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4 most powerful phenomena in ecommerce marketing that every CMO should start adopting now

The first 3 phenomena personalized customer journeys, AI, and experimentation have been around for a while now. It’s good to see that after years of talking about them, we’re finally starting to see great results from brands that are embracing AI and personalization tools and using them as part of their core business models.  

An interesting new trend that marketers should start looking into is Progressive Web Applications (PWAs), as they bring many advantages to marketers who are looking for better reach and coherent omnichannel customer experience.

It all comes down to the fact that brands have now realized that putting the customer first and embracing their differences by creating personalized customer journeys is the only way to keep up with the competition and grow.

1. Personalized customer journeys

It’s very difficult to create superior customer journeys if you still think of segments as large groups based on demographics, location or some other loose definitions. Every buyer is different and you need to be able to delight every individual. Designing and implementing online customer journeys improves customer satisfaction, lowers customer acquisition costs, and makes customers loyal.

Janne Timmerbacka, ICT director of online grocery store Kauppahalli, sums it up nicely:” The best customer service isn’t based on profiling customer sets any longer. Every single customer is different with their needs and preferences. In an online grocery store, great customer experience is made from knowing the customer so well that you are able to delight the customer by recommending products of their interest”.

To get to that individual level of highly personalized customer journeys, real-time behavioral data of the visitors is needed. What they click, how deep they scroll, what they read, watch, and download will give you a lot of insights on how to direct them to find more relevant info for their individual needs.

2. AI

To go deeper with personalization, AI is needed.  Forbes just concluded a study that   AI-powered marketing campaigns increase customer engagement by 7x and revenue  3x by helping marketers become more targeted, more relevant in their content, and more effective in how they engage with each individual customer.

So with that in mind,  an AI-powered recommendation engine is definitely something that every ecommerce business should invest in this year. Think of it as a great way of serving your customers better, as they can find new interesting products or content to consume. In an article, Netflix said that its AI-powered personalized recommendations save them $1 billion in revenue annually by avoiding canceled subscriptions.

Kristina Lagerroos, Development Manager for the global leading brand in functional kids’ wear Reima, says, “Frosmo enables us to create winning user experiences by providing a recommendations engine that brings value to our customers. They help us to understand our customers’ preferences better and make data-driven decisions”.  

Natural Language Processing (NLP) is also a very interesting phenomenon in that regard. NLP is a subfield of AI that focuses on enabling computers to understand and process human languages or at least get a tiny bit closer to a human-level understanding of language. It ’s cutting edge and a great way to show your visitors more relevant content.

For example, it can be used as the basis for an algorithm that recognizes words in the site content and makes recommendations based on similarities. If a visitor reads an article about a specific topic, the algorithm recognizes the relevant keywords and crawls other articles to find the same keywords. These articles are then recommended to the visitor. This method offers great user experiences also for those first time visitors whom we wouldn’t otherwise be able to serve according to their interests.

3. Experimentation for data-driven decisions

At times, the most challenging part of running an ecommerce business is to get people to work together and agree to website changes. Thus, validating customer journeys through experimentation is the key to gather data and make more insightful data-driven decisions that everybody can agree on.

Multi-armed bandit (MAB) is a powerful AI-powered experimentation tool. With MAB, you test different variations on your website and direct traffic towards those variations that are performing the best. Small changes might turn out to be big revenue generators. That’s the reason why testing is essential and why testing with AI offers a powerful advantage.

Clas Ohlson uses multi-armed bandit to optimize the most promising product recommendations in different markets and in doing so, enabled them to increase their average order value by 8% and the product rows by 27%.

4. Progressive Web Applications

Progressive web applications (PWAs) are web applications that load like regular websites. It allows end users to have a mobile app like experience when visiting the main website, including a home screen and push notifications. From a marketing point of view, one of the biggest advantages is that customers get the same user experience as on the main website without being tied to any app store. These are the reasons we’ll see many ecommerce sites turning into PWAs during this year.

Let’s start creating superior digital experiences with personalized customer journeys!

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About the writer:

Tanja Säde is the Chief of Marketing at Frosmo. With 20 years of experience in technology marketing, she is always curious about the latest technologies and marketing trends. She is enthusiastic about creating superior digital customer experiences through data, personalization, and AI. Outside of work, she is a yoga addict.

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