Four Reasons Why Personalization Is Important
The online experience is always evolving and companies are constantly searching for new ways to capture the attention of their customers. Recommendation systems were created to analyze data in an effort to provide meaningful suggestions. Online services have benefited from accurate recommendation systems and their ability to personalize the online experience.
Why is personalization important? It helps a consumer find products and services that cater to their needs and are likely to buy. Research shows that consumers like to receive recommendations and that meaningful recommendations increase consumers’ engagement with your website, which helps businesses retain them as repeat visitors. This entire process leads to an increase in website visits and results in sales growth.
CONSUMERS LIKE TO RECEIVE RECOMMENDATIONS
While some consumers pride themselves on their ability to hunt deals and find relevant products and services on their own, they are the minority. In reality, consumers want to receive recommendations and want to be told what to buy. Time is money and convenience is an essential part of the online experience.
A consumer poll conducted by Accenture revealed that 60 percent of consumers want real-time promotions and offers. Recommendation systems collect a user’s choices and produce accurate suggestions that are likely to generate sales. For example, if a user purchases an iPhone, a simple recommendation system may suggest accessories to the consumer, but a more intuitive recommendation system may suggest that they purchase an Apple Watch, an iPad, and other related devices. The trick is to provide recommendations that personalize the shopping experience and that a customer is likely to consider.
INCREASED CUSTOMER ENGAGEMENT AND RETENTION
It’s no secret that many consumers stay on a website for a matter of seconds. Finding a way to engage them is crucial for the survival of any online business. By employing a recommendation system, a user’s past choices can be analyzed in real-time and used to provide meaningful recommendations. In fact, data suggests that over 70 percent of consumers prefer a platform that offers a personalized experience.
By offering a customized layer of personalization, a company will increase engagement with their consumers which will ultimately result in consumers staying on a business’ website longer. The more meaningful choices a consumer is presented with, the more likely they are to do business with you.