Comparing Website Personalization Software

Website Personalization Tools Definition: What is Website Personalization Software?

The strategy of website personalization is used by marketers to create unique online experiences. These can be targeted in different ways - from tailored recommendations and dynamic content, to exclusive features.

The main goal of website personalization is to enhance the user experience. This is achieved by accurately, or rather personalized, addressing the needs and desires of the individual customer types - even before they express them. For example, anyone who has a favorite café and maybe already gets their preferred coffee variant served as soon as they enter the shop knows all too well the positive feeling conveyed by personalized service. Ideally, personalization should feel the same in the online world.

Until a few years ago, it was very time-consuming and laborious for marketers to implement direct personalization for all users. There were tools to assist those in charge of their work, but hardly any solutions that could perform the corresponding tasks precisely and on a large scale independently. If so, such programs were very expensive. Well-equipped helpers are still by no means a bargain today, but they are affordable for most businesses. In fact, a choice can be made from an increasingly large number of website personalization tools, some of which are very well equipped and yet economical.

Why should companies use a website personalization tool?

Website visitor is not just website visitor. Internet users have individual requirements as well as needs or challenges that they hope to solve, among other things, by visiting specific web presences. It is essential for website operators today to meet the associated expectations as extensively as possible.

Prospective customers and existing customers prefer companies that truly understand their requirements. They do not shy away from looking elsewhere if they feel that a brand is merely offering an obvious one-fits-all website. A website personalization tool can significantly help prevent this potential migration.

The following figures speak volumes in this regard:

• 90 percent of marketers are convinced that personalization significantly increases the profitability of their company - Google.

• 91 percent of customers prefer to buy from brands that personalize their shopping experience - Accenture.

• 83 percent of users are in favor of submitting their data if they are used to create a personalized shopping experience - Accenture.

• Over 50 percent of marketers have seen an increase in conversion rates through personalization - Statista.

• 31 percent of them noticed an increase in e-commerce sales during personalization - Statista. Personalization software reduces not only customer churn but also increases customer satisfaction. This usually leads to more sales and can ultimately bring about strong long-term business relationships.

How Do Website Personalization Tools Work?

Different personalization tools may indeed have different functional approaches. These result, among other things, from their basic orientation. There are personalization applications as part of comprehensive analytics programs, standalone SaaS solutions, personalization features as online services or as elements or add-ons of content management systems, and personalizable marketing automation programs.

However, they all have one thing in common: they use user data to automate personalizations.

In the case of website personalization, the corresponding tools are usually integrated into an existing software architecture and a resulting data pool. CRM systems, tracking tools, user identification applications and/or marketing suites are capable of capturing a huge amount of user information. These form the basis for the processes of a website personalization tool.

The data fed in or queried from the other systems is demographic, psychographic, geographic or behavioral information and other formats. They are interpreted through the website personalization software and finally transformed into individualized online experiences. These are particularly evident in tailor-made content. But other personalizations, such as individually coordinated layouts, special functions or even a precise approach to each user, are also possible.

Artificial intelligence (AI) or machine learning is often used in the evaluation of the data for personalization when using website personalization tools. However, such software still needs a configuration to assist in focusing on the right people or using the optimal data, at least initially.

What are the advantages and disadvantages of personalization software?

Some clear benefits of website personalization tools have already been suggested. The main benefits will be summarized in detail at this point.

• Relevant product recommendations: The greatest advantage of website personalization lies in the possibility of absolutely relevant product recommendation. Based on the data of the users or customers, commerce operators can give needs-based and timely accurate recommendations for the next purchase. Retargeting ads are an excellent opportunity to anticipate future buying concerns. Information on engagement provided by these advertising campaigns, for example, can be used to automatically and personally display certain articles on the website's homepage.

• Better understanding of customers and customer loyalty: If marketers understand their customers optimally, they can offer them a better online buying experience. A good starting point is the development of buyer personas for the most common customers. After that, you can start with the IT team or with those responsible for the website personalization software to align the solution to the different personas. The more individually the personalization is done, the more potential exists for intensive customer loyalty. Furthermore, user data is again generated during the execution and use of personalizations. These are easier to attribute to individual people, as facilitated by each buyer persona. Thus, the target customers can be understood even more comprehensively.

• Increased dwell time on the website: It is in human nature to pay more attention to things that personally appeal to us and interest us. The same applies in a business context. Companies have an average of only eight seconds before this attention wanes. For maximum success, you should aim to quickly and purposefully convey highly personalized web offers. If successful, the dwell time on your own pages will increase significantly. This website metric is something that marketers usually keep a very close eye on. It usually means increased potential for engagement and conversions. Last but not least, it is extremely SEO relevant. Google and Co. deduce a high relevance for the respective target group from this. This in turn favors a good ranking.

• CTAs and landing pages with a high conversion rate: The possibility of increasing the conversion rate via website personalization tools has already been addressed. A high rate is crucial for landing pages. If targeted conversions are only sporadically met and CTAs are hardly decisive, such pages miss their core intention. BCG found that companies that create highly personalized landing page experiences not only tend to record strong conversion rates but can also increase their revenue by at least six percent. This is more than a decent plus, but not surprising when examined more closely. Of course, people are more willing to perform certain actions if they are precisely aligned with their personal needs at a given time.

