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bimago Uses AI-Based A/B Testing Alternative to Increase On-Site Conversion Rate 44%
bimago is a growing brand in the interior decoration industry with long-standing experience. Since 2004, the company has been dedicated to helping customers create beautiful interiors. At the bimago online store, you’ll find wall murals, canvas prints, art reproductions, hand-painted art, paint-by-numbers kits, scratch maps, posters, room dividers, home textiles, and over 22,000 other products. With such a varied offer, bimago ensures that customers are able to find decorations tailored to their needs.
The Challenge
As customers’ desires for personalized experiences in digital commerce grow seemingly by the day, marketers across the world rely even more heavily on A/B testing to deliver these experiences.
But A/B testing for conversion rate optimization is limited. Only one out of eight tests drive significant change and only 33% of marketers regularly use A/B testing or multivariate testing. Many organizations do not have the right marketing technology solutions to consistently deploying these tests.
But, as bimago learned, what A/B testing really does is it ignores the preferences of some segments and leads to missed opportunities to drive revenue. A/B testing allows you to understand what your audience prefers but does not always allow for your audience to see the portion of the test that was chosen as preferred.
Bloomreach Engagement’s contextual personalization can fill in this gap and allow each individual customer to see a personalized variant.
Contextual personalization has allowed us to show the best possible personalized subscription banner to every individual customer. This leads them to having a better experience with our brand, which aligns with why we adopted Bloomreach Engagement.
Ewelina Krajewska
The Solution
Contextual personalization from Bloomreach Engagement relies on artificial intelligence and machine learning — rather than human-defined rules — to make decisions about what to show customers. This can involve up to 10 different variants.
It selects the best possible variant per visitor to show a website banner, product recommendation, or other web personalization feature to. It does this by analyzing the context of every visitor. These points of context include anything from the device being used by customers, to the time of day, to customer history, to brand affinity.
The feature automatically selects the best variant for each individual customer by combining the historical context of the customer (clicks, purchases, campaigns, customer properties, etc.) and in-session context (current session behavior, search parameters, etc.).
With A/B testing, if 70% of your audience prefers variant A and 30% prefers variant B, your entire audience will see variant A. This leaves 30% of your audience unhappy and wishing they had access to variant B. With contextual personalization, if the same split occurs, 100% of your customers will see the variant that they wanted to see from your brand.
Contextual personalization will learn what works for your brand and based on this knowledge, serve the best variant to each individual customer that accesses the piece of web personalization on your website. Additionally, it continuously learns and improves as customer context and preferences can change over time.
The Results
bimago, a Bloomreach Engagement user since January 2020, deployed contextual personalization to learn what the difference in conversion rate it would make amongst its customers when able to show them the exact variant they desired to see. The difference was significant.
In testing done on a website banner, there was a 44% increase in conversion rate of subscriptions among those customers who had the banner personalized to them with contextual personalization compared to customers who saw the A/B testing version. Other potential use cases for contextual personalization with website banners include free delivery, 10% off first purchases, a $5 off discount, or a free gift from your brand.
Matching the right variant with each customer made a big difference for bimago and it can for your company too. To learn more about Bloomreach Engagement and what it can do for your brand, schedule a personalized demo today.
