Successfully reported this slideshow.
Your SlideShare is downloading. ×

Closing the digital personalisation gap

Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Loading in …3
×

Check these out next

1 of 30 Ad

Closing the digital personalisation gap

Download to read offline

To help small businesses become more successful online, whether it be winning new customers or driving sales, 123-reg wanted to understand how British adults feel about small business websites.

What were we looking to answer?
Why do customers choose to buy from small businesses over big businesses?
What are a small businesses greatest strengths?
Are these strengths reflected in their digital activity?
How can small businesses improve their current digital activity to win customers and drive sales?
Can digital personalisation of a website drive revenue?

To help small businesses become more successful online, whether it be winning new customers or driving sales, 123-reg wanted to understand how British adults feel about small business websites.

What were we looking to answer?
Why do customers choose to buy from small businesses over big businesses?
What are a small businesses greatest strengths?
Are these strengths reflected in their digital activity?
How can small businesses improve their current digital activity to win customers and drive sales?
Can digital personalisation of a website drive revenue?

Advertisement
Advertisement

More Related Content

Slideshows for you (20)

Advertisement

Similar to Closing the digital personalisation gap (20)

Advertisement

Recently uploaded (20)

Closing the digital personalisation gap

  1. 1. Closing the digital personalisation gap #personalisetheweb
  2. 2. To help small businesses become more successful online, whether it be winning new customers or driving sales, 123-reg wanted to understand how British adults feel about small business websites. Why did 123-reg complete this research? “Our goal is to help our customers grow their business online. We commissioned this research to share how personalisation can help businesses drive sales” Kate Cox, CMO, 123-reg What were we looking to answer?  Why do customers choose to buy from small businesses over big businesses?  What are a small businesses greatest strengths?  Are these strengths reflected in their digital activity?  How can small businesses improve their current digital activity to win customers and drive sales?  Can digital personalisation of a website drive revenue?
  3. 3. Research partners To understand the relative strengths of small and large businesses on and offline, YouGov were chosen for their robust research methodology and objective reporting of results. In order to understand the behavioural influences impacting website sales, 123-reg partnered with Behavioural Scientist, Patrick Fagan to define and run a live experiment. Patrick Fagan Behavioural Scientist & Author We commissioned two research partners to help us investigate how customers perceive small and large businesses on and offline.
  4. 4. This survey was conducted using an online interview administered to members of the YouGov Plc GB panel of 350,000+ individuals who have agreed to take part in surveys. Emails are sent to panellists selected at random from the base sample. The e-mail invites them to take part in a survey and provides a generic survey link. Once a panel member clicks on the link they are sent to the survey that they are most required for, according to the sample definition and quotas. The responding sample is weighted to the profile of the sample definition to provide a representative reporting sample. The profile is normally derived from census data or, if not available from the census, from industry accepted data. Total sample size was 2052 adults of which, 1,861 have ever purchased items online from a business’ website. Fieldwork was undertaken between 22nd - 23rd October 2015. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+). YouGov survey
  5. 5. Experiment methodology A sample of online British respondents (N=567) were recruited through panel provider Research Now. The sample was 55.4% male with ages ranging from 18 to 87. The online survey was completed in October 2015. On average, participants shopped online 2.0 times a week and visited small businesses’ websites 1.0 times a week. Participants were shown an illustrative small business website - a local restaurant - mocked up especially for this study. Participants randomly viewed one of six versions of the site according to its degree of personalisation (i.e. experiential personalisation, user-driven personalisation, or no personalisation). Participant numbers were approximately equally divided among the six conditions.
  6. 6. Experiment methodology Definition of User Driven Personalisation Websites using personal information (e.g. name, product preferences) to recommend items to you (e.g. recommendations based on previously viewed or purchased items) User-driven personalisation was achieved by personalising the site using information participants had submitted previously (e.g. welcoming users by name, customising product recommendations to their purchase preferences)
  7. 7. Experiment methodology Definition of Experiential Personalisation Websites using data about your visit (e.g. time of day, location) to show you specific things (e.g. easier to use sites for mobile users, local recommendations) Experiential personalisation used meta-data automatically recorded about users (e.g. showing how long was left until the business closed, showing how far away the businesses was, customising product recommendations to the day or time).
  8. 8. Participants viewed another illustrative site, this time comprising a screenshot of an existing grocer’s website. Participants were randomly assigned to view the website of either a small businesses, C.A. Belcher & Son, a local grocer in Reading (N=328), or a large business, Tesco (N=239). Experiment methodology
