AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
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The document discusses the role of AI-powered personalization in improving conversion rates and customer engagement, presented by experts from 3rd Eye Consulting. It highlights various principles of persuasion, gaps in current digital strategies, and practical insights on implementing personalized experiences across platforms. Additionally, it outlines the impact of a data-driven approach on conversion optimization and the integration of AI technologies in personalizing user experiences.
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★ Similarity –Behave like a friend, not a
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AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
- 1. DELIVERING MEANINGFUL CONNECTIONS AI-Powered Personalization DATE PRESENTED BY Sarjak Patel, Head of Delivery & Account Management, 3rd Eye Naitry Dhakan, Head of Consulting & Project Management, 3rd Eye Divyansh Shukla, Marketing Manager, VWO 29-May-2024 Principles, Use Cases & Its Impact on CRO
- 2. Naitry Dhakan Head of Consulting & Project Management 3rd Eye Consulting With over 18 years of experience, Naitry has assisted multiple businesses on their path towards business acceleration. Having helped businesses achieve their Marketing KPIs, she brings real-life examples and use cases. Sarjak Patel Head of Delivery & Account Management 3rd Eye Consulting With 13+ years of strong experience in driving growth for some of the biggest names in SEA & MEA regions in the MarTech Ecosystem, Sarjak drives delivery & account management optimization of processes to a whole new level by successfully steering the analytics & conversion optimization projects Meet Your Speakers About Us
- 3. 3rd Eye Consulting is a one-stop Digital & Data solution provider in the MENA region. We operate in the field of Analytics, Cloud & Big Data Technologies, Media & Conversion Marketing. Who Are We? Analytics Media BI & Insights Conversion Marketing About Us ANALYTICS WEB & APP ADVANCED ANALYTICS BUSINESS INTELLIGENCE & INSIGHTS CLOUD FOR MARKETING MEDIA PROGRAMMATIC ADVERTISING PREDICTIVE ML REMARKETING PERSONALISATION & CUSTOMER PROFILING CONVERSION CONVERSION RATE OPTIMIZATION EXPERIENCE UPLIFT PROGRAM UI/UX AUDIT
- 4. Key Takeaways 1 2 A formative framework for executing a personalization-driven conversion strategy AI use cases and examples for enhanced execution of personalized programs
- 5. Webinar Agenda 1 2 3 What is Conversion? How to improve Conversions? Gaps in Persuasion Strategies Key Principles of Persuasion Personalization Upcoming use of AI in Personalization
- 7. Understanding Conversions Conversions 100k visitors on website/landing page
- 8. Understanding Conversions Conversions 100k visitors on website/landing page 10k visitors wanted to purchase
- 9. 2000 visitors purchased! Understanding Conversions Conversions 100k visitors on website/landing page 10k visitors wanted to purchase
- 10. Understanding Conversions Conversions What about these 8000 visitors, who wanted to but did not purchase? What could have gone wrong with these 8000 visitors? 2000 conversions on the website!
- 11. Understanding Conversions Conversions ? Lack of Trust/Principles Of persuasion ? Unclear Value Proposition ? Unpleasant User Experience
- 12. How to improve Conversions?
- 13. Background 2.35% Average Conversion Rate Across Industries 11.45% Average conversion rate of the top 10% websites 5.31% Average conversion rate of the top 25% websites Source: Startup Bonsai, 2024 Background
- 14. Background Source: Startup Bonsai, 2024 Background
- 15. Testing the CTA designs & copy Testing the User Interface Testing the product images & gallery Testing the content & storyline Testing on different messaging for different audience segments Optimizing the lead form Improving Conversions What to do for improving conversions?
