Impact Of Personalization On E-Commerce Bounce Rates

Bounce rates quantify the number of visitors a web page has who only viewed a single page, then leave without further checking out the rest of the site. According to recent reports, the average bounce rate of e-commerce sites ranges from 20% to 45%, depending on the industry. Why is it important to determine this?

Knowing the bounce rate of an e-commerce site will allow business-owners to determine and assess the relevancy of their page content, and how navigable their site is. Having a high bounce rate indicates that they fail to persuade and attract customers into making a purchase, which, in turn, adversely affects their rankings. On the other hand, when they have a lower bounce rate, it indicates how profitable their business may be and how attractive their web design is.

To avoid having a high bounce rate, many e-commerce companies have personalized their sites to give users a better shopping experience.

Website Personalization: An Overview

Website personalization is the process of designing customized site features for each user, rather than providing generic ones that are the same for all visitors regardless of preferences. For example, in e-commerce wholesale, business-owners may provide live chat features that will allow customers to find exactly what they are looking for. This builds a stronger and better relationship with the market through an increased customer satisfaction, as their preferences are catered according to their own respective requirements.

Among the types of website personalization are as follows:

  • Behavioral personalization

This kind of personalization tracks data on customer engagement and interaction, allowing e-commerce sites to provide targeted offers to shoppers based on their browsing behavior.

  • User-set personalization

User-set personalization allows customers to tell e-commerce businesses exactly what their preferences are, instead of having them track their behavior on the internet. This is usually accomplished by starting with a generic homepage which asks users what they are interested in.

  • Location-based personalization

The main purpose of this type of website personalization is to deliver customized messages to customers in a certain location without sending the same message to all others. This allows e-commerce sites to provide seasonal offers and discounts to customers depending on where they are. For example, fashion distributors may provide customers experiencing the winter season with discounts on outerwear, while those in warm countries may be given promotions on swimwear and sheer clothing collections.

How Can This Impact E-Commerce Bounce Rates

45% of consumers prefer to shop at e-commerce sites that offer personalization as their demands can be precisely met. Consequently, this reduces bouncing rates due to:

  • A streamlined shopping experience

According to Sale Cycle, 81.08% of customers abandon their cart due to poor user experience. Through website personalization, however, customers will no longer experience complicated shopping and check-out processes as they are provided with immediate access to their preferred products and payment methods. This will eventually increase sales and customer loyalty as buyers are satisfied with how the site works for them.

  • An optimized product page

By tracking data on buyer behavior, e-commerce companies will be able to design and optimize their webpage depending on the preferences of customers, featuring products that will most likely catch their attention. This raises consumer curiosity, triggering them to browse the site more to learn about a particular product.

  • A unique shopping experience

The very purpose of website personalization is to cater each customer according to their own individual needs. For example, Middle East online retailers have developed a “concept store” feature in their e-commerce sites that would allow buyers to access a wide range of products that connect to an overarching theme. This enhances their website experience, enabling them to discover what else an e-commerce site has to offer.

Reduce Your Bounce Rate Through Personalization

By personalizing the website customer transactions, e-commerce companies can optimize their experiences by featuring their preferred products and allowing them to utilize their desired payment method. This makes online shopping easier and more convenient for them as it should be, enabling them to finish their transactions from start to finish, and ultimately, reduce bounce rates on the part of e-commerce sites.

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