How can personalized video help you increase your eCommerce revenue?

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.

In conclusion:

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.

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http://unbounce.com/landing-page-articles/the-benefits-of-using-video-on-landing-pages/

https://blog.kissmetrics.com/product-videos-conversion/

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https://blog.kissmetrics.com/product-videos-conversion/

http://www.switchvideo.com/2014/12/18/modern-marketers-video-gets-personal-holidays/

http://www.huffingtonpost.com/vala-afshar/how-video-marketing-will-_b_8962102.html

http://50wheel.com/what-is-personalized-video/

http://marketingland.com/nike-create-100000-personalized-videos-nike-users-113675

http://www.businessinsider.com/heres-how-retailers-can-reduce-shopping-cart-abandonment-and-recoup-billions-of-dollars-in-lost-sales-2014-4

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https://vwo.com/blog/ecommerce-shopping-cart-abandonment/

http://commercesciences.com/tour

http://blog.sezion.com/improve-customer-retention-with-online-videos/#.VwYx5Pl97IU

http://www.elcomcms.com/en-au/resources/elcom-blog/posts/how-using-video-helps-improve-customer-retention

https://apps.shopify.com/thank-you-video

https://www.mailmunch.co/blog/behavioral-targeting/

http://blog.clientheartbeat.com/building-customer-loyalty-with-18-proven-strategies/

http://www.elcomcms.com/en-au/resources/elcom-blog/posts/how-using-video-helps-improve-customer-retention

https://econsultancy.com/blog/11051-21-ways-online-retailers-can-improve-customer-retention-rates/

How Product Videos Increase eCommerce conversion rates

How Product Videos Increase eCommerce conversion rates

If there is one thing that could sky rock your eCommerce conversion rates like crazy – that’s video.

In fact according to Comscore 64-85% of customers are more likely to purchase a product after watching a product video.

In this post we’re going to explore further why is video so effective in converting web visitors into clients and how to use it to accomplish your business goals.

Why is video so effective?

The first step to understanding how product videos can help you increase your eCommerce conversion rates is to understand why video is so effective in the first place.

Here’s why:

It helps you rank better – do you know video will help you with SEO? It will help you with decreasing your bounce rate and increasing the time people spend on your site.

 

Video content will also attract more high-quality backlinks and social shares. This might not affect your conversions directly but it will do that indirectly.

 

By attracting higher quality traffic to your eCommerce site you’ll naturally have higher conversion rates.

 

It is more sharable & viewable – studies show that people are more likely to share videos than just text pages. People are also more forced to click on a video thumbnail than to no visual or multimedia element.

 

It takes less effort – reading text requires a higher dose of concentration. Watching a video is much easier.
Even corporate executive prefers it as 59% of them say that they like video better.

 

You communicate more information – when your product is complicated, you can use video to explain how it works much easier and faster. A 30 second video is the equivalent of a half a page text.

 

Also, it’s harder to read long passages of text on mobile devices where the screens are much smaller. This is a place where it’s much easier to communicate more with video.

 

How to use video to increase conversion

There are many ways that you can use videos to increase your eCommerce conversions rates.

Use Video on your homepage – on your homepage you can use videos to deliver your core message, communicate your value proposition and build trust with your audience.

 

This will additionally help you increase conversion rates simply because people will understand why your solution is better and why people should buy it.

 

In 2012 Dollar Shave Club created and launched their first video. It went viral and within 24 hours the company has already 12,000 subscribers and had run out of stock to sell.

 

Dollar Shave Club

 

The founder Mike Dubin had to ask friends for help to be able to deliver on all orders.

 

The reason why Dollar Shave Club’seo was so successful was really simple: it was a good combination of humor and smart positioning.

 

The company pointed out to the extreme pricing of today’s razors. Instead people can order and get a new razor each month for just $1/month.

 

Dollar Shave Club is the first company that ever offers cheap razors delivered straight to your door as a subscription service. And that’s why it won so many customers.

 

Today the company has 2+ million subscribers and has been valued on more than $650 million.

 

Product page – StacksandStacks.com found that visitors are 144% more likely to purchase after seeing a product video that those who did not.

 

Images are a great way to present your product but they are simply not enough. People want to be able to see your product from all angles, to see feel what it’s like to have it in their hands.

 

Zappos has been using videos for their products in the last 5 years.

 

Zappos product video

When they first started adding videos to their products there was an increase of 6% to 30% in their conversion rates for these products.

 

The interesting thing is that the conversion rates were higher for products that have videos even if the audience didn’t watch them.

 

Simply, having the option to watch a video is a factor that convinced people to buy these products.

 

To take out the most out of product videos we suggest you add them to as many product pages as you can.

 

You can easily use Dynavi to create videos for all your products using your images and descriptions.

 

If it’s impossible for you to create videos for all your products, you should prioritize. Go to Google Analytics and click on Conversion -> Ecommerce -> Product performance.

 

 

Then you’re going to see a list of your product starting with the ones making you the most money.

 

 

So start creating videos for the products that made you the most money and have the highest numbers of unique purchases. You know that they are already selling sell so you can easily improve their conversions even more.

 

If you cannot afford to shoot videos for all your products in studio, prioritize and create this  kind of expensive video for your best selling products.

For the rest of your catalog you can create an automatic service like the one of Dynavi to create multiple videos.

 

Male or female narrator – this is something that each retail store should test out to be sure what works.

 

However, there is a study made by the online retailer EyeBuyDirect.com that suggests that eCommerce customers prefer a male voice for the video narrator.

 

To find this the eCommerce store tested out the effects in the change of narrator for 2 product videos – each running for approximately 30 seconds.

