What You Need to Achieve Hyper-Personalization in Commerce

You’ve heard the phrase “million dollar question,” but here’s a trillion dollar query: According to McKinsey, U.S. businesses are losing out on more than $1 trillion in revenue per year due to mediocre or non-existent ________?

We’ll fill in the blank: Personalization.

Personalization is imperative to commerce success, and with millions, billions, and even trillions of dollars at stake, your brand needs to get it right. Learn what it takes to offer hyper-personalized online shopping experiences – and how Elastic Path’s family of products makes it possible for any brand.

1. First-Party Data

Why you need it: First-party data is the foundation of hyper-personalization in commerce. True, effective personalization goes beyond personas and audiences and means offering a tailored, 1:1 experience to individual consumers. McKinsey’s study found that 72% of consumers expect businesses they buy from to recognize them as individuals and know their interests. With a decline in third-party tracking cookies, first-party data is the surest, most reliable way to offer personalization that boosts conversion and revenue.

How Elastic Path can help: Our integration with Twilio Segment empowers all brands, not just those with big budgets and dedicated data teams, to access first-party data and create revenue-maximizing commerce experiences. The instant-on integration is available in Elastic Path Composer’s Integrations Hub, and also through Elastic Path CX Studio’s frontend capabilities.

2. Personalized Product Recommendations and Dynamic Content Displays

Why you need it: Personalized product recommendations and dynamic content displays create compelling customer experiences that boost revenue and conversions. What does that mean in practice? Examples include…

• Presenting winback offers for customers that show signs of churn
• Showing products on a shoppable landing page that appeal to a specific user
• Having dynamic product bundles that recommend complementary products to users

How Elastic Path can help: It’s easy for your merchandisers to set simple rules in CX Studio’s no-code visual editor so that customers receive personalized experiences on your site and on shoppable landing pages. The products that you offer on your site and on landing pages can be further personalized if you use Elastic Path Product Experience Manager to create thousands of product variations in a matter of seconds.

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3. Loyalty Programs

Why it’s important: One study found that integrating a loyalty program can increase your average order volume (AOV) by 319%. Another found that 75% of consumers would switch brands to access a loyalty program. In general, we find that loyalty programs – in which your most frequent customers are offered free or paid memberships to receive special discounts and deals – produce substantial revenue for brands.

How Elastic Path can help: Product Experience Manager allows your merchandisers to create loyalty-specific experiences that boost customer loyalty and purchases. You can offer early access to products for loyalty customers, offer specialty pricing, and create bundles specifically for your most loyal and ready-to-purchase buyers.

4. A/B Testing

Why it’s important: What’s the point of hyper-personalization if you don’t know whether it works? A/B testing allows you to experiment with different personalization strategies and the content on your online store and landing pages. Over time, you offer better user experiences and you boost the odds of selling more products at a higher price point. A/B testing also fosters a culture of data-driven decision making, ensuring that your hyper-personalization efforts are based on actual user behavior.

How Elastic Path can help: CX Studio gives your merchandisers and marketers the ability to A/B test your commerce frontend. Your online store and landing pages can be rigorously and repeatedly tested for the CTAs, images, product descriptions, content layout, and displayed products that result in actual purchases. Our customers say they can run hundreds or thousands of tests at once – getting a large volume of tests live in a matter of minutes.

5. Dynamic Pricing

Why it’s important: Discounts often boost AOV, but maximizing profit margins means offering smart, targeted discounts that reflect market demand and individual consumers’ purchasing history. Dynamic pricing is how your business can offer the right price to the right customer at the right time – avoiding unnecessary discounts and maximizing revenue.

How Elastic Path can help: Our composable products enable your merchandisers to set up differentiated experiences and dynamic pricing experiences. Whether flash sales or individualized pricing or special prices for a subset of customers, Product Experience Manager empowers your merchandisers to make pricing changes fast.

Watch to see how it takes a mere 90 seconds to set product category and individualized pricing with Product Experience Manager.

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Ready to launch hyper-personalized commerce experiences that boost conversions and revenue? Talk to an Elastic Path expert today about your commerce needs and how to drive more value from your commerce.