The advantages mentioned so far are undoubtedly significant. Nevertheless, certain disadvantages - or rather difficulties - can also occur when using a website personalization tool. Two typical challenges are the following.

• Scalability of performance: When companies personalize their website, this means increased technical effort. Providing the necessary computing power and temporarily storing dynamic websites accordingly can be a problem for conventional server environments. Those who cannot fall back on an optimal technical basis will almost always have to compromise between performance and speed when it comes to personalized websites. This can significantly reduce the quality of the user experience and ultimately the customer experience.

• Data protection: The General Data Protection Regulation (GDPR) has tightened the rules on how online user data may be handled and the penalties for non-compliance. The GDPR requires, among other things, express consent from website visitors to track and store their data - this also applies to personalization purposes. Obtaining this consent is not necessarily part of a website personalization software. Therefore, there is an increased risk of forgetting it and then possibly being subject to legal action. The storage of the data is also an important issue in this context. Companies should therefore definitely opt for a tool that is broadly set up in terms of data protection, entirely in line with the GDPR.

How to choose the right website personalization tool?

There is now indeed a vast selection of web personalization tools. In addition to specialized applications for website personalization, there are also programs for email or social media personalization on the market. The options are huge in the field of website personalization alone. This does not make it easy for those responsible to identify the right software. However, considering the following tips can make the search much easier.

Digression – Personalization vs Customization: When looking for suitable personalization software, one should be aware of the difference between personalization and customization. In practice, the terms are often used synonymously. However, there is a clear contrast in terms of the software in question. If this is not considered, it can delay the process of finding a suitable solution or, in the worst case, even lead to the acquisition of a wrong tool.

The difference between website personalization and website customization can be explained as follows. Customization is controlled by the users themselves, while personalization is controlled by the company. The popular dark mode, individual chat rooms and email filters are all types of customizations. They can be configured by (potential) customers to meet their specific needs. Personalization, however, is done by the company, using data to offer customers a particularly relevant online experience.

Define Personal Requirements In order to select the best technology for your own company, those in charge must first know what requirements they want to meet with it. What is the goal? What should be achieved by when? What problems need to be solved? These questions need to be answered before deciding on a personalization platform. The corresponding answers form the basis for all the following steps.

It should also be clarified at an early stage which prerequisites the website personalization tool should meet in terms of omni/cross-channel personalization functions. Today, it is advisable to personalize as many of the used channels as possible. In addition, needs for customer segmentation (company-related, behavioral, technographic, psychographic, demographic, geographic, etc.) must also be included. Another question to be clarified at an early stage is whether the solution should offer predictive or rule-based personalization options.

Determine the Scope of Processes The next step focuses on defining the scope of the processes in terms of size, complexity, and business objectives. Individual personalization processes require different resources and functions of a particular tool. These are in turn associated with more or less costs. That's why it's important to describe the scope of the processes as accurately as possible.

Smaller processes often require less sophisticated personalization and/or segmentation technologies and can be completed more quickly – with a relatively small budget. Medium-sized projects generally require a higher level of technological engagement. They demand more powerful personalization functionalities and more resources in the background for sufficient efficiency. Broader integrations with other platforms are also typical. For complex processes, those responsible often have to organize numerous different personalizations. Therefore, the relevant technical stack must also be of a high standard. The use of AI and machine learning is standard here.

Weigh Time to Readiness Personalization tools also differ in how long it takes for them to be fully operational. Some solutions can be used immediately, while others may take several months to implement through coding and design processes.

In today's competitive market, it is crucial that companies implement personalization quickly so that they are not left behind by their competition. To stay competitive, the website personalization tool must absolutely have the shortest possible "time-to-market".

Check Scalability It takes more than just a good idea and some website personalization tool to be successful. The resources in the background or in the wings should also be right. These include technologies that can be scaled quickly to respond to potential growth and keep pace with changing market demands.

If fast growth is forecast, you should ensure that the chosen personalization solution is as flexible and scalable as possible. This ensures that the perhaps rapidly increasing demand for personalizations can be met reliably. New features can be added promptly or no longer needed ones can be discarded.

Ensure Security Security - and especially data protection - are other factors that should absolutely be taken into account when selecting personalization software. Some companies still consider this issue as a lower priority compared to other priorities.

However, with the entry into force of the GDPR, companies are increasingly being obliged to protect customer information from unauthorized access or disclosure. Those who are negligent in this respect and therefore lose data face severe penalties. Therefore, it is extremely important to choose a solution that complies with the General Data Protection Regulation. You are naturally on the safe side here with website personalization tools from Germany or Europe.

What do personalization tools cost?

The prices for website personalization software vary greatly. There is a vast range from a few euros per month up to 1,000 euros and more.

The cheapest solutions are often add-ons or plug-ins for CMS or e-commerce platforms. They cover relatively simple aspects of personalization, like special offers or product recommendations for certain user groups based on a simple logic.

More expensive solutions have a broader range of personalization functions. They allow sophisticated segmentations, one-to-one personalizations, tests and analyses. They can be integrated with other systems and draw useful data from these.