What is website personalization?

And how can you use it to optimize conversions on your webside?

medarbejderbillede-2024-Abdel_endelig
Digital Analytics & CRO/UX Consultant
June 9, 2024
Personalization refers to the process of customizing each user’s website experience by tailoring content, offers, product recommendations and messages to their interests and characteristics. The goal is to deliver relevant experiences as if the website/landing page was designed just for the one visitor.

Personalization depends on collecting extensive customer data across multiple categories:

  • Demographic data such as age, gender, income level, educational status and more
  • Business data such as industry, company size, job title and function
  • Geographic data including location, time zone, regional interests
  • Behavioral data that includes previous purchases, browsing history, website interactions and page engagement
  • Web analytics data to track users in real time including page flows, on-site search terms, button clicks, scroll depth and content consumption
Advanced systems use machine learning algorithms to analyze this data to segment users, predict needs and intent, and determine optimal personalization at each step. As more data is ingested over time, the models become more accurate at identifying custom experiences that resonate with each visitor.

Tactics range from broad segmentation such as customizing content by buyer persona or industry, to highly targeted on-site personalization such as showing product suggestions based on recent views. Examples include:

  • Show specific CTAs and messages that match search intent
  • Customize website content based on visitor source
  • Show category-specific product recommendations
  • Personalize the website depending on which newsletters they have received
  • Change on-site messages based on past behavior and lookalike profiles
The huge benefit of personalization done right is that it engages users by demonstrating that the experience was designed just for them. This level of relevance builds trust, satisfaction and loyalty.

Advantages of personalization

1. Personalized experiences demonstrate an understanding of each visitor right from the first interaction. Messages and content tailored to their interests and context gain attention and trust. Visitors engage longer with relevant experiences created just for them.

2. On-site personalization such as recommended products based on browsing history increases the conversion rate. Visitors are more likely to convert when presented with highly relevant offers that match their intent.

3. Personalization improves customer satisfaction and loyalty. Customers value the feeling of being understood through relevant recommendations and customized interactions.

4. Personalization also strengthens the brand’s image. Customers perceive personalized as more thoughtful, customer-centric and invested in understanding their needs. Brands like Amazon and Netflix, delivering personalized experiences at scale, have mastered this.

5. In addition, personalization provides invaluable customer insights. Testing different personalized experiences reveals which segments, messages and offers respond best with each group. These learnings inform marketing and product development.

How do personalization affect CRO?

Increase engagement on the website

Personalized on-site experiences increase engagement. For example, by showing product suggestions based on a user’s browsing history, one appeals to their demonstrated interest. This increases time on page as visitors explore more relevant products.

Deliver targeted offers

Tailoring discounts or promotional offers based on past behavior and interests increases relevance. For example, a repeat buyer of earphones could be offered a 20% discount on a new earphone model. Or an app user who is highly engaged with a particular feature will receive an offer to upgrade to premium.

Create highly targeted segments

Personalization enables the categorization of visitors into very specific segments based on attributes such as industry, job function, past behavior, interests, purchase history and more. This segmentation allows fine-tuning of experiences, content, offers and messages to perfectly match the needs of each group—driving higher engagement and conversions.

Increase conversions across the funnel

Personalization has a compounding effect when implemented across the entire marketing funnel. Visitors from search ads convert higher when landing pages are tailored to their keywords.

Conclusion

If you want to experience a significant improvement in your website’s performance and at the same time give your visitors a tailored and engaging experience, then conversion optimization (CRO) with a focus on personalization is the way forward. CRO improves the customer experience, increases ROI and lowers customer costs. By implementing personalization, you can deliver targeted offers and relevant messages that build trust and loyalty. Personalized experiences, like those implemented by Amazon and Netflix, show understanding and consideration for each visitor, which not only increases the conversion rate, but also strengthens their brand.

With CRO and personalization working together, you will be able to gain deeper insight into your customers’ behavior and preferences, creating a continuous improvement in both engagement and sales. Try it and watch your conversion rates skyrocket!

Would you like to increase the conversion rate on your website?

Feel free to call and we can have a chat about how we can help you.

Digital Analytics & CRO/UX Consultant

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