How to Boost Conversions by Personalizing Your Website

How to Boost Conversions by Personalizing Your Website

Every business has room to improve their conversion rates.

If you’re looking for a place to start, analyzing your website is the first logical step.

While you may have done A/B testing or used some similar techniques in the past to get a surge in conversions, you can take your efforts one step further.

Look at your website through the eyes of your customer.

The key is, not everyone viewing your website has the same set of eyes.

Sure, your company has a general target market, but visitors of all ages and genders from different geographic locations will be viewing your website.

These people have different preferences.

How can you configure your site to provide the most relevant information, products, and services to each unique visitor?

You need to implement personalization methods.

If you’ve never done this before, it may sound intimidating.

While it may not be the simplest task you’ve ever completed, it’s not that difficult.

It’ll require a bit of thought and effort on your part, but the results will be worth it.

In fact, 68% of companies say personalization is a top priority.

That’s because personalized experiences can improve customer retention rates.

Furthermore, customers prefer retailers that personalize their shopping experience.

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It’s no secret you’re monitoring the behavior of shoppers on your website.

Although 36% of customers don’t want to be tracked, 75% of people would still rather shop from a company that uses their information to enhance their experience.

Improving the customer experience will ultimately help you get more conversions.

I’ll show you the best ways to accomplish this.

Start by focusing on your primary target market

We’ll eventually increase the customer personalization much further than this, but you have to start with the basics.

Your website should be designed to please your best customers.

Here’s an example to illustrate my point.

Let’s say you’re a small clothing company with a brick-and-mortar store located in Rhode Island.

You have a global ecommerce store, but 90% of your online traffic and sales come from people located in New England.

Every once in a while, you’ll get a hit from Australia, southern California, or Hawaii.

That doesn’t mean you should be heavily promoting bathing suites on your website during the winter.

This product doesn’t speak to your primary customers.

You should be pushing sweaters, winter coats, and boots instead.

Some companies have a target market specific to one gender.

Take a look at Victoria’s Secret website:

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All their products are for women.

That’s why their site has a pink theme and features strictly women’s apparel and accessories on the homepage.

This website wouldn’t be effective for a company that sells products for both men and women.

Once you start by designing your website with your most profitable customers and target market in mind, the rest of your personalization methods will become much easier.

Encourage visitors to create a customer profile

You want all your customers to shop while logged into their customer accounts.

That way, you can monitor all their shopping habits and find out what products they like the most.

When designing profile fields for them to fill out, you can also include a zip code field.

This can help you determine the best products to offer your customers based on their location and the time of year.

Not every ecommerce site has a high concentration of sales from a specific region.

Global ecommerce stores have to be able to customize the products on their sites based on the season of the region where the user is located.

Another thing to consider is your holiday season promotional campaigns.

Running a Fourth of July sale may speak to the American customer, but it doesn’t mean anything to the international consumers.

Those advertisements shouldn’t be shown to visitors from Spain or Germany.

But you have to give the customer a reason to create a customer profile.

Saying “Join now to get a more personalized shopping experience” isn’t the most enticing pitch.

Take a look at what Champs Sports offers their VIP members who create a profile:

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All these exclusive benefits give the shopper a reason to create a profile.

The personalization they’ll receive is just an added bonus, but it will make it easier for you to get conversions.

Get customers to add more items to their shopping carts

Another way to personalize the customer shopping experience is to use information of your customers’ orders.

Someone has been browsing your site for a while.

They’ve considered a few different products but ultimately decided to pick their favorite.

This person may have had a couple of other options in mind, but for one reason or another, they just decided to add one to their cart.

Here’s a perfect opportunity for you to upsell to this customer.

This will help you get a higher average order value as well.

Let’s take a look at an example from SAXX Underwear:

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They offer free shipping on orders over $50.

A customer spending $44.95 is likely to feel they should add something else to their cart to get the free shipping benefit.

