The Fast Lane
Discover the world of AI-driven shopping optimization and fast-track your way to increased conversion rates, AOV, and customer loyalty. Explore expert insights on e-commerce personalization, merchandising, site search, and more.
PersonalizationAI-Based Personalization: The Future of eCommerceArtificial intelligence (AI) is revolutionizing the way eCommerce businesses connect with their customers. An estimated 70% of eCommerce decision makers believe AI will improve their personalization efforts. At the heart of this transformation is AI's ability to collect and process customer data, enabling you to deliver personalized experiences to your customers. Below, we explore how AI-based personalization is changing the future of eCommerce by assimilating into the entire customer journey:
Overview of the AI personalization processHow AI-based personalization affects customers' experience How AI personalizes the post-purchase journey for customers and merchantsOvercoming AI-based personalization challenges for small businessesThe importance of knowing your customers
Meet the Expert:
Jameela Ghann is an eCommerce expert with over a decade of experience. Apart from running Alora Boutique, she's also the marketing manager for Fera Product Reviews.
Overview of the AI Personalization Process
AI's prowess lies in its ability to learn from data. So, moving from data collection to a personalized experience involves several key steps:
Data Collection
Get started by collecting data from diverse sources such as customer interactions, purchase history, and browsing behavior. These data points offer invaluable insights into customer preferences and behaviors.Data Transformation
This raw data is then transformed into a format that AI models can understand. This involves structuring and cleaning the data to ensure its usability.Pattern Recognition
AI systems use machine learning techniques, including deep learning, to recognize patterns within the transformed data. This step is vital for understanding customer preferences and predicting future actions.Personalized Recommendations
Armed with patterns and insights, AI systems generate personalized recommendations. These suggestions are then delivered through various touchpoints like websites, email campaigns, pop-ups, and even chatbots.
Pro tip: Prioritize your customers' data privacy. They share personal information with you to receive a personalized experience, so it's important to maintain transparency and trust.
How AI-Based Personalization Affects Customers' Experience
AI can help customers find what they want, when they want it. It's going to give higher relevance to content and products that align with their preferences.
AI-based personalization goes beyond being a trendy buzzword. Once implemented, it can affect your customers' shopping experience from product discovery to checkout.
Enhanced Product Discovery
In an era where time is of the essence, AI can help customers find products quickly. By analyzing their preferences and behaviors, AI showcases relevant products and content, streamlining the discovery process.Hyper-Relevant Content
AI can distinguish between various customer preferences. By enhancing this with natural language search, you can deliver highly relevant content and products. For instance, a skincare enthusiast searching for "oil-free products" can also see makeup options suitable for oily skin in addition to lotions.Reducing Bounce Rates
AI-curated content increases engagement, reducing bounce rates in turn. When customers find what they're looking for effortlessly, they're more likely to stay on your website and explore further.
Suppose you sell supplements online. A customer visits your online store, but doesn't know what kind of supplements they need. So not knowing where to start, they type "I'm tired all the time" into the search bar. AI interprets this query and comes up with a blog post instead of a product. The blog post recommends products that can help the customer beat their fatigue and this eventually leads to a sale. Because AI was able to combine natural language and federated search, it delivered personalized, relevant search results.
» Here's how to implement natural language search and federated search on your eCommerce store
How AI Personalizes the Post-Purchase Journey for Customers and Merchants
AI's influence extends beyond the initial purchase. It can enhance the post-purchase experience for both you and your customers.
Moderate Product Reviews
Merchant: AI-powered systems can moderate reviews, ensuring harmful or inappropriate content doesn't make it to your website. This reduces the workload on your customer support teams and maintains a positive online environment.Customer: Based on its customer data analysis, AI can show customers relevant product reviews only to help them make their buying decisions.
Track Orders in Real Time
Merchant: AI can automate the order-tracking process, making it less admin-intensive for you. Plus, the transparency your customers will receive as a result enhances their trust and satisfaction.Customer: Your customers can check on the progress of their orders whenever they want to. AI updates order statuses and estimated delivery times instantly, so your customers consistently receive up-to-date information about their orders.
Pro tip: When customers receive their orders, make sure to include a personalized message thanking them for their support.
