In the modern ever-evolving digital landscape, customers are exposed to more marketing messages than ever. It gets harder and harder to grab attention when channels are so oversaturated. However, modern technology offers marketers ways to achieve unparalleled levels of personalization in their communications. It allows reaching customers exactly where they are in the purchasing funnel with messages tailored to their unique situation and stage of the customer journey.
The importance of marketing personalization is highlighted by the fact that 77% of consumers prefer brands delivering a personalized service or experience. Simply put, companies these days can’t afford to not personalize the customer experience, especially in ecommerce.
In this article, we will explore how brands can leverage ecommerce personalization to increase customer loyalty, improve user experience, drive more conversions, and increase revenue.
What Is Personalization: The Definition
Ecommerce personalization is an approach when users are shown content based on various data points. Examples include customer demographics, intent, preferences, browsing history, past purchases, and the type of device.
Based on these data points, marketers can utilize customer segmentation and craft unique messages for each group. However, with modern technological solutions, such as customer data platforms, it’s possible to take personalization even further. By using advanced data analytics, businesses can provide extremely individualized experiences. This includes product recommendations based on previous data, automated trigger scenarios, and more.
“Frequently bought together” section on Amazon.com
Ecommerce personalization is a subtype under broader marketing personalization. While it generally encompasses practices specific to ecommerce, it is closely related to a number of other concepts. Let’s explore them further.
- Content personalization involves customizing the content presented to users based on their interests, preferences, and behavior. In terms of ecommerce, it includes the contents of promotional emails, store pages, messages, and any other type of marketing content.
- App personalization involves customizing the user experience within a mobile application, such as an app for a large ecommerce store. This can include tailoring the app’s interface, features, and recommendations to individual users based on their interactions with the app.
- Retail personalization refers to customizing the shopping experience in primarily physical retail stores. It includes catering to individual customer preferences through personalized recommendations, offers, and services. There’s a significant overlap between retail and ecommerce tactics, but the offline-first nature of retail businesses introduces additional challenges in the mix.
The dynamic nature of modern technology means that with time marketers will have even more opportunities to personalize their offers. Including new data sources, new ways to analyze them, and new channels to distribute messages.
Examples of Personalization in Ecommerce
Since 90% of marketers attribute an increase in ecommerce revenue to personalization efforts, it’s better to know how exactly this can be implemented. Let’s take a look at some examples.
Special offers to first-time buyers
This simple tactic can have a good impact on customer acquisition efforts. It’s easy to implement from a technical point of view since there’s no need to track complex behavior. Instead, you make special offers to all new accounts and first purchases. This approach makes it easier for potential customers to buy from you and removes part of the friction.
Once they make a purchase, it becomes much easier for you to reach these customers with your subsequent marketing messages.
Besides discounts, you can provide special gifts, welcome packages, or free shipping. These promotions can make your store more appealing to potential customers, making it easier for them to make a purchase. You can make such offers through a wide range of channels: email, web, and mobile pushes, SMS, instant messengers, popups, etc.
Popup with a discount on the first order from Gilt.com
Personalized product recommendations
A good way to increase average order value is to implement smart recommendations in a wide range of properties. These include product detail pages, home, cart, checkout, and some other pages (categories, time-sensitive offers), promotional emails, SMS messages, and within apps. One tactic to try here is dynamic upselling. It’s easy to increase revenue by recommending products that are more expensive but are similar in style and function.
Another method that works well is cross-selling. This means suggesting items that naturally go together with what the customer is buying and recommending relevant accessories. This not only makes the shopping experience better but also helps to make the shopping cart bigger and more valuable. Cross-selling is a win-win situation, as it helps customers discover items that fit their preferences and boosts your sales and revenue at the same time. It’s a straightforward yet effective strategy that benefits both shoppers and your business.
Modern AI algorithms introduced new options to analyze customers at scale. Now, it’s possible to analyze dozens of data points for each customer and offer them something uniquely tailored to their preferences and behaviors. This level of personalization was never possible in the past and makes buyers feel like you know them and their needs.
Product recommendations in newsletters
Use Triggered Scenarios for Better Engagement
Not all interactions users have with an ecommerce store are equal. By triggering specific messages based on certain cues, it’s possible to encourage users to take desired actions, such as completing a purchase.
The abandoned cart emails have been a staple of ecommerce marketing for a long time. However, they can be even more effective if online stores improve customer experience and provide a seamless return to shopping. Adding a “return to cart” button reduces the effort it takes for customers to get back where they were. This reduces friction and allows to continue the process right away, instead of a more generic “keep shopping” message. Smart marketers won’t limit themselves just to emails. Instead, they will use an omnichannel approach, as abandoned cart reminders can be sent through push notifications, SMS messages, and messenger apps.
Apart from abandoned cart emails, there are other scenarios that can be used to trigger specific actions.
- Welcome sequences. When a new user signs up, it’s a good practice to send emails and other messages to help them familiarize themselves with your store. It’s also an opportunity to let them know about any special offers and showcase your bestsellers.
- Transactional messages. These include order confirmations, receipts, and shipping updates. These are a great way to alleviate post-purchase anxiety and let the customers know you care about them even after a purchase. It’s a good way to build brand loyalty and trust.
- Reminders to leave a review. Ask for a review a few days after purchase — it increases loyalty and creates additional social proof.
- Re-engagement messages. When a customer hasn’t been active for a long period of time, you can message them to remind about your store and maybe even to offer a special deal.
With the abundance of tools and channels available to marketers, it’s easy to implement dozens of similar scenarios based on the unique needs and circumstances of the business.
Abandoned cart email from Rocketsofawesome.com
Leverage Personalization in Your Ads Strategy
With modern social media and search engine channels, advertisers can fine-tune their ads and reach their audience with the right message at the right time.
When it comes to search engines, it’s possible to show banners with products your visitors have been browsing before. Show your products when they are browsing for something similar. Or even show your ad on top of the search engine ranking page when they are looking for your competitors.
With social media ads, it’s easy to show all kinds of messages based on triggered scenarios (abandoned cart ads, recommendations). It’s also a great way to attract new buyers through personalized offers or through seasonal discounts.
Conclusion
The importance of personalization in today’s digital landscape cannot be overstated. Businesses now have unprecedented access to customer data, which should be leveraged to create engaging and memorable customer experiences. Personalization is the key to customer engagement, brand loyalty, and business success in the world of ecommerce.
Since advanced AI algorithms are not science fiction anymore but a part of our new reality, it’s important to leverage these solutions. Marketers can use these tools to personalize every step of the customer journey. From personalized website layouts to tailored upsell offers to custom messages and emails to one-to-one online ads. This allows to remove friction, improve customer experience, and ultimately build trust and loyalty.