Plus, as I said before, the customer probably has something in mind they wanted to add in the first place.

These subtle tricks can get people to spend more each visit.

Use popups to greet new customers

If someone isn’t signed into their user profile, it might be because they don’t have one.

Maybe it’s their first time visiting your website.

You can’t expect everyone to be familiar with your brand and website navigation.

To improve the learning curve and add an incentive for your customer to make a purchase, have an offer pop up on the screen.

Here’s a great example form Julep:

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This method will give that extra encouragement for your site visitor to complete the conversion.

Even if they don’t make a purchase today, you’ve got their email address added to your subscriber list.

Now you can contact them via email and use additional personalization methods through that marketing channel, which we’ll discuss shortly.

Popups have an average conversion rate of 3.09%.

While that number may sound small, think about your daily website traffic.

For every 10,000 visitors you get, you’ll get 300 more conversions than you would have without the popups.

And that’s if you have average rates.

I’ve seen some companies with significantly higher conversion rates.

Multiply those additional conversions by your average order rate to find out how much more revenue you could be getting.

Plus, it’s not like it’s going to cost you anything extra to implement this strategy.

So it’s well worth it.

Reward customer loyalty

You want to make sure your best customers feel special.

If they are spending lots of money, you should reward them for this.

Why should everyone get the same discounts if one person spends $100 each year and the other person spends $500?

Take a look at this rewards program offered by Footlocker:

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In order to receive the best benefits, customers need to spend $300 within 12 months.

Now you’ll get people to spend more money per each transaction so they can reach their reward status faster.

This will get you more money and keep your customers happy at the same time.

It’s a win-win.

That’s why tracking your customers’ unique spending habits is a personalization method I highly recommend.

Reward people for spending money, and it will encourage them to spend more.

Recommend products to website visitors based on their browsing behavior

When someone is browsing on your website, you need to figure out what they’re looking for.

This is essential for ecommerce companies that have a wide range of products.

According to Barilliance, 31% of the money generated by ecommerce sites was based on product recommendations.

Furthermore, users who click on a suggested product convert 5.5% more frequently than those viewing other products.

Earlier we saw that the majority of customers prefer to shop at retailers offering personalized shopping experience, and this data reinforces that even more.

So you need to narrow down the products offered on your site by category.

We’ll use clothing as an example.

  • Tops
  • Bottoms
  • Shoes
  • Accessories

Those would be reasonable categories to segment your products by.

The type of content viewed is the top method that websites use to personalize the user experience.

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Amazon uses this technique on their website all the time:

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I saw these results when I was browsing for a Wi-Fi extender on their website.

They recommend these items because other customers bought them after purchasing the specific product I was looking it.

Using this method is also a form of social proof.

The idea is that if other people performed a certain action, then I should too, right?

Well, that’s how the customer’s mind works.

Here’s another way Amazon cross-sells to their customers with recommendations:

image1 2

What goes well with a Wi-Fi extender?

A wireless router makes sense.

If someone needs an extender, it’s a sign they are probably having some problems with their existing Internet connection.

So maybe they need a new router as well.

Apply this same concept to your ecommerce site.

If a customer is browsing for winter hats and gloves, you could recommend a scarf or ski mask to go with it.

Continue using personalization on other channels

Some of the tactics we discussed involved collecting user information.

There’s a good chance you’re able to get some email addresses added to your subscriber list based on these personalization techniques.

Well, now’s your chance to continue to market to these customers with personalization through other marketing campaigns—outside your website.

You can apply these same strategies to your email marketing campaigns.

Marketing experts agree that personalization improves their email marketing content.

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Don’t limit yourself to only personalizing your website.

When you’re sending an email, use the recipient’s first name in the message to get their attention.

Use relevant content and promotional offers based on their shopping habits, demographics, and physical location to get higher conversions.

Conclusion

If you’re trying to improve the conversion rates on your website, focus on enhancing the customer experience.

One of the best ways to do this is by implementing personalization tactics.

