It’s All about Return on Experience
It seems that it all boils down to a question of loyalty. A loyal customer base is what creates a brand and makes a business. Whether we’re talking about bringing in someone new who is making an initial purchase – or relating to a returning, long-term customer – the highest priority in e-commerce is clearly to attract, convert, and retain your customers. And if we’re going, to be honest, this generally means providing them with a “Wow!” kind of experience.
What Makes You Different?
The Old Way: One Solution for All
This approach is comparatively new in the online space because, in the earlier days of the Internet, brands could improve conversion rates more simply, through site optimization and A/B testing. However, A/B testing no longer has a particularly significant impact on ROI. It’s no longer a question of straightforward, “one size fits all” optimization. According to a recent survey by Deloitte and Salesforce, 92% of brands either are using personalization strategies already or are planning to do so in the future.
Personalized Marketing: Where Each Piece is a Puzzle
To optimize conversion rates effectively and increase ROI, brands now need a more complex approach, segmenting and targeting multiple audiences based on a range of parameters. These can include region, customer persona, gender, and device – or even local weather conditions. And that’s not all. It’s also become common to create a tailor-made customer experience that reflects the individual’s purchasing history, creating customized advertising for new customers, returning customers, lapsed customers, and VIP customers.
Once you approach marketing from this more personalized vantage point, you can create a consistent, multichannel experience that keeps the customer at the heart of the experience and builds lasting relationships. ROE, return on experience, is a compelling metric and enables businesses to evaluate how effective personalization strategies are. In addition to providing a more engaging experience, personalization strategies also allow you to measure the ROI per segment and improve the approach for each and every part of your target audience, leading to increased profits.