- 16. 3rd Eye’s Data-driven Approach 1. ANALYTICS & HEURISTICS AUDIT 2. HYPOTHESIS GENERATION 3. DESIGNING THE VARIANTS 4. CONDUCT THE TEST 5. MONITOR & ANALYSE RESULTS 1. ANALYTICS & HEURISTICS AUDIT In this step we dig through your analytics data, heatmap, scroll & click maps, alongside a heuristics audit that benchmarks current practices against best practices. 2. HYPOTHESIS GENERATION In this step, we derive analysis from your data and define a hypothesis based on the findings. 3. DESIGNING VARIANTS After hypothesis formulation variants are created for testing improvements through A/B testing. 4. CONDUCTING THE TEST The designed variants are then put through for testing in the form of split, A/B or multivariate, depending on the complexity of the test. 5. MONITOR & ANALYSE Once the testing concludes, the results and winners are identified, reasons are identified and the analysis is fed back to the system. Our Approach
- 17. Problem Statement Most low converting websites struggle with two problems at the foundation. 1. Persuasion 2. Clarity A low converting website indicates its inability to persuade users to take action or transact through them. Or it is unable to communicate its value proposition clearly to its prospects. Problem Statement
- 18. Gaps in Persuasion Strategies
- 19. Gaps in Persuasion refer to the disconnects or mismatches that occur between the intended message and the audience’s perception or response to that message. Intended Message Perceived Message BRAND CUSTOMER GAP PPC Ad promising a most-wanted feature Landing page has no mention of the feature in the top two folds Gap between what was promised on the Ad vs. What is shown on the Landing Page EXAMPLE Gaps in Persuasion Gaps in Persuasion Strategies
- 20. Gaps in Persuasion -Ecommerce Websites Gaps in Persuasion Strategies Specific Use Case Gap in Persuasion Example Complex Checkout Process Users abandon carts due to lengthy or complicated checkout steps. A customer selects items on an e-commerce site but abandons the cart when required to create an account and fill multiple forms. Inconsistent Pricing Price discrepancies between product pages and checkout. A product page shows a price of $50, but at checkout, the price is $55 due to hidden fees, causing customer frustration. Poor Mobile Optimization Mobile users experiencing difficulties navigating or completing purchases. Mobile users struggle to click small buttons or encounter layout issues, leading to abandonment of the purchase. Lack of Product Reviews Product pages without reviews make customers hesitant to buy. A high-priced electronic gadget has no customer reviews, causing potential buyers to doubt its quality and not purchase. Complex Navigation Users unable to find related products due to poor navigation design. A user wants to find accessories for a laptop but cannot locate them easily due to confusing website navigation. Outdated Information Promotional banners show expired offers or out-of-stock products. A homepage banner advertises a holiday sale that ended two weeks ago, disappointing customers.
- 21. Gaps in Persuasion -Mobile Apps Gaps in Persuasion Strategies Specific Use Case Gap in Persuasion Example Push Notifications Misalignment Push notifications promoting irrelevant offers or information. A fitness app sends push notifications about diet plans to a user only interested in workout routines, leading to annoyance and uninstallation. Inconsistent User Interface Different UI elements across app versions leading to confusion. An app update changes the location of key features, confusing long-term users who struggle to navigate the new layout. Poor Onboarding Experience Users dropping off due to unclear or lengthy onboarding processes. A language learning app has a 10-step onboarding process that requires extensive input, causing users to abandon it halfway through. Battery Drain Issues Apps that excessively drain battery causing users to uninstall. A mobile game app is found to drain 30% of battery in 20 minutes, leading users to uninstall it despite liking the game. App and Website Discrepancy Promoted features on app store page are not available or hard to find within the app. An app store page advertises a meditation feature, but users cannot find it easily within the app, causing disappointment. Intrusive Ads Pop-up ads interrupting user experience, not aligned with user’s interests. A weather app frequently shows full-screen ads for unrelated products, frustrating users trying to check the weather quickly.
- 22. Gaps in Persuasion -Social Media Gaps in Persuasion Strategies Specific Use Case Gap in Persuasion Example Inconsistent Brand Voice Different tones or messages across social media platforms causing confusion. A brand uses a formal tone on Facebook but a very casual tone on Instagram, confusing followers about the brand’s identity. Overuse of Hashtags Posts with too many irrelevant hashtags diluting the message. A travel company’s Instagram post uses 30 hashtags, many of which are unrelated, making the post seem spammy and reducing engagement. Unresponsive Customer Service Slow or unhelpful responses to customer inquiries on social media. A customer tweets a complaint to a brand but doesn’t receive a response for several days, leading to public dissatisfaction. Misleading Influencer Marketing Influencers promoting products without genuine use or knowledge. An influencer promotes a skincare product but later admits to never having used it, causing followers to distrust both the influencer and the brand. Inconsistent Messaging Ad promoting a new product feature; linked landing page doesn't highlight the feature. A social media ad highlights a new camera feature, but the landing page focuses on other features, causing confusion and drop-off. Slow Load Times Ads leading to slow-loading landing pages, causing user abandonment. A user clicks on a fashion ad on Instagram, but the landing page takes too long to load, leading them to exit before seeing the products.
