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Better customer experience and conversion? Web store personalization.

Choosing personalization software is like climbing a mountain without a guide… Our advice, specifications and selection support focuses on better results.

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Online store personalization

Webshop personalization is an indispensable technique in Ecommerce. By personalizing the customer journey, with different types of offers, you increase the chance of conversion. 'Kclassic' recommendations usually appear on the product pages, usually with microcontent such as Customers who bought this product also bought… or You may also be interested in… These recommendations usually come from the webshop platform technology itself and usually have a low conversion rate because they are less relevant for the visitor.

'Advanced' recommendations on the other hand, are better attuned to the behavior of visitors and their possible purchase history. These recommendations are presented in, for example, a separate webshop section, my shopping environment, or in the order of products shown on a lister page, based on preset filters. Logging in and/or cookies make this possible. This form of webshop personalization does not offer users general, but personalized suggestions. In addition to recommended products, personalized banners and promotions can also be displayed, for example based on a search term entered into Google. Not only products, but also categories, catalogues, authors in online bookstores can be personalized. The ultimate goal of webshop personalization solutions is a total personalization of the online customer experience. With personalized navigation, advertisements, prices, mails and other messages.

When applying online personalization, is connection with a customer data system or Customer Data Platform essential.

Personalization engineering

Webshop personalization is a technology that is in full development. Hundreds of data specialists are constantly inventing new theories and methods for developing improved recommendation algorithms. The main goal of personalization is to create the ultimate customer experience. This, in turn, results in increased sales and profits. The challenge is to recommend products that are relevant and of added value for customers at the right time. The more personal the offer, the greater the chance that customers will view and buy your products. At the same time, you want to avoid down selling occurs by recommending replacement, cheaper products.

Many web shops now have hundreds of thousands, often even millions of different products in their assortment. The trick is to present the most suitable and relevant recommendations to customers from this gigantic quantity. Permanent updating is essential here, because special offers, assortment compositions and prices change quickly. This places high demands on the 'intelligence' and self-learning capacity of applied algorithms. Good personalization technology must be able to act in a very dynamic environment. This names the most important challenge of personalization technology: being able to show adaptive behavior.

Personalization engineering

Webshop personalization is a technology that is constantly evolving. Hundreds of data specialists are constantly working on new theories and methods for the development of improved recommendation algorithms. The main goal of personalization is to create the ultimate customer experience. This in turn results in more turnover and profit. The challenge is to recommend products that are relevant and of added value to customers at the right time. The more personal the offer, the greater the chance that customers will view and buy your products. At the same time, you want to prevent down selling occurs by recommending replacement, cheaper products.

Many web shops now have hundreds of thousands, often even millions of different products in their assortment. The trick is to present the most suitable and relevant recommendations to customers from this gigantic quantity. Permanent updating is essential here, because special offers, assortment compositions and prices change quickly. This places high demands on the 'intelligence' and self-learning capacity of applied algorithms. Good personalization technology must be able to act in a very dynamic environment. This names the most important challenge of personalization technology: being able to show adaptive behavior.

Pitfalls?

What are the weaknesses of webshop personalization technology?
Webshop personalization technology is sometimes still wrongly seen as classic data mining. Many data mining-oriented providers focus on clustering techniques due to the lack of their own Recommendation Engine. This reduces the subject of personalization to a statistical analysis and modeling of user behavior. This deserves a critical look because it does not cover all facets of a pure behavioral analysis, as illustrated below.
  • 1. The effect of personalization has not been taken into account: if the user is likely to look at a specific product anyway, what is the point of recommending? Wouldn't it make more sense to recommend a product that changes the user's behavior?
  • 2. Personalizations are self-reinforcing: if only previous “best” recommendations are shown, there is a risk that they will reinforce themselves, even if better alternatives exist. Shouldn’t new recommendations be tried?
  • 3. User behavior changes: Even if previous behavior is perfectly modeled, the question remains what happens if user behavior suddenly changes due to offers, changes in assortment or other changes in the webshop. Wouldn't it be better if personalization technology is able to continuously learn and adapt flexibly to new user behavior?

Interplay of data, analysis and action

By collecting customer data and patterns in customer behavior in, for example, a Customer Data Platform or CDP, you can easily build customer profiles. Each customer has many characteristics that make him or her unique. Customers can be approached one-on-one, but can also be clustered in specific customer segments (audiences). With these segments you can set up separate campaigns, both in webshop personalization and outside of it. Think of social media, Google Adds, and -mail marketing. Data driven marketing is the key to success and growth. There are many possibilities and even more solutions. We are happy to help you.
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