5 Magento Personalization Strategies to Boost Revenue

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Nowadays the consumers have a very complex decision buying process. They research prices and specs online, try the products in physical stores, compare eCommerce sites for the trustworthiness (those offering glitch-free payment gateways and stress-free refund policies) and ease of checkout.

According to a recent study from SmarterHQ, 72% of consumers will only engage with personalized marketing messages, while another metric shows that the most desired form of personalized marketing for consumers is the one containing special offers and discounts, over relevant products or brands. So, it is more clear than ever that a unified and personalized shopping experience across multiple online and offline channels has become the mantra for repeated sales conversion, for any brand.

The same implies to those brands using Magento as their eCommerce platform. Creating an omnichannel and personal Customer Experience is daunting, so in this article, we gathered 5 simplest yet effective Magento personalization strategies that could help your company “craft” a solid personalization mix.

To navigate to the article more easily, refer to this table of contents:

What is Magento Personalization?

Magento personalization is the process of enhancing the marketing strategy of your Magento store with e-commerce personalization best practices & tactics to increase your website sales & conversions, through highly relevant and targeted messages. To create an all-around personalization strategy for your Magento store you will need reliable marketing automation or customer engagement solution, providing a Magento extension for seamless integration.

Scaling growth with these 5 Magento Personalization Strategies

Here are the 5 personalization strategies I recommend building for your Magento store.

#1 Customer Segmentation 101

Screenshot from ContactPigeon’s segmentation tool
Screenshot from ContactPigeon’s segmentation tool

Why this is important:

Customer Segmentation is the main pillar of a solid and viable personalization strategy. Segmenting your audiences is an extremely important ingredient of the process in order to be able to deliver highly targeted campaigns. It is not enough to collect generic behavioral data, you need to segment this data to match your customer personas, so as to be able to serve personalized content.

Once visitor behavior analytics is installed, the segments’ information is automatically updated - as the customers continue to shop, their preferences are reflected in the database. Targeted marketing initiatives such as personalized offers, cart price rules, and banners can be devised based on the updated searches.

Skip this step and doom your brand to deliver generic, low converting messages to your customers.

Examples to replicate:

Here are some common used and effective customer segmentation examples you should copy:

Demographic segmentation:

  • By gender (popular in the fashion industry)
  • By age (popular in toys industry)
  • By style (popular in the fashion industry)
  • By location (popular in toys industry)

Behavioral segmentation useful to every eCommerce business:

  • Per vertical or product category; (based on purchase history or page views)
  • Based on loyalty (returning sessions)
  • Based on search history

#2 Promote The Best Sellers Of Each Category To Your Segments

Example on how Amazon features best-selling products
Example on how Amazon features best-selling products

Why this is important:

Once the segments are set up, you can move on to implementing some proven personalization strategies. Showcasing your best-selling products on strategic locations of your Magento store can help conversions rise (homepage, category pages). This strategy can be customized for a certain segment of your buyers (based on gender, age, or location) for a defined time duration (holiday season invariably results in a lot of quick purchases, so make sure you keep the ticking clock visible).

You can design the widget or write the shortcode, decide if you display the price, user ratings (always an advantage), and add-to-cart/wish list button. Magento 2 Personalization extension allows you to aptly promote the top sellers of your store and boost your sales revenue.

Examples to replicate:

  • Send push notifications using your segments featuring the best selling products
  • Schedule email campaigns to promote the best selling product for your top 3 product categories.
  • Enhance your product page template with a new “Others also bought” section

#3 Show Personalized Exit-Intent Pop-Ups with Top-Selling Products

Creating an Exit Intent Popup with product recommendations
Creating an Exit Intent Popup with product recommendations

Why this is important:

Exit-intent pop-ups are a must for every eCommerce store since they are the last “weapon” a store manager has to prevent a visitor from leaving the website. The bad thing about pop-ups, in general, is that people hate them UNLESS they deliver something useful to them. So, based on our experience, the most effective content you can serve to keep the new visitor engaged is offering a limited-time offer for a top-selling product, always from a relevant category.

If you have technical skills you can create a popup for Magento 2 store on your own, use a Magento extension or as we mentioned above, an all-in-one solution to avoid using multiple code snippets and face performance issues as well.

Better Popup

Better Popup for Magento 2

Effectively convert abandoning visitors by applying exit-intent popups

Check it out!

Examples to replicate:

  • Create 3 different dynamic exit intent pop-ups for your top 3 product categories or brands or segments and showcase a midnight offer for a top-selling product from a category they visited in the past.
  • Extent this strategy offsite, by also creating some PPC social remarketing ads on the visitors that didn’t convert (you will need to create custom audiences on Facebook for this one)

#4 Schedule Monthly Personalized Email Product Recommendations

Example from recent Hawkers personalized email campaign
Example from recent Hawkers personalized email campaign

Why this is important:

Sending regular emails to your consumers is a great way to ensure repeat purchases and brand loyalty. Also, sending behavioral-triggered monthly emails to your customers with relevant product recommendations can skyrocket your email conversions up to 25%, according to Barrilliance. All you need to do is integrate the viable products to the current template. The rest of the task is handled seamlessly by the extension. So a smartly designed ‘you may also like..’ triggered email campaign can contribute with additional monthly revenue for your business.

Read more:

Examples to replicate:

  • Create a dedicated email automation workflows for your top 5 categories, using the same email template (but serving to different segments, of course)
  • Create automated cross-selling email campaigns showcasing the most viewed or sold products on your top 5 brands.
  • Extend this strategy offsite with PPC remarketing ads on social media

#5 Run Location-Based Offers to your top regions

Google analytics geolocation tab exampleE
Google analytics geolocation tab example

Why this is important:

This is super effective on global brands selling to multiple countries. One of the best Magento personalization best practices is to spot your top 3 countries and create dedicated location-based offers for each region, based on your historical data and visitor preferences.

Running location-based or country-based promotions from global brands generate great conversions, especially if you can even create some localized/translated landing pages.

This personalization strategy can help your brand in three dimensions: increase your revenue, ensure customer loyalty, and help in word-of-the-mouth publicity.

Read more:

Examples to replicate:

  • Spot your 3 best-selling regions or countries and run a local promotion (Discounts or intense promotion of the most viewed categories by this segment)
  • Use hype marketing techniques to combine this tactic with a local event or anniversary to the most exposure, reach and conversions. Eg. You can combine the Halloween trend with your top countries to create genuine concepts and promotions.

Now it’s your turn

Successfully running an e-commerce business in the face of stiff and rising competition requires bold strategic thinking skills, time-sensitive decision making, and execution-driven mentality.

Consumers demand better and more relevant marketing messages from the brands. Implementing the above-mentioned Magento personalization strategies can help your business get on the right track.

However, keep in mind that each industry and each business has its own unique challenges and characteristics. This means that a company oughts to continuously test and adjust its strategies and marketing mix, in order to unlock growth, repeatedly.

Author’s bio: Joyce Qian is a Head of Strategy & Growth at ContactPigeon. Joyce is also a passionate writer of Marketing Automation, eCommerce and startup-related topics.

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