Personalised Messaging Delivers Impressive Conversion Rates, Reveals Report

A new report released by WebEngage has unveiled the remarkable impact of personalised messaging on conversion rates across different channels and sectors.

The study, based on an analysis of over 1000 brands and capturing 992 billion events, revealed that generic communications from brands only yield limited results. However, a deeper examination of personalised messaging strategies showcased substantial improvements in conversion rates.

In the realm of email marketing, the report emphasised that blast emails achieve a meager conversion rate of 1.24 per cent. On the other hand, campaigns tailored according to user behavior witnessed 2.4 times increase in effectiveness, resulting in a significant uplift in conversions by 2.98 per cent.

When it comes to SMS campaigns, promotional messages demonstrated a low conversion rate of 0.17 per cent. However, leveraging lifestyle-influenced SMSes led to a noteworthy conversion rate of 0.46 per cent. The report further indicates that contextual and personalized SMSes experienced a remarkable 2.71 times growth in conversion rates.

For businesses utilising WhatsApp as a communication channel, the report found that promotional campaigns achieved a conversion rate of 0.25 per cent. Yet, by implementing personalised and contextual WhatsApp campaigns, businesses enjoyed a substantial increase in conversion rates, up to 3.79 times higher, recorded at 0.96 per cent.

The State of Retention Marketing Report also delved into the impact of personalised app and web push notifications. Intrusive and irrelevant app push notifications resulted in a low conversion rate of 0.15 per cent. However, businesses that prioritized personalisation and relevance witnessed a substantial 7.3 times increase in conversion rates, recorded at 1.12 per cent. Similarly, generic web push campaigns only yielded a conversion rate as low as 0.01 per cent, but contextual and personalized web push notifications exhibited an impressive 34 times increase in conversion rates.

The significance of personalisation is further reflected in the analysis of different sectors. B2B companies sent over one billion messages, with an average open rate of 41 per cent, click-through rate of 0.7 per cent, and conversion rate of 0.4 per cent. Notably, Sulekha, an online platform connecting local service businesses with users, experienced significant revenue growth, a 7 per cent increase in services, and a 4 per cent win-back of lost users by leveraging retention marketing strategies.

Avlesh Singh, Co-founder and CEO, WebEngage said, “In the face of uncertainty and challenges, resilience and consistency become our greatest assets. Retention Marketing enables brands to navigate stormy seas and connect with customers in a meaningful manner." Avlesh Singh, Co-founder and CEO, WebEngage 

"In fact, we have come to believe firmly that legacy enterprises today must also think about engagement and retention strategies so as not to be rendered irrelevant by the fierce competition in the market today. By investing in data and technology, brands are delivering personalised experiences that help them thrive in complex economic landscapes of 2023 and beyond," he added.

The Edtech industry, which sent over 12 billion messages, witnessed a shift in messaging strategies, focusing more on email and WhatsApp. The sector achieved an average open rate of 24 per cent, click-through rate of 0.4 per cent, and conversion rate of 0.6 per cent. Shaw Academy, an online education platform, saw a 100 per cent increase in class attendance, a 20 per cent decrease in membership cancellations, and a 25 per cent revenue boost through personalised messaging.

In the Media & Entertainment industry, which sent over 62 billion messages, app and web push notifications accounted for 99 per cent of all messages sent. The industry achieved an average open rate of 22 per cent, click-through rate of 0.07 per cent, and conversion rate of 0.02 per cent. ALTBalaji, a major player in the Indian OTT media market, witnessed a 30 per cent boost in user retention, a 75 per cent increase in day 7 retention, and a 9.5 per cent uplift in conversions through personalized strategies.