Manage Inventory and Customer Support
Merchant: AI is especially useful for subscription-based businesses, because it can predict when customers might need to reorder. In turn, you can manage your supply chain and inventory efficiently to meet the predicted demands. As a supporting feature, AI-powered chatbots can help streamline your customer support services by automatically addressing core questions your customers may have.Customer: Your customers can receive timely reminders to re-order their favorite items based on purchasing history. Plus, AI can provide immediate support for troubleshooting inquiries, reducing response times and improving overall satisfaction.
Overcoming AI-based Personalization Challenges for Small Businesses
I think AI is a big trend and everybody wants to jump on it. So, as a small business, it's important to ask whether investing in AI will actually solve a problem and bring value to your customer, or are you just chasing it?
While the benefits of AI-based personalization are evident, smaller eCommerce businesses might face challenges in implementation. Fortunately, there are simple strategies you can try to overcome these.
Firstly, robust AI solutions can be expensive and affordable options can have limited functionality. Plus, you might not need all the functionalities of an advanced AI solution, so you end up paying for something you don't use. We recommend starting small with a specific AI application. This will be more cost-effective and can ease you into using AI-powered applications if it's unfamiliar to you. Chatbots are an excellent beginner option.
Secondly, you may have limited data and this can hinder AI's effectiveness. So, make sure you collect quality data and structure it well. This will help an AI system to analyze your data effectively.
The Importance of Knowing Your Customers
AI-based personalization doesn't mean replacing the human personal touch completely. While AI can definitely enhance your personalized offerings, it shouldn't do everything from start to finish.
As human beings, you must have your ear to the streets, so to speak. You, not AI, must understand your customer's journey and who they are so that you can leverage AI as a tool to give personalized recommendations.
Truly understanding your customer means you'll know important factors like not all shoppers want AI-based personalization on their customer journey. An estimated 43% of the Baby Boomer generation is against AI personalization. In comparison, only 15% of Gen Z feel the same way. So, your AI and personalization strategies will differ, depending on whether your target audience consists mostly of Baby Boomers or Gen Z.
» You can fine-tune your personalization strategies with these solutions
Adapting and Thriving in an Evolving Landscape
To stay ahead of the evolving AI landscape, eCommerce businesses should:
Educate themselves: Continuous learning about AI trends and advancements in your industry is crucial.Embrace flexibility: Be open to adapting AI for various purposes, keeping an eye on emerging opportunities.Prioritize customer experience: The ultimate goal of AI is to enhance your customers' experience, so make sure any AI implementations align with customer needs and preferences.
AI's ability to collect, process, and use customer data for personalized suggestions is transforming the eCommerce landscape. By understanding and harnessing this power, you can:
Create exceptional customer experiencesDrive engagementStay competitive in an increasingly AI-driven world
As AI continues to evolve, businesses that prioritize customer-centric AI strategies will undoubtedly reap the rewards of enhanced customer loyalty and business growth.
» AI isn't just limited to personalization: Explore other benefits of AI in eCommerce
PersonalizationWeb Personalization: Improve Your eCommerce Store's Conversion RatesWith millions of online stores vying for consumer attention, your business needs a powerful edge to stay ahead of the competition. That's where web personalization comes into play. Below, we delve into the world of web personalization, exploring its nuances, importance, industry impact, key strategies, common pitfalls, recommended tools, and innovative approaches. By the end, you'll have a comprehensive understanding of how web personalization can supercharge your eCommerce conversion rates.
Meet the Expert
Jameela Ghann is a seasoned online store owner with over a decade of eCommerce experience. Apart from running Alora Boutique, she's also the marketing manager for Fera Product Reviews.
» Here's where to specifically apply personalization in your eCommerce store.
Unveiling the Power of Web Personalization
Web personalization is like having a skilled personal shopper who tailors your website's products and overall user experience to match individual preferences, behaviors, and even geographic locations. It goes beyond basic segmentation and aims to create a hyper-personalized shopping journey for every visitor. But why is it so crucial for improving conversion rates?
Creating a Relevant Shopping Experience
Imagine you're shopping online from Canada, and you land on a website from the United States. You're excited, add several items to your cart, proceed to checkout, and then hit a roadblock: none of those items ship to Canada. Frustration sets in, and you abandon your cart, never to return. This scenario illustrates the importance of web personalization.
