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What the Heck is Personalization Anyway?

What the Heck is Personalization Anyway?

Raise your hand if your organization has a person in charge of digital optimization/testing and another person in charge of personalization…

You’re in good company.

You might have a whole separate web analytics team, producing insights and digital reporting. Often times, these teams report to the same person and are intended to collaborate closely. And that’s great. Why? Because there’s no such thing as one without the other.

Allow me to explain:

When I work with retailers who separate these functions, it’s because their definition of personalization is dangerously narrow. They either think of personalization as:

  • Affinity-Based Product Recommendations: Visitors who viewed or purchased Product X, also viewed Product Y
  • Rules-Based Targeting: A business rule which shows new visitors Experience A and shows repeat visitors Experience B

Some see personalization as both. If this were the full scope of the opportunity (which it is not), I would agree that testing, personalization and analytics are three separate responsibilities. In that case, the analytics team would discover insights that inform testing and personalization initiatives, each team would scope out campaigns applying these insights, and they’d all work together to measure the benefit of their collective efforts.

I’d like to propose an alternative. Rather than separate initiatives implemented simultaneously and collaboratively, testing, personalization and analytics should work as an indistinguishable web of activities designed to drive the most value out of your digital experience.

Most retail organizations see their web channel as a fast-growing driver of top-line revenues. They’ll achieve this revenue growth by…

  1. Offering an experience that encourages more visitors to convert into customers.
  2. Providing an experience compelling enough that customers return and purchase more frequently (brand loyalty!).
  3. Convincing customers to purchase more with each transaction.
  4. Building a bond with customers that is strong enough to encourage these visitors to shop your brands other channels.

Optimizing the revenue of our digital channels, therefore, is the ultimate goal of testing, personalization, and analytics teams. Greater conversion, repeat purchases, higher AOV, and omni-channel engagement are the outcomes that will drive this.

Traditionally, testing has been seen as a tactic for identifying the winner-for-all experience and producing the aforementioned outcomes. However, we all know that the one-size-fits-all experience is the antithesis of a compelling one. The solution we use for testing, therefore, should be the driver of a personalized experience.

Our solution is Profile-Based Predictive Personalization, and it represents customer centricity in the truest sense of the term. It’s how we achieve an additional layer of relevance, context and ultimately revenue with our testing and analytics initiatives.

I love chatting about this stuff, so as always, feel free to reach out with questions, comments and thoughts via email or connect with me LinkedIn.

Did you enjoy this blog post? Then you might also be interested in our free download, Your Data in Action: Personalization Solutions that Work for the Customer.

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