- 23. Key Principles of Persuasion
- 24. Principles of Persuasion Principles of Persuasion To trigger a certain desired action from users, it is important to persuade them…
- 25. Principles of Persuasion Principles of Persuasion To trigger a certain desired action from users, it is important to persuade them… …Introducing 6 Principles of Persuasion By Dr. Robert Cialdini
- 26. ● Give a little something to get a little something in return. ● There are three factors that will make this principle more effective: ★ Offer something first ★ Offer something exclusive ★ Personalize the offer Reciprocity Principles of Persuasion
- 27. Commitment & Consistency Principles of Persuasion ● The principle of consistency says that they will then feel an automatic compulsion to stick with the decision they’ve already made. ● Follow these three ways to leverage off this principle: ★ Ask your customers to start from small actions ★ Encourage public commitments ★ Reward your customers
- 28. Liking Principles of Persuasion ● We are more likely to comply with requests made by people we like. ● Follow these factors to make the Liking principle work: ★ Physical attractiveness –[Make your website] well-designed, function and suit what you’re selling. ★ Similarity –Behave like a friend, not a brand. Show them that you can relate to, and understand them.
- 29. Authority Principles of Persuasion ● It’s easier to trust an authority figure in the field than it is to do your own research on any given topic. ● You can give off the air of authority if you pay attention of these factors: ★ Titles –Positions of power/experience ★ Experts –Approval from credible experts in the relevant field ★ Celebrities –Approval or endorsements from celebrities (paid or unpaid)
- 30. Social Proof Principles of Persuasion ● We tend to have more trust in things that are popular or endorsed by people that we trust. ● 3 Examples for using Principle of Social Proof: ★ Users –Approval from current/past users (ratings, reviews and testimonials) ★ ‘Wisdom of crowds’ –Approval from large groups of other people ★ Peers –Approval from friends and people you know
- 31. Scarcity/Urgency Principles of Persuasion ● We are always drawn to things that are exclusive and hard to come by. ● You can learn to trigger your customers’ sense of urgency with these methods: ★ Limited-number – Item is in short supply and won’t be available once it runs out. ★ Limited-time –Item is only available during that time period. ★ One-of-a-kind Specials –One-off events (e.g. collaborations, anniversaries) ★ Utilising Competitions –Our inclination to want things more because other people also want them is often utilized in auctions or bids.
- 32. Utilizing these Principles of Persuasion, businesses can take necessary actions to Improve the Conversions on the website. Principles of Persuasion Principles of Persuasion
- 33. Utilizing these Principles of Persuasion, businesses can take necessary actions to Improve the Conversions on the website. Principles of Persuasion Principles of Persuasion Let’s dig deeper into what actions can help to persuade…
- 35. Personalizing Experiences Personalization ● Start personalizing user experience with the first interaction to your business. ● Familiarize customers with a whole new world of digital UNIFIED & PERSONALIZED experience. Hi Sara, welcome to MyBank Advantage a/c. I’m Ziva, your virtual banking assistant. Ask me questions to get an instant response. Hi Sara, Welcome to MyBank. Need help? Call 99006655 to speak to your relationship manager. Get up to 4800 INR... Hi Sara, Welcome to MyBank Advantage Banking account. Benefits Download the MyBank app: Manage account, transfer money, schedule payments, invest, set account preferences, and more. Click here. Instant setup Activate card, Make payments, transfer money, invest, manage a/c Safe & secure WhatsApp App Push Website SMS Email
- 36. Optimize Personalization with the Right Tool Personalization
- 37. VWO Personalize lets you delight your visitors with 1000s of unique experiences. Reach them at the right place and at the right time. VWO Personalize Contextual and personalized interactions based on behavioral visitor data Enriched behavior data Rule & event based segmentation Pre-built widget library Layered hyper-personalization Third-party data integrations Custom templates with visual editor Personalization
- 38. VWO Personalize enriches customer data to deepen the view of your customers. Using VWO Personalize, you can Enriched behavior data Build customer segments by leveraging various data attributes from one platform. Rule and event based segmentation Our native and API-based integrations with third-party analytics, CMS, CDP, and ABM platforms help you enrich existing segments from multiple online and offline sources. Third-party data integrations Get a wide range of pre-defined, ready-to-use widgets to create any experience you want quickly. Pre-built widget library Code editor allows you to insert custom Javascript codes and variables into your website to build your own unique widget catering to your needs. Custom templates with visual editor Choose the level of personalization for each segment. For overlapping segments, create layered experiences with fall-backs for each micro-segment. Layered hyper-personalization Personalization
