Ecommerce Personalization: Benefits, Trends, and Best Practices

Ecommerce has seen radical changes over the years. From simple internet ordering to unique online store experiences, personalization is really the next wave of the experience. 


These days online shoppers are (mostly) digitally savvy and have integrated online shopping into their overall shopping strategies. Whether they have a weekly subscription order on Amazon, get excited about sell-out product launches, or try on clothes in-store before buying them for less online, there are many variations of online shopping … and many variations on how it can be personalized.   


So, let’s start at the beginning.


What is Ecommerce Personalization? 

Ecommerce personalization refers to the process of delivering personalized experiences on ecommerce websites by dynamically showing product recommendations, content, and specific offers based on your customers’ demographics, previous actions, browsing behavior, and other personal information. 


This marketing strategy has become an essential tool for merchants seeking to engage shoppers, increase repeat purchases, and improve conversion rates. Personalization comes in different forms. They include cart abandonment marketing emails, onboarding quizzes that provide personalized showroom to customers, personalized product recommendations on a retailer’s homepage or product, among many other strategies. 


Why is Ecommerce Personalization Important to Merchants?

Before digital commerce gained prominence, customers simply walked into stores and found a friendly shop attendant who helped them find whatever they wanted. Pretty straightforward, right? 


Well, times have changed. We have ushered in the age of e-commerce. Merchants, whether B2B or B2C, need to develop sound e-commerce personalization strategies to gain a competitive edge. Let’s have a look at the benefits that businesses accrue from ecommerce personalization. 


Increase in sales due to increased conversions

Ecommerce personalization helps improve sales since it enables you to provide customers with goods and services that resonate with them or satisfies their needs. According to a survey in a Harvard Business Review article, “The Age of Personalization,” businesses that use personalized content are more likely to attract more consumers and increase revenue generation. Simply put, personalization helps you better capture your customer’s attention long enough to entice a sale.


Today’s customers are extremely volatile and have short attention spans. As such, your window to convince them to purchase your product is always limited. The best way to appeal to them to purchase from your business is by adopting a focused approach customized to their likings and behavior. 


Improved customer experience 

Ecommerce personalization strategies such as targeted ads, customized landing pages, and curated email messaging can help you foster a long-term relationship with your customers. 


These strategies project your business as being customer-centric, given that they help customers find a specific product or content that appeals to them. 


As such, e-commerce personalization benefits businesses by improving customer satisfaction and increasing the value that the customers get by engaging with your business.


Increase in website traffic 

When you tailor your website to resonate with your customer’s interests, they will automatically want to spend more time on it and visit it more frequently. 


According to Harry Roth, a former success manager at Dynamic Yield, if your website is personalized such that it shows products that pique the interests of visitors without them having to wade through pages and pages on your website, your traffic will not only grow, but conversion rates will also increase tenfold. 


Moreover, the increase in engagements on your website will save marketing dollars that other companies spend on ads to increase engagement. 


Increase in average order size

Disseminating personalized information to your customers increases the chances of them indulging in shopping and making more purchases every time they visit your website. You may be wondering how e-commerce personalization makes this possible!


A customer looking to purchase a laptop from your website can easily end up buying other accessories such as a cooling pad, mouse, or laptop bag. At a strategic point of nearly wrapping up the sale, you can always throw in a few recommendations. The chances are that the customers will probably buy them, thereby significantly increasing your sales on this transaction. 

Increase repeat purchases 

Using a personalized approach demonstrates to your customers that your company actively listens to their needs and endeavors to improve their lives. 


Several studies have shown that personalization impacts customer loyalty and retention. A loyal customer will always stay true to your brand and make repeat purchases regularly. 


Ecommerce Personalization Strategies to Use in Your Business

For many years, ecommerce business owners have been on the hunt for the holy grail of personalization. Luckily, the advancement in technology has brought forth numerous personalization strategies. 


Choosing the best e-commerce strategy amongst them can be a daunting task. Below is an outline of the strategies that you can use to improve the productivity of your business.  


Create better content

One way of improving your personalization efforts is by creating unique content that leaves a special memory on the minds of your readers. That said, you’ll need to put in work to come up with such content. For instance, you’ll need to collect as much data as possible to create buyer personas and then segment your audience based on factors like age, location, interests before eventually creating content that speaks to their personality. Creating content that resonates with your customers’ personalities will result in them consuming more of your products. 

Build deeper relationships with customers

You can do this by showing your gratitude, sending a “Thank You” email on the anniversary of them joining your mailing list or emailing them wishing them a happy birthday. Fostering such relationships enhances the chances of customers being loyal to your products. 

Create unique campaigns based on user behavior

No two visitors to your website are similar. As such, it is essential that you personalize your on-site messages to suit each visitor. Doing this will ensure that they become repeat visitors, given that your message would have appealed to their persona. 

Make use of personal email marketing

Email marketing is one of the most effective e-commerce marketing strategies. It is approximated that email marketing generates $38 for every $1 spent. Among the personalization strategies, you can use in your email marketing include personalizing the email subject line, sending emails based on user behavior, and re-engaging inactive leads. 

Showing recently viewed products

While this may seem trivial, it can be of great importance to your customers. Displaying the recently viewed products to the users makes your e-commerce site familiar to them. As such, it increases their chances of buying from you. 


Overall, ecommerce personalization is the best way to stay competitive in today’s fast-paced business environment. But these are just some strategies. What other ideas do you have for ecommerce personalization? We’d love to hear! 


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