Conversion rate optimization (CRO) is all about trying to get as many visitors to your website as possible to take a desired action. That action might be downloading a free trial of your product, signing up for your newsletter, or making a purchase. Not surprisingly, optimizing the rate at which prospects and customers convert is critical to the success of your business. That’s because even incremental changes to conversion rates can make a big difference in terms of your company’s overall efficiency and, ultimately, its bottom line.
Historically, companies have relied on a combination of rules-based approaches like segmentation to create personalized experiences so as to optimize conversion rates. They then use a combination of A/B and multivariant testing to see which of those personalized experiences get the best results. The problem with these techniques, however, and with personalization in particular, is that they are often ineffective and come at the cost of customer privacy.
In this post, we’ll look at why personalization is a flawed approach to CRO and how AI can be used instead to get better results while also maintaining customer trust.
The low-down on personalization
Over the past decade, personalization techniques designed to deliver customized content to specific audience segments has become an incredibly popular approach to CRO. In fact, according to one study, 88% of marketers use personalization in some way.
The problem with personalization, however, is that so much of it relies on personally identifiable information (PII). To deliver personalized experiences, businesses need to identify individual visitors to their website. Not only is that less than ideal, it’s also not always effective. Approximately 98% of online visitors are anonymous, meaning that businesses may invest vast sums of money, only to wind up being able to create personalized experiences for a fraction of their visitors.
Another issue with using PII is that it can undermine your customers’ trust. After all, for some, collecting PII is an invasion of privacy. Plus, when used inappropriately, it can result in creepy marketing that pushes customers away. According to Gartner research, for example, brands stand to lose 38% of their customers as a result of poor personalization efforts.
Simply put, while personalization is better at driving conversions than traditional spray-and-pray approaches to marketing, it’s often inefficient and ineffective, and leaves you exposed to the possibility of losing your customers’ trust.
Using AI to enable conversion
If you’re looking to get more out of conversion rate optimization, rather than relying on segmentation or rules-based approaches like personalization, look to AI for an entirely new way of doing things. Instead of identifying your visitors online and delivering an experience based on their PII and whatever predetermined segment they happen to fall into, some AI solutions focus on customizing experiences based on meaningful behavioral patterns. In this way, they empower users by matching behavior to intent. As such, visitors are opted in or out of an experience based on what they need, without knowing anything personal about them.
Ultimately, this approach translates into better experiences and higher conversions, since it allows you to preserve your customers’ PII rather than capitalize on it. By moving from a rules-based to a probabilistic approach, you can ultimately get better results without ever putting your customers’ trust in jeopardy. For any business looking to boost its conversation rates and increase revenue, that’s a win-win.
Want to learn more? Read this case study to find out how our friends at Kanetix used AI to boost sales by 23%!