Personalization in e-commerce is one of the most effective ways to boost conversions and sales. It should be an essential part of your e-commerce strategy because, when used correctly, it can transform customer interactions and create a consistent and seamless experience that feels relevant and enjoyable. If done correctly, it will result in more conversions, higher-order values, repeat customers, and overall brand trust.
What is E-commerce Personalization?
Personalization in e-commerce refers to creating personalized interactions and experiences for online customers. Personalization can be based on a customer’s past purchases, browsing habits, geographic location, language, and other personal data.
In other words, it’s the process of dynamically displaying individualized offers, such as product recommendations or other content, to each visitor based on their previous behaviour, demographics, purchase history, and other personal information.
Personalization has proven to be one of the most effective tools in the marketing toolbox for online merchants looking to engage customers, drive sales, and increase repeat purchases. It’s always about providing a shopping experience that feels timely and relevant to each individual, even if it takes many different forms.
Importance Of E-commerce Personalization & How It Works
E-Commerce Personalization, when used correctly, can be a powerful tool for online retailers to boost revenue and profits.
It helps to improve the following metrics:
- Revenue per browsing session
- Total time spent by the customer on the website
- Average value of the order placed
- Average page views
- Add to cart rate
By personalizing the shopper experience for your website visitors, you can show them the products they care about at the price point they want to pay, assisting them in making a faster decision, unlike other websites, where users are faced with a plethora of choices.
Data collection is the first step in e-commerce personalization. You should know what your customers want, their interests, and their budget preferences, among other things. You’ll be able to truly personalize their shopping experience only then.
Best E-Commerce Personalization Strategies to Boost Your Sales
The methodologies listed below are proven ways to increase e-commerce sales conversions and are used by some of the most well-known e-commerce businesses in the world today.
- Create Personalized Homepages
Homepages act as the front doors of your online stores. It’s up to you to greet your potential customers in the best way possible now that they’ve arrived at your door. Personalization is the key to achieving this. Thanks to cookies, online stores can learn a lot about their customers even after one visit.
If your e-commerce site collects cookies, you already know a lot about your potential customers. This information could help them have a better shopping experience on their next visit.
- Display Recently Viewed Items
Users may casually browse a company’s products, especially when there is a sale, but they are not compelled to buy them. They come to your page because they are interested in your products, but they frequently abandon their carts and may not recall all of the products they saw.
In this case, one of the best personalization strategies that can lead to more sales is showing customers their Recently Visited items and before and after price comparisons during a deal.
- Personalize Product Pages Based On The User’s Location
Most e-commerce sites can tell where their visitors are coming from or where they want their products shipped by using cookies or asking them. Use this valuable data to provide users with more accurate results.
Customizing product pages based on location is a simple change that impacts the shopping experience.
- Offer Incentives To Win Back Customers
Personalization can help you win and keep new customers and win back old ones.
Use retargeting ads if certain customers haven’t bought from you in a while. Include incentives such as special one-time discount codes, as well as offers based on previous purchasing history, to give them a reason to shop with you again.
- Make More Personal Recommendations
In e-commerce, product recommendations are extremely important. According to a few studies, personalized product recommendations account for nearly 31% of e-commerce revenues, and they significantly impact conversion rates. On product pages, suggesting similar or complementary items is almost a must-have for any e-commerce site these days.
As a result, sending personalized product recommendations to users based on previous purchases is an excellent personalization strategy for increasing sales.
- Date from Last Purchase
If you sell a consumable product, you can tailor your outreach to your customers based on their previous order date and the product’s average lifespan. For example, if you sell beauty products and know it takes a month to use them up, you can send a reorder notification ahead of time, indicating that you believe they are about to run out.
This, once again, creates a much stronger bond with your customers and demonstrates that they’ve chosen a company that values their business. You can also include the total amount you spent on our products and create incentive programs to help you meet specific sales targets.
It is critical to provide your customers with a personalized experience. Especially now, when technology continues to advance and offer better ways to do so. It is, however, critical to respect a customer’s privacy. People enjoy one-of-a-kind experiences, but they are concerned about the type of personal information that brands collect.
Using the personalization strategies mentioned above, you can try to increase your online sales. You can gather the necessary data and provide excellent experiences for your clients by utilizing the appropriate technology and tools.