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Is Your Personalization Engine Ready to Rev Up the New Year?

Posted by Paul Kaye on Dec 18, 2015 6:19:08 PM

project_61_contents_1007_big.jpgQ4 is quickly coming to a close. Many ecommerce retailers glad to simply survive all the usual holiday complications, are accepting of the comparable lull and lower financial numbers of Q1. But for those in the know, there’s a lot of fine-tuning that can be done on the ecommerce backend—specifically giving attention to your retail personalization engine—that can impact Q1 more than sitting still.

Here are a few things to think about when you consider your current personalization engine:                                                                                                           

Can it elevate segmentation rules?

Accompanied by the surge in new site visits and customer conversions over the holiday season is a wealth of data that you can use to start Q1 off right. You know your personalization engine has the power it needs if it not only provides relevant results, but includes tools to continually define and refine customer segments based on data you are collecting right now.

  • Do you know your best customers by spend using any customized time frame?
  • Can you pinpoint customers who have bought things only after seeing a certain number of products?
  • What about customers who saw a certain number of products but did not buy or customers who showed the highest intent, yet left items in their cart?

The most versatile of these tools allow marketers to create just about any behavior-based product or customer segment that they want. Many of your competitors most likely already have or are implementing many of these ideas in Q1. What can you actually do with these newfound segments?

  • Send special offers to customers within a given segment
  • Remarket to those looking but not yet buying
  • Make way for new inventory by clearing out the old
  • Increase stock

Can it keep your testing going?

Don’t let yourself fall into the category of retailers who fine-tune their recommendations and then leave them on autopilot. Retailers should A/B test and tweak their recommendations every few months to avoid leaving revenue on the table. Testing is a very easy (but often forgotten) way to optimize product recommendations and increase a retailer’s average order value (AOV). The title is an important area in the recommendation section and should also be tested to increase AOV. Looking for suggested titles to test to bring you into the New Year strong? Here are a few to try:

  1. % people who viewed above product also viewed these
  2. % people who bought above product also bought these
  3. % people who viewed above product also bought these

Does it allow you to produce an omnichannel experience easily?

No ecommerce executive can successfully go another year without embracing the omnichannel. Omnichannel personalization can increase sales conversion by as much as 70%. That number alone makes omnichannel adaptability hard to ignore. The most optimized recommendations accurately recognize customers wherever they are, according to what digital device they are on and what behaviors they have previously taken across channels. Recommendation engines today exist that help retailers determine and deliver, without a doubt, the right experience and message for each of these potentially revenue-impacting micro-moments. Such personalization engines help retailers:

  • Create single-view user profiles that consolidate data from multiple channels and devices in addition to offline information to enable marketing to deliver more value to each person
  • Take the most relevant action or deliver the most relevant message in real-time
  • Manage adaptive content efficiently

Even as we arrive at year’s end, there is a lot you can still do to prepare for better returns in your personalization efforts next year. Making sure your personalization engine understands customer intent at the most granular level, ensuring continuous testing and implementing personalization tools that allow profitable omnichannel engagement are just a few things to be thinking about.

If you’d like to find out how strands can help you wrap up Q4 right and rev up your personalization engine for Q1:

Contact Us

 

 

Topics: Product Recommendation Tips

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