At the intersection of technology and psychology: Why an effective personalization strategy relies on empathy
Sber Business Software team shares practical experience and insights on how to digitize emotions and turn them into sales.
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Obviously, in 2023, many representatives of online trading have already realized that the personalization of experience in digital channels allows you to positively influence conversion, engagement and, as a result, sales. This is especially true for players in the field of online trading of consumer goods: online clothing stores, food, online cinemas, e-pharmacies, etc. It is in their case that the transaction cycle is short, sales volumes can be scaled up multiple times, and decisions about buying by users are made quickly and sometimes impulsively.
Only approaches to personalization, the quality of experiments and hypotheses, as well as the technological capacities used remain different. Commodity recommendations, for example, are sometimes configured manually by marketers based on a commodity catalog - according to novelty, popularity, product rating. Or, for example, they script individual campaigns by segment. Advanced and mature teams use AI algorithms to proactively offer relevant stocks or products.
Artificial intelligence is a really good helper in matters relating to user experience on the site or in the app. It can process large amounts of information and detect non-obvious dependencies inaccessible to the human brain. But there is something that AI cannot do without human intervention. When selling goods or services to people, do not forget about an important component that will help you take your personalized campaigns to a whole new level. It's about empathy.
Why empathy is important
~: text =% E2% 80% 9CSomething% 20like% 2090% 20to% 2095, by% 20the% 20emotional% 20brain% 20system.% E2% 80% 9D A Stanford University study suggests that 90 to 95% of our decisions are somehow driven by emotion. Client paths, [1] of client paths, are somehow woven from a sequence of tiny solutions of each individual user. Buyers who like to compete and be the first will be flattered to purchase something from a limited collection or limited edition. Suspicious visitors will want to double-check the security of payments on your website or be able to pay for a purchase upon receipt. Those who are afraid of Internet scammers and phishing links will definitely go to your site from your official account on the popular social network with a tick, and not from a search query. Those who are always in a hurry will be delighted with free and fast delivery.
It is the understanding of what users are worried about, what pleases them or scares them, what is important to them that allows you to correctly form a pool of hypotheses for future experiments and campaigns, as well as a general strategy for promoting your online resource.
If it is rational to show beautiful and detailed photos of the product with an indication of the material from which the product is made, then emotional is about the feeling that possession of this product can carry. Just showing a beautiful dress is one thing, and presenting it in a ready-made image on a model with accessories is completely different, it's about emotions.
TIPS FROM SBERBANK BUSINESS SOFTWARE
It is important to understand that classic and simple segments that you could get used to (by geography, age and gender) are no longer so effective. With the development of business and the growth of consumer selectivity, segments will inevitably become more complex, and the criteria that determine them will become more complex. Try to multiply this by a lot of site traffic, and you will understand that this cannot be done manually. Now there are effective platforms for AI personalization, capable of determining more non-obvious dependencies and, accordingly, more complex segments. Their use takes personalization to a new level.
Using the data of your [2] or analytical dashboards, track at which stages of the funnel it is important for you to create or set the emotion you need for conversion: at the [3] stage [4] keep the [5] with a discount or gift, on [6] tell us about the terms of delivery or payment security, and in the product card show how this clothing will look on different types of shapes. |
That is, by combining your rational analytics and using emotional triggers, you can create really converting campaigns and multiply sales on the site or in the application.
Sell an item VS sell a dream
Creating emotions for your online campaigns is important to remember that emotions are subject to both emotional buyers and rational ones. It's just that the nature of the emotions that you have to fix will be different. We conventionally call rational buyers pragmatists, and emotional buyers - hedonists.
So, pragmatists will expect the following properties from the experience provided:
- quality of goods;
- brand and production ethics;
- clarity of descriptions, details of compositions;
- delivery speed;
- quality of service, etc.
At this time, the hedonist will be in search
- comfort in terms of both usability and logistics (it is more pleasant to order from the sofa than to go to the other side of the city);
- payment security;
- trendy goods.
