The Three Tenets of Personalization
E-commerce is growing quickly, with nearly $123.6 billion in revenue for its fourth quarter 2016. This has led to a paradigm shift in the way retailers interact with customers and grow their business. Window signage and holiday sales are no longer the best tools to increase traffic and sales.
A Monetate study released in February 2017 found that nearly 79 percent have a documented personalization strategy. This compares to only 31 percent of revenue-generating organizations and just 8 percent of those who missed revenue goals. This shows that personalization in marketing is essential to survive in today’s competitive marketplace.
The Monetate study shows that personalization has a significant impact on financial performance. This means that retailers of any size need to develop and implement personalization strategies as soon possible. Three key principles of personalization are essential to creating a strategy. They are customer profiling, user flow and data analysis. These guidelines will help you create a comprehensive personalization program.
1. 1.Profiling Customers
Although personalization can include many elements, the core of personalization is about understanding your customer. Is she a millennial? Are they a single mom? A single mom? A military family? A teacher? A teacher? You can personalize these experiences by learning more about the influencers.
Create customer profiles for each target demographic that address what might impact their shopping decisions when they shop with your brand. This can be done online or directly with your customers. In exchange for a discount or reward, ask your customers a few questions. The more information you have, the better.
After creating your profiles, think about the content, products and prices that may interest each. According to Kibo, personalized home page promotions were able to influence 85 percent of online shoppers to purchase. In contrast, personalized shopping cart recommendations had an impact on 92 percent of online shoppers. Each tactic allows you to connect with your customers on a more personal level, whether it’s through marketing campaigns, exclusive promotions or product recommendations.
SheerID’s recent study found that 41% of shoppers are more likely to abandon their shopping carts due to a poor checkout experience. 74% of customers feel frustrated when the website content isn’t personalized for them. You can avoid cart abandonment and frustration by carefully considering where you place suggested products and how to deliver personalized offers.
You can map your user experience, from start to finish, to determine where personalized offers should be placed. You can plug in the areas where personalized content might make sense. For example, recommendations on the same page with the cart or special discounts dropped from the header. No matter what you do, you must ensure that your content doesn’t impact usability, efficiency, or simplicity. The key is to give value to the buyer, not add steps or frustration throughout the entire shopping experience.
3. 3. Data Analysis
E-commerce offers many benefits, including the ability to access endless amounts of useful and actionable data. You can see what people are purchasing, what they are scrolling and what they click on. This information can be used to adjust your strategy. You need a system and process in place to gather and analyze data to identify trends and make adjustments.
Accenture reports that 81 percent of customers want brands to get know them. They should also be able to decide when and how to approach them with specials and deals. Monitoring and collecting data from your website will allow you to better understand your customers, their needs, and when to engage with them.
Personalization doesn’t have to be complicated as some make it seem. You’ll be better able to adapt and grow with today’s changing market demands by creating a foundation that addresses your core audience, analyzes their shopping habits, and monitors new trends and opportunities.
A.I. Can Answer Three Amazon Seller Questions Three Amazon Seller Questions That A.I.
Amazon is constantly changing. Sellers know that what is in demand one week might not be the same the next. Market sellers need to be able to quickly and accurately make business-critical decisions in this highly competitive marketplace.
How can Amazon sellers keep pace? Artificial intelligence is a method that analyzes market dynamics and reacts to changes in real-time. These machine-learning algorithms are used to make critical ecommerce business decisions. These cutting-edge technologies have been used by online giants such as Amazon, Walmart, and eBay for years. Now, ecommerce entrepreneurs can also benefit from them.
What Should It Cost?
Ecommerce marketplaces are subject to price fluctuations due to market dynamics. Even for sellers selling a few hundred products monitoring and adjusting prices can quickly become a full-time job. Strategic re-pricing is especially important on Amazon where sellers constantly compete for the lucrative Amazon Buy Box. Amazon uses sophisticated algorithms to determine who gets this piece of online real property. These metrics include ratings, reviews and shipping costs. Serious sellers need a reliable Amazon re-pricing system.
AI solves this problem by repricing merchandise with complex learning algorithms that constantly assess market dynamics and changes to the competitive landscape. An algorithmic pricer does more than just set prices. It can also learn to make profit-maximizing moves and recognize opportunities.
What Should I Order?
Amazon’s inventory management can be very complicated. Ordering too much can lead to stock shortages, which can result not only in Amazon penalties but also negative customer reviews, missed sales opportunities, and possible customer complaints. You increase your business risk and capital requirements if you order too much. It can be difficult to predict what you will need, as Amazon’s demand and competition changes frequently.
Artificial intelligence and learning algorithms are the answer. They can predict demand and plan inventory by identifying key factors that affect the speed of orders. This allows them to avoid stock-outs or overstocking. The best thing about such programs is that they get smarter over time.
What should I sell?
Amazon sellers face a lot of challenges when it comes to managing their assortment. They have to decide which products they will continue selling, which ones to discontinue, and which ones to add. To do this effectively, sellers must keep an eye on market trends, changes in demand and product competition. Although it is possible to look at the past performance of products, this does not necessarily mean that they will be able to predict the future.
A sophisticated algorithmic model is required to accurately forecast the market. It can evaluate all market factors including your product portfolio. Amazon and Walmart have used data scientists to monitor their product ranges for many years. These advanced capabilities allow ecommerce startups to plan their product assortment with the help of AI and algorithmic technology.
Artificial intelligence is undoubtedly a game-changer for ecommerce entrepreneurs. It unlocks value, optimization across all aspects of Amazon businesses. Big data allows merchants to quickly and accurately analyze their sales performance and forecast the future using AI technology.