Start by focusing your efforts on your primary target market.

Then, encourage your customers to create a unique user profile.

The information they provide you with when creating the profile will give you additional insight into their shopping habits.

But you need to give them a reason to join, so make sure to offer some kind of promotional discount or another incentive.

Try to get your customers to add more to their shopping carts by enticing them with something relevant to their current order.

Recommend other products based on what they are browsing for.

Create a customer loyalty program, and monitor how much money each customer spends. Reward the customers who spend the most.

All of these personalization techniques will help you increase your conversion rates, but that doesn’t mean you should limit this to your website alone.

Use personalization methods in other marketing channels such as your email campaigns.

What tactics have you implemented to improve the personalization of your website for your customers?

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How to Keep Your 2018 Small Business Financial Resolutions

How to Keep Your 2018 Small Business Financial ResolutionsIt happens every year. When January 1 comes, business owners examine what happened during the past 12 months and decide to start anew by making business financial resolutions. Resolutions are often easier said than done, however. Psychologists tell us that it takes at least three weeks for a habit to start to become a permanent change. Many of us have forgotten or dropped our individual New Year’s resolutions by Groundhog Day.

Small business owners often vow to examine their operations during the past year and find ways to improve them. Once the holidays end and things start running as before, many of us fall back into our same routines and the vows to change become unfulfilled.

According to Psychology Today, New Year’s resolutions fail when goals are unrealistic and when we place time bounds on changing behavior. Instead, create an area of focus and keep at it, rather than specific goals with time constraints that you may not be able to reach (and then become disappointed because of failure to meet the deadlines).

Recommended Financial Resolutions for Your Small Business

When small business owners seek my advice for securing capital, I tell them that they must become financially prepared to apply for loans. Consider the following to be business financial resolutions that any small business can carry out:

Trim Your Budget

Before you expand, you may need to trim. Entrepreneurs often seek funding because they plan to expand their operations in the coming year. Cutting excess weight is a good first step. Review expenses with your accountant to find areas where costs can be reduced, thus improving cash flow. Monitor inventory; unless there is significant financial incentive (in the form of a price reduction) to buy more, use what’s already on hand before ordering more inventory. Examine staffing. Businesses with seasonality should be the most vigilant. Cutting the hours of underutilized staff – especially part-timers – can result in significant cost reductions and improved cash flow. The better your financials look when applying for a loan, the better your chances of securing funding.

Become Neater

Shoddy record-keeping can easily lead to losses. Keep track of all of the revenue your company has generated and all of its expenses. Be sure to hang onto petty cash slips and keep records of anyone you may have paid cash. After all, you can’t become profitable without having a firm grasp on revenue and expenses. If you do your own accounting but don’t feel like you’re an expert in it, hire an accountant who specializes in small business. The benefits will likely outweigh the costs.

Be the Early Bird

If you plan to apply for a small business loan, you will need to provide tax returns for the past two to three years. By getting your 2017 forms into IRS in January or February, rather than April 15, you will be able to provide the required documentation more quickly. It’s an added bonus if you are expecting a refund because you will get it sooner. However, even if you wind up owing money to the Uncle Sam, paying it off sooner rather than later will put you in a stronger position to ask for a loan a little bit down the road.

3 Tips for Keeping Your Small Business Financial Resolutions

So now that you have some advice, here are 3 tips for keeping your small business financial resolutions:

  1. Focus on one goal at a time. If cutting expenses is you main goal, once a week schedule time to sit down and analyze expenditures and find out where the excess is. Then get rid of the excess. Once you find success, move onto the next goal.
  2. Celebrate the small victories. If you found a way to reduce staff hours by 10 percent, be proud – even if your goal was a 25 percent reduction. Keep track of your progress and keep working towards your goal.
  3. Stick with it; keeping resolutions should be a year-long effort. Don’t wait until Dec. 31 to try it again.

