By using personalization, you can adapt content at various touchpoints of the customer journey to meet the unique needs of your customers. In addition to the question of where you want to use personalized content, there is also the question of which elements you want to individualize. In addition to relevant product recommendations, a popular and frequently used component in many online stores, you can dynamically customize other elements: navigation, banners, discounts & coupons, content, and brands. You can learn more about this on our knowledge page, “What is personalization”.
In this post, you’ll read more about the different types of banner personalization, its use at different customer touchpoints and why it pays off in terms of your conversion rates.
What does banner personalization mean?
Banners, also known as advertising banners, are usually rectangular areas intended to draw attention to a product or service. There are almost no limits to the variations in terms of format and design. Animated or interactive banners can achieve a high level of attention. When store visitors click on a banner, they are taken to the advertised product or category via the link provided. Dynamic banners change their content and are, for example, adapted to the behavior of each individual visitor or to the current demand of all visitors in the online store. AI solutions can collect all user data in real time and use it to calculate the relevant content for your banners. This strategy is highly likely to draw the interest of your store visitors.
Why is banner personalization useful?
Why do our customers rely on banner personalization? Because relevance is convincing. In the store, it’s sales staff who find out what customers’ interests and preferences are through conversation. In the online store, it’s artificial intelligence (AI) that takes over this job. It collects customer data and evaluates it in real time based on past purchases, customer master data and current behavioral data.
According to a representative online survey conducted by the Max Planck Institute for Human Development and the University of Bristol in 2020, personalization is commonly accepted when it comes to shopping, entertainment or search engine results.
The success of personalized content is also reflected in our customer projects. Personalized purchase incentives like recommendations lead to a higher conversion rate as well as higher sales and strengthened customer loyalty. In our case studies, you can learn more about our personalization projects in practice with retailers like WMF, Bader and Thalia.
Which recommendation logics are hidden behind banners?
Our AI solution, AIR Personalization, offers over 20 different recommendation logic, based on:
(based on product, based on categories, based on user, based on search terms, based global data)
The recommendation logic can be combined with each other, to form so-called “multi-level recommendations”, which in turn can be linked together in loops. The loops are used to pass a result from one recommendation model into another. For example: AI determines your customers’ favorite category and uses this as input information to determine the top products for customers from that category.
You can flexibly design your banners depending on which recommendation logics you decide to use. Combine the visitor’s favorite category with a top seller from that very category. Or show in your banner the product categories that are currently in high demand, or discount promotions that are running in the online store. These are just a few examples of recommendation logics that can work behind banners. If you want to know more about our different recommendation logics, reach out to me today.
Banner personalization at different customer touchpoints
There are numerous scenarios for personalized banners in the online store. For example, you can place different personalized banners as header graphics on the home page, highlighting current promotions or the top sellers in certain categories. Below the header graphic, you could place visitors’ favorite categories in the form of banners. In customer projects, we also like to use a banner on the respective category page that displays the visitor’s favorite brands.
Relevant offers are also a must in the retailer app, where there is even less digital sales space available. If app users already receive banners that are relevant to them, displaying categories that really interest them on the start screen, they will be motivated to browse further.
Also in the newsletter, you can personalize banners in real time and increase click-through rates and ultimately sales. In doing so, you can display each customer’s favorite categories and show a personalized header graphic with a discount promotion from a favorite category of the recipient.
If you want to promote a specific product or product group in your newsletter, the use of automated campaign newsletters is very suitable. AIR Personalization selects which of your customers are interested in this product group.
Would you like to learn more about banner personalization and how it can be used in your online channels? Make an appointment with me or follow me on LinkedIn if you want to stay up to date on the topic of personalization.