eCommerce personalization is one of the most effective ways to give your users a positive shopping experience and keep them loyally coming back for years to come. Through personalization, brands can also stand out from the competition and increase conversions. Personalization is a strategy that all eCommerce brands can benefit from. In this article, we’ll discuss what eCommerce personalization is, why it’s important, and 5 ways to prioritize the user experience in your personalization program.
What is Personalization in eCommerce?
eCommerce personalization is a technique that uses data about a user to customize their online shopping experience. Typically, an eCommerce site that utilizes personalization will display dynamic content based on user data like demographic, past purchases, browsing history, preferences, and device usage. When done well, personalization gives brands the opportunity to respond to changes in customer behavior and tailor content specifically for customer needs.
Why is eCommerce Personalization Important?
Personalization is a way to make sure that the offers and products presented to your customers are relevant to them. eCommerce personalization can also have a big impact on your bottom line. Research from Epsilon indicates 80% of consumers are more likely to make a purchase when brands offer personalized experiences. Personalization programs also result in more satisfied and engaged customers. Data suggests that a positive customer experience yields 20% higher customer-satisfaction rates and a 10-15% boost in conversion rates.
Plus, customer satisfaction increases customer loyalty. It’s cheaper to retain customers than it is to acquire new ones, so increasing customer loyalty is also beneficial for your bottom line. It can be 5-25% more expensive to gain new customers than it is to retain current ones. Overall, eCommerce personalization can be incredibly beneficial for eCommerce brands of any size.
Benefits of eCommerce Personalization
A strong personalization program can lead to the following benefits for your brand:
Improved Brand Engagement
Personalization increases brand engagement because you are showing customers what they want to see in a way that is relevant to them. Users are more likely to engage with you brand when the experience feels custom and personal to them.
Higher Conversion Rates
Consumers are much more likely to make a purchase when brands offer personalized experiences. eCommerce personalization can lead to higher conversion rates because you’re showing customers exactly what they’re looking for. By using personalization strategies like product recommendations, retailers can highlight products that specific groups of customers are more likely to buy. This strategy increases conversion rates for items that may not be popular with all users.
Increased Customer Satisfaction
Personalization creates an enhanced customer experience which leads to higher overall customer satisfaction. Through personalization, your brand can cater to specific customer needs and make the entire shopping experience easier and more enjoyable.
When customers have a positive shopping experience that feels personal to them, they’re more likely to come back and continue shopping with your brand instead of competitors. And loyalty pays off. Research from Adobe shows that nearly 40% of a store’s revenue is generated from only 8% of its most loyal, repeat customers. Over time, loyal customers are estimated to be worth 10x more than their first purchase.
eCommerce Personalization and User Experience
User experience design is the process of designing a product or system in a way that provides a great experience for its users from start to finish. Personalization by very definition aims to create a positive, custom experience for the user. Through personalization, eCommerce sites can remember customer preferences, show products they want to see, store payment information for quick checkout, and update them on upcoming promotions that they will be most interested in. All of these tactics work together to create a seamless user experience. For more information on UX Design, check out this blog on setting up a UX design process.
5 Ways to Prioritize the User Experience with eCommerce Personalization
1. Recommended Products
Presenting customers with personalized product recommendations will enhance the user experience and increase conversions. Personalized product recommendations on product pages show customers similar or complementary products to the ones they’re already interested in. According to Invesp, 54% of retailers claim that product recommendations act as the key driver of the AOV (average order value) in customer purchases.
2. Personalized Best-Seller Lists
Customize best-seller lists based on your user’s location or interests to make the products appropriate for the climate, currency, and interest of the user. Best-seller lists can also be presented by time. For example, the list could feature the best-selling products from the last month, day, or even hour. A specialized best-seller list is more relevant, interesting, and personal for your customer.
3. User-Generated Content
User-generated content (UGC) refers to photos, videos, and reviews from real customers. Research shows that 88% of shoppers look for photos and videos provided by other consumers before committing to a purchase. UGC improves the overall user experience because users can see the products in real life and imagine themselves using the product. When users can view content from real customers, they have an easier time making a purchase decision.
4. Localized Content
Make your shopping experience feel personalized by delivering content that is relevant to your customers’ region, language, and demographic. Customers will want to return to a site that takes their location and demographic into account. This localized content can include banners, blogs, currency, and even product descriptions.
5. Targeted Discounts
Create personalized offers for users based on their behavior. You can offer discounts on items the user has previously purchased, provide a curated list of items the user is likely to be interested in, or send a customized offer for something like their birthday.
eCommerce personalization is a powerful way to increase your customers’ satisfaction and your bottom line. By implementing these strategies, your brand is likely to see improvements in brand engagement, customer loyalty, and sales conversions. However, these tactics are just the beginning and eCommerce personalization is not a one-size-fits all solution. At Anatta, our certified NNG and Baymard designers can help your team create invigorating, engaging user experiences for your consumers, whether you’re building a Shopify website from scratch, updating your brand app, or something else entirely. Contact Anatta to learn more.
Anatta is a premier eCommerce partner that provides turnkey digital product teams for iconic DTC brands including Rothy’s, Athletic Greens, Molekule, and Four Sigmatic. Anatta’s team of certified NNG and Baymard designers helps brands create engaging user experiences that attract customers and increase revenue.
Shopify: 21 Ecommerce Personalization Examples & 7 Scalable Tactics
McKinsey & Company: Personalizing the customer experience: Driving differentiation in retail