As part of the Digital Management course at Berghs I did a session around personalization and conversion rate

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Personalization and
Conversion
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2013 APRIL 22
Mikael Jacobsson
Business Consultant
SapientNitro

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PERSONALIZATION, 100YEARS AGO…
“You can have any color you like,
as long as it’s black.”
Henry Ford, 1909
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Personalization in a word
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Definition of personalization
Personalization can be simply defined as:
“The right experience or offering for the right customer at the right time at
the right place”.
It is an engagement between the source of information (i.e. your brand) and the
receiver of information (i.e. the customer / user) that is tailored based on
intelligence gathered by the receiver.
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Personalization will help you to…
+ Increase sales and revenue
+ Enhance online conversion rates
+ Boost average order value
+ Drive cross sell and up sell initiatives
+ Strengthen customer loyalty and retention
+ Lower the cost of acquiring new customers
+ Increase customer experience
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To master personalization, you first need to master your data
Effective personalization means delivering product recommendations, offers and
content based on what you know about a given customer.
It requires developing dynamic profiles of individual customers and
demographic segments by integrating data from disparate sources, including:
+ Online activity
+ Purchase and search history
+ Offline activity (call center and in-store sales data)
+ Social media activity
+ User registration information
+ Third-party data (demographic, firmographic and so on)
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8 different
personalization tactics

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Personalization is a key area
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Transactional history based personalization
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Recommendations based on similar purchases enables a personal shopping experience.

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Configuration personalization
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Profile based personalization
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Login personalization
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Offsite personalization
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GEO-targeting personalization

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Offline personalization
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Social integration personalization
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How can you personalize your
customers experience?
Define the purpose of you website?
How can use personalization to better serve this purpose?
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Conversion

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What is a conversion?

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Macro and micro conversion
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Why is conversion
important?

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The value of increasing the
conversion rate by 0.5%
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1 100 000 x 6 % x 185 EUR = 12 210 000 EUR
1 100 000 x 6,5 % x 185 EUR = 13 227 500 EUR
+ 1 017 500 EUR

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What is a good conversion rate?
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It is not all about the site…
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How to improve your conversion
rate?
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How do you see that you can
implement an ongoing process for
improving your conversion rate?
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Personalization as a core business strategy.
Instead of treating personalization as a one-time or ad hoc effort, use personalization as
a core business strategy and support personalization efforts with:
+ Well-defined and detailed performance goals
+ A structured performance monitoring system
+ A dynamic road map for continuous optimization
+ Automation across all stages of the personalization lifecycle promotional emails
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Can you help your organization
make personalization as part your
core business strategy?
How can you help your organization collect customer data?
How can other parts of your organization use these insights to create a more
personalized experience?
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Thank you!
Sincerely yours Mikael Jacobsson | @jacobssonmicke
| +46702899244 | mjacobsson@sapient.com |
se.linkedin.com/in/mikaeljacobsson
&
berghs.se, 08-57 550 00 | info@berghs.se |
@Berghs | facebook.com/berghssoc | berghs.se