Web personalization can help you identify a visitor's location and tailor your product offerings accordingly.
For example, a website should showcase the items available for shipping to Canada only. When customers feel that the shopping experience is relevant to them, they're more likely to complete their purchases, thus boosting conversion rates.
Industries Poised for eCommerce Personalization
The impact of web personalization isn't limited to a specific niche. It has the potential to revolutionize multiple industries. Here are a few sectors that stand to benefit the most:
1. Beauty Industry
In the beauty industry, where customers have unique skin types, tones, and preferences, personalization is the future. Web personalization can analyze these factors and recommend products tailored to each individual. For example, a visitor with dry skin may see moisturizers, while someone with oily skin may receive recommendations for mattifying products.
» Want to impress your customers? Give them personalized product recommendations.
2. Electronics
As remote work and content creation become even more prevalent, personalizing electronic products and accessories will be pivotal. Personalization can factor in a visitor's tech-savviness, the stage of their content creation journey, and their specific needs. For instance, a visitor with an established YouTube channel might receive recommendations for advanced cameras, while a novice might be shown beginner-friendly equipment.
3. Content Creators and Influencers
Personalization isn't just for products—it's also invaluable for content creators and influencers. By gathering data on their social media presence, content focus, and engagement levels, platforms can tailor their experiences. This might involve offering unique features or resources tailored to their current career trajectory or content niche.
Crafting an Effective Web Personalization Strategy
Now that we've established the significance of web personalization let's delve into the key elements of an effective strategy:
1. Customer Segmentation
Customer segmentation is at the core of web personalization. It involves dividing your audience into distinct groups based on shared characteristics, behaviors, or preferences. Collecting relevant data is essential, and this includes basic information like age and location. Here's how you can use it:
Age: Tailor content and product recommendations to different age groups.Location: Show products available in the visitor's region.Engagement Level: Differentiate between casual visitors and loyal customers.Social Media Data: For influencers, integrate data from their social media accounts.Email Behavior: Analyze email engagement to understand customer interests.
» Learn how to implement audience segmentation and boost your eCommerce store.
2. Personalized Content and Product Recommendations
One of the pillars of web personalization is delivering personalized content and product recommendations to your visitors. To execute this effectively, use:
Segment-Based Recommendations: For highly engaged customers, offer unique product recommendations or exclusive discounts.User-Generated Content (UGC): Encourage visitors to contribute product reviews or recommendations and use this content to inform your personalization strategy.Behavioral Data: Analyze clickthrough rates, engagement with emails, and time spent on pages to refine your recommendations.Cross-Channel Marketing: Export segments of highly engaged customers to social media platforms for targeted marketing campaigns.
3. Monitoring and Adaptation
Web personalization is not a set-and-forget strategy. It requires ongoing monitoring and adaptation. Here's what you can focus on:
Regular Updates: Set intervals for reviewing and updating your personalization strategies to reflect changing customer behaviors.Feedback Loop: Pay close attention to customer feedback and complaints regarding personalization. Adjust your strategies accordingly to enhance the customer experience.Testing and Performance Monitoring: Avoid launching major personalization changes without A/B testing. Monitor performance metrics to ensure your efforts are paying off.
4. Avoiding Over-Personalization
While personalization is powerful, overdoing it can have a negative impact. Customers may feel their privacy is invaded or that the experience becomes too intrusive. Striking the right balance is crucial to avoid turning customers away.
Recommended Tools for Web Personalization
To implement web personalization effectively, consider leveraging the following tools and platforms:
Notify Visitors: This tool specializes in dynamic content, enhancing user engagement through personalized experiences.Push Owl: Ideal for implementing push notifications on your website, ensuring that visitors receive personalized alerts and updates.VAJRO: A mobile site builder designed to support highly personalized mobile experiences.Landing Page Builder (e.g., Beta): Create landing pages tailored to specific customer segments, ensuring that each visitor sees content and products that resonate with their needs.Google Analytics and Email Marketing Platforms: For smaller businesses, Google Analytics can provide valuable insights. Email marketing platforms like Omnisend and MailChimp can be used for basic personalization, such as segment-specific email campaigns and targeted product recommendations.
» Have you tried Vector Search? Here's how you can use it to optimize your store.