  9. 9. For each of the three websites, the following measures were recorded Experiment methodology Purchase Intention As a measure of purchase intent for the site, participants answered “No”, “Maybe” or “Yes” to the question, “If you could easily do so, would you buy [product/service] from [name of website]”. Product Quality Participants used a sliding scale from 0 (“Worst”) to 100 (“Best”) to respond to the question, “How would you rate the quality of the [product] sold?” Website Evaluation Participants used a sliding scale from 0 (“:(“) to 100 (“:)”) to respond to, “What is your reaction to the website?” Trust Participants used the same scale to respond to five items about the website, taken from Bart et al. (2005), and indicate how much they trusted it - an example item being “This website appears to be more trustworthy than others I have visited”. Behavioural Intent The agreement scale was again used for five items, additionally taken from Bart et al. (2005), as a measure of behavioural intent for the site. An example statement is “I would recommend this website to a friend who was looking for a [product/service] in this area”. Liking The same agreement scale was used to measure responses to five statements created anew for this study - an example item being “I like this website”. Empathy A 5-point scale ranging from 1 (“Strongly Disagree”) to 5 (“Strongly Agree”) was used to gauge agreement to 15 items adapted from Shen’s state empathy scale for messages (2010) to fit website responses. An example item is “I can identify with the company”. Browsing Behaviours While participants were browsing the sites, their behaviour was automatically recorded, resulting in the following browsing metrics: total dwell time on the site, number of pages visited, number of key presses and number of mouse clicks.
  10. 10. Closing the digital personalisation gap The results #PersonaliseTheWeb
  11. 11. “Our research conclusively confirmed what we all instinctively know – that Britons value small businesses highly for their personal service offline, ahead of larger businesses ” Kate Cox, CMO, 123-reg Small business are special
  12. 12. Over half of British adults (56%) say that “the personal service they offer is a benefit of buying in store from small businesses” You Gov Small businesses are special 71% of British adults who ever purchase items online from a businesses’ website agree that “offline, small businesses provide a more personal service than big businesses” You Gov The online YouGov research supports previous studies showing that British adults see small businesses offer a far more personal service offline Only 3% disagreed that “offline, small businesses provide a more personal service than big businesses” You Gov
  13. 13. Small businesses are special Qualitative data drawn from the experiment showed that people think small businesses offer a friendly, personal service offline. A word cloud was created using open-ended responses to the question, “Thinking about shopping offline/in person, what do you like about shopping with local businesses? What do they provide that big brands cannot?”
  14. 14. Presenting a friendly face Staff are attentive to me personally Good relationship with staff Knowing/remem bering who I am and what I like Cares about me Community to interact with Fun/engaging to shop with Recommendations based on past purchases Experiment participants believed that small businesses performed better on eight out of twelve offline attributes. These were: 52% felt that small businesses are better at presenting a friendly face 52% felt that small business staff are more personally attentive 46% felt that they have better relationships with the staff of small businesses Small businesses are special
  15. 15. “Online the picture is the exact opposite to the offline situation, where people actually trust in and empathise more with large business websites rather than small businesses” Kate Cox, CMO, 123-reg Brits prefer big business websites
  16. 16. Only 7% disagree that large business websites featured better personalisation You Gov Brits prefer big business websites In the online survey, British adults consistently express a preference for big business websites over small, citing better personalisation as a difference between the two “59% British adults who ever purchase items online from a business’ website feel large business websites are generally better than small business websites. This rises to 78% for 18-24 year olds”. You Gov When purchasing items directly from a businesses’ website, almost a quarter of all Brits (23%) prefer to buy items from big businesses’ websites than small businesses’. This rises to 45% of those aged 18-24. You Gov
  17. 17. A fat and reliable service Large businesses perform better on 14 out of 22 website attributes tested. Big businesses excel in usability, social functions, and information quality (including personalisation). Brits prefer big business websites  Product reviews or rating from other shoppers  Product recommendations based on personal information  Looking after my personal data  Product recommendation based on past purchases  Easy to use / clear navigation  A fast and reliable service  Showing me what my social networking friends like or buy  Website design is suited to my device (e.g.PC versus smarthphone)  Letting me like, share or comment on products or information  No error or crashing  Working links  Knowing / remembering who I am and what I like  Helps me to find / buy what I want  Site information customised to me (e.g. time of day and location)
  18. 18. Closing the digital personalisation gap “Personalisation of a site significantly affected people’s trust and empathy with the business which in turn directly translated into purchase and behavioural intent” Patrick Fagan, Brainchimp
  19. 19. YouGov survey highlights disconnect between small business online and offline personal service 71% of British adults who ever purchase items from a business’ website agree that “offline, small businesses provide a more personal service than big businesses” yet nearly half (48%) believe “big businesses websites feature better personalisation” YouGov
  20. 20. User-driven - websites using personal information (e.g. name, product preferences) to recommend items to you (e.g. recommendations based on previously viewed or purchased items) Experiential - websites using data about your visit (e.g. time of day, location etc.) to show you specific things (e.g. easier to use sites for mobile users, local recommendations etc.) Social - websites linked with social networks (e.g. Facebook, Twitter etc.) to show you what your friends have purchased or allow you to share purchases with your social networks (e.g. recommendations based on friends' ratings) Closing the digital personalisation gap Brits want to see personalisation on websites 7% 5% 4% 37% 25% 15% 24% 30% 23% 22% 28% 50% 10% 13% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Value a lot Value a bit Don't value very much Don't value at all Don't know The YouGov survey showed that the British online audience have truly embraced personalisation, with many British adults online who ever purchase items from a business’ website valuing some form of personalisation on a website.
