What is rule-based personalization, how it works and who uses it?

Do you know what rule-based personalization is and how it can help you create better content? Learn what it is, how it works and what are the benefits and challenges of this marketing strategy.

What is rule-based personalization?

Rule-based personalization is a method of customizing the content and experience of a website or an app based on predefined criteria or rules. For example, a rule-based personalization system might show different products or offers to visitors based on their location, device type, browsing history, purchase behavior, or other attributes. Rule-based personalization can help marketers deliver more relevant and engaging content to their target audience and increase conversions and loyalty.

How does rule-based personalization work?

Rule-based personalization uses a set of manually programmed instructions or "if/then" statements to determine what content or offer to show to each customer. For example:

If the customer is located in North America and has made at least $100 worth of purchases over the past month, then show them a coupon code for 10% off their next order.
If the customer is browsing from a mobile device and has visited the product page for an iPhone 14, then show them a banner with a comparison chart of iPhone 14 features and benefits.
If the customer has signed up for your newsletter and has opened at least three emails in the past week, then show them a pop-up with an invitation to join your loyalty program.

These rules can be based on various data sources, such as:

Customer profile data: name, email address, gender, age, location, etc.
Customer behavior data: browsing history, purchase history, click-through rate, etc.
Customer context data: device type, browser type, time of day, weather conditions, etc.

The rules can also be combined with logical operators (such as AND/OR) to create more complex and specific conditions. For example:

If the customer is located in North America AND has visited the product page for an iPhone 14 OR an iPad Pro in the past 24 hours AND has not added any items to their cart yet THEN show them a free shipping offer.

Why is rule-based personalization important?

Rule-based personalization can help you improve your marketing performance by:

Increasing customer engagement: By showing relevant and timely messages or offers that match your customers' needs and preferences
Increasing customer loyalty: By rewarding your customers for their repeat purchases or actions
Increasing customer conversion: By nudging your customers towards making a purchase decision or taking another desired action
Increasing customer satisfaction: By providing a better user experience and meeting your customers' expectations

Rule-based personalization can also help you save time and resources by automating your marketing campaigns and reducing manual work.

Rule-based personalization types

Rule-based personalization is a method of providing users with content that best suits their needs and expectations based on a set of predefined rules. These rules are usually based on user attributes, such as location, language, device type, browsing history, purchase behavior and more. For example, you can show a different homepage banner to users from different countries or offer a discount code to users who have spent a certain amount on your website.

Rule-based personalization can help you tailor your website experience for different segments of your audience and improve engagement and conversions. However, it also has some limitations and challenges. Here are some examples of rule-based personalization and how they work:

Location-based personalization: You can use the user's IP address or geolocation data to determine their location and show them relevant content based on that. For example, you can show local events, news, weather, currency or shipping options to users from different regions. This can help you create a more localized and relevant experience for your users.
Language-based personalization: You can use the user's browser language settings or ask them to choose their preferred language to show them content in their native tongue. For example, you can display your website in English for users who speak English or in Polish for users who speak Polish. This can help you reduce bounce rates and increase trust and loyalty among your users.
Device-type personalization: You can use the user's device type (desktop, mobile or tablet) to show them content that is optimized for their screen size and functionality. For example, you can display a responsive design that adapts to different devices or show different features or navigation options depending on the device type. This can help you create a better user experience and increase usability and accessibility.
Browsing-history personalization: You can use the user's browsing history (pages visited, time spent, actions taken) to show them content that is related to their interests and preferences. For example, you can show product recommendations based on previous purchases or views or show content suggestions based on previous reads or searches. This can help you increase engagement and retention among your users.
Purchase-behavior personalization: You can use the user's purchase behavior (items bought, amount spent, frequency) to show them content that is relevant to their buying stage and intent. For example, you can show upsell or cross-sell offers based on previous purchases or show loyalty rewards or discounts based on spending levels. This can help you increase revenue and customer satisfaction among your users.

Rule-based personalization examples

Rule-based personalization is widely used by many companies across different industries and channels. Here are some examples of how rule-based personalization can be applied:

E-commerce: Rule-based personalization can help e-commerce websites increase conversions and customer loyalty by showing relevant products, offers, and recommendations based on user preferences, purchase history, browsing behavior, etc. For example, an online store can show a coupon code to users who have made at least $100 worth of purchases over the past month.
Travel: Rule-based personalization can help travel websites provide better user experience and increase bookings by showing tailored content based on user location, travel dates, budget, interests, etc. For example, a travel website can show different destinations and packages for users who are looking for a beach vacation versus a city break.
Media: Rule-based personalization can help media websites increase engagement and retention by showing relevant content based on user demographics, interests, reading behavior, etc. For example, a news website can show different headlines and stories for users who are interested in politics versus sports.

Rule-based personalization has some advantages over other methods such as collaborative filtering or content based filtering. It is easy to implement and manage as it does not require complex algorithms or data analysis. It also gives marketers more control and transparency over the content that is displayed to each user segment.

However, rule-based personalization also has some limitations and challenges. It requires manual creation and maintenance of rules which can be time-consuming and prone to errors. It also relies on assumptions about user preferences which may not always be accurate or up-to-date. Moreover, it may not be able to handle complex scenarios or large-scale data sets that require more sophisticated personalization techniques.