🎯 The Metric

Conversion Rate

Personalization is a powerful tool. Creating these experiences could be as simple as making landing pages specific to certain regions or as complex as algorithmically recommending products tailored to an individual’s taste. Done well, it feels intentional and grabs a user’s attention, making them more likely to convert.

Personalized experiences in general can boost conversion rates by 200% or more. AI-powered personalization specifically for digital experiences is delivering conversion boosts between 30-40%. You can use inexpensive AI tools to run dozens of small A/B tests at a much faster rate than with traditional methods, changing copy, colors, button sizes, and more. The algorithm can then determine which versions perform best for each user segment and personalize the experience accordingly.

The Revenue Impact

Imagine you are selling a $100 online course to 2 different segments: career changers and freelancers. Your current landing page has a 2% conversion rate.

If you create personalized versions specific to each type of student, your conversion rate may go up to 2.8%. On 5000 visitors, that is an extra 40 students, or $4000 more in revenue per month from a single AI implementation.

💼 The Case Study

AI-assisted Home Improvement Conversions

Taylor Made Marketing was working on a campaign for a client in the home improvement industry. They worried the traditional A/B testing approach would take too much time for a large client with customers all across the United States.

The Experiment

They used Unbounce’s Smart Traffic tool to set up numerous landing page variants with AI. Sometimes, they had as many as 12 variants running at the same time. Smart Traffic used machine learning to test which messaging and layouts worked best for different segments and automatically brought users to the page that would work best for them. This method allowed them to get actionable results in just 50 page visits.

The Results

  • Conversion rate: Taylor Made Marketing consistently reached conversion rates of around 35% for this client, much higher than the industry average of 3-5%.

The Why

Speed and personalization. The AI tool helped them complete the experiment in a fraction of the time traditional A/B testing would take. It also helped them perfectly match the highest converting page to each potential customer.

📈 The “Founder’s ROI” Calculator

When the experiment started, the home improvement brand was doing $22,000/mo in sales. Using AI to drive personalized user experiences boosted their monthly revenue almost tenfold in just a couple of months.

  • 1st Month of Experiment: + $74,000/mo

  • 2nd Month of Experiment: + $200,000/mo

📚 The Reading List

    • Personalized time and location based experiences boosted app downloads by 60%.

    • A supermajority of online shoppers feel frustrated when presented with generic experiences that are not tailored to their preferences.

    • Machine learning models can detect easily overlooked behavioral patterns to boost the accuracy of product recommendation engines.

    • AI-assisted personalization is so powerful because it helps brands treat customers like individuals instead of broad groups.

    • Be mindful of the distinction between personalization (how the system itself changes to fit user behavior or preferences) and customization (how the user adjusts the system to their liking).

    • Both are essential tools in crafting a great user experience, boosting engagement and conversion.

👋 That’s all!

If you found this useful, forward it to someone who is interested in what design can do.

Keep Reading