Key Insights in Ecommerce Personalisation 2.0

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1 Key Insights in Ecommerce Personalisation 2.0 1

2 Introduction Personalisation is a very important topic in your ecommerce strategy and helps to distinguish your competitive advantage. The topic is decisive to any B2C business, which cares about their brand awareness and customer experience. In general, there are different channels (online and offline) where users can interact with your company; where it is important to build a unique customer journey and buying circle in order to gain new customers as well as retain current ones. With Shopboostr we want to help our clients with their customers journey; consequently our workshop was based around this topic. Going hand-in-hand to with our workshop, we conducted an ecommerce survey, resulting in 4 main areas: On-Site Personalisation Cross & Up-Selling Retention & Retargeting User Segmentation This paper will create insights to the current trends, obstacles and solutions for the discussed topics. With that goal in mind, we wanted to identify the key problems webshops have to face on a daily basis. For that purpose, we invited ecommerce experts as well as webshop owners, to tackle the described problem. 2

3 Survey: Results The ecommerce market changes constantly and webshops move in quicksands. That is why statistics and market figures have to be updated on a regular basis. In order to grasp some insights from the current situation, Shopboostr conducted a questionnaire to obatin feedback from webshop owners. The overall number of participants was 25, all residenced in Berlin. The leading results of the survey are showed in the following figures. Biggest problems for webshop throughout the customer journey out 1. Buyers don't come back 3. Cancel at the purchase process 2. Only buy 1 product 55% Advertised products on the website Customers motivation towards purchase 50% 18% Best price products Highest quality products Low conversion rates 3

4 Survey: Results The main goal of the workshop was to identify the main trends, problems and solutions related to customers personalisation. Key Challenges 2015 Main Goals 2015 Improvements 42% 36% Competition getting tougher High costs for customer acquisition 64% 55% 50% 14% Cannot keep up with the technical requirements On-Site Measures Retargeting Measures Retention Measures Additional questions were conducted about the major challenges webshops face for the year 2015; and about their main improvement points for that time period. 4

5 Cross & Up-Selling Cross and Up-Selling are two techniques often used to boost given sales of an ecommerce shop. Used in the right way, these techniques are great tools within the cusomter journey. We identified two main goals: to encourage indecisive customers towards the purchase; to improve the shopping experience for both new and existing customers. Trend The most popular trend is shopping by look, which is a well known example in the clothing field. It consists of displaying different styles on the website; giving to users the opportunity to buy the complete look. Problem The principal aim of every webshop is to maximize their profit; by increasing their sales and decreasing the return rate. However, main problems lie in a smart way to achieve it without disturbing the customer. Shop by outfit from Foreve21 Solution A good solution is to create an inspirational section on the site. Some webshops use it as a storytelling factor to catch the user`s attention. Meanwhile, others use it to show several ideas that may fit the customers style. 5

6 On-Site Personalisation Trend IKEA On-Site personalisation can be achieved by engaging your users with relevant content and products based on the characteristics. Such factors can contain the location, context and behaviour of a user. Personalization can be built according to previous items purchased or pages viewed. Problem Despite the use of all kind of analytics providers, the de-anonymisation is the key problem within that field. The reason behind is simple: you cannot track them properly without a prior autorization. As an outcome targeted personalisation makes this case much more difficult. How to target Anonympus users? For this case the main trend contained individualized streams streams of products on the site which fit with users interest. A good example is the personalisation section of Zalando. Solution Zalando Showing curated content and collection data on the fly, were identified as the solution. To gather information while the user is browsing and to give customers personal recommendations in real time at the right moment. 6

7 Segmentation Jockey style finder Trend If we think about real personalisation, we cannot dissociate it from behavioral targeting - they both go together hand in hand. Behavioral targeting can become a powerful tool by collecting various data points of the users. It prevents cunsumers from being harassed with irrelevant information. Advertising no longer is annoying, it can be seen as meaningful messages for every users instead. Smart action is the key trend in this area. It means that campaigns should develop with customers, offering them the right incentive at the right time. Problem Several problems were found in this matter. However, the main one is related to the topic of segmentation vs individualisation. This is, to take action per user or per segment. Solution There are a lot of tools in order to collect data for segmentation. Nevertheless, they need to be updated on an automatical basis. Therefore,the solution should contain algorithms,which learn over time. vs Big Data 7

8 Retargeting & Retention Trend These techniques are addressed to those customers who have already visited your webshop. Retargeting is the way to encourage customers to come back. It seeks to redirect users to a common goal, throught different touchpoints. The trend in the market is to have a 360º perspective. Meaning to have a full view of every touchpoint of the customer journey at once. Problem The main problem seems to cointain the process, which is very complex due to different customer needs. Therefore, you have to target them differently. Besides, most of the tools do not have good algorithms, so that they need to be set up manually. 360º view Customer expirience Solution The preferred solution is to control the operation of the algorithm: which algorithm gets shown to wich user. So that you manage: who to target and which message to adress. Different customers=different interest=different incentives 8

9 Conclusion About Shopboostr Personalisation can be seen as a must-have factor, for every webshop owner who really cares about his customer interaction. By understanding the behaviour of your customers you can build a stronger relationship and therefore increase your profit. Website personalisation and behavioral targeting can help you to convert indecisive customers into buyers. The right incentive at the rigt moment can encourage users towards the purchase as well as make your customers want to come back. Meet us at Shopboostr uses big data and algorithms to help online retailers with the personalisation of their customer journey. Our technology is able to predict a customer behaviour in real-time; in order to target them with the right product and marketing incentives at the right time alive. Personalised Product Recommendations Personalised Marketing Incentives Behavioral User Segmentation Detailed Analytics If you want to get more information, feel free to contact us. 9 BERLIN OFFICE Hardenbergstrasse Berlin, Germany Contact

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