Monetise the Maybes. How personalisation converts browsers into buyers. transforming multi-channel personalisation
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1 Monetise the Maybes How personalisation converts browsers into buyers transforming multi-channel personalisation
2 If I have 3 million customers on the Web, I should have 3 million stores on the Web Jeff Bezos In a fast evolving retail landscape, where the battle for customers and revenue is being fought on many fronts, where should retailers seeking instant advantage focus their efforts and investments? The answer is to give more customers what they are most interested in more of the time. The way to achieve this is personalisation. Specifically, the introduction, improvement and expansion of personalisation tools across ecommerce activities for demonstrably increased revenues, maximised return on investment in traffic building and painless implementation. The secret of success in personalisation is a rapidly deployed solution, that can be painlessly managed on an on-going basis and which delivers stable, predictable ROI. Roger Brown, CEO, Peerius Get personal It s not easy to find a commentary on the future of ecommerce and retail that does not highlight personalisation as a key component of success. Econsultancy describes personalisation in 2013 as back big time. In part this is simply because more companies digital capabilities have matured to the point where they are actually in a position to do it rather than just talk about it. In part it is because customers simply expect Amazon-like capabilities on all sites. In part it is because most companies aren t struggling with getting traffic to their digital presences but they could be converting much better. Accenture s Technology Vision 2013 report goes further, suggesting that organisations that build deeper and richer digital relationships with their customers in order to deliver more personalised experiences and interactions, are winning the global race to thrive. Personalisation can take several forms; typically an ecommerce site will personalise content, , recommendations, landing pages and navigation. More detail is provided later in this paper. The key is to make sure that personalisation improves site performance and the customer experience, so that browsers buy and sales revenue increases. Roger Brown, CEO, Peerius 1
3 Traffic conversion: Make the horse drink Millions of pounds are invested in attracting visitors to retail websites everyday. IAB s October 2012 research reported that in the UK, digital advertising spend was somewhere in the order of 2.6 billion for the first six months of the year, of which 59% was paid-for-search. In addition, Cap Gemini statistics show that less than 4% of all e-retail site visitors make a purchase; 96% of visitors leave a site without buying. The goal must therefore be to increase browser to buyer conversions. Personalisation ensures that the page a visitor arrives on, either via a PPC campaign, organic search, advert or promotion, the content is as relevant as possible to that visitor based on their reason for clicking. The Hut Group Average order value (AOV) increased by 7.8% Conversion rates increased by 39.9% Revenue per visit increased by 48.7% It is a recommendations solution that is simply smarter than anything else on the market. The Peerius solution combined with our platform means that The Hut Group and Peerius can remain agile to the customer opportunity Andrew Booth, CMO, The Hut Group 1. Ashley Friedlein The four Ps of Personalisation [accessed 20/02/2013] 2. Accenture Technology Vision 2013 transforming multi-channel personalisation 2
4 The facts: How personalisation drives revenue Peerius now has over five years data from over 100 different retailers, which demonstrates the impact of personalisation on converting browsers to buyers. Much of this data is from A/B split-tests data that is immune from the bias of before-and-after comparisons. Here are two case studies from Peerius clients. Fashion Figure 1 shows A-B test data demonstrating how a site performs with recommendations manually selected by retail staff against recommendations driven by sophisticated recommendation algorithms. The site is a major fashion brand and the data was recorded over six days and 170,447 visitor sessions. Figure 1 3
5 Not on the high street 31% increase in average order value 78% boost in average units per order The Peerius SMART-recs engine doesn t look at a customer, it looks at our customers, to understand what they re interested in and connect them to the perfect products. Dave Thomson, Head of Product Management, Not on the high street Health and Beauty These results are from a UK high street health and beauty brand. The data is taken from a month of trading, during which there were 1,433,804 user sessions. Figure 2 3. IAB [accessed 20/02/2013] 4. transforming multi-channel personalisation 4
6 Painless gains Personalisation involves some of the most complex mathematics and logic to deliver intelligent results. However, from a retailer s point of view, the right solution can be a cost effective and low risk implementation that can be deployed quickly with next to no disruption to the operation. More importantly, the gains are well documented and predictable: Retailers providing personalised ecommerce experiences convert more browsers to buyers Personalisation done well is proven to drive revenue growth When so much investment is made in attracting visitors to a site, it makes sense to ensure that they can achieve their goals when they arrive Implementation is low risk, causing little disruption. Charles Tyrwhitt 36% increase in average order value 24% increase in average units per order The Peerius SMART-recs differentiator is its intelligence Jennie Blythe, Head of Web Development and Trading, Charles Tyrwhitt Defining personalisation There are many ways retailers can personalise the online shopping experience and drive more revenue, including: Recommendations: Drawing on sophisticated algorithms in hybrid combinations with hints and/or filters to offers alternative or complementing products as a browse advances towards the checkout. A good recommendation deployment can increase sales by as much as 20%. Content: Content presentation is built around a user s preferences and behavioural patterns. They see the most suitable content for them on every page, whether the content is images, articles, banners, promotions, documents or any other piece of html content. Solutions of varying capabilities exist, ranging from what amounts to a simple mail merge to dynamic tags that updates an with live information. Using the right personalised approach has resulted in conversions increases of up to 18%. Navigation: Personalised that allows a site s navigation to be moulded around the user. A dynamic category listing based on the behavioural patterns of an individual, and any merchandising strategies that are in place, means customers see more things they are interested in on their path to purchase. Landing: Personalised landing pages relate to a user s entry point on a site via PPC ads. Intelligent solutions allow retailers to dynamically generate dedicated landing pages for each and every keyword in a PPC ad campaign to dramatically reduce bounce rates and increases browser to buyer conversion. 5
7 Conclusion Retail operations are changing swiftly and there is an array of opportunities for ecommerce decision makers to choose from. Maximising the personalised functionality of a retail site can deliver quick results in terms of increased revenue, is inexpensive and can be implemented without disruption. By monetising the maybes, personalisation can be a quick win. Lovehoney Average units per order up by 43% Average order value up by 74% You plug Peerius into your system and it just works, running silently in the background to drive sales. That s great, but we re a company that s keen to experiment and there s huge scope to tweak and tailor to our very specific needs Matthew Curry, E-commerce Manager, Lovehoney Find out how advanced personalisation from Peerius could increase your conversions and drive revenue, to deliver instant ROI. Visit or call +44 (0) transforming multi-channel personalisation 6
8 Units , Great Guildford Business Square, 30 Great Guildford Street, London SE1 0HS T: +44 (0) F: +44 (0)
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