The link between ecommerce personalization strategies and conversion rates

Although most ecommerce companies choose to compete over prices and product ranges, it’s proven that consumer experience can really help your business make the difference.

Leaders in Consumer Experience deliver, on average, 17% of revenue growth within 5 years, whereas poorer consumer experience departments deliver only 3% over the same period.

Improved consumer experiences have become one of the main key success factors for retailers to win and retain shoppers. Indeed, today, a totally satisfied customer contributes 2.6 times as much revenue as a somewhat satisfied customer, and 14 times as much revenue as a somewhat dissatisfied customer.

But to many retailers, exceeding your customers' expectations can feel overwhelming. There are so many different things they care about. So how do you make sure your shoppers’ expectations are met and exceeded?

1. Personalization strategy audit for ecommerce

About a decade ago, personalization was a newer concept. You wanted your store to mimic a physical retailer where your customers felt like if they shopped you with a lot that they would be remembered, their preferences understood, and they would feel like they were at their own local small business. You would know when they needed an item again because they were out and you'd offer them deals on their favorite products.

Fast forward to now, and this is just expected. Having all of this data on your customers allows you to focus seamlessly integrate ecommerce personalization and give them a shopping experience that matches their wants, desires, and needs. And most businesses know this but few actually do it well. To excel here you need to perform a personalization strategies audit to take stock of where you're doing well, and where you can improve.

Below are five steps to evaluate your business and implement changes if you aren't already doing well in that area, to make your personalization strategies audit successful for your business and customers.

5 quick personalization strategies for online ecommerce customers

1. Implement personalized communications

One-size-fits-all style emails aren’t personal enough to reel in valuable clicks. In order to build a loyal customer base, you need to invoke those fuzzy, warm feelings that create connections.

Yes, you should send out regular emails to keep in touch with your followers. But, know what your goals are in preparation for you emails. Are you looking to grow the number of subscribers on your list? Optimize click-through rates? Or increase traffic to your site?

One way to encourage this is to create multiple lists or groups. This allows you to send your customers newsletters that actually bring value to their lives. You’ll also be able to create multiple personalized landing pages, so each group ends up on a webpage that’s relevant to them personally.

2. Offer relevant discounts & coupon codes

As an online eCommerce site, your overhead costs are generally lower than brick-and-mortar stores. Plus, your platform completely automates the selling and buying processes, saving you time and money. So, why not extend some of those savings to your loyal customers?

Personalize the types of discounts and coupon codes you offer your customers based on past orders and future needs. For example, those who purchased printer ink six months ago might need a refill. Make sure their discounts specifically relate to their past purchase in order to stay relevant.

3. Engage your target customers with video content

Instructional videos are great ways to increase your email subscribers. You can personalize many different types of videos to meet various customer needs, including:

• Product-specific tips and tricks

• Strategies relevant for your audience

• Product tutorials

Use videos to educate your customers online about your products, your business, and their interests. Make sure you keep videos engaging and entertaining. Here are some ideas for making instructional videos for your eCommerce site:

• How your products work

• Useful ways to use your products

• Unique uses for your products

• How your products differ from the competition

• Ways to NOT use your products

• Funny anecdotes and bloopers sent in by customers who use your products

Post your videos on your eCommerce site, social media networks, even email newsletters. This will help grow your subscribers over time.

Why? The simple answer is, video content engages online users, and instructional videos allow you to connect a human face to your brand. This increase in brand engagement helps increase conversions.

Providing personalized customer experience with video content will help you give your customers the confidence they need when buying online.

If you'd like to learn more about the importance of trust signals when building personalization strategies, check out our guide to personalized email campaigns that increase conversions.