Guest Content by Trey Buehler
We have somehow found ourselves over a quarter of the way through the year (I know, hard to believe). However, many brands are uncertain about the effects of the volatile global economy on their businesses — through 2023, and beyond.
Many companies hold off on new initiatives when times are uncertain. But this actually presents the perfect opportunity for e-commerce brands to explore emerging technologies to gain a competitive advantage. In particular, site optimization and personalization are two functional areas that have been all the buzz in 2023. And with only 32% of marketers worldwide using website activity to create a personalized experience, leading retailers have the opportunity to get ahead of the curve.
But why should you prioritize your website above all of the other potential projects on your plate? Here are 4 reasons why a strong site optimization and personalization strategy can lift your brand above the uncertainties of 2023:
1. Enhancing the Customer Experience
In poor or uncertain economic times, consumers tend to be more cautious with spending - and in many cases they spend less. In fact, The Slowdown Lowdown report from GWI reveals that 27% of consumers are spending less this year. Seems obvious, right? From a brand’s perspective, this means you have to make every visit to your site count now more than ever.
By personalizing and optimizing each visit to your site, online stores create a superior customer experience for shoppers. This also provides your customers with assurance that they are making the right decision when they purchase from your brand. 82% of consumers now favor a brand’s messaging that treats them like an individual — an 11% increase over 2022. This ultimately leads to greater customer satisfaction and loyalty, which will transcend market conditions as long as you continue to deliver.
2. Improving Conversion Rates
Creating a better shopping experience through site optimization and personalization also leads to increased conversion rates and online sales. According to a recent report by Braze, retailers can expect a 31% conversion rate uplift when they deliver personalized messaging.
Leveraging these strategies enables e-commerce businesses to serve up more relevant products and content to customers. In turn, this will increase the likelihood of them purchasing during that visit. Being more efficient with your traffic is a great way to offset any drop in overall volume.
3. Staying Ahead of the Competition
Online businesses that execute a strong site optimization and personalization strategy will further separate themselves from the competition.
Shoppers expect a personalized online shopping experience, largely thanks to the likes of Amazon, Walmart, and other trend-setting retailers. In fact, 66% of consumers now claim they’ll stop using a brand if their experience is not personalized. So if you’re not offering real-time personalization to shoppers, they’ll find someone who can.
Moreover, 86% of consumers say personalized experiences increase their loyalty to brands. As the fight for every new customer becomes more competitive, retailers will increasingly turn to existing fans to drive revenue. It’s critical to make sure your repeat shoppers have digital shopping experiences that keep them coming back again and again.
Did you know that 35% or more of Amazon's revenue is earned through digital product recommendations? When consumers spend less, it’s increasingly important to stand out against the competition for every dollar spent.
4. Gaining Deeper Data Insights
An easy-to-overlook benefit of personalization and optimization is the business insights you can derive from your data. Currently, 37% of brands that sell online are not capturing any data when a user first visits their site. This means valuable insights that could be used to personalize the shopper's experience are being lost.
With a strong on-site optimization and personalization plan, you’re able to gather valuable behavior information, preferences, and trends. This data can be leveraged in future marketing, product development, and even to help improve overall business strategy. It can also be utilized to personalize other customer touchpoints (such as the in-store experience). And with third-party cookies set to sunset, it's essential to have a proactive first-party data strategy ASAP.
It’s no understatement to say that in unprecedented economic times it can be challenging to get organizational alignment on initiatives. Time has revealed again and again that the brands who fight for their customers come out on top.
For online retailers who are willing to invest, it’s imperative that you're prioritizing areas that will yield results. We’ve already seen increased pressure from leadership across organizations to critically evaluate KPIs and identify what will move the needle. Investing in a strategy with a proven track record of providing a positive ROI is paramount. In fact, 48% of senior leaders in high-performing transformations said they invested in the right technologies to achieve their vision.
E-commerce stores that prioritize their site experience will be the most prepared to weather whatever this year has to bring. Now is the time to invest in the customers on your site and provide them with personalized experiences that delight. And with the keyword ‘bargain’ spiking 97% over the last year, we’re pretty sure that the roller coaster ride that is “2023” will be a wild one.
About Granify (and Trey)
At Granify, we know the importance of proving your ROI. That’s why we only make money when you do. Our partners only pay for our data-driven, machine learning-backed technology when we capture hidden revenue for them. Book your call today with Trey, our Senior Director of Growth & Partnerships to learn more!