- 39. Personalization Why VWO Personalize? ● Built to deliver with speed -WYSIWYG Visual Editor, toggle-based hyper-personalization controls ● Precise targeting with complex user segments ● Integrate your existing data stack to build rich customer profiles ● Real-time, insight-led reports for quick analysis ● Privacy-first focus ● Industry’s best 24*7 support
- 40. We care for your visitors’ privacy and security Standard Certifications Actions & Regulations Get more details on Compliance and Security at VWO
- 41. Upcoming use of AI in Personalization
- 42. TrendyFashion.com, an online retailer specializing in women's clothing and accessories. COMPANY Low conversion rates and average order value (AOV) despite steady traffic and new product lines. PROBLEM STATEMENT DATA ANALYSIS & SEGMENTATION Analyze historical customer data (purchase history, browsing behavior, demographics) with VWO AI. Segment customers into groups like "Frequent Buyers," "Seasonal Shoppers," "Discount Seekers," "Trend Followers." Highlight ongoing sales, discounts, and clearance items for "Discount Seekers." Generate personalized recommendations for "Frequent Buyers" based on past purchases (e.g., floral dresses for frequent floral buyers). Send targeted emails featuring relevant products and promotions to each segment. Change homepage banners based on segments (e.g., trends for "Trend Followers," seasonal collections for "Seasonal Shoppers"). Display personalized product recommendations on product pages and the cart page (e.g., matching accessories for added dresses). Adjust site content in real-time upon login to show personalized content (e.g., trending items for "Trend Followers"). REAL-TIME PERSONALIZATION DYNAMIC CONTENT PERSONALIZATION PERSONALIZED PRODUCT RECOMMENDATIONS Personalization with AI AI in Personalization
- 43. Uses of AI in Personalization Customers are not finding relevant complementary products, leading to lower average order values. PROBLEM STATEMENT AI-powered Product Recommendations Analyze customer purchase history and preferences to recommend complementary items like sandals and hats for dresses. OUTCOME -EXAMPLE AI-generated Surveys and Questionnaire AI-driven Dynamic Pricing AI in Personalization Gathers feedback on new product lines, providing actionable insights for improvements like adding more color options. Adjusts product pricing dynamically based on demand and competitive analysis, offering time-limited discounts. Businesses are not getting the relevant feedback for their newly launched products, leading to lack of clarity on customer impact. Customer are not completing purchases due to non-competing prices on the website, and conversions are not as expected.
- 44. Uses of AI in Personalization Customers are not finding relevant content to watch and all the generic recommendations lead to bad engagement. PROBLEM STATEMENT AI-powered Content Recommendations Suggests articles, videos, or other content based on user’s reading history and preferences. OUTCOME -EXAMPLE AI-driven Layout Personalization AI-powered Travel Itinerary Suggestions AI in Personalization Rearranges web page layouts dynamically to highlight content that is most relevant to individual users. Suggests travel destinations and activities based on user browsing history and preferences, like adventure travel options. Businesses want to enhance user engagement by delivering a tailored viewing experience that matches individual preferences and behavior. Customers are looking for personalized travel plans to meet their vacation/business trip needs.
- 45. Add to Cart! We are giving away Free UX Audit or Heatmap Analysis to the first 5 participants who reach out with the requests! Reach out to us at naitry@3rdeye.ae
- 46. Analytics Our Partnerships Marketing / Media / Advertising Conversion Optimization Cloud, Data Privacy & Compliance ABOUT US
- 47. ●Feature Attribution ●Channel Attribution ●Segmentation Program ●Monthly Analyst Program (Web Analytics / App Analytics) ●Dashboarding & BI ●NPS Analysis ●Lifetime Value Prediction ●Analytics Implementation/Audit ●Analytics Web Audit & Recommendation ●Analytics App Audit & Recommendation ●Licenses-GA, VWO, Amplitude, Appsflyer ●Recommendation Engine ●Lead Scoring ●PredictN ●Customer Data Platform ●DV360, Google Ads, Meta Ads, Search Ads 360 Audit & Campaign Management ●Amazon PPC & DSP Advertising ●UX/UI Audit for Mobile & App ●Conversion Rate Optimization ●Experience Uplift ●User Experience Design ●Data Pipelines ●Data Warehouse ●BigQuery Consulting ●AI, ML Mature 47 Foundation Access Accelerate Data Collection Data Transformation & Visualization Data Decisioning & Activation Data Analysis & Modelling Our Offerings OUR EXPERTISE Analytics Media BI & Insights Conversion Marketing
- 48. Heart of 3rd Eye Consulting About Us 3rd Eye Consulting operates in the field of Analytics, Cloud and Big Data Technologies and Marketing. It finds its strength in providing value to the customers in areas where these core engines merge. Our expertise across various technologies will measure, monitor and activate data for your marketing activities leading to better ROI. We also provide solutions on premise, as well as on private clouds, along with public clouds.
- 50. Thank You!