With ever-evolving and rapid changes in customer behavior, the conventional marketing methods are now becoming obsolete and irrelevant. It is even more important now than ever, that each marketing strategy, that brands adopt, be high on quality and in numbers. Since users are spending more and more of their time being online, they begin to despise brands that waste their times with unappealing and non-useful content.
Amazon was one of the first few brands to utilize personalization on the web and their growth hasn’t been a surprise to anyone. The great customer experience that Amazon provides has been a keystone in their success. In a research study, 60% of consumers stated that they feel that Amazon fully understands their preferences and needs. It’s no wonder then that these customers go on to make repeat purchases on Amazon. In fact, as stated in an article in CMO, 1/3rd of the customers said that they wished brands were able to personalize their experience better.
Delivering seamless personalized customer experiences across different communication mediums and touch points is proven to be a key factor in driving customer loyalty. According to HBR, acquiring new customers is 5 to 25 times more expensive than retaining them. Another study by McKinsey reveals that personalization can deliver 5 to 8 times the ROI on marketing spend and lift sales by 10% or more.
Our Business Intelligence team at Insider has developed an ROI calculator using parameters which you can estimate the incremental revenue your brand can make out of implementing CX technologies.
Here are some numbers:
Imagine that your eCommerce website generates 8,358,000 sessions every month and your average conversion rate per month is 1.42%. Based on our data from hundreds of global brands across industries, using Insider, brands have been able to increase their conversion rate by 6% to 8%. Taking the bottom value, if the conversion rate of the eCommerce in our example above increases by 6%, the rate grows to 1.51% which leaves Insider partners with an average ROI of 1470%.
“At Insider we work with more than 300 clients across the globe. We’ve gained vertical-specific expertise in each industry’s specific needs and requirements in delivering unique digital experiences. We’ve realized that companies that position data-driven personalization at the center of their marketing and sales strategies achieve a much greater ROI. Through constantly optimizing personalization scenarios, we’ve seen clients double their revenue in a year.” says Director of Partner Success Team, Arda Koterin.
According to a study by Capgemini, companies nailing personalization are able to reap 26% more profits than companies who don’t do any form of digital customer experience optimization. To begin with your personalization journey, get started by mapping out the specific targets, KPIs, short-term goals and all other elements where there is any room for improvement. It might seem complicated to get started with, but adopting an agile CX solution, such as Insider, can help increase your ROI considerably. Once a road map is designed, marketers can get started with the execution of personalization and optimization operations easily.
Getting started might seem intimidating but even the little steps count. To begin with, you may want to do basic segmentation or leverage ready to use segments. Once you’ll start noticing the improved metrics on your performance sheets, you’d want to optimize it to get better and better. Personalizing your web flows not just creates a delightful experience for the end-users but also leads to improvement in all your performance metrics. In fact, in a study by Janrain, 74% of users reported that it was a frustrating experience if the content they saw on a website was not personalized per their interests. In a study by MyBuys it was found that 41% of consumers buy more from retailers who personalized their experience. With personalization, you’re getting more of what matters to your business — sales. Imagine if the bottom-most and most significant part of your marketing funnel — actual purchases — were to grow by 40%, how much bigger and wider your rest of the funnel would be becoming. Hence, with personalized experiences on your website, you can expect more and more visitors to come on your site (higher traffic), stay longer (low bounce rates), and make more frequent purchases (increased revenue).
Hence, as you go on making your experiences all the more personalized, the higher ROI you can reap out of your efforts. The best part? Once you have nailed your personalization strategy, slowly and steadily, it can be applied over and over again on all your visitors. Key is to get started.
Edwin is oversees Insider's customer success team in Indonesia and the Philippines. He has 6+ years of experience in digital marketing, with a special focus on multichannel CRM strategy, growth hacking, and A/B testing. Before Insider, Edwin was a technology consultant at Accenture and co-founded his own Digital Agency.