The 411 on Geo-Targeting: Leveraging Location to Drive Personalization

You already know how powerful Onsite Product Recommendations can be for driving revenue. The proof is in the pudding: we saw first-hand how one brand leveraged product recommendations to increase Average Order Value by 16%.

But personalization, like pudding, can also be a bit messy.

That’s because no two shoppers are the same, and a big part of that has to do with where they’re shopping from. If you’re a business who sells products on an international level, you have visitors entering your site from all over the world – which means you have to  cater to a number of currencies, cultures and local needs.

Showcasing product recommendations based on personal affinities is one thing; but what if you can kick it up a notch by offering relevant products based on a shopper’s physical location as well?

That, friends, is the power of geo-targeting. At Nosto, we’ve taken our Onsite Product Recommendations feature a step further by enabling you to leverage personalization and location.

Curious? Allow us to explain the concept of Geo-targeted Best Sellers.

The 411 on Geo-Targeting

Before we dive into the pudding–er, details, let’s cover the basics.

By definition, geo-targeting is the practice of delivering content to consumers based on their physical location. It’s a practice increasingly embraced by online retailers – and shoppers are just as keen on embracing it. A 2016 eMarketer report found that, over the next three years, consumers expect their shopping experience to be relevant to their location – and that’s just on mobile.

So what effect can geo-targeting have on promoting your most popular products?

The short answer: A LOT.

Now, the more detailed answer.

There’s certain point in a shopper’s journey where they’re in danger of hitting a personalization plateau. Sure, product recommendations drive traffic to the products with the most value. But consider this: what happens when the same popular products are shown to visitors who may not be attracted to them simply because it doesn’t meet their geographical needs? For instance, say you’re a webstore that sells apparel and your collection of winter puffer jackets is a hot item in the Northeast US.

The problem: A shopper in Miami enters your site and is shown your collection of popular puffers. Since they have no need for this product because, well, #Miami, they ignore your recommendations – and possibly leave your site altogether.

The solution: By combining geo-targeting with Onsite Product Recommendations, you’re able to bridge that gap between a shopper’s personal taste and their physical location to truly personalize the way they engage with your products. Visitors are only shown the most popular products relevant to their location – so while New York shopper sees puffer jackets, Miami shopper will see more summer apparel.

It’s also a multi-layered approach. Geo-targeted Best Sellers will automatically target your visitors at a city level. If there are no best selling items within that range, the feature will expand its reach to a larger radius (i.e. state or country level).

This example shows a retailer promoting their best sellers to a visitor located in New York.

Is Geo-targeting for everyone?

Maybe it is, maybe it isn’t.

While geo-targeting is an important element in the personalization, it’s not a one-size-fits-all approach. In the case of Geo-targeted Best Sellers, a good first step would be to evaluate whether the strategy is relevant to your business. Ask yourself:

1. Do your shoppers have a wide range of preferences?
2. Are you catering to consumers across several geographical areas?

If you’ve answered ‘yes’ to either of these, then it’s worth implementing Geo-targeted Best Sellers and monitoring your CTR and conversion rate over time.

Nosto’s 3 main takeaways on Geo-targeted Best Sellers:

1. Geo-targeting is an increasingly popular practice for retailers, and shoppers expect to receive a shopping journey that caters to their location.
2. Geo-targeted Best Sellers combine personal taste with physical location to enhance Onsite Product Recommendations.
3. Not sure where to start with Geo-targeted Best Sellers? Give it a try and work your way up.