The beginning of the year gives everyone a chance to turn the page and start anew. Making financial New Year’s resolutions and sticking to them will take a lot of effort. By striving continuously to achieve goals – and accepting that there will be setbacks from time to time – will put you in the right frame of mind to achieve them in the long run. The ultimate measure of success will be whether your business is in better financial shape in December 2018 than it is at the beginning of January.

Photo via Shutterstock

This article, “How to Keep Your 2018 Small Business Financial Resolutions” was first published on Small Business Trends

Year in Review: 3 Takeaways for Small Business Owners

Looking back at 2017, I’ve been lucky to work with and learn from small business owners across America.

These business owners face a number of challenges – from finding the right staff to securing financing – but their resourceful nature resulted in many success stories this year.

Now that 2018 is here, I want to take a moment to reflect on a few specific lessons – from strategy to technology to the big-picture outlook – that I hope will serve as inspiration for another great year in the small business community.

Not enough businesses have employees in the right tech roles

When you’re running a small business, it’s easy to get swamped. There’s no shame in that – you’re an ambitious self-starter and live for your company’s success. But sometimes taking on more than you can handle means overwhelming yourself with responsibilities that should be handled by others.

According to a Salesforce small business report, 49 percent of small businesses say they spend too much time and money trying to decide what technology to use, which is often the result of non-tech experts making tech-related decisions.

When it comes to IT strategy, the lack of a designated tech-savvy team member is one reason 61 percent of small businesses ignore valuable IT solutions for their business.

On the other hand, small businesses that rush into hiring a chief technology officer (CTO) too early often end up with high costs and complicated IT strategies that go beyond their needs. Waiting to hire a CTO can save you precious capital (sometimes over $230,000 annually) and allows you gain insight from multiple voices.

One solution for accessing expert tech knowledge without hiring too soon is to seek help from an external tech advisor. Dell Small Business Advisors can help you understand your IT needs and come up with customized solutions to meet them.

Protecting your company’s assets requires the right technology and mindset

Technology plays an important role in all types of businesses, and securing your key data is becoming increasingly critical. This is just as true for small businesses as it is for large corporations, yet the former often finds this more difficult to tackle given limited resources.

Earlier this year, I moderated a ransomware roundtable. One of the most impactful takeaways was just how much power hackers can gain over small businesses that don’t implement adequate cybersecurity measures. Halfway through the year, we’d already seen major institutions like the U.K.’s National Health Service and the United States CIA hacked by various groups from around the globe.

Instead of waiting for a problem to arise and then reacting, you can boost the security of your small business by proactively assessing risks and making a plan for how to deal with any breaches. It doesn’t have to be an intimidating process with the help of an expert. Setting up the right private and public cloud storage also plays a key role in keeping your company’s valuable assets safe.

Millennial entrepreneurs are setting new standards for small business IT solutions

Young generations are always trendsetters. In August, we looked at how millennials are setting new standards for how and where technology is being used in business operations.

Having grown up in a tech-filled world, these individuals are inspiring companies to adopt cloud-based infrastructure and a mobile-first mentality. Others have directed this forward-thinking approach to entrepreneurship, with millennials accounting for 16 percent of small business owners in the United States.

Freelancing is key trend driving change in the worlds of business and employment. Back in March, I outlined how Americans – millennials in general – are embracing freelancing as a way to build fulfilling careers in which they call the shots. At the same time, both small and large businesses are using the freelance economy as a flexible resource to support their work, recognizing that freelancing creates unique IT needs on both sides of the equation.

The future is full of opportunity

With a new year comes new ideas, new tech and new growth. Since the start of 2017, we’ve seen advances in tools like artificial intelligence and virtual reality, which allows business owners to be forward thinking about how they approach new opportunities – a mindset we champion at Dell, too.

No one can predict the future, but I am confident that 2018 will be full of new opportunities for small businesses everywhere.

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Outgrowing Your Office Space? Should You Lease or Buy?

