Personalization is frequently touted as the next frontier of retail, but L2’s China CPG report shows evidence that personalization efforts increase online conversions. Alibaba has made significant investments on that front, with launching Juxingtai, a big-data corporation that helps personalize the shopping experience on Tmall and Taobao based on consumer data insights. And brands are starting to experiment – and seeing success in a short time frame.
Nivea conducted its first personalization test during New Year Goods day on three store fronts, one for new customers, one for existing customers, and a standard page that incorporated no personalized information. A/B testing showed a 70.34% increase in sales conversion and a 35.54% decline in bounce rate.
Pampers was also able to measure boosts in Tmall store conversion rates for five different types of consumers in the graph below. Pampers targeted existing customers (those who had made a purchase in the past 90 days) with discounts and member exclusive deals. New moms were targeted with content about the brand reputation and the benefits of joining its loyalty program. The overall post-personalization conversion rate more than tripled compared to the pre-personalization rates.