Predictive analytics coupled with personalization is proving to be a winning formula for online retailers. A new survey from Certona, a provider of personalization tools for retailers, shows that metrics dramatically improve when brands focus on one-on-one engagement with customers and base shopping experiences on predictive analytics. More than 500 brand marketers participated in the survey, which revealed that personalization in email content drove a 244% increase in click-through rates (CTRs), and a 412% spike in revenue per opened email.
“Marketers need to ask if their messages are one-size-fits-all, or are they one-size-fits-one,” says Meyer Sheik, CEO and cofounder of Certona. “There’s simply going to be fatigue if [customers] keep getting mass communications [from marketers].” Sheik says customers will welcome future messages from marketers who predict, personalize, and engage. “When [customers] know content is going to be fresh, relevant, and dynamic, they will look forward to the next communication or email.”
The survey also shows that brands had up to 300% higher conversion of Web browsers to buyers as a result of personalized content on a retailer’s site. Sheik attributes the boost to a combination of increased CTRs and more time spent on the site—both, Sheik says, fueled by personalization and prediction. “If you can keep that visitor engaged once he or she is on that landing page—and get them to click more after that page—then you have a high chance of keeping them on the site.” In addition to higher conversation rates, respondents report an average increase of about 50% in the value of an order through personalization. “When you personalize and predict,” Sheik continues, “your landing page is more relevant and is helping [the customer] make a decision.” He says, on average, surveyed brands saw a 13% jump in revenue after personalizing their content.
Indeed, content catered to an individual can even help convert customers who may not have been responsive to initial marketing messages. The survey results show that brands managed to recapture that lost opportunity through personalized content in their email remarketing, with a recovery rate of up to 25% from cart and browser abandonment.
In addition to remarketing, marketers can personalize their messages by creating an ominichannel experience. “Omnichannel is the buzzword right now. But the principle of omnichannel is here to stay,” Sheik explains. “Think of it like a jigsaw puzzle. [Marketers] should work at creating a holistic, unified profile of a consumer so that each channel can better inform the other channel, which is different from multichannel.”
He adds that marketers who focus on several channels without continuity in the customer experience aren’t leveraging the data that they have about consumers. “It’s really every channel being aware of other channels,” Sheik continues. “Then it’s about leveraging the information to inform the experience on any platform at anytime and anywhere.” He says that creating this omnichannel experience for customers is a delicate balance between respecting privacy and turning off potential customers: “If marketers offer a better seamless experience, and help consumers find what they want, [customers] are more willing to provide information so that you can tailor the experience for them.”
