Personalization Glossary

A/B testing? Recommendation models? The personalization engine space uses several acronyms that may seem daunting, so we're here to help. You can find definitions to the most common e-commerce customer experience optimization terms here!

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It is that point where a recipient of a marketing message performs a desired action. It’s about getting a visitor to respond to your call-to-action. This includes emails, registrations and demos to name a few. 

It comes into play when visitors on the site engage in the desired action. This action entirely depends on the retailer’s site goals.  Through the sales conversion funnel, a series of ‘desired actions’ constitutes a larger end-goal of a completed purchase: signing up for updates, adding a product to cart, interacting on social media, are all important indicators of a visitor’s engagement level and the approach to take to secure the sale.

The value it creates cannot be overstated as having appropriate conversions are critical importance to transforming first-time visitors into repeat customers. 

Importance of Conversion:

This is how retailers understand how well their marketing funnels are causing an impact on their e-commerce business. This emphasises on the cruciality of engaging with the customer by engaging with them at every single touchpoint to ensure that they get pushed down the sales funnel. This would also simultaneously ensure a reduction in bounce rates. Conversions also enable the retailer to differentiate between the customers intent and purchase behaviour. 

Examples of Conversion:

For a retailer that is selling products, the purchase is the conversion. If their site’s goal is persuading prospects and visitors to make a contact, the submission itself is considered a conversion. 

For a B2B or a complex B2C company, conversions can even be associated with key landing page visits, views, downloads, signups, or submissions.

For an e-retailer, the most common of conversions can be from a subscription to a newsletter, clicking on a CTA (call to action) in an email, right to even the submission of a contact form on the retailer’s website. However, the ultimate form of conversion for any retailer is when his users actually make a purchase on their site.

Measuring Conversion:

Measured with a conversion rate, which simply divides the number of completed ‘desired actions’ by the number of visitors. If a website isn’t achieving the desired conversion rate on a given page, element, or goal, conversion optimization strategies are usually implemented. This typically involves A/B testing and personalization to improve the user experience and conversion rate.

The best approach tried and tested, is to convert existing visitors, as opposed to finding new ones. The best course of action is to use available tools to customize your visitors’ experiences so you can keep and engage the ones you have, and ultimately increase conversions. It is recommended that you continuously test web pages to ensure visitors receive a data-driven experience possible.

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