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Personalization increases sales and improves customer experience

WRITTEN BY 20. August 2020January 20th, 2022No Comments

How do you remain relevant and attractive to customers when they get in contact with your business both online and in physical stores? Personalization can be the solution.

Personalization of Web store and Physical store

Personalization: Data-based user experience

When your customers visit your web store or your physical store, they leave a footprint in the form of consumer behavior and buying patterns. With this data, you learn about customers’ interests as you dive deeper into which products they purchase as well as which pages they visit. The insight is highly valuable as you get to know what items are popular and less popular in your online and physical stores.

In your web store, you can utilize the buying patterns to create unique content for each user based on their individual behavior. In physical stores, you can use consumer behavior to determine how products should be highlighted and made more visible. Personalization is about creating a tailored user experience based on data.

Omnichannel personalization

The buyer’s journey does typically not take place exclusively on one platform. Most often, consumers use multiple channels when researching and buying a particular product. Therefore, you should include personalization in the entire customer experience. In the web store, pages and product views are unique and personal. In the brick-and-mortar store, you gather information about demographics and target groups. This way, you target your product views and product recommendations as needed.

Watch an example of how personalization optimizes product recommendation at a Danish book store chain, Bog & idé.

Watch a video of how Bog & idé utilizes personalization.

The benefits of personalization

If you use personalization throughout the buyer’s journey, including physical store and web store, you will experience some benefits:

#1 Returning customers

With personalization, you meet your customers’ interests and needs without them having to spend a lot of time looking for relevant products. This results in better user experience. In addition, if the product, prices, and the general service live up to customer expectations, you experience returning customers as they have been satisfied with their overall customer journey.

#2 Higher conversion rate

The conversion rate of your web store is the percentage of visitors who become paying customers. With personalization, users relate better to the presented products – and therefore to a greater extent see a need to buy. It is the same case in the physical stores, where customers are more tempted by the strategically selected, highlighted products.

#3 Additional sales

In line with the conversion rate, surveys show that 48% of consumers are willing to buy more if their experience is made personal. By using different forms of personalization, you tempt your customers with more relevant products. Therefore, sales in both physical stores and in web stores are increased, as you meet your customers’ needs and interests.

#4 Search engine optimization

When a user enters a highly personalized website, it is likely that the user will stay longer and click through to other pages, as the products and content displayed are relevant to them. Therefore, personalization improves search engine ranking. Additionally, the bounce rates are reduced, as the visitors should be interested in the presented content right from the start.

Create the right digital setup

If you truly want to utilize personalization, it requires that you have the right digital setup to be able to generate the necessary data. Therefore, it is essential that you have a web store solution that presents content and collects relevant data about site behavior. Personalization in physical stores also requires that you have a POS solution that contributes with data to the personalization processes.

At NaviPartner, we strongly believe in contributing to the optimization of customers’ buying journey. This includes the user experience in our Point-of-Sale system, NP Retail, and web store solution, NP Ecommerce. With a solid platform and the right database, you can start thinking about using personalization in the customer journey.

Setting up personalization requires digital experts who can help you select the right personalization criteria based on past experience and your needs. At NaviPartner, we collaborate with digitization companies, who can be helpful in organizing the areas where personalization is to be included. For example in the search field, in your email campaigns, or how products should be displayed on both websites and physical stores.

Stefan Stefansen

Want to know more?

Want to learn more about personalization? Contact us today and have a noncommital talk with one of our consultants. We can help you achieve the optimal personalization setup for your business.