Innovative Web Personalization Strategies
Beyond the foundational principles of web personalization, consider a personalized content strategy to elevate your conversion rates. Creating personalized content doesn't have to be a time-consuming process, but even with AI assistance, it can be resource-intensive. That's why shifting your content strategy to focus on addressing specific customer problems can be highly effective.
Instead of solely targeting keywords, craft content that genuinely addresses your audience's pain points and aligns with their journey. For instance, if you sell organizing products, create content centered around unique organizational challenges and solutions, tailored to various customer segments. The goal is to provide value while subtly promoting your products.
The Future of Web Personalization
As technology continues to advance and consumer expectations evolve, web personalization will only become more critical. Mastering the art of personalization can help you boost your e-commerce conversion rates while providing a truly exceptional shopping experience for your customers. Whether you're in the beauty industry, electronics, or any other sector, embracing web personalization can set you on the path to e-commerce success. So, take the plunge into the world of web personalization and watch your business thrive in the era of hyper-personalized shopping.
» Implement these strategies to make the most of personalized digital marketing.
PersonalizationB2B vs. B2C Personalization: 5 Key DifferencesPersonalization is non-negotiable for online shoppers. If more than half of your customers want a curated shopping experience, then it's essential to get it right. But where should you start? It's all about context. B2B (Business-to-Business) vs. B2C (Business-to-Customer) personalization can help you understand what your customers are expecting and find the right approach to meet those expectations. Below, we take a look at the differences between B2B vs. B2C personalization so you can develop effective personalization strategies.
5 Key Differences Between B2B vs. B2C Personalization
Audience characteristicsRelationship buildingPersonalization methodsData collection and analysisMetrics and ROI
1. Audience Characteristics
When trying to evaluate the characteristics of your audience, you'll need to look at some critical categories like buying habits, decision-making processes, and expectations.
B2B
A B2B audience is more relationship-driven. You don't just focus on logic and numbers. You also need to build a sense of loyalty and trust. This means that a B2B purchase cycle may take weeks, months, or even years, depending on what's being purchased. Plus, this decision might involve multiple stakeholders, so you'll need to build relationships with all of them.
B2C
In contrast, a B2C audience is more product-driven. This means you'll need to focus more on selling the value of the products while appealing to emotion and using easy-to-understand language. A B2C shopper also has a much shorter purchase cycle than a B2B buyer, especially if the item is relatively inexpensive.
2. Relationship Building
To build long-lasting customer relationships, you'll need to be trustworthy, reliable, and consistent, no matter who your customers are.
B2B
Building on our previous point, the relationship-building process should be more in-depth in a B2B environment. These customers have higher expectations for what you're bringing to the table and how you show up. After all, you're not simply selling a product—you're giving expert advice and delivering custom solutions for specific business challenges. This means your communication with B2B customers will also be more intimate via meetings, calls, or email exchanges.
Pro tip:
If you have a sales team that speaks directly with buyers, we recommend using a customer relationship management (CRM) platform to keep track of critical details, like who you're speaking with, what you're discussing each time you engage, and how the purchase is moving through the pipeline.
B2C
Your customer relationships aren't necessarily as intimate as those in B2B. Because you're serving a larger audience, you communicate with your customers all at once via different digital channels like websites, mobile apps, and social media. Your focus is also to build trust with your audience and demonstrate why your brand and products are better than your competitors.
Pro tip:
Build credibility and social proof with reviews, surveys, and user-generated content.
» Delve deeper into how user-generated content creates conversions and increases brand loyalty
3. Personalization Methods
All audiences, regardless of who they are and what they're buying, want to see information that's relevant to their wants and needs.
B2B
In the B2B world, your personalization methods must be focused and relevant to the customer's industry and business model. The average B2B buyer will read 13 pieces of content before deciding which vendor they'll go with. On the other hand, someone buying a case for their iPhone likely won't be doing such thorough research. This means proving your credibility and value in different ways, including:
Showcasing your expertise through reports and research.Establishing your customer service through case studies and customer testimonials.Offering dynamic pricing structures and product packages to meet customer needs.Assigning a specific account manager to offer personalized advice.
