According to a recent study by IDG Research Services, personalization is recognized as a key differentiator among online businesses, for both e-commerce and non-commerce sites. Companies with an online presence are learning that they need to take action to learn more about their customers in order to increase customer loyalty, gain new followers and outshine the competition. More than 60 percent of the companies surveyed are prioritizing investments over the next year that will enable a more personalized Web experience.
There are several benefits companies can realize by creating a more personalized website experience. Cited by 69 percent of survey respondents, improved website engagement is at the top of the list. When businesses employ website personalization techniques, the visit becomes a two-way interaction. Instead of solely clicking or pushing his or her way through the site, the user is enticed or pulled through the site via personalization, thus increasing website engagement.
The second benefit, according to 62 percent of survey respondents, is improved brand image. Visitors think highly of businesses that anticipate their needs and appeal to their individual interests. Finally, coming in third and fourth, 44 percent of respondents cite improved lead generation and decreased customer or website abandonment rates.
In order to provide a personalized Web experience and realize these benefits, companies need information about their visitors. Yet there are gaps identified when it comes to the information companies are currently able to collect. These gaps primarily exist around location, which inhibits the ability to offer visitors a personalized Web experience.
