A guide to optimize personalization
In 30 seconds
We can assure personalization only adds value if done correctly and becomes relevant throughout the customer journey. This is when it provides a differential value to the user ans also to the company.
Personalization of user experience can provide spectacular results in one of the most relevant metrics: the conversion rate. A recent study has estimated that personalized experiences could mean an above-average increase in revenue around 10%.
According to data from the same source, digital channels that are available to consumers have led to changes in their behavior and expectations.
Companies must react and adapt to this changes as soon as possible. Consumers are increasingly willing to share data, to share information, but they expect something in return.
Personalization is at the root of these new expectations.
But it must be done effectively. And that is where Conversion Rate Optimization (CRO) comes in. Experts on this matter are dedicated to find the best ways to optimize the user experience to drive conversions, and personalization has become one of the variables that can drive the conversion rate up.
Let's see some points to keep in mind:
Audience segmentation and well-defined target.
You have to know the potential audience, and you have to try to segment it. This is the first step towards personalization.
For example, a B2C company that makes a specific offer of a certain product must segment in order to be able to dedicate its online advertising resources to the chosen target. This target will respond to the advertising impact and will land, for example, on a landing page adapted to the offer and the type of audience. This is the first step in providing a relevant experience to potential customers.
For example, an insurance company wants to carry out a cross-selling campaign. It has the details of all its policyholders in the household sector, and wants to offer them car insurance. It already has enough data to segment. But it can collect data during the campaign (e.g. type of car, etc...) to improve segmentation and to be able to personalise more appropriately.
The technology of video personalization allows very interesting possibilities in the previous case since we are able to send the interested party a message that includes a video with a personalized offer. This offer takes into account the data that we already have about the interested party (who is a customer) and the data that he or she provides us with by means of a form.
Customer Journey is really important...
In any purchase process, the potential customer may not reach the end. Knowing that a user has abandoned the shopping cart is very useful information. But it is even more important to find out the reason.
There can be many reasons, but the abandonment itself allows us to collect a series of data. With this data we can personalize next shopping experience or try to get this user to visit us again and complete the process with the same or another product.
For example, we can think about doing some retargeting, offering discounts, alternative products of lower price. It is personalized but not intrusive. You are relevant. You are offering useful information.
And a very clear example is the different use cases in the personalized videos. Videos that reach the customer with a message full of useful information.
For example, many videos to encourage contributions to the pension plan provide financial information about each individual in an easy to understand format that is very grateful to potential customers. It is useful, understandable information that helps to make a purchase decision, in this case the contribution to a pension plan.
...but don't overload consumers with messages!
The data must be used wisely and personalization should be applied sparingly. Just because we have some customer data does not mean that we should use it.
Transparency and the consent of the user are essential. Users want to know how their data is being used and the law is with them. The data has to be handled properly. Without overloading.
Consumers demand relevant advertising messages that offer highly personalized experiences.
If the legal framework restricts the use of certain data, the company's communication manager must be able to know what its audience wants but, above all, how to reach this audience.
For example, forms are a good way of finding out consumer preferences, data, options, opinions. And this data that is collected quickly can automate a response that offers an attractive experience.
The technology of personalized videos offers multiple possibilities, and nowadays it is possible to build videos almost in real time after a potential interested in a product or service fills out an information form.
It is a way to reach our potential client in a relevant way and based on the interest of the user himself, being the one who provides the data that allows us to create a personalized advertising message.
Conclusion: Do it right!
A well done personalization makes consumers perceive a commitment from the company, an interest in offering a product or service more adapted to the unique circumstances of each one. And that is why they are more likely to convert.
Personalization should be used, and used well only when the customer is at the centre.
With the technology of personalized videos, at 1to1video we are able to make a personalized impact on each point of contact of the customer journey. The use cases are already very extensive and statistics show that customization done well improves conversion.