B2C
Because B2C has a shorter purchasing cycle than B2B, you're trying to encourage customers to buy now. Plus, if they had a pleasant shopping experience, they'll come straight to you next time instead of browsing competitors. You can personalize the B2C shopping experience by:
Making personalized product recommendations and taking advantage of upsell and cross-sell opportunities.Offering personalized pricing strategies.Giving custom rewards through loyalty programs.Using behavioral retargeting to showcase tailored ads.
» Find out how to create the best personalization experience on your eCommerce store
4. Data Collection and Analysis
While both B2B and B2C businesses use strategies like website tracking (e.g., Google Analytics) and third-party data sources, their data collection and analysis differ in terms of volume, complexity, sources, and goals.
B2B
While B2B has a lower data volume, its data collection and analysis are more intricate and detailed. Because the goal is to build long-term relationships with customers and offer personalized business solutions, you must collect detailed information about your business customers' companies. You can collect data from:
Account management platforms.Customer support systems.Email exchanges.Interactions with multiple role-players in the business.
B2C
B2C has a large data volume because it serves a large customer base made up of multiple individuals, each with their own needs and preferences. To offer personalization to a large audience and improve their shopping experience, you need to divide your audience into segments—for example, according to behavior or demographics. But before you can segment and analyze data, you have to collect it from the right sources:
Customer interactions on your website.Customer activity on social media.Customer feedback through reviews, surveys, comments, or emails.
» Use these customer segmentation strategies to grow your eCommerce business
5. Metrics and ROI
Both B2B and B2C businesses must measure the effectiveness of their personalization strategies to identify areas for improvement and optimize future campaigns.
B2B
Because B2B transactions have longer sales cycles and more complex decision-making processes, the metrics you track focus on monitoring the different stages of your sales pipeline. This can include lead-to-opportunity conversion rates, average deal size, sales velocity, and win/loss ratios to understand and improve your sales performance.
Additionally, you'll calculate ROI (Return on Investment) at the account or customer level because you're aiming to establish long-term relationships. You'll look at factors like revenue generated, margins, and the costs associated with acquiring, serving, and retaining customers.
B2C
In comparison, because B2C has shorter sales cycles, you'll look at metrics that focus more on immediate customer actions. This can include conversion rates, average order value, and repeat purchase rates.
When calculating ROI in B2C, you'll focus on specific campaigns, channels, or marketing initiatives and their impact on sales, conversions, and customer acquisition costs.
The Fast Lane to Personalization
To successfully implement personalization and effectively engage and retain customers, it's critical that you understand the key differences between B2B and B2C audiences.
Just keep in mind that you'll likely need to experiment until you find your perfect combination of strategies. Create a plan, test your personalization strategies, and analyze your performance. Once you've found your personalization sweet spot, you can effortlessly grow your eCommerce business.
» Discover more ways personalization can help your business
Personalization6 Benefits of Using AI in eCommerce PersonalizationPersonalization is here to stay. Up to 63% of your customers expect personalized recommendations from you. This might feel like a lot of pressure, but you can easily tick all the personalization boxes by incorporating AI into your personalization strategy. This means using capabilities like machine learning, natural language processing, and predictive analysis to give your customers personalized product recommendations, emails and messages, social media content, and more. Below, we discuss the benefits of using AI in eCommerce personalization to help you take your store to a new level.
6 Benefits of Using AI in Personalization
Enhanced customer experienceIncreased customer loyaltyImproved sales performanceCost savingsCompetitive advantageScalability
1. Enhanced Customer Experience
Happy customers are more likely to return, leave positive reviews, and recommend your business to others. AI can help you create an exceptional customer experience by:
Making data-driven recommendations
AI can provide personalized recommendations based on a customer's browsing and purchase history, making it easier for customers to find the products they want.Offering personalized customer service
Personalized chatbots can elevate your customer service. Available 24/7, chatbots can instantly answer customer queries and provide support when your customers need it. This quick and seamless experience can boost customer satisfaction.
By enhancing customers' experience with AI, your eCommerce business can build long-lasting relationships with customers, driving revenue and growth.