The decision of whether to lease or buy your next office space involves several factors. Choice of property, of course, is the first consideration: If you can’t find what you need for rent, you may have to commit to purchase, and vice versa. However, depending on your local economy, you may find landlords who are willing to work with you, even to remodel existing properties to suit your needs.

Cost is also important, and if you are choosing between two equally attractive properties, it pays to do a cost comparison for the short and long term. However, each option has unique benefits and challenges that affect how you do business as well as your pocketbook. Here, we discuss key aspects you should take into account, the pros and cons, and what financial aspects you need to take into account to help you make the best decision for your business.

The three questions you should ask yourself

How long can you commit to a location or building? Financial studies have shown that, for a short term, leasing is more cost-effective than buying. However, if you are considering a property where you can make your headquarters for a decade or more, then buying becomes more financially attractive. One analysis indicated that seven years seems to be the tipping point, but each case differs. See our section below on doing a financial analysis.

How fast is your business growing? If your business is booming and you anticipate rapid growth in the next few years, then leasing gives you greater flexibility to move if you outgrow the new facilities. If you purchase, you may outgrow the building or purchase more building than you need, with the associated expenses. This also applies if you think your business may downsize in the next few years.

How’s your local economy? Once upon a time, real estate was a sure investment, but now it’s more volatile. If your local area has been in a slump but is coming out of it, then this could be a good time to invest. However, if property values are declining or are overinflated, leasing might afford you a better location and protect you from losing the money it could cost you if you had bought and needed to sell.

As you read the pros and cons in the next sections, evaluate how important each is to you and weigh them accordingly.

Pros and cons of leasing

The main advantages to leasing include low initial commitment, flexibility and ease of maintenance. However, you sacrifice equity and control over your facility.

Pros

  • You have a low initial financial commitment with no down payment, just a deposit.
  • Lease payments are tax-deductible.
  • The landlord handles repairs and maintenance, sparing your time.
  • Some landlords will remodel to suit.
  • You can generally lease in a nicer area than if you buy.
  • The higher cash flow helps your credit rating.
  • The landlord may pay for a particular utility, like waste management or water, or for housekeeping.
  • It’s easier to leave if you outgrow the space.

Cons

  • If you used a broker, you will pay an annual broker fee for the duration of your lease. This is usually a percentage of the annual lease amount and is negotiable.
  • Rent usually increases when you renew a lease.
  • You are at the mercy of the landlord for timeliness and quality of repairs, which could be frustrating for a construction firm.
  • The landlord may have rules concerning the use and state of outside areas that may impact your ability to store vehicles and materials. Be sure you discuss these beforehand.
  • Even if you have a good landlord now, that could change in the future.

Pros and cons of buying

Buying provides equity, and you have complete control over what you do with the property, but you commit a lot of capital from the onset and are responsible for all maintenance.

Pros

  • You build equity, which you can use as collateral in loans.
  • If you have extra space, you can rent it out to add to your revenue.
  • Your mortgage payments will stay steady.
  • Interest payments are tax-deductible.
  • You can claim building depreciation.
  • You can make any changes to the building you like (within local ordinances).
  • You control what happens on your property.
  • Since you own the property, when you retire, you can sell it and use the profits for your retirement.

Cons

  • There are huge initial expenditures, such as closing fees and real estate agent fees.
  • There is a higher opportunity cost. In other words, the money you invest in the property could be used to grow your business in other ways. You need to determine if that is an issue.
  • You pay for remodeling, repairs and maintenance.
  • If you outgrow the space, you will have to sell the property.

