According to a new study by KIBO, however you define conversions, whether by revenue, downloads, or sign ups, the right personalization will dramatically improve them. Forrester Research finds that 68% of firms in a Forrester survey state that delivering personalized experiences is a priority. When done correctly, retailers who implement personalization will drive higher net promoter scores (NPS), more loyal customers, and ultimately more sales, says the report.
Personalization has many benefits for both the consumer and retailer. Specifically, according to the report, the benefits can be grouped into three major buckets:
Increased conversion rates: Personalization can improve average order values by 40% and improved conversion by upwards of 600%, notes the report. Ongoing, the report says that however you define conversions, whether by revenue, downloads, or sign ups, the right personalization will dramatically improve them. Research by HubSpot found that Personalized CTAs resulted in a 42% higher conversion rate than generic CTAs.
Larger average order values (AOV): When customers see what they want, they buy. When you help them discover the perfect products and accessories, along with content and stories that explain them, they buy more. Personalization can improve average order values by upwards of 40% and conversion rates improve by an upwards of 600%, says the report.
Improved Customer Satisfaction: When customers find what they are looking for they feel satisfied, tell their friends, make fewer returns, and come back to shop again. Overtime you will see the big metrics that drive customer lifetime value go up when using personalization. And the opposite is sobering: 74% of consumers get frustrated when website content appears that has nothing to do with their interests.
Shoppers want personalization, says the report.
Specifically, consumers report personalization greatly influences their path to completing a purchase, as seen in the data showing the percent of consumers significantly influenced personalization according to its location.
85% HomepageWith personalized homepage promotions
44% Product Page With targeted recommendations on the product page
92% Shopping CartWith target recommendations in the shopping cart
55% Loyalty DiscountsThrough loyalty discounts and offers
When retailers use personalization as a means to deliver individualized experiences, they create a long term strategy that will pay significant future dividends, says the report.
It’s only the beginning, says the report. There is more to personalization than the basic personalization plays like targeting, product recommenders, or related items in shopping carts. The complete report will give you a better understanding of the different approaches, maturity levels, return on investment (ROI) profiles, advantages, and limitations of personalization techniques, promises KIBO.
Please visit KIBO here for access to the complete report.