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What is personalization

All you need to know, gathered in one place
header-personalization

1. Introduction

Internet users have changed their way of consuming content, products and services. They are well informed, more selective and quicker to pass on to your competitor who is only a couple of clicks away.

Moreover, customer journeys are getting more complex and individualized: each experience is different.

Offering personalized user journeys to all visitors has become a necessity for brands wishing to increase customer numbers and loyalty, and boost revenues.

Personalization is the only means to meet their needs and expectations in a relevant way, throughout the customer journey.

It has become a pillar of any well-thought-out marketing strategy.

personnalisation-parcours-clients
personalization statistics
personalization statistics 2

2. Definition of personalization

Personalization is the marketing strategy that helps contextualize a website's experiences, messages and offers according to visitor characteristics.

 

Today, it is possible to adopt a strategy of online personalization on a large scale, by

 

1. Collecting and analyzing visitor data

 

2. Segmenting visitors thanks to this data

 

3. Activating this data by offering each visitor a relevant experience according to the segment they belong to in real time

 

 

definition personalization

3. The benefits of personalization

The more you know about your customers, the better you can segment your audience, and increase the value of each visitor by offering ever more contextualized experiences.

customer ltv

4. A/B testing & personalization: two complementary practices

A strategy of user experience optimization generally starts with improvements of the user interface (UI). These changes are necessary, but don't cover all of the conversion optimization potential a website holds.

Personalization goes much further.

It enables you to optimize the entire customer journey by creating tailored experiences for each visitor (micro approach), while A/B testing is all about the best possible user-friendliness for all of a website's visitors (macro approach).

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In the example above:

  • if the best possible variation is chosen for the 3 segments (in our example, variation 1): conversions increase an average 3%.
  • if the best possible variation is chosen independently for each segment: conversions increase an average 4% (3%, 4% and 5%).

 

Knowing and understanding your visitors enables you to offer solutions matching their needs. Conversions can be optimized on each segment.

comparison ab testing personalization

5. Personalization types

There are two types of personalization.

"Rule-Based" personalization

This method uses manual segmentation rules, defined before-hand by marketers

 

Example: To increase engagement of new visitors arriving directly on product pages after a Google search, an e-commerce website shows a discount pop-in only to users matching the following criteria:

rule based personalization

AI personalization, based on machine learning alogrithms

These algorithms offer a much higher level of segmentation, due to their learning capacities and their ability to process huge amounts of data.

Once set up, the algorithm is able to determine which segment visitors belong to and to calculate their conversion probability, using (hot and cold) data

 

Example: A retail website wants to offer a discount only to undecided users who wouldn't buy otherwise. An algorithm takes care of the targeting. By detecting and combining even the slightest behavioral signs, it can predict user behavior.

ai personalization

6. Segmentation and targeting

Personalization should start with a reflection on segmentation which is the basis of any personalization strategy.

SEGMENTATION

Dividing the audience into groups according to pre-defined criteria.

TARGETING

Offering specific and differentiated marketing actions to each segment.

  1. Data collection
  2. Data analysis
  3. Segmentation
  4. Targeting
  5.  Personalized actions

How to segment? By using the data collected on-site.

The visitor data you collect can take various forms, all of which can be used as segmentation criteria.

The relevance of segmentation depends on the number of criteria you use for their creation. For a fine-tuned segmentation, you should combine hot and cold data.

Hot data

 

  • Behavioral criteria: data linked to the user's navigation on your website
  • Contextual criteria
  • Technical criteria

 

 

Cold data

 

  • Criteria from CRM/DMP data: data coming from your existing data ecosystem

 

 

segmentation-donnees

7. How does it work?

In times of Big Data and machine learning, your capacity of personalizing your users' experiences on a large scale depends on the solidity of the personalization platform you use, even more so if you have started predictive personalization.

Kameleoon's platform was built to respond to real-time challenges:

 

kameleoon architecture

 

8. How to design a personalization strategy matching your business goals?

Here's our consultants' method in 4 steps

1
CONFIGURE

Make an inventory of your existing data ecosystem

  • Your business context (traffic distribution per device, associated conversion rates, average cart) and main goal
  • Your strategic marketing segmentation and knowledge level of existing data
  • Maturity level of internal teams and tools used (CRM, DMP, Data Layer)
2
COLLECT

Mapping of key data and coordinating the online transmission of your hot and cold data

3
UNDERSTAND

Identify segments with high added value

  • Average cart below/above average
  • Conversion rate below/above average

N.B. A data scientist can take care of this step. There are also tools that can be activated to automatically detect these segments.

4
CONVERT

Define specific actions for each targeted segment, in line with the main goal

9. Which personalized experiences to create?

Here are a few examples of the many elements that you can personalize for your online visitors.