  21. 21. increased purchase intentions by 39% behavioural intentions by 17% These increases were shown to be driven by increases in trust (10%) and empathy (6%), as well as general responses to the site (9%). The experiment revealed, a big business’s website, when compared to that of a small business performs better in driving purchase intentions and behavioural intentions. These findings were found despite no significant difference in perceived product quality. Closing the digital personalisation gap Big business websites drive purchase and behavioural intent better than small business
  22. 22. “Whereas many large businesses have successfully added experiential personalisation to their web activity, few small businesses have done so given the historical high costs and complexity. Simpler and lower cost personalisation tools therefore represent an opportunity for small businesses to increase sales” Kate Cox, CMO, 123-reg Small businesses could almost half lost sales opportunities by introducing experiential personalisation on their websites The experiment showed that the proportion of respondent who disagree with the statement "I would purchase an item at this website” fell from 52% to 29% Closing the digital personalisation gap
  23. 23. Small businesses could double return visits by introducing personalisation on their website The experiment showed that the proportion who wouldn't revisit the website was halved through user driven personalisation (proportion who disagree with the statement “I would visit this website again, or browse more” of it fell from 35% to 17%) “The YouGov study showed that 48% of British adults cited “Knowing who I am and what I like” as an attribute small businesses are better at than big businesses offline. So it makes sense that reflecting this style of service in the online domain should deliver good results, given that is is clearly playing to a small businesses strength” Richard Winslow 123-reg Closing the digital personalisation gap
  24. 24. The experiment showed that large business websites that scored highly on purchase and behavioural intent were also rated highly for empathy and trust. Trust and empathy for small business websites also scored lower on purchase and behavioural intent. The experiment therefore showed a causal relationship between trust and empathy online, and behavioural and purchase intent. “Given the evidence that small businesses are rated better than large businesses for empathy and trust offline (only 9% don’t trust small businesses more than large businesses YouGov), there appears to be an empathy and trust gap between small businesses online and offline activity. Focusing web activity that closes this gap is therefore a clear opportunity for small businesses.” Kate Cox, CMO, 123-reg Trust and empathy online drive purchase and behavioural intent Closing the digital personalisation gap
  25. 25. The experiment showed that applying personalisation to a small business website drove significant gains in empathy and trust, and a corresponding significant or near significant increase in purchase and behavioural intent. The experiment therefore showed that by applying digital personalisation to a website trust and empathy online can be increased, and therefore purchase and behavioural intent. “Applying personalisation to a website drives trust and empathy, which in turn drives purchase and behavioural intent. So, digital personalisation closes the trust and empathy gap between small businesses online and offline activity” Patrick Fagan, BrainChimp Applying digital personalisation to a small business website drives trust and empathy Closing the digital personalisation gap
  26. 26. Closing the digital personalisation gap BEHAVIOURAL INTENT PURCHASE INTENT TRUST EMPATHY Increases in… Providing site information customised to me (e.g. time of day, location etc.) Knowing/ remembering who I am and what I like Having a nice/ appealing design Making product recommendations based on past purchases Helping me find/ buy what I want Looking after my personal data securely Providing websites that are suited to my device or platform (e.g. PC versus smartphone) Providing websites that are error free (e.g. working links, doesn't crash etc.) Being easy to use/ having clear navigation Having product reviews or ratings from other shoppers Improving these attributes valued most highly on large business sites Closing the trust and empathy gap Leads to increase in…
  27. 27. What can small businesses learn from these findings?
  28. 28.  Personal service offline is a primary reason people choose to buy from a small business  Most people believe large business websites score better than small businesses around key areas such as personalisation  Personalisation when applied to a website drives purchase and behavioural intent  Many people would prefer to buy from a small business online if their website experience was better  Small businesses that personalise and improve their customers’ website experience have the potential to significantly increase online customers and sales Digital personalisation helps small businesses drives sales
  29. 29. “The live experiment showed that by introducing personalisation to their site small businesses can play to their offline personal service strengths, with the potential to nearly half lost sales or double return site visits. This represents a real opportunity for businesses to simply and at low cost significantly improve the performance of their digital activity” Kate Cox, CMO, 123-reg.
  30. 30. “We want to help SMEs to increase their business performance online and have focused on developing practical and easy to use tools to enable our customers to compete more successfully online. 123-reg’s new website builder seeks to respond to this need by allowing users to quickly construct personalised websites using responsive design.” Matt Barry, COO Mass Hosting, 123-reg.

×