» Boost your chatbot service by including ChatGPT in your eCommerce strategy
2. Increased Customer Loyalty
Customer loyalty is important to any eCommerce business because it leads to:
Repeat businessPositive word-of-mouth marketingHigher lifetime value for each customer
AI-powered personalization can help you increase customer loyalty by:
Offering personalized rewards
AI can help you improve traditional loyalty programs by giving your customers personalized rewards based on their behavior. By analyzing past purchases and overall engagement, AI can work out which rewards are best suited for each customer.Interacting with customers in real time
AI-powered systems can monitor store and customer activity in real-time. So, if a customer has added products to their cart but isn't completing the purchase, AI can immediately react. By offering a limited-time discount or personalized reward, AI can encourage the customer to finish their buying journey.
These personalized interactions with your customers not only encourage them to make more purchases but also make them feel valued and appreciated.
» Enhance your customer interaction by understanding the difference between personalization vs. customization
3. Improved Sales Performance
AI-powered product recommendations and upselling and cross-selling opportunities can significantly improve your business's sales performance.
Upselling
AI can analyze customers' browsing and purchase history so it can recommend relevant products to upsell. For example, if AI picks up that a customer is buying the individual components of a specific product range, it can upsell the entire bundle as a complete set.Cross-selling
Similar to upselling, AI can use customer data to cross-sell relevant complementary products to customers. For example, if AI notices that a customer is browsing your store for a new camera, it can suggest a compatible tripod when the customer checks out. So, AI will also be able to determine at what stage of the sales funnel it's best to cross-sell.
» Explore additional benefits of upsell and cross-sell personalization
4. Cost Savings
AI can be a cost-effective solution for eCommerce businesses because it automates their personalization efforts and eliminates the need for manual labor in many cases.
Sephora: Your Personal Makeup Artist
Sephora uses an AI-powered app to help customers with product recommendations, beauty advice, and easy shopping. But the app's most interesting feature is the Virtual Artist. Its AI capability allows the customer to "try on" different beauty products, play with different looks, and follow makeup tutorials for their face shape and skin type. AI allows Sephora to put a 24/7 makeup expert in their customers' pockets—reducing costs associated with sales reps, overheads, and product samples.
5. Competitive Advantage
When you use AI effectively, you can set yourself apart from your competitors. This isn't just in terms of customer experience but also making sure you stay ahead of trends.
H&M: Predicting Personalization to Stay Fashion Forward
H&M uses AI to predict fashion trends by analyzing large amounts of data from search engines and blogs. The algorithms inform decisions such as how much to buy, when to buy, and where to place products in stores. This helps to reduce waste and make more sustainable decisions. H&M's data-driven approach gives them a competitive advantage, allows them to stay ahead of trends, and provides customers with what they want.
6. Scalability
The culmination of all the AI benefits discussed so far can help you scale your personalization efforts and, ultimately, your business. By processing large amounts of data and providing real-time recommendations, you can personalize the shopping experience for each customer. AI can help you identify patterns in customer behavior and preferences, enabling you to make data-driven decisions about which products to offer, how to price them, and how to promote them.
Use AI to Personalize Your Site Fast
AI can bring significant benefits to your eCommerce personalization strategy. You can:
Provide an enhanced customer experience.Increase customer loyalty.Improve sales performance.Save costs.Gain a competitive advantage.Achieve scalability.
However, it's important to remember that your store is unique. Consider carrying out A/B tests to find out what's the best way for your business to incorporate AI into your personalization strategy. Once you're in the right groove, you'll grow your eCommerce store in no time.
» Incorporate AI into your customer communication: Here's how to use AI in personalized email marketing and to optimize social media
Personalization5 Elements You Should Personalize in Your eCommerce Store (+ Examples)In today's eCommerce landscape, personalization is no longer a luxury but a necessity. By personalizing your eCommerce store, up to 80% of your shoppers are more likely to buy. But you need to make sure you personalize the right parts of your customers' online shopping experience for it to be effective. In this post, we'll explore the top 5 elements (with examples) you should personalize in your eCommerce store.
5 Elements to Personalize in Your eCommerce Store
HomepageProduct recommendationsEmail marketingCustomer account pageCheckout process
1. Homepage
Your homepage is the first thing your customers see when they visit your website. It's your storefront; it needs to be inviting, engaging, and tailored to your customers' needs. That's where personalization comes in. A personalized homepage is essential for your eCommerce business because here you can showcase products and content relevant to your customers, increasing the likelihood of them making a purchase.
