Achieve web personalization with a headless composable DXP

In the digital age, creating a one-size-fits-all website no longer works. With the rise of data analytics, user profiling, and advanced algorithms, businesses can now offer customized digital experiences through web personalization. Communicating with customers more personally can foster a deeper connection and build consumer trust.

Statistics provide proof of how vital web personalization is for today’s consumers. McKinsey, for example, reports that 71% of consumers don’t just want personalization; they expect it. And 76% get frustrated when they don’t get it. When personalization is done right, it can pay off. In addition, McKinsey reports: “Companies that grow faster drive 40% more of their revenue from personalization than their slower-growing counterparts.”

This blog explores the concept of web personalization, its benefits, and different types of personalization. We’ll also explain how a headless, composable digital experience platform (DXP) can help businesses deliver advanced personalization.

What is web personalization? What are the benefits?

Web personalization refers to the dynamic process of tailoring online content, user experiences, and website interactions to each visitor's preferences, behaviors, and needs. This customization involves leveraging data analytics, user profiling, and advanced algorithms. And it’s about more than just changing images or words on the page. It could involve providing consumers with product recommendations. Or adjusting page layouts or other website elements based on user interactions.

The benefits of web personalization will vary based on marketing and business objectives but may include the following.

• Increased sales and revenue

• Higher conversion rates

• Enhanced brand recognition

• Improved user retention

• Greater customer loyalty

• Business growth

Well-known examples of web personalization

Many well-known brands have adopted web personalization to increase engagement and boost revenue. Here are three examples:

• Amazon uses predictive targeting to offer personalized product recommendations based on a visitor's previous purchases and browsing history. 

• Netflix personalizes content recommendations based on users' watching habits, It provides personalized landing pages highlighting what new content is available. 

• Starbucks uses mobile apps and integrations and predictive targeting to offer personalized recommendations for food and beverage items based on different factors. These include weather conditions, time of day, and behavioral data.

Web personalization is typically categorized into three levels.

• Basic – This involves simple personalization techniques, such as addressing the user by their first name.

• Intermediate – More advanced; this level of personalization includes strategies like recommending products or other content to users.

• Advanced – This highest level of personalization involves real-time adjustments to content based on factors like user behavior.

Four types of web personalization strategies

Businesses can adopt various strategies to improve user experience and increase conversions. Some of the most effective personalization strategies include behavioral, contextual, geolocation, and predictive targeting.

Behavioral targeting

This involves analyzing visitors' browsing behavior, such as visited pages, time spent on the site, and click-through rates, to provide personalized content recommendations and offers.

Contextual targeting 

This uses the context of the visitor's current session, such as the search terms, the referring URL, and the device used, to present content that meets their needs.

Geolocation targeting

This is when personalized content is delivered based on the visitor's location. The aim is to help them find nearby services or products.

Predictive targeting

This involves personalizing content based on machine learning algorithms. These algorithms analyze the vast data collected on visitor behavior, preferences, and needs. Then, it predicts which personalized content is likely to convert each visitor.

What is a headless CMS?

A headless content management system (CMS) is a back-end-only CMS where content is stored and managed. Content is accessed and displayed on a front-end system, such as a smartphone screen, via an application programming interface (API). The API enables the front end and back end to communicate with each other.

A headless CMS enables businesses to quickly deliver personalized content to users regardless of their channel or device.

Headless CMS can help businesses achieve web personalization faster

In a headless CMS, personalization involves using the data stored in the CMS to tailor the content delivered in real time to each user. This can be done based on user behavior and physical location.

Headless CMS also allows businesses to personalize content across multiple channels and devices.

Composable DXPs like Contentstack with a headless architecture make it easier to provide personalized user experiences. This is because they empower businesses to take a template-based approach to web personalization. 

In composable DXPs, the front end calls appropriate content stored on the back end based on user behavior and location. The front end could be a laptop screen or an app viewed on a smartphone. 

Unlike traditional platforms like WordPress, a composable DXP with headless CMS is not coupled with one website or “head.” Instead, it can deliver content to multiple devices or channels.

For example, the Contentstack DXP enables an organization to use different templates for each website locale to deliver localized content. Therefore, five separate templates can be created if a website serves content to five countries in five different languages. Then, the right one automatically shows in real-time based on a user’s location.

What does “composable” mean?

Being “composable” means a platform can comprise any number of best-in-breed solutions. In other words, your tech stack can be integrated with the platform without limitations on what solutions you can or can’t have. 

Composable frameworks enable separate independent solutions to communicate with each other while maintaining their autonomy seamlessly. This means adding new systems without impacting others or disrupting user experiences.

Swap out systems whenever you want and add new solutions as technology evolves in the future. There’s no need to take down and build new websites. Instead, you can update the look and functionality of a site or add new channels when the timing is right.

Here’s an overview of some composable DXPs' benefits beyond improving web personalization.

• Omnichannel content deployment

Seamlessly optimize and push marketing campaigns across multiple channels. These include browsers, apps, tablets, IoT devices, kiosks, smartwatches, voice assistants, and more.

• Improved collaboration

Business users gain the agility to deploy or update services and content on the fly without worrying about breaking infrastructure or causing unplanned downtime. And because the front end and back end are managed separately, developers and designers have more flexibility to use each channel’s format to its fullest without back-end constraints.

• More consistent branding

Content assets are organized in editable modules that are easy to find and optimize as brand messaging evolves. This means marketing teams can create content one time and then deliver it with a unified brand voice across all touchpoints. 

• Insight-driven decisions

Data from content marketing, customer support, and sales teams uses APIs in real time. Combined with integrated analytics solutions, this data can provide actionable consumer insights that empower businesses to make more informed decisions.

Challenges and considerations

While providing web personalization using a headless, composable DXP offers many benefits, it also comes with challenges. These include data privacy concerns, the need for advanced technical skills, and the complexity of managing and analyzing large amounts of data.

Template-based website personalization tools and strategies

Template-based web personalization tools enable businesses to improve user experience by providing tailored content and design without compromising site performance. These tools can leverage the same data-based algorithms as advanced personalization strategies but are simpler to implement.

Using templates makes implementing web personalization easier, more manageable, and more effective.

Steps to implement web personalization in a headless environment:

Implementing web personalization in a headless environment requires five steps. 

1. Identify the visitor segments that you want to target with personalized experiences.

2. Collect data about the users in these segments, including user behavior, preferences, and demographics.

3. Use algorithms to recommend content that matches the user preferences and behavior.

4. Perform A/B testing of different versions of content and then optimize personalization strategies based on the results.

5. Monitor personalized experiences and make adjustments when needed.

Before taking these steps, you must choose and implement the right headless, composable DXP. 

Learn more

Remember, web personalization is a powerful tool that can significantly enhance user experience, drive engagement, and foster brand loyalty. A headless, composable DXP provides businesses with a flexible and efficient way to achieve web personalization.

Schedule a free demo today if you’d like to learn how Contentstack can help your organization with its web personalization strategy.