Content personalization

Highlight the most relevant content for your audience, based on their interests or geo-localization (local restaurants, regional news, etc.)

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User journey personalization

Adapt user journeys according to visitor behavior, to facilitate their browsing (highlight the product categories the user viewed most, reorganize your site's sections and menus, etc.)
personalized navigation

E-merchandising personalization

Meet your visitors' needs according to products they viewed, thanks to simple manual rules (highlighting products according to visitors' purchase power, targeting specific products only, social proof, creating a feeling of urgency, etc.)

personalized merchandisind

Email personalization

You can do better than just sending a nominative email. Personalize email communication based on visitors' onsite browsing behavior and interests.

personnalisation-email

10. Goals & specifities of personalization

All personalization strategies have a common goal: increase revenue and margins generated by the website.

To reach this goal, four optimization steps need to be taken:

customer lifecycle

Applied to B2C

1
RECRUIT

Embase and boost the number of qualified leads

It's not the number of generated leads, but their quality that is important for B2B websites. Qualified leads are much more likely to convert at a later stage.

Toyota:

1. Identification of a typical qualified visitor

2. Definition of a personalized offer

3. Conversion gains

générer leads B2C

 

2
CONVERT

Turn visitors into customers

Simplify, encourage and accelerate a purchase

CONVERTIR B2C

 

3
ENGAGE

Engage visitors and customers with the brand

B2C specificities

Captivate the customer with a coherent brand universe to:

  • Increase average cart value
  • Turn customers into brand ambassadors

Example

Offer each customer the right resources, in line with the specificities of their market.

fidéliser b2C

 

4
REACTIVATE

Reactivate inactive customers

  • Be capable of tracking inactive customers and those ending their engagement
  • Act at the right moment, in a targeted way

Example

réactiver B2C

 

Applied to B2B

1
RECRUIT

Embase and boost the number of qualified leads

  • Show your visitor that you understand business-specific issues and are able to answer them
  • Give relevant information right aways

Example

Players from the same industry often have points in common. If you target a B2B visitor according to their industry and offer industry-related content, you're more likely to recruit them.

générer leads B2B

 

2
CONVERT

Design tailored offers

Offer each customer a tailored solution, in line with their business-specific requirements

convertir B2B

 

3
ENGAGE

Convince your leads of your service's/product's quality

  • Make sure the product can easily be integrated by the teams who will be using it
  • Offer qualitative, personalized support

Example

fidéliser B2B
4
REACTIVATE

Work on inactive and undecided customers

  • Be capable of tracking inactive customers and those ending their engagement
  • Agir auprès d’eux au moment opportun de façon ciblée

Example

Customers whose payment method is expiring should be targeted and alerted in time.

reactiver b2B

 

11. How to analyze your personalization results?

To correctly measure the success of a personalization campaign, three points should be take into account:

  • Choose the right KPIs from the start
  • Integrate an analytics solution into the campaign
  • Keep a control group to compare the results to (true for A/B testing as well)

Which KPIs to choose?

The key indicators of your personalization campaign's performance measure depend on the goals you set.

You must be able to measure:

  • The campaign's final impact on margin and revenues (main goal)
  • Important signs to be tracked throughout the campaign that indicate that your main goals will (or won't) be reached in the end (secondary goals)

Integrate your analytics solution

Many personalization tools (including Kameleoon) integrate their own analytics platform. To get the best possible view on your campaign's performance, we recommend you also integrate your own analytics tool into the personalization solution.

Should you A/B test your personalizations?

To measure your personalization's performance, you need to keep a sample of neutral users, i.e. a group that isn't exposed to the campaign, to be able to compare the personalization's performance in real time. That's similar to A/B testing your personalization.

Caveat: In some cases, this isn't recommended. When the personalization is a special offer available for a limited time and to a given segment only, it isn't useful to reduce the size of the targeted segment.

12. Good governance

A personalization campaign's success depends on the team's competencies and on their capacity to create a real optimization cultural internally.

What are the necessary competencies for personalization?

  • KNOWING ONE'S AUDIENCE
  • CAMPAIGN PRIORIZATION, STRATEGY SETUP
  • DESIGN AND GRAPHIC CREATION, CONTENT CREATION
  • KNOWLEDGE OF HTML, CSS, JAVASCRIPT OR JQUERY

How to organize personalization internally?

For personalization, you need to get decision makers on board, and develop an internal optimization culture.

The personalization champion You should name a project manager who will head all personalization campaigns

2 examples of possible organization:

A centralized team

équipe cro centralisée

 

Dedicated teams within different departments

équipe cro décentralisée

 

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