ECOMMERCE PERSONALIZATION: HOW IT INCREASES SALES AND CUSTOMER RETENTION?

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October 2021

E-commerce personalization is the process of tailoring content in a way that has the potential to resonate with each customer individually. This content is based on the buying history and behavior of the customer along with the demographics and personal data collection. It is a way to recommend, suggest and offer what a customer would be interested in and likely to buy. It helps both customers and businesses, but the extent of this personalization can be put to debate.

71% of consumers feel frustrated when their shopping experience is impersonal. More so, 74% of customers feel frustrated when website content is not personalized, and a whopping 91% of consumers commented that they are more likely to buy stuff from brands that recommend and offer things they are looking for. 

Read more on: 11 TOP WEB DEVELOPMENT TRENDS TO LOOK FOR IN 2022

Product recommendations

You will have seen product recommendations while making online purchases. Brands will show you products similar to your searches and you might not have consciously observed it but that’s how e-commerce personalization works. If you’re still not sure what it is, down below are some of the touchpoints of e-commerce personalization.

  • Personalized product recommendations 
  • Tailored search results
  • Redirection to the geographical website and offers
  • Personalized website homepage and product pages
  • Cart-abandonment and stock running out emails
  • Personalized emails with products and new arrivals
  • Subscription offers and discounts
  • Reminders when an order is in stock
  • Product recommendations and upsells
  • Personalized offers for returning customers
  • Weather and trending content and products

Buyers are looking for a more personalized experience when shopping online; something which they feel is only curated for them. The human element of personalization can win you, customers, for a lifetime as it serves the buyers with exactly what they want. 84% of the customers are of the view that being treated as a human rather than just a number is very important for businesses. 

Let’s discuss what personalization looks like, what benefits it holds for businesses, and how you can be successful using it the right way. 

 

Benefits of using personalization in e-commerce businesses

E-commerce personalization done right should meet the needs of the customers; give them what they are looking for with tailored recommendations and discounts. It should justify the investment they are putting in your brand. Good e-commerce personalization is beneficial to both the buyer and the retailer. 

Following are the potential benefits for both the parties when personalization is done right:

  • The buyer saves time by getting useful recommendations, suggestions, and offers directly in their email inbox or phone numbers
  • The buyer gets to discover new products now and then that they might require
  • Cart-abandonment emails and restock emails can help the buyer with buying stuff timely considering how busy we get and might forget to order
  • The buy leaves with a positive customer experience which is great for boosting sales
  • The retailer gets buyers attention with the help of content that they might be interested in
  • Increased sales and returning customers
  • Make sure that only useful information is being fed to the customers

Recommended: 11 PROS AND CONS OF CHOOSING MAGENTO FOR eCOMMERCE PLATFORM DEVELOPMENT

For instance, brands that have incorporated e-commerce personalization in their marketing strategy by sending out welcome emails with discount codes, sellout, and product recommendation emails are likely to see an increase in their sales. Black Halo, a clothing brand, revamped its marketing strategy to make it shift the focus to personalization and increased its revenue by $20,000 in just the first month of implementation. 

 

Examples of personalization in e-commerce

We would like to assist you with some real examples as to how e-commerce personalization has helped businesses in the real world and how brands have used it to boost their sales and win new customers. You can see if you can get any insights as to how they do it and how you can use the same in your business to achieve maximum results.

 

Remember the visitor’s preferences to facilitate them

Brands have websites that are gender-neutral, geographically specific, and remember your searches from the last time. If a brand website is easy to navigate, recommends what you are likely to purchase, and is offering suggestions and discounts, you are going to like it better as a customer than a brand that doesn’t bother with all of this. 

For example, the retail brand ASOS has a gender-neutral homepage, but once you have shown interest in the women’s clothing, it will redirect you to a focused women’s home page. This is one example of e-commerce personalization done right.

This can be done by taking demographic information like location and gender and also by assessing the purchase and visit data.

 

Personalized and automated emails based on visitors behavior

Amazon, the retail giant, as we all know, does this well. You might have remembered the time you left something in your bag to order and received an email as a reminder to purchase it. They send personalized and automated emails based on what you saw on the website, what you had added to your cart and didn’t get. They will make sure to give you all the necessary information regarding this and more.

They enjoy a 60% conversion rate on product recommendations sent through to their customer’s inboxes. You can use any automated email generating software and start with your marketing strategy focusing on winning customers over.

 

Recommendations

E-commerce personalization is great when it comes to establishing communication with your customers, changing visitors into loyal customers, and increasing sales over the period. It can be through personalized emails, abandoned cart emails, and upselling. It depends on what you prefer and would like to offer to your customers. It clicks and works extremely well with customers who value e-commerce personalization and can help you attract customers and increase sales. 

If you’re looking to develop a personalized eCommerce website or integrate personalization in your already running eCommerce store, contact ARFASOFTECH today.

author

Fahad Ali, Author

Fahad is PM at ARFASOFTECH but has a knack for writing. He enjoys writing about the latest technologies and evolving trends. Most of his writings revolve around trending technologies and their integration into operations.

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