Amazon: Bringing Personalization Home
One of the best examples of a personalized homepage is Amazon. By using customer browsing and purchase history, Amazon offers every individual customer a personalized experience. This makes it easier for customers to find what they're looking for.
For example, the non-personalized homepage contains general content: banners for newly released movies, daily deals, and suggested gifts for Mother's Day. None of these offers are tailored to the customer. But the personalized homepage encourages the customer to "pick up where [they] left off", "keep shopping", or "buy again". The customer can easily complete their purchase or repeat it without starting their shopping journey over.
Not Personalized
Personalized
» Does your homepage need more refinement? Follow these best practices for promotions on your homepage
2. Product Recommendations
Personalized product recommendations are a great way to enhance your customers' shopping experience and increase sales—they can make up 31% of your revenue. By using customer browsing and purchase history, you can tailor products to your customers' needs and preferences. This way, you also create upsell and cross-sell opportunities because your customers may discover new products they would've otherwise overlooked. For example:
Use their recent search history: If a customer has been searching for running shoes, recommend running accessories or clothing.Use their purchase behavior: If a customer has been purchasing skincare products for acne, recommend a relevant skincare product that's recently been added to your store.
Netflix: Personal Recommendations For You
Netflix uses customer data such as viewing history, search history, and even time of day to recommend personalized content to their customers. This includes suggesting top picks for each customer, encouraging customers to finish watching content, and allowing customers to compile their own lists of their favorite movies and shows for easy reference.
3. Email Marketing
Email marketing is a powerful tool to connect with your customers and drive sales, but a generic email blast to your entire email list may not be effective. Instead, personalized emails get more engagement because they feel more relevant and personal to the customer. Emails with personalized subject lines have open rates 20% higher than those with generic or static subject lines.
You can use customer data such as browsing and purchase history, preferences, and behavior to create personalized email campaigns. For example:
Send personalized product recommendations based on a customer's browsing or purchase history.Send exclusive deals and offers based on specific customer segments.
Birchbox: Personalized Communication From the Start
Birchbox takes personalization very seriously. In fact, they've built their business philosophy on it by putting customers in control of what they receive in their beauty box. This also extends to their email campaigns. Birchbox emphasizes personalized communication already from their signup form to collect customer emails.
» Learn how to improve your personalized email marketing with AI
4. Customer Account Page
The customer account page is an important touchpoint in the customer journey. This is where customers can manage their orders, view their purchase history, and update their personal information. This page is all about the customer, so you can improve their user experience and increase their loyalty by personalizing its content with relevant product recommendations, insightful social proof, and custom rewards or discounts.
Sephora: Accounting for Personalized Customer Experiences
Sephora has a rewards program called Beauty Insider. One of its perks includes receiving a free beauty gift of your choice (as opposed to a general gift chosen by Sephora) plus free shipping. During your birthday month, a banner will appear on your account page to remind you to choose your gift.
5. Checkout Process
The checkout process is the final step in the customer journey and can make or break a sale. Personalizing the checkout process can reduce cart abandonment and increase sales by providing a more convenient experience for your customer. For example:
Reduce the time it takes your customer to checkout by offering the option to save their payment and shipping information.Personalize payment and shipping options according to the customer's location and preferences.Create upsell and cross-sell opportunities by offering personalized product recommendations.
Princess Polly: Making Customers Feel Like Royalty
Princess Polly personalizes the checkout process for their customers at two points. Firstly, when you view your shopping cart (or "bag", as Princess Polly calls it), the store recommends additional products that will complement your purchase. Secondly, you receive a personalized discount that you can either claim or reject. In this case, the store knows you're a new customer and haven't joined their mailing list yet, so you can claim 20% off your purchase by signing up.
» Explore more ways upsell and cross-sell personalization can benefit your eCommerce business
Do It the Fast Way
Personalization is crucial for your eCommerce business. It can have a significant impact on your customers' shopping experience and overall sales, but only if you personalize the right elements of your eCommerce store. The key is to understand your customers and use their data to create relevant, personalized experiences that make them feel valued and appreciated. In turn, this can lead to building long-term customer relationships and repeat business.
» Review these top eCommerce websites to help you create exceptional customer experiences