A study in how deploying real-time personalization on your website is as an essential element of optimizing eCommerce customer acquisition. Continue reading here: https://www.dynamicyield.com/2017/07/the-economics-of-ecommerce-conversion-optimization/

1. THE ECONOMICS OF
ECOMMERCE CONVERSION RATE OPTIMIZATION

2. Improve Customer ExperienceIncrease Revenue
THE PROMISE OF PERSONALIZATION

3. HOW DO I INCREASE CONVERSION RATES BY 50% IN 5 MINUTES?

4. - Drop prices by 80%
HOW DO I INCREASE CONVERSION RATES BY 50% IN 5 MINUTES?

5. - Drop prices by 80%
- Dodge your CFO on your way out
HOW DO I INCREASE CONVERSION RATES BY 50% IN 5 MINUTES?

6. Conversion
Rate
ECOMMERCE ROI IS A BALANCING ACT
AOV CAC Product
Margins
Return
Rate
LTV

7. WHY AREN’T YOUR USER EXPERIENCES FULLY PERSONALIZED TODAY?
I’m unaware of
revenue impact
Personalization was
never a high priority
1

8. WHY AREN’T YOUR USER EXPERIENCES FULLY PERSONALIZED TODAY?
I’m not sure what is
possible technologically
We never defined our ideal
personalized user journeys
I’m unaware of
revenue impact
Personalization was
never a high priority
21

9. WHY AREN’T YOUR USER EXPERIENCES FULLY PERSONALIZED TODAY?
I’m not sure what is
possible technologically
We never defined our ideal
personalized user journeys
I don’t know where to start
and who in my organization
should own it
I’m unaware of
revenue impact
Personalization was
never a high priority
321

10. WHY AREN’T YOUR USER EXPERIENCES FULLY PERSONALIZED TODAY?
I’m not sure what is
possible technologically
We never defined our ideal
personalized user journeys
I don’t know where to start
and who in my organization
should own it
I’m unaware of
revenue impact
Personalization was
never a high priority
321
FOR A 10%-20% INCREASE IN REVENUE,
SOLVING THESE CHALLENGES IS A NO BRAINER

11. MONTHLY USERS CONVERSION RATE AOV MONTHLY REVENUE ARPU ANNUAL REVENUE
2M 2.5% $80 $4M $2.0 $48M
LET’S LOOK AT E-COMMERCE METRICS

12. MONTHLY USERS CONVERSION RATE AOV MONTHLY REVENUE ARPU ANNUAL REVENUE
2M 2.5% $80 $4M $2.0 $48M
2M 2.75% $88 $4.84M $2.42 $58M
+10% +10%
WHAT IF YOU COULD INCREASE CONVERSION RATE AND AOV BY 10%?
+21%

13. $2.5
ARPU
$2.75
Your ARPU is
WITH PERSONALIZATION:
$1.1
ROI-Positive
Traffic Acquisition Cost
& $1
ROI-Positive Traffic
Acquisition Cost
40%
MARGIN

14. A $0.1 CPC DIFFERENCE CAN DRIVE TRAFFIC ACQUISITION MIRACLES

15. MONTHLY USERS CONVERSION RATE AOV MONTHLY REVENUE ARPU ANNUAL REVENUE
2M 2.5% $80 $4M $2.0 $48M
2M 2.75% $88 $4.84M $2.42 $58M
2.3M 2.75% $88 $5.56M $2.42 $66.8M
+15%
NOW WE ARE GETTING OUR YEARLY BONUSES PAID FOR!
+39%

16. PERSONALIZATION NEEDS TO FOCUS ON IMPROVING THESE METRICS:
Conversion
Rate
AOV CAC Product
Margins
Return
Rate
LTV

17. PROVEN PERSONALIZATION WINS

18. PERSONALIZE YOUR ONSITE
EXPERIENCE TODAY
REQUEST A DEMO FROM DYNAMIC YIELD