Content personalization and behavioral targeting is a huge trend that promises to increase results for eCommerce businesses.
Currently companies are personalizing email marketing campaigns, retargeting ads and on-site offers and experiences.
The next innovation for them will be to personalize eCommerce video and deliver real-time offers in a more interactive way.
In this post we want to show you a personalized video that can help you increase eCommerce sales, and how you can create one with our newest app – the Email Marketing.
But first, let us explain to you why content personalization is so important for eCommerce.
Why content personalization is the key to increasing eCommerce revenue
Researchers at the University of Texas conducted a huge study on why people crave personalized experiences.
They found that personalization is tied to our desire for control: things that are made just for us indicate that we had something to do with the creation, and therefore, we are in control.
Personalization also solved the problem with information overload. You deliver that exact message that people need and you filter everything else.
A study shows that 74% of customers are frustrated when the website content does not adapt to their preferences.
People demand companies spend the time to understand what they desire.
That way when they visit your website, read your newsletter or any other marketing message – they want to see that you’re offering them something that is of interest to them.
This leads to the rise of companies like Commerce Sciences that specialize in content personalization for eCommerce.
With it you can very easily deliver real-time targeted offers as people browse your website.
Amazon has been doing this for years with features such as:
- Product recommendations
- People who bought this also bought
Since content personalization is now becoming hugely adopted by the eCommerce industry we started asking ourselves – what would be the next step in content personalization?
We strongly believe that will be personalized video.
How personalized video is the future of content personalization
Nothing beats video when it comes to presentation, except maybe in-person communication.
Businesses have determined that using a video on a landing page increases conversion rates by 80%.
ComScore found that after watching a video people are 64-84% more likely to purchase. And you can see in the last few years how companies like Zappos, Dollar Shave Club and Amazon have used it to increase sales, educate and build customer loyalty.
Early in 2016, Huffington Post predicted that we’ll see the rise of personalized video.
In other words, you will see marketers being able to customize the actual video content with information unique to each individual viewer for a truly tailored content experience.
People will see their names, products they bought and personalized offers inside these personalized videos.
Technology will allow you to use pre-ready-made video templates and fill out the blanks with a user’s data straight from your CRM or online store’s database.
How personalized video can help you decrease Shopping cart abandonment rates
Shopping cart abandonment is the biggest pain point in the eCommerce industry. And the problem is becoming bigger with years.
In 2011, shopping cart abandonment rates were 69%, in 2012 they rose to 72% and in 2013 to 74%.
According to BI Intelligence estimates, $4 trillion worth of merchandise will be abandoned in online shopping carts in 2016.
The way retailers usually deal with the problem is to use retargeting or follow-up email campaigns to bring visitors back to the shopping cart and convince them to complete their orders.
Listrak found that initial email campaigns sent within 3 hours after abandonment, average a 40% open rate and a 20% click-through rate.
But what if you could increase these results even more? We believe you can do that by adding a personalized video within your follow-up email marketing campaigns.
Vinyard did this and they saw an increase of 272% in email open rates when they included “Personalized video” in the subject line.
The click-through rates for this campaign were 210% higher than the average for similar past email campaigns.
In terms of engagements, 71% of viewers watched the video all the way through. Which is huge!
In other words, personalized video will help you increase open rate, click-through rates and engagement.
This with a combination of a stronger call-to-action will bring more people back to your cart so you can convince them to finish their orders.
How can personalized video help you increase sales?
We all know that video is doing an amazing job at selling products for eCommerce.
According to a study made by ComScore, customers are 64-85% more likely to purchase a product after watching a product video.
Zappos reported that sales increased by between 6% and 30% on products where product videos were added.
One of the primary reasons for that is that videos take less effort to watch and comprehend. It is the preferred way people want to perceive content, even by corporate executives.
With video you also have the chance to communicate much more information in a shorter period of time. A 30-second video is the equivalent of half a page of text.
Video is much more engaging than simple text and images. Which makes people much more likely to watch the whole video.
Since videos are more engaging this also makes the call-to-action much stronger and as a result – this increases conversion rates and sales.
Imagine that instead of using the same videos for everybody you manage to personalize them based on your user’s profile and interest to make it more relevant to them. That way you will manage to increase conversion rates and sales even further.
The problem with personalized video
Personalization of your videos can take an extraordinary amount of work and can cost you a fortune.
Imagine if you have to create a separate video for each product you sell and for all possible outcomes – cart abandonment, finishing an order, etc.
Even if you manage to do that you won’t be able to include personal information – such as first and last name.
Luckily, technology is now developing and it allows us to use ready video templates and pull out data straight from your CMS or online store’s database.
This is what you can do with the Thank you video app we have created.
What can you do with the new Thank you Video app?
With the new Dynavi Thank you video app you can automatically create a personalized video for each email campaign you send after cart abandonment.
The app allows you to configure a personalized video for each email sent in your campaign. You can choose your template and all variables will be pulled out from your store.
As you can see the video content is dynamic and based on customer details.
You can include things like name or company.
What they purchased and the total price of all items:
You can let them know about their delivery date to their home address straight from the video:
Place call-to-actions to contact your support when they have questions as well as contact details such as phone number, email address, etc.
You can also include coupon codes for free shipping or discounts on next orders in the video to stimulate next purchases and increase customer lifetime value and retention rate.
The video will be automatically embedded on a landing page and a link will be sent to people within the email.
You can send this video to first-timers and repeat customers.
All call-to-actions in the video can be personalized and you can use it to:
- Thank customers for making a purchase on your website
- Increase customer satisfaction and loyalty by showing your appreciation
- Upsell another product
- Include discount codes for future purchases in order to increase customer retention rate
- Decrease shopping cart abandonment rates
The possibilities are endless so you have the room to get creative.
You can get the app from the Shopify App store and the silver plan is currently free of charge (this includes 50 personalized videos per month). For larger volumes or premium features we have custom paid plans.
Once you install it, you will be able to create and set up and customize your videos from your Shopify Store.
Content personalization is one of the best ways to increase your eCommerce sales in 2016.
This is what customers want – personalized experiences that connect them more with the products and offers they want.
Personalized videos can boost your results even more if you use them wisely.
It is a great way to drive more attention to your messages and increase engagement, conversions, sales and loyalty.
Do you currently use videos for your eCommerce store? Would you start using personalized video? Let us know in the comments below.