With the ever increasing marketing cost due to high competition, it becomes more and more important for e-commerce to create a better user experience to not losing them to your competitors and create a competitive advantage.

1. Gain Competitive Advantage
With Personalization
Jack Nguyen, Country Manager VN & TH
DMA Forum, July 2017

2. Why are we talking about this?

3. Revenue Growth is Key For E-commerce
Revenue = Traffic * Conversion Rate * Basket Size
Traffic acquisition has always been the focus …
Will this ever be sustainable?

4. Competition makes it harder to get users attention
3xIncrease in CPC in 2016 vs 2008
https://www.hochmanconsultants.com/cost-of-ppc-advertising/

5. But most of your users don’t buy!
What about the rest 98%? Retargeting? Email? …
E-commerce Conversion Rate is low
20% of users bring 80% of your revenue
2% of users bring 100% of your revenue
You can do better!

6. Customer has high expectation that brands know them
Customer experience does not stop at acquisition
Customer wants a unified & seamless experience
Your Advertisement Your CMS

7. Customer has short attention to make decision
Most of them buy within 1 day
Within only 1 session
You either get them now or they are gone … most likely to your competitors

8. Yet most e-commerce struggle to engage customers
• Most users (30 - 50%) view just one
page (i.e.: High Bounce Rate)
• Think about when you shop offline?
• For those who continue,
most give up very soon

9. E-commerce is a Real Estate Business
2. Huge Products Selection
3. Marketers vs. Merchandiser vs. Product & IT
1. Different Customer Needs
Pixel = $
… of pixels on website
Even worse with mobile-first market like VN

10. The No.1 Mistake: Treat all customers the same
I am a male customer and mostly buy black T-shirt
Design driven by assumption of what is the best for everyone

11. Introducing Personalization
• Show targeted contents to specific
segments of visitors
• Rules-based personalization
• Algorithm-based personalization

12. I get it. How do I do it?

13. The 4Ws Components of Personalization
• WHEN
• WHO
• WHAT
• WHY
E.g.: By showing [a voucher code] on [checkout page] to [those who viewed 3 products],
[conversion rate] will increase because [conversion rate increases by 4x time for these
users from web analytics data]

14. WHO – 2 Key criteria for an “Actionable” audience
• Volume
• Faster experiment results
• Bigger overall bottom-line impacts
• Value
• Audience with extremely higher value that deserve unique
messages/strategies

15. WHO – 3 Main User Attributes Categorization
Context
What is unique about the user now?
• Traffic Source & Marketing
campaigns
• Device
• New vs Returning
• Bought vs Haven’t Bought
Before
• ….
Behavior
What is their intention?
• View sales or new arrival page
• Viewed 3 products
• Leave their cart
• …
Demographic
Who are they?
• Country & City
• Gender
• Age Group
• Affinity & Interests
• Income level
• ….

16. 3 Key Personalization Strategies

17. Strategy 1: Symmetric Messaging
Concept: Expectations in ad campaigns should match the experiences on your site to
create seamless experience
Strategy 2: Behavioral Targeting
Concept: Show visitors content that's aligned with their current and past browsing
behavior & intentions
Strategy 3: Contextual Empathy
Concept: Adjusting the tone, imagery, and navigation on your site based on a visitor's
context (e.g.: geo-location, weather …)

18. Symmetric Messaging – Case Study
Who: One of the biggest hotel chain globally
http://useinsider.com/hotels-case-study/
Result
• Increase Conversion Rate by 74% vs control group
• Increases Bookings on Mobile Web by 12.3%
Challenge: Competition between hotel chain vs. Marketplace (OTA) websites
What:
• Targeted the visitors who came from SEM ads
• Welcomed them with a unique discount coupon code popup with 10% off
• Coupon is only valid for 20 minute with countdown timer
• Clicked the “Book Now” button, coupon code was automatically applied at checkout,
avoiding visitors from copying and pasting
• Personalized contents based on ad keyword search

19. Behavioral Targeting – Case Study I
Who: Fashion Valet – Leading Malaysia Online Fashion Store
http://useinsider.com/fashionvalet/
Result
• Increase Conversion Rate by 21.32% vs control group
• Increases Email subscription by 31.68% vs control group
Challenge: Can not stop users from leaving the site
What:
• If visitors are about to leave the site but have not seen sales page, a
pop-up leading to sales page
• If visitors are exiting during registration, an overlay to collect email
highlighting value got from sign up

20. Behavioral Targeting – Case Study II
Who: Lenovo – Multinational Technology Company
http://useinsider.com/lenovo/
Result
• Increase Conversion Rate by 13.91% vs control group
• Increases Session Duration by 22.08% vs control group
Challenge: Low Engagement. Easy promotions to drive sales
What:
• Target visitors who had viewed 3+pages hence higher
purchase intention
• Presented visitors with a unique discount coupon that
was valid for 10 minutes

21. Contextual Empathy – Case Study I
Who: Aramex – Leading global provider of delivery,
logistic, and transportation solutions
http://useinsider.com/aramex/
Result
• Increase Conversion Rate by 41.18 % vs control group
Challenge: International audience in 20 countries.
Different type of delivery services based on locations
What:
• Segment the audience into more than 20 countries
including Malaysia, Singapore, Indonesia, Kenya, Uganda,
and Tanzania
• Show a customized page, providing locally-relevant
information about delivery and displaying a personalized
promo code

22. Contextual Empathy – Case Study II
Who: Answear – International Fashion Online Retailer
Result
• Increase Conversion Rate by 2 digits vs control group
Challenge: High drop-off at product pages
What:
• Show in real-time the popularity of the product – “X Users have viewed/bought this item today”

23. Key Take Away

24. Key Take Away
5. Personalization Now to Gain Competitive Advantage & Sustainable Growth!
1. The 4W components of Personalization: Who, When, What & Why
2. “Actionable” Audience: Volume & Value
3. 3 User Attributes Categorization: Demographic. Context. Behavior
4. 3 Personalization Strategies:
• Symmetric Messaging
• Behavior Targeting
• Contextual Empathy

25. Thank You!
Jack Nguyen
jack@useinsider.com