What is personalization?

All you need to know about UX personalization, gathered in one place

SECTIONS

Introduction

Internet users have changed their way of consuming content, products and services. They are well informed, more selective and quicker to pass on to your competitor who is only a couple of clicks away.

Moreover, customer journeys are getting more complex and individualized: each experience is different.

Offering personalized user journeys to all visitors has become a necessity for brands wishing to increase customer numbers and loyalty, and boost revenues.

Personalization is the only means to meet their needs and expectations in a relevant way, throughout the customer journey.

It has become a pillar of any well-thought-out marketing strategy.

what is personalization customer journey
what is personalization study 1
OF INDIVIDUALS
expect to be offered a personalized user experience that meets their needs and requirements.
what is personalization study 2
OF BUSINESSES
expect to be offered a personalized user experience that meets their needs and requirements.
people
4 MARKETERS OUT OF 5 think that personalization is indispensable
what is personalization study 4
1 SITE OUT OF 2 already personalize their users' experiences
4ème Baromètre de l’Expérience Utilisateur (2017)

What is personalization?

Personalization is a marketing strategy that helps contextualize a website's experiences, messages, and offers depending on visitor characteristics.

what is personalization explaining

Today, it is possible to adopt a strategy of online personalization on a large scale, by

  1. collecting and analyzing visitor data
  2. segmenting visitors thanks to this data
  3. activating this data by offering each visitor a relevant experience according to the segment they belong to in real time

The benefits of personalization

what is personalization segmentation

The more you know about your customers, the better you can segment your audience, and increase the value of each visitor by offering ever more contextualized experiences.

A/B testing & personalization: two complementary practices

A strategy of user experience optimization generally starts with improvements of the user interface (UI). These changes are necessary, but don't cover all of the conversion optimization potential a website holds.

Personalization goes much further.

It enables you to optimize the entire customer journey by creating tailored experiences for each visitor (micro approach), while A/B testing is all about the best possible user-friendliness for all of a website's visitors (macro approach).

what is personalization ltv A/B TESTING is an optimization tool. PERSONALIZATION is a complete strategy.

what is personalization table 1

If the best possible variation is chosen for the 3 segments (in our example, variation 1): conversions increase an average 3%.
If the best possible variation is chosen independently for each segment: conversions increase an average 4% (3%, 4% and 5%).

Knowing and understanding your visitors enables you to offer solutions matching their needs. Conversions can be optimized on each segment.

Personalization types

There are two types of personalization

"Rule-Based" personalization

This method uses manual segmentation rules, defined before-hand by marketers

Example: to increase engagement of new visitors arriving directly on product pages after a Google search, an e-commerce website shows a discount pop-in only to users matching specific criteria.

Personalization based on machine learning algorithms

These algorithms offer a much higher level of segmentation, due to their learning capacities and their ability to process huge amounts of data.

Once set up, the algorithm is able to determine which segment visitors belong to and to calculate their conversion probability, using (hot and cold) data

Example: A retail website wants to offer a discount only to undecided users who wouldn't buy otherwise. An algorithm takes care of the targeting. By detecting and combining even the slightest behavioral signs, it can predict user behavior.

Segmentation and targeting

Personalization should start with a reflection on segmentation which is the basis of any personalization strategy.

SEGMENTATION: Dividing the audience into groups according to pre-defined criteria.

TARGETING: offer specific and differentiated marketing actions to each segment.

DATA COLLECTION
DATA ANALYSIS
SEGMENTATION
TARGETING
PERSONALIZA­TION ACTIONS

How to segment? By using the data collected on-site.

The visitor data you collect can take various forms, all of which can be used as segmentation criteria.

The relevance of segmentation depends on the number of criteria you use for their creation. For a fine-tuned segmentation, you should combine hot and cold data.

what is personalization targeting hot cold data

Hot data

Behavioral criteria:
Data linked to the user's navigation on your website

Contextual criteria

Technical criteria

Cold data

Criteria from CRM/DMP data
Data coming from your existing data ecosystem

How does it work?