 

In their case, the video with the male narrator had higher conversions and made more sales. It had a 9.28% conversion rate and the female-narrated video had only 2.78%.

 

Video thumbnail – A/B testing your video thumbnail can also hugely affect your conversion rates.

 

Yobongo saw a conversion lift of 70.9% when they tested different versions of video thumbnails.

 

With Dynavi you can easily test and measure the performance of different versions of your video thumbnails and see which ones receive more click-through rates.

 

Watch the video call-to-actionthe Social man saw a 28% increase in conversions in his newsletter singups when he changed their call-to-action button “Get Instant Access” to “Watch the video”.

 

Version A: Get Instant Access (11.9% conversion rate)

 

 

Version B: Watch the Video (15.3% conversion rate)

 

 

 

 

Use video testimonialstestimonials are a great way to build trust and get social proof for your brand. And having video testimonials is even better.

 

Video testimonials are much more believable. If you have only first name and initials a few people will believe what that person said is real.

 

But if you see him speaking on camera and explaining about his experience as your clients – this sounds much more believable.

 

According to Justin Nassiri from VideoGenie on average people watch 100 seconds from video testimonials. Which is pretty good!

 

Use video analytics to measure what works – you’d never be able to improve your conversion if you don’t know what works and what doesn’t.

You need data to see which video get views, how many, how much time they watch it, etc.

To measure video effectiveness you can use tools like Google Analytics. To track media plays, you’d need to set up a goal using event tracking.

To do that go to Google analytics standard report. Click on the admin in the top right.

Then in the view tab click on “goals”.

Click on “+New goal”

Then in template section of goal setup choose Engagement -> Media play.

This will allow you to track the plays on a video on your store.

Click continue, name your goal (Media play) and choose type Event.

Then click continue.

The last step is to include the goal details.

In category you can type “videos”. This will allow you to distinguish this type of event from others.

In action you can type “play”. This will allow you to distinguish what the user did with the video.

When you’re done you can click on Save and then on Done. This will finalize the tracking process.

If you’re using Dynavi, our dashboard analytics will allow you to track and see the views and conversions of all your videos.

That way you will be able to better understand what works and what doesn’t.

Approaches

There are certain things that you can additionally do to further increase your conversion rates when using video on your eCommerce site.

Here’s what:

Create a video section on your websitecreate and maintain a video gallery instead of hosting your videos on YouTube.

 

You should make it easy to navigate and use. At the same time all videos should point back to the product pages to make it easier for customers to buy from you.

 

Include call-to-actions in videos – this one is really simple – just tell your viewers what they need to do to buy from you. Explain them everything step by step and how it works.

 

This does several things at once:

 

  • people understand what is expected from them in order to buy so there aren’t any surprises
  • people imagine themselves buying from you which actually makes it more likely to happen

 

With Dynavi you can also include call-to-action button on the videos itself as a default action adding the product to cart.

 

Make an outstanding easy to see video play button – people will never play your videos if they don’t know that you have one.

 

When you embed or put a link to your video be sure to include an outstanding video play button that attracts attention and wants to be clicked.

 

Zappos include their video play button just below their gallery images on their product page. That way users can always spot it and click on it if they want to further explore the product.

 

Zappos product page video

 

Keep your videos short – when customers are shopping online they don’t have much time. That’s why they are watching your video. So keep it as short as possible!

 

Liveclicker made a study and found out that product videos with the highest conversion rate are under 30 seconds long.

 

The exception to the rule is with products that are more complex or are more expensive. These kind of times usually perform better with longer video.

 

Create as many videos as you can – if video can help you increase conversion rates on your product pages then it makes sense to incorporate it on as many as you can.

 

But what would be the effect?

 

According to a study made by Liveclicker retailers that have video on 50-75% of their product pages have an average order value of $300 and those who incorporate on 0-25% have only $177.

 

Also, retailers that have videos on the majority of their product pages report an average conversion rate of 9%. It was 79% higher than those who had video on 0-25% of the pages and 31% higher than those who had on 25-50% of the pages.

 

Another thing that Liveclicker found was that the more videos users watched on the website the more money they spent.

 

Customers that watched 10 or more videos spent 119% more than those who watched just one video.

 

Incorporate for mobile – eCommerce companies shouldn’t be afraid to include videos for mobile user as well. Liveclicker found that mobile made up over 25% of eCommerce video plays in Q2 of 2014.

 

Share videos on other platforms – distributing your content to Facebook, Twitter, YouTube, affiliate networks and blogs allows you to generate additional high-quality traffic that easily converts into sales.

Combine product videos in email marketing activities – you can do this with many purposes. To prevent abandoned cart, to personalized “thank you” mail after-purchase or simply to engage more your email list and warm it up for future offers.

 

Whatever your goal is video can help you out.

 

According to Implix, an introductory email that includes a video receives an increase click-through rate by 96%. Which is a lot.

 

A/B test on product videos to see which converts better – to do this you will have to actually create both videos which is not a small effort.

 

That’s why we suggest you start testing on 1 product page that received the most traffic and see what the difference in the lift of conversions are.

 

 

If you see a big difference, you can test your changes on other product videos.

 

You can also use our platform to easily create multiple versions of the same video and A/B test them.

 

A few things that you can test in your videos:

 

  • Thumbnail
  • Length of video
  • Male vs female narrator
  • Call-to-action
  • Placement of video on your page

 

In conclusion:

 

Videos are a great way to increase your eCommerce conversion rates. They have the power to grab and hold attention and the same time to deliver your desired message to your customer as fast as possible.

 

Videos convince people that what they’re viewing is what they want to buy. And this is where the power of video is.

 

Do you currently use product videos on your eCommerce store? How do they work? Let us know in the comments below.