For hedonists, belonging to certain communities is also important: for the owner of a branded thing, belonging to the class of such happy owners is more important than the thing itself. In this case, you are selling not the product itself, but the dream of belonging to the community.
TIPS FROM SBERBANK BUSINESS SOFTWARE
* Remember that the world is not black and white You need to understand that each person can combine both under different circumstances - this can be influenced by seasonality, trends or personal circumstances. Therefore, your personalization strategy should not be lopsided, you will have to take into account many criteria when segmenting and, as we mentioned above, it is almost impossible to manually do this. |
Building a Roadmap for Personalization with Empathy
Realizing that the use of human knowledge about psychology and emotions and the ability of artificial intelligence to process and compare big data, we slowly and surely come to the idea that the entire personalization strategy must be built with technological and powerful tools taking into account these very knowledge about empathy.
Start by exploring the basic needs of your audience. If you are engaged in online banking, the primary need for your audience will be the protection and security of their personal and banking data. If you are an aggregator site, then comfortable [7] and convenience in using your resource is the basic need of your CA. Therefore, first of all, it is worth building your strategy and focusing on the largest part of your audience. This will allow you to get a quick and great effect and response, as well as understand which way to move on.
It is important not to be afraid to start here: we start with small campaigns and changes - [8] order [9] a small banner, highlights or personalized collections of goods. Choose tools where there is a visual editor - this will allow your non-technical teams to quickly conduct tests and experiments, draw conclusions without attracting additional development resources.
TIPS FROM SBERBANK BUSINESS SOFTWARE
Such experiments will certainly allow you to collect data about your audience. Do not ignore some of the work with data. Integrate [10] with your internal business systems: CRMCRM [11][12], [13], etc. Analyze and use all accumulated data for new campaigns.
Experiments give birth to insights, and insights can fill gaps in strategy. Be sure to share them with related departments - pass them on to CRM or purchasing commands, for example. |
An AI solution that will help you understand your audience
SberLead from Sber Business Software is a platform for optimizing the conversion and personalization of user experience with an advanced system of product recommendations. SberLead contains ready-made site personalization tools that are easy to customize and adapt to your business goals, as well as track statistics on each tool.
Recommendation system
Product recommendation feeds based on artificial intelligence algorithms and analysis of the array of technical, contextual and behavioral data of users. The ribbon can be created in three steps: download the catalog of goods, select the display page and customize the design according to the finished template. In SberLida there are 2 options for product recommendations for companies of various sizes.
Interactive widgets
Pop-up widgets on the site can be used for various purposes: attract and retain a visitor, collect contact details, offer similar products or talk about news and promotions. Simple configuration in several steps will allow you to quickly launch them on the site, and at any time you can make changes to the widget used.
SberLida team expertise
Our specialists have many years of experience working with different clients and their CRO strategies of different complexity and scale, as well as experience working with different mechanics and segments of the audience, including using the knowledge of psychology and behavioral patterns of users.
Integration with CRM and your stack
We can integrate with your CRM system and use it as one of the data sources (along with open sources, product catalog data, behavioral data on the site, etc.) in order to form both general and personal recommendations and display them in all your digital channels. We also provide native integrations with the SberCRM platform, Bitrix24 and Telegram.
Notes
- ↑ the so-called CJMCJM - English customer journey map, a map
- ↑ CROCRO - English conversion rate optimization, strategy for optimizing the conversion tool
- ↑ mouse-outmouse-out
- ↑ - an event in which the mouse pointer goes beyond the element, i.e.
- ↑ site
- ↑ check-outcheck-out - the process of filling out the form during checkout on a commercial site
- ↑ UXUX is an English user experience
- ↑ the CTACTA
- ↑ - English. call-to-action, call to action,
- ↑ CROCRO - conversion rate optimization, conversion optimization strategy-tools
- ↑ - customer relationship management, customer relationship management system,
- ↑ CDPCDP - customer data platform, client data platform
- ↑ DMPDMP - English data management platform, data management platform