In times of Big Data and machine learning, your capacity of personalizing your users' experiences on a large scale depends on the solidity of the personalization platform you use, even more so if you have started predictive personalization.

what is personalization technical background

How to design a personalization strategy matching your business goals?

Here's our consultants' method in 4 steps:

1

CONFIGURE

Make an inventory of your existing data ecosystem

Your business context (traffic distribution per device, associated conversion rates, average cart) and main goal

Your strategic marketing segmentation and knowledge level of existing data

Maturity level of internal teams and tools used (CRM, DMP, Data Layer)

2

COLLECT

Mapping of key data and coordinating the online transmission of your hot and cold data

what is personalization criteria

3

COMPREHEND

Identify segments with high added value

Average cart below/above average

Conversion rate below/above average
N.B. A data scientist takes care of the step. However, there are tools that can be activated to automatically detect these segments, such as Kameleoon's Audiences module.

4

CONVERT

Define specific actions for each targeted segment, in line with the main goal

RECRUIT

CONVERT

ENGAGE

REACTIVATE

What personalized experiences to create?

To create relevant user journeys for your different visitor segments, you can contextualize all your site's elements. Here are some examples:

Content personalization

Highlight the most relevant content for your audience, based on their interests or geo-localization (local restaurants, regional news, etc.)

personalization email kameleoon personalization email kameleoon

User journey personalization

Adapt user journeys according to visitor behavior, to facilitate their browsing (highlight the product categories the user viewed most, reorganize your site's sections and menus, etc.)

what is personalization navigation

Product & Price Targeting

Meet your visitors' needs according to products they viewed, thanks to simple manual rules (highlighting products according to visitors' purchase power, targeting specific products only, social proof, creating a feeling of urgency, etc.)

what is personalization price targeting

Product recommendation

Orchestrate your catalog according to existing correlations between products (up-selling, cross-selling of complementary or similar products, "people who bought this article also bought...", collaborative filters, etc.)

what is personalization product recommendation

Email personalization

You can do better than just sending a nominative email. Personalize email communication based on visitors' onsite browsing behavior and interests.

what is personalization email personalization

Cross channel personalization

Your cross-channel strategy should be an all-englobing approach. Whatever the device a visitor uses, personalize their experience by unifying their browsing data.

what is personalization cross canal

We have listed several articles that can help you design completely personalized user journeys for your visitors:

Goals & specificities of personalization

All personalization strategies have a common goal: increase revenue and margins generated by the website.

To reach this goal, four optimization steps need to be taken:

GENERATE MORE QUALIFIED LEADS

CONVERT YOUR VISITORS INTO CUSTOMERS

ENGAGE EXISTING AND FUTURE CUSTOMERS

REACTIVATE INACTIVE CUSTOMERS

Customer life cycle

Applied to B2B

73% of B2B customers say that to be convincing, a brand must prove it has in-depth knowledge of their business-specific issues.

A B2B sale often takes time and argumentation to go through. Costs are higher, and the decision-making chain can include a great number of players.

RECRUIT

CONVERT

Embase and boost the number of qualified leads

B2B specificities Show your visitor that you understand business-specific issues and are able to answer them

Give relevant information right away

Design tailored offers

B2B specificities Offer each customer a tailored solution, in line with their business-specific requirements


Example Players from the same industry often have points in common. If you target a B2B visitor according to their industry and offer industry-related content, you're more likely to recruit them.

Example These tailored solutions should be completed by tailored pricing.


what is personalization pricing example
what is personalization loyalty picto

ENGAGE

REACTIVATE

Convince your leads of your service's/product's quality

B2B specificities Make sure the product can easily be integrated by the teams who will be using it

Offer qualitative, personalized support

Work on inactive and undecided customers

B2B specificities Be capable of tracking inactive customers and those ending their engagement

Act at the right moment, in a targeted way


Example Customer service

Example Customers whose payment method is expiring should be targeted and alerted in time.


what is personalization reactivation example
what is personalization reactivation example

Applied to B2C

When talking about conversion optimization, retail and e-commerce first spring to mind. But this practice is also essential for other industries, such as media, luxury goods, banking and insurance or online services.

