Ecommerce Personalization: Definition, Benefits & Strategies

In today’s competitive ecommerce landscape, it’s important to use personalization tactics to get noticed. That’s because 72% of consumers say they only engage with personalized messaging.

Businesses can employ ecommerce personalization strategies to engage their customers and improve conversion rates. Not quite sure how to start? Keep reading as this blog post discusses these topics:

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What is ecommerce personalization?

Ecommerce personalization definition

Ecommerce personalization is the process of creating tailored online shopping experiences for each customer.

It involves providing each customer with the following:

  • Relevant content
  • Product recommendations based on past purchases or viewed products and services
  • Offers based on preferences, demographics, or online behavior

The goal of implementing ecommerce personalization is to improve customer satisfaction. As a result, your customers are more engaged with your business and more likely to remain loyal to you.

4 benefits of personalization in ecommerce

Fun fact: 74% of ecommerce companies have a website personalization program. So, what’s driving most of these ecommerce players to implement personalization strategies?

Here are the benefits you’ll reap when you employ ecommerce personalization:

  1. A pleasant customer experience
  2. Increased conversion rates
  3. Higher average order value (AOV)
  4. Improved customer loyalty

Let’s dive into each one!

1. A pleasant customer experience

A personalized shopping experience based on your customers’ needs and profiles improves their shopping experience with your business. In fact, 61% of consumers expect brands to provide personalized experiences.

Ecommerce personalization makes shopping convenient for your customers. Imagine you’re a dog owner shopping for a dog toy in an ecommerce pet products store.

When the site recommends similar toys you’ve been checking out for the past few days, you discover items that suit your needs — and your dog’s. Now, you can easily shortlist your choices without scouring through all the product listings, some of which may not be relevant to you.

61% of consumers

expect brands to provide personalized experiences.

Source:  Think With Google

2. Increased conversion rates

Ecommerce personalization simplifies the journey to purchase for your customers. The personalized recommendations enable them to check out relevant products they may need. In fact, 89% of marketers see a positive return on investment (ROI) when they use personalization in their campaigns.

If your customer still needs to decide about their purchase, they discover new and relevant products from your personalized recommendations that they can compare their initial item with!

3. Higher average order value (AOV)

Ecommerce personalization is an excellent way to upsell and cross-sell among your customers, guiding them to other products they may need. This benefit increases your AOV, which is the average amount that your customers spend when ordering from you.

In addition, ecommerce personalization enables you to provide your customers with tailored offers and bundles based on their purchase behavior. For example, if they added a few pieces of winter clothing to their carts for your online retail store, they’re likely preparing for the season. By personalizing a bundle of other winter items, they might add it to the cart, thus increasing your AOV.

4. Improved customer loyalty

By providing a convenient shopping experience with ecommerce personalization, you keep your existing customers engaged with your business. As a result, you’re also fostering loyalty among your customers.

Instead of turning to other businesses for their needs, your customers choose to transact with you, knowing that you provide them with the most relevant product recommendations and offers that suit their needs.

4 ecommerce personalization strategies (with examples)

Now that you know the benefits of personalization in ecommerce, let’s go through ecommerce personalization strategies you can employ:

  1. Provide upsell and cross-sell recommendations within the product pages
  2. Create personalized lists of bestselling, most-reviewed, or highest-reviewed products
  3. Automate retargeting with pop-ups based on browsing behavior
  4. Automate personalized messages

Let’s discuss each one:

1. Provide upsell and cross-sell recommendations within the product pages

Show your customers related or complementary products within your product pages. Upselling is a marketing strategy promoting a higher-end or more expensive product version. Meanwhile, cross-selling is a tactic that aims to sell complementary products.

In a shampoo product page in the example below, skincare brand Aesop cross-sells other hair products that a shopper may find helpful. This tactic can increase your AOV and help your customers discover items they didn’t know they needed!

2. Create personalized lists of bestselling, most-reviewed, or highest-reviewed products

As social creatures, humans have evolved to consider social proof when making their own decisions. Employ social proof in your ecommerce personalization tactic by creating personalized and relevant lists of:

  • Best-selling products
  • Most-reviewed products
  • Highest-reviewed products

Scroll further on an Amazon product page, and you’ll see a list of similar products with ratings of four and above. It signals to your customers that this curated and personalized list is worth looking at because other customers were happy with their purchases.

3. Automate retargeting with pop-ups based on browsing behavior

You can also personalize pop-up messages with enticing offers based on your customers’ site behavior, such as the number of sessions and items left in their cart.

First-time site visitors can also get an exclusive promo for their first transaction. In the example below, the coffee brand Cometeer’s website detects that the user is a new site visitor. Upon scrolling further to its homepage, a popup offers free shipping for a first order in exchange for an email.

4. Automate personalized messages

There are several ways to reach and engage your ecommerce customer with personalized messages. You can automate and send the following messages:

Cart abandonment emails

If a customer left an item in their cart and didn’t proceed with checkout, you can automate a personalized email about the item they’ve forgotten in their cart. You can also throw in a personalized, enticing offer!

Email check-ins

You’ve successfully closed a sale with a customer. Congratulations! Your communications with them shouldn’t stop there, though. Automate a personalized email checking in on them to:

  • Find out what they think about the product they purchased
  • Encourage them to leave a review
  • Inform them that your lines are open if they have questions

Personalization, coupled with automation, becomes a powerful tactic that keeps you top of mind among your customers.

Partner with a team of ecommerce masters!

WebFX campaigns have delivered more than 12,936,451 ecommerce transactions in the last 5 years

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Employ ecommerce personalization strategies with WebFX

It’s no secret that ecommerce personalization enables you to provide a seamless customer experience and reap the benefit of increased ROI. If you want to get started with personalizing your ecommerce site, consider teaming up with WebFX.

We’re a full-service digital marketing agency with 15 years of ecommerce experience, driving revenue for 1000+ clients and having managed over 12.9 million ecommerce transactions.

Our team is pumped to drive bottom-line growth for your business using ecommerce personalization and other digital marketing strategies. Committed to providing excellent service for our clients, we look forward to learning more about your business, industry, and goals to deliver results.

Contact us online or call us at 888-601-5359 to learn more about our ecommerce optimization services!

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