Retention Now A Bigger Personalization Priority Than Acquisition

October 2, 2020

Yieldify E Commerce Site Personalization Drivers Oct2020About three-quarters (74%) of e-commerce leaders say their company has a website personalization strategy in place. During COVID-19, customer retention has become the motivation behind the website personalization strategy for many of these companies. This is according to a recent report [download page] from Yieldify, which looks at the impact COVID-19 has had on e-commerce companies’ website personalization strategies.

Some 58% of the 400 e-commerce leaders from the US and UK cited increasing retention rates as what motivates their drive to pursue a website personalization strategy. Retention rates are now a bigger priority for e-commerce websites than that of conversion rates (55%), order size (53%), engagement (50%) or meeting customer demands for a personalized experience (50%), while only 45% are being driven by increased return on acquisition spend.

The report postulates that the emphasis on retention during COVID-19 is likely due to the fact that conversions and acquiring new customers are easier to achieve in a time when physical shops have been closed.

That said, other research has shown that companies are paying more attention to retention than acquisition as a result of the pandemic. For example, the CMO Survey found earlier this year that marketers are making customer retention a priority. Presented with a list of 5 objectives and asked to choose their primary one during the pandemic, more than twice as many CMOs pointed to customer retention (32.6%) as acquisition (14%).

E-Commerce Site Personalization

In reference to websites, respondents utilize various forms of data to accomplish personalization. The largest share (74%) report that they currently use real-time behavior data, while many also use individual user data (63%), cookie-based historical data (62%) and data ingested from other channels (62%).

They also use segmentation methods such as real-time behavioral decisioning (68%), static segments (68%), dynamic segments (65%) and AI-driven predictive segments (54%). All this allows websites to personalize with static creatives (69%), dynamic creatives (60%), users-specific content (57%) and variable copy (55%).

Although websites are a primary channel for personalization, many are also currently personalizing email (60%), display ads (60%) and mobile apps (56%).

Privacy and Personalization

The emergence of more stringent privacy regulations in the past few years is likely to impact personalization. Nonetheless, 8 in 10 respondents see privacy rules as having a large positive (33%) or a slight positive (47%) impact on their personalization program in the next 5 years. Indeed, very few (8%) foresee the impact of regulations as having a negative impact on personalization.

To read more, the report can be found here.

About the Data: Findings are based on a survey of 400 (US – 200; UK – 200) senior marketers or e-commerce directors at retailers with an e-commerce presence.


Explore More Articles.

Brand… Performance… Both?

Brand… Performance… Both?

Some 77% of CMOs agree that they need to recommit to brand. But 75% also agree that they need to double down on performance.

Marketing Charts Logo

Stay on the cutting edge of marketing.

Sign up for our free newsletter.

You have Successfully Subscribed!

Pin It on Pinterest

Share This