B2C optimization issues are the same for all industries, and help meet the same business goals as in an B2B environment:

RECRUIT

CONVERT

Embase and boost the number of qualified leads

B2B specificities It's not the number of generated leads, but their quality that is important for B2B websites. Qualified leads are much more likely to convert at a later stage.

Turn visitors into customers

B2B specificities Simplify, encourage and accelerate a purchase


Example Toyota:
1. Identification of a typical qualified visitor
2. Definition of a personalized offer
3. Conversion gains

Example These tailored solutions should be completed by tailored pricing.


what is personalization social proof
what is personalization loyalty picto

ENGAGE

REACTIVATE

Engage visitors and customers with the brand

B2C specificities Captivate the customer with a coherent brand universe to:

Increase average cart value

Turn customers into brand ambassadors

Reactivate inactive customers

B2C specificities Be capable of tracking inactive customers and those ending their engagement

Act at the right moment, in a targeted way


Example Offer each customer the right resources, in line with the specificities of their market.


what is personalization cart reactivation example
what is personalization cart reactivation example

How to analyse a personalization's results?

To correctly measure the success of a personalization campaign, three points should be take into account:

Choose the right KPIs from the start

Integrate an analytics solution into the campaign

Keep a control group to compare the results to (true for A/B testing as well)

What KPIs to use to analyze a personalization campaign?

The key indicators of your personalization campaign's performance measure depend on the goals you set.

You must be able to measure:

The campaign's final impact on margin and revenues (main goal)

Important signs to be tracked throughout the campaign that indicate that your main goals will (or won't) be reached in the end (secondary goals)


Integrate your analytics solution

Many personalization tools (including Kameleoon) integrate their own analytics platform. To get the best possible view on your campaign's performance, we recommend you also integrate your own analytics tool into the personalization solution.


Should you A/B test your personalizations?

To measure your personalization's performance, you need to keep a sample of neutral users, i.e. a group that isn't exposed to the campaign, to be able to compare the personalization's performance in real time. That's similar to A/B testing your personalization.

Caveat: In some cases, this isn't recommended. When the personalization is a special offer available for a limited time and to a given segment only, it isn't useful to reduce the size of the targeted segment.

Good governance

A personalization campaign's success depends on the team's competencies and on their capacity to create a realoptimization cultural internally.

What are the necessary competencies for personalization?

DATA ANALYSIS
CAMPAIGN TRACKING

KNOWING ONE'S AUDIENCE
CAMPAIGN PRIORIZATION
STRATEGY SETUP

DESIGN AND GRAPHIC CREATION
CONTENT CREATION

KNOWLEDGE OF HTML, CSS
JAVASCRIPT OR JQUERY

How to organize personalization internally?

For personalization, you need to get decision makers on board, and develop an internal optimization culture.

The personalization champion

You should name a project manager who will head all personalization campaigns

CAMPAIGN MANAGEMENT

EVANGILIZATION

DEVELOPMENT OF AN OPTIMIZATION CULTURE

COMMUNICATION AMONG TEAMS

What should the organizational structure look like?

2 examples of personalization organization structures:

what is personalization centralization

A centralized team

what is personalization multiple teams

Dedicated teams within different departments

There's no ideal structure. Choose the organization that suits your company best.

Good to read

Introduction
What is personalization?
The benefits of personalization
A/B testing & personalization: two complementary practices
Personalization types
Segmentation and targeting
How does it work?
How to design a personalization strategy matching your business goals?
What personalized experiences to create?
Goals & specificities of personalization
How to analyse a personalization's results?
Good governance
Good to read

Ready to create tailored experiences?