques

1. Dynamic Content

Dynamic Content is one of the most powerful personalization tactics that helps you optimize your conversion rate. It is a process of creating web content that dynamically changes in real time based on visitors’ relevant data points. To elaborate, every time a user visits your website, the content is personalized based on their behavior, device, location, purchase history, search history, preferences, and other relevant data.

This technique helps businesses provide highly relevant content, discounts, offers, and pricing to customers, thereby increasing engagement and chances of conversion.

A few examples of dynamic content are:

• Dynamic discounts based on time such as holidays, weekend evenings, specific festivals, and so on.
• Increasing sense of urgency in buyers with terms like “Only a Few Pieces Left”, “15 Others Viewing This Product”, “Added in 12 Carts Right Now”, and so on.
• Product Recommendations on the homepage or checkout page based on their previously viewed items or similar products.
• Dynamically changing HTML content of an email or landing page by adding user’s relevant information automatically such as their first name.
• Dynamic forms that change their options or questions based on previous answers.
• Dynamic Pricing where the price of products adjusts dynamically based on user profile, demand, inventory level, purchase patterns, etc. such as flight ticket prices, or hotel prices.
• Video Content that dynamically changes based on users’ preferences, viewing history, interests, etc.
• Personalized Exit-triggered offers for customers leaving the site without making a purchase such as a 5% instant discount, free shipping, call/chat assistance, expert advice, and more.

Source: scoop.market.us

2. Personalized Landing Pages

Say, for example, you collaborate with a social media influencer for brand promotion and they include the link to your website. It can be frustrating if the visitors click on the link, land on your website and they just see an ordinary homepage with no mention of the products reviewed. Then they must navigate through your website and find the products, which can be annoying and lead to high bounce rates.

• Creating a personalized landing page specifically for the ongoing campaign can yield better results, higher engagement, and improved chances of conversions.
• Create a dynamic copy where the page is personalized as per the source of referral- be it ads, emails, social media influencers, or other websites.
• You could also add other personalized elements to the website such as popups, headings, banners, exclusive offers, etc. as per the source of referral to boost audience engagement.
• Use clear and compelling CTAs on landing pages based on the user’s search intent.
• Brands can even customize the landing page based on other factors such as visitor’s location, behavior, purchase history, and other relevant information.
• Personalize the experience for mobile and tablet users by showing a quick “Click to Call” button on the landing page, search ad, social media, or contact page to help them convert faster. This works better than simply displaying your business contact details.

This tactic makes your website highly relevant to visitors coming from a specific traffic source or using a specific device, increasing the likelihood of conversions, and reducing bounce rates. Custom landing pages are designed for various reasons such as product promotions, lead generation, webinar/event registration, form sign-ups, and more.

3. Boost Conversion Rates with Personalized Emails

Segmented emails are known to drive 50% more click-through rates (CTRs) and 30% more opens than unsegmented ones.

Personalized messages and subscriber segmentation are two of the most effective email marketing tactics that help increase conversions. This tactic involves sending personalized emails to segmented customers based on their buying patterns, interests, and preferences, encouraging them to return and convert.

Such a unique, individualized approach fosters better customer relationships and aids conversions.

4. Geotargeting and Product Recommendations

There are many ways to personalize a customer’s experience on your website, and one of them is through geotargeting.

• Use geolocation to show optimum currency and language, making it easier for visitors to checkout.
• Display local products, offer special discounts and coupons, adjust pricing, and promote regional events to cater to audiences based on their geolocation.
• Use cookies to identify whether the user is returning or new. If they are new, design a pop-up to provide exclusive discounts on their first purchase, collect their email address for future updates, and prompt them to sign up and unlock special benefits.
• If they are returning customers, customize their experience, show them their “Recently Viewed Items” and cross-sell, and upsell products based on their previous interactions.
• Build a powerful recommendation engine to generate on-site personalized product recommendations as it helps boost revenue. “Similar Fast-selling Products” “You May Also Like” and “Customers Also Bought” are some of the ways to suggest users check out similar products and make a purchase. These recommendations can be offered via mobile apps, websites, email, social sites, and other sales channels.

5. Retargeting Advertising to Boost Conversion Rates

Retargeting Ads, as the name suggests, are designed to capture customers’ attention and encourage them to complete a purchase. These display ads are based on the products they have added to the cart or viewed and shown on search engines, other websites, social media websites, etc.

Brands could also use on-site popup offers to retarget customers and motivate them to make a purchase.

6. Exclusive Discounts and Offers

Displaying new arrivals to customers based on their search/purchase history, or offering a discount on items left in the cart are effective personalization techniques that make customers feel valued. It helps reduce cart abandonment by encouraging them to return and complete the purchase.

Likewise, create a loyalty program for returning customers with personalized discounts and rewards based on their purchase history, and search activity. This fosters long-term customer relationships, incentivizes repeat purchases, and builds loyalty.

What is the difference between Personalization and CRO?

CRO (Conversion Rate Optimization) is a broader concept of increasing your website traffic and encouraging them to convert. The conversion goal could be anything- from sign-ups, making a purchase, submitting a form to downloading content. It is an ongoing process of increasing conversion rates through A/B testing, and continuously optimizing your campaigns, landing pages, page layouts, and sales funnels to identify what is working and what is not.

Personalization is all about creating an engaging, highly relevant experience for each visitor through personalized offers, discounts, content, messaging, etc. based on their location, age, gender, purchase history, behavior, and other relevant datapoints. It relies on gathering user data and behavior patterns.

Personalization is often integrated into the CRO process to yield maximum results and boost the chances of conversions.

Conclusion

Personalization is one of the robust ways to truly understand your customers, track their sales journey, and precisely cater to their needs to boost conversion rates. Brands must employ these personalization tactics to target segmented audiences at the right time with the right message to push them to convert.

Now personalization is an ongoing process, just like CRO (Conversion Rate Optimization) which requires gathering user data, experimenting, tracking progress, measuring results, and making changes based on KPIs. With such a meticulous approach, you will get better at personalization tactics and be able to upsell and cross-sell to your customers.

Want to know more on how to optimize your conversion rate with personalization? Get in touch with us!