Editor’s Note: Looking for a business loan provider? We can help you choose the one that’s right for you. Use the questionnaire below to have our sister site, BuyerZone, provide you with information from a variety of vendors for free:

Run the numbers

As noted above, the longer your commitment to a location, the more cost-effective it is to purchase rather than lease your office space. However, before you commit, run some numbers or have your accountant do an analysis of costs over time. These are some of the things to consider:

  • Mortgage vs. rent
  • Insurance
  • Down payment (10 to 25 percent) vs. security deposit
  • Taxes (consider tax advantages with leasing as well as buying)
  • Regular maintenance (factor in about $1.50 per square foot per year for maintenance and improvement costs)
  • Equity (but take resale value with a grain of salt)
  • Opportunity cost – how much a certain amount of money could earn if you invested it in your company. (When buying, you use the down payment to calculate this cost. If there’s a difference between the monthly mortgage and the lease, use that difference to determine an opportunity cost against whichever costs more.)
  • Security deposit
  • Broker fees, annually if leasing; realtor fee one time if buying
  • Lease negotiations = lawyer fees (realtor commissions cover this when you buy)
  • Closing costs if buying
  • Remodeling expenses
  • Leases covering utilities (if yours does, consider that bill as an added expense if you buy)

There’s no blanket answer for whether to purchase or lease your next property. It depends on how your business is faring, whether cash flow is more important than equity, if you prefer to control your property or have the ease of someone else caring for it, and myriad other factors. Take time to make an informed choice.

Scaling Your Small Business Doesn’t Have to Be Hard: Follow These 4 Tips

4 Tips for Intentionally Scaling Your Small Business

Scaling a business requires every business owner to make some tough decisions. Christine Burdick is uniquely familiar with those challenges. But she has been able to successfully grow her business, Christine Burdick Design, by scaling very intentionally.

A commercial interior designer based in Burlington, Vermont, Burdick never actually intended to start a business. She was laid off, along with plenty of other design and architecture professionals, in 2009. And as she interviewed with other companies, she realized that many of them still needed designers but simply didn’t have the resources to bring anyone on full time. So she decided to start her own business to provide that service.

Tips for Scaling Your Small Business

Burdick recently spoke with Small Business Trends about her business experience and some of the challenges she faced scaling the business. Here are some of the tips other small businesses can glean from that discussion.

Don’t Go Overboard with Hiring Right Away

Burdick’s business started out as a solo operation and quickly grew into a two-person business. However, at one point she actually had five employees, which was great when the company was busy. But it also led to some struggles that might have been avoidable had she been more intentional with scaling.

Burdick says, “I was spending all of my time on marketing just so I could keep all of those employees busy. And when I thought about why I started the business in the first place, it was because I loved design. But I wasn’t doing any design because I was so busy with marketing even though I’m not a marketer.”

Use Expert Consultants to Help with Areas Outside Your Specialty

For that reason, Burdick suggests that businesses looking to scale make use of consultants and contractors who specialize in areas outside of your own expertise. This allows you to get help with things like taxes, tech support and bookkeeping without having to onboard actual employees for whom you might not have enough money or work to make the hire worthwhile.

Consider Non-Traditional Spaces You Can Afford

Though Burdick now has a beautiful studio space with a lake view in downtown Burlington, the business actually started out in her own basement. From there, she rented a space that was shared with another business, and eventually outgrew it and moved onto the downtown location. Had she jumped right in with the expensive downtown studio, she might not have been able to afford the employees, consultants, marketing and other expenses that have helped the business grow. So unless a specific location is paramount to your business plan, keep the rent low when you first start out.

Always Remember Why You Started Your Business

Overall, Burdick believes that it’s important to always go back to the reason why you started a business in the first place. Of course, running a business requires more than just a passion for one specific subject. But if you’re able to secure help in those other areas, you can keep your focus where it counts even when your business grows.

Burdick says, “The most important thing to me is to always go back to doing what you love. For me that’s design. So I have to sometimes remind myself that I started the business because of my love for design. If you’re genuine and following your passion, everything else tends to fall into place as long as you have the right support systems in place for your business.”

Photo via Shutterstock

This article, “Scaling Your Small Business Doesn’t Have to Be Hard: Follow These 4 Tips” was first published on Small Business Trends

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