Webshop Personalization2022-12-31T15:46:37+01:00

Better customer experience and conversion? Web store personalization.

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WEBSHOP 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. 'Klassic' 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 webshops now have hundreds of thousands, often even millions of different products in their range. The trick is to present the most suitable and relevant recommendations to customers from this gigantic amount. Permanent updating is essential here, because special offers, assortment compositions and prices change quickly. This places high demands on the 'intelligence' and the self-learning ability of applied algorithms. Good personalization technology must be able to operate in a highly dynamic environment. This identifies the most important challenge of personalization technology: the ability to exhibit adaptive behaviour.

PITCHES?

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 in the absence of their own Recommendation Engine. This reduces the topic 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 considered: if the user is likely to look at a specific product anyway, what's the point of recommending? Wouldn't it make more sense to recommend a product that changes user behavior?

2. Personalizations are self-reinforcing: If only past “best” recommendations are shown, there is a risk that they will self-reinforce, even if better alternatives exist. Can't try new recommendations?

3. User behavior changes: even if previous behavior is perfectly modelled, 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 customer behavior patterns in, for example, a Customer Data Platform or CDP, you can build customer profiles quite easily. Every customer has many characteristics that make him or her unique. This allows customers to be approached one-on-one, but also, for example, clustered in specific customer segments (audiences† With these segments you can set up separate campaigns, both in webshop personalization and beyond. This includes social media, Google Adds, and email 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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