This document summarizes the key insights from a workshop on ecommerce personalization 2.0. It identifies the main areas of on-site personalization, cross-selling, retention/retargeting, and user segmentation. For each area, it discusses current trends, common problems faced by ecommerce sites, and potential solutions. The document concludes that personalization can help build stronger customer relationships and encourage purchases by providing the right incentives to users at the right moments. It also introduces Shopboostr, a company that uses big data and algorithms to help online retailers personalize the customer journey.
Foundation First - Why Your Website and Content Matters - David Pisarek
Key insights in ecommerce personalisation - via Shopboostr
1.
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Key
Insights
in
Ecommerce
Personalisation
2.0
2.
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Personalisation is a very important topic in your
ecommerce strategy and helps to distinguish your
competitive advantage. The topic is decisive to
any B2C business, which cares about their brand
awareness and customer experience.
In general, there are different channels (online and
offline) where users can interact with your
company; where it is important to build a unique
customer journey and buying circle in order to gain
new customers as well as retain current ones.
With Shopboostr we want to help our clients with
their customers journey; consequently our workshop
was based around this topic.
With that goal in mind, we wanted to identify the
key problems webshops have to face on a daily
basis. For that purpose, we invited ecommerce
experts as well as webshop owners, to tackle the
described problem.
Going hand-in-hand to with our workshop, we
conducted an ecommerce survey, resulting in 4
main areas:
-‐ On-Site Personalisation
-‐ Cross & Up-Selling
-‐ Retention & Retargeting
-‐ User Segmentation
This paper will create insights to the current trends,
obstacles and solutions for the discussed topics.
Introduction
3.
3
The ecommerce market changes constantly and
webshops move in quicksands. That is why statistics
and market figures have to be updated on a
regular basis.
In order to grasp some insights from the current
situation, Shopboostr conducted a questionnaire to
obatin feedback from webshop owners.
The overall number of participants was 25, all
residenced in Berlin.
The leading results of the survey are showed in the
following figures.
Customers motivation
towards purchase
55%
50%
18%
Advertised products
on the website
Best price products
Highest quality
products
Biggest problems for webshop throughout
the customer journey
Low conversion rates
3. Cancel
at the
purchase
process
1. Buyers
don't come
back
2. Only
buy 1
product
Survey: Results
out
4.
4
Additional questions were conducted about the
major challenges webshops face for the year 2015;
and about their main improvement points for that
time period.
Main Goals 2015
Improvements
64% 55% 50%
On-Site
Measures
Retargeting
Measures
Retention
Measures
Key Challenges 2015
42% Competition getting tougher
36%
High costs for customer
acquisition
14%
Cannot keep up with the
technical requirements
Survey: Results
The main goal of the workshop was to
identify the main trends, problems and
solutions related to customers
personalisation.
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Cross and Up-Selling are two techniques often used
to boost given sales of an ecommerce shop.
Used in the right way, these techniques are great
tools within the cusomter journey. We identified two
main goals: to encourage indecisive customers
towards the purchase; to improve the shopping
experience for both new and existing customers.
Trend
The most popular trend is “shopping by look”,
which is a well known example in the clothing field.
It consists of displaying different styles on the
website; giving to users the opportunity to buy the
complete look.
Shop by outfit from Foreve21Problem
The principal aim of every webshop is to maximize
their profit; by increasing their sales and decreasing
the return rate. However, main problems lie in a
smart way to achieve it without disturbing the
customer.
Solution
A good solution is to create an inspirational section
on the site. Some webshops use it as a storytelling
factor to catch the user`s attention. Meanwhile,
others use it to show several ideas that may fit the
customers style.
Cross & Up-Selling
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On-Site personalisation can be achieved by
engaging your users with relevant content and
products based on the characteristics. Such
factors can contain the location, context and
behaviour of a user.
Personalization can be built according to previous
items purchased or pages viewed.
Trend
For this case the main trend contained
“individualized streams” – streams of products on
the site which fit with users interest. A good
example is the personalisation section of Zalando.
Zalando
Problem
Despite the use of all kind of analytics providers, the
de-anonymisation is the key problem within that
field. The reason behind is simple: you cannot track
them properly without a prior autorization. As an
outcome targeted personalisation makes this case
much more difficult.
How to target Anonympus users?
Solution
Showing curated content and collection data on
the fly, were identified as the solution. To gather
information while the user is browsing and to give
customers personal recommendations in real time
at the right moment.
IKEA
On-Site Personalisation
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Jockey style finder
If we think about real personalisation, we cannot
dissociate it from behavioral targeting - they both
go together hand in hand.
Behavioral targeting can become a powerful tool
by collecting various data points of the users. It
prevents cunsumers from being harassed with
irrelevant information.
Advertising no longer is “annoying”, it can be seen
as meaningful messages for every users instead.
Problem
Several problems were found in this matter.
However, the main one is related to the topic of
“segmentation vs individualisation”. This is, to take
action per user or per segment.
Trend
Smart action is the key trend in this area. It means
that campaigns should develop with customers,
offering them the right incentive at the right time.
Solution
There are a lot of tools in order to collect data for
segmentation. Nevertheless, they need to be
updated on an automatical basis. Therefore ,the
solution should contain algorithms ,which learn over
time.
Segmentation
Big
Data
vs
8.
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These techniques are addressed to those
customers who have already visited your webshop.
Retargeting is the way to encourage customers to
come back. It seeks to redirect users to a common
goal, throught different touchpoints.
Problem
The main problem seems to cointain the process,
which is very complex due to different customer
needs. Therefore, you have to target them
differently.
Besides, most of the tools do not have good
algorithms, so that they need to be set up
manually.
Trend
The trend in the market is to have a 360º
perspective. Meaning to have a full view of every
touchpoint of the customer journey at once.
Solution
The preferred solution is to control the operation of
the algorithm: which algorithm gets shown to wich
user. So that you manage: who to target and
which message to adress.
360º view Customer expirience
Retargeting & Retention
Different customers=different interest=different incentives
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Conclusion
Personalisation can be seen as a must-have
factor, for every webshop owner who really cares
about his customer interaction.
By understanding the behaviour of your customers
you can build a stronger relationship and
therefore increase your profit.
Website personalisation and behavioral targeting
can help you to convert indecisive customers into
buyers.
The right incentive at the rigt moment can
encourage users towards the purchase as well as
make your customers want to come back.
About Shopboostr
Shopboostr uses big data and algorithms to
help online retailers with the personalisation of
their customer journey.
Our technology is able to predict a customer
behaviour in real-time; in order to target them with
the right product and marketing incentives at the
right time alive.
Personalised Product Recommendations
Personalised Marketing Incentives
Behavioral User Segmentation
Detailed Analytics
If you want to get more information, feel free to
contact us.
BERLIN OFFICE
Hardenbergstrasse 38
10623 Berlin, Germany
Contact
info@shopboostr.de
www.shopboostr.de
Meet us at