How Delivering 1:1 Personalized Experience Can Significantly Improve Conversion Rates
When it comes to marketing communication, the more closely the message relates to the target audience, the better would the brand connect be. However, the same message will evoke different reactions from different people. Therefore, over the last few years, brands are increasingly looking to personalize their messaging to the audience with a view to improving the connect with target customers. And of course, this has delivered measurable benefits for the brands which do adopt such forward-thinking approaches. As much as 86% customers confirm that personalized messages often influence their purchase decisions, and 62% of customers choose, recommend, or spend more on a brand that provides a personalized experience.
There are three reasons why delivering personalized experiences results in higher conversion rates:
1. Personal Connect
By personalizing the communication with target audience, brands can develop a closer connect with them on an individual level. Thus, the individual target customer feels valued by the brand, and is more willing to engage with the brand communication. It is no surprise then that promotional e-mails addressed to the recipients’ first name have a 2.6% higher open rate and drives a 6X transaction rate.
2. More Effective Product Visibility
Through real-time analytics, brands can understand their target customers’ preferences, needs, wants, and pain-points at an individual level. This enables them to highlight those products that would meet such needs and desires. Thus, by avoiding products that customers would not really be looking to buy, and showcasing those which they want to, brands can improve the product visibility in terms of its quality. Such personalized product display could happen across channels, be it the website or the company’s e-store.
3. Building Brand Loyalty
A mere 5% increase in customer loyalty towards a brand can help in boosting revenue anywhere between 25-95%. Also, the cost of acquiring new customers is around 25% higher than that of retaining existing customers. These two statistics should explain the value of brand loyalty. Personalization can help brands to generate higher amounts of brand loyalty, leading to up to 5X to 8X increase in ROI on the marketing budget, thereby increasing profitability. Brands can achieve better brand loyalty by personalized social media connect and product advertising as well as providing combo-offers that are tailored to suit individual buyers’ needs and preferences.
At PennyWise Solutions, we have several years of experience in delivering customization solutions for brands. Our expertise in implementing Sitecore and Acquia personalization features allow you to tailor your website content and experience depending on the visitor in real-time. You can build a complete visitor profile using the Sitecore API layer through anonymous data, browsing behaviour, external sources, and inbound sources and campaigns. Depending on the data collected and analyzed, we help you generate personalized website homepages, newsletters, social media adverts, and push notifications of products that customers have been browsing for every time they are near a retail store that provides those products.