Ecommerce Personalization: 19 Examples & Usage Tips
Сustomers are increasing their presence through different channels on the web, they are also becoming more informed, demanding, and unpredictable. So if you wonder how to increase e-commerce sales, you should find that the key to turning their visitors into repeat customers is real-time personalization of AI-powered ecommerce.
Using artificial intelligence and machine learning, e-commerce personalization platforms can analyze customer behavior, learn their habits, and allow retailers to provide automated, personalized recommendations and banners in search results.
It is personalization in ecommerce that represents one of the main advantages of online retail over classic offline trading. 90% of customers prefer working with companies that personalize customer service.
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Ecommerce personalization is a complex process that requires significant time and financial resources, as well as great expertise in data collection and analysis, development, analytics, and many other aspects. Regardless of whether it is internal recommendation algorithms or specialized services and platforms, a well-designed and effective personalization system is a competitive advantage in the fight for a buyer.
The buyer went to the online store's website and needed clarification on the wide selection of offers. How to help them navigate the assortment? How to show the right products so that they quickly complete the order, do not endlessly wander around the site, and eventually leave without a purchase?
Imagine how all the site pages adjust to the user's behavior and preferences after each click or expression of interest. The more information about the behavior the system receives, the more accurately the product selection reflects the interests of each specific user. If a person does leave the site without making a purchase, an email is sent to them with a reminder of abandoned products, whether they are items left in the cart or simply viewed products. After making a purchase, the user receives offers of related products or items that may interest them. And if the product has a specific consumption cycle, when its quantity is about to run out, the buyer receives a reminder letter with a proposal to replenish stocks.
All this and more can be realized with the help of modern personalization in ecommerce, thanks to which the retailer can provide an individual approach to each visitor.
By tailoring the online shopping experience to individual customer preferences and behaviors, you can reap a multitude of benefits. From increased sales and customer loyalty to improved customer satisfaction, personalization in e-commerce can transform your business into a thriving and customer-centric enterprise.
Personal product recommendations allow the user to see products he might not even consider buying. In this case, the selection of goods will correspond to his current interests. As a result, the likelihood of adding to the cart and making a purchase increases.
Increase in the average check and online store revenue
At different stages of the customer journey, various types of recommendations help increase an online store's revenue. Offering more expensive, related, or interesting items increases the average check, the number of items per order, and the online retailer's revenue.
Bonus for SEO
Product recommendations form cross-links between categories and product cards. Thanks to clicks on recommendations, the number of pages viewed increases, and the duration of sessions increases due to the relevance of offers. Thus, personalization and SEO Tips for eCommerce positively affect the site's position in search results and ensure organic traffic growth.
Increasing audience loyalty
Customers experience positive emotions when they easily find exciting products online. The store's value in the clients’ eyes increases, and their impression of interaction with the brand improves. As a result, users become more loyal, return to the online store for new purchases and recommend it to their friends.
The Dutch online store Decathlon.nl added similar and related product recommendations to the product card, increasing conversion by 5.2% and average check by 5.2%. In comparison, the projected revenue growth was 10.7%.
Decathlon ecommerce personalization
Amazon started to use e-commerce personalization nearly 10 years ago, generating up to 10% of its revenue through product recommendations.
Amazon ecommerce personalization
Personalizes movie and TV show recommendations based on customer viewing history and preferences.
Netflix ecommerce personalization
Spotify music recommendations and playlists are based on customer listening history and preferences.
Spotify ecommerce personalization
Nike purchased the computer vision company Invertex in 2018 and added the technology to their app. Nike Fit uses a combination of artificial intelligence, machine learning, computer vision, and data analytics to scan people's feet when they point a smartphone camera at them. The consequence is a digital foot morphology based on 13 data points, not merely length and width.
The designs of Nike's shoes, which differ depending on the category, then include that. For example, casual sneakers don't have to be as snug as soccer cleats. This strategy extends beyond creating customized items for Nike. Long term, it provides the sportswear juggernaut with helpful information for a more effective recommendation strategy.
Nike ecommerce personalization
6. Stitch Fix
By creating personalized boxes of apparel and accessories for each consumer and letting them buy and retain the items they want while returning the items they don't, the company has revolutionized the retail shopping experience. In addition to being convenient, Stitch Fix is popular because of its outstanding customization.
Stitch Fix ecommerce personalization
Sephora is one of the most vital cosmetic applications on the market. Every two weeks, it offers new unique prizes, which entices customers to return frequently to get the latest discounts. Sephora also uses cutting-edge technology inside its brick-and-mortar stores. For example, the Sephora Color Match is an augmented reality experience that helps consumers pick the perfect foundation shade.
Sephora ecommerce personalization
Coca-Cola provides ecommerce personalization by creating bottles with customers' names on them.
Coca-Cola ecommerce personalization
Here clients’ profiles are part of the Creators Club loyalty program, which centralizes preferences, wish lists, and order history, helping Adidas better provide ecommerce personalization to improve the customer experience across every channel.
Adidas ecommerce personalization
Uniqlo IQ provides ecommerce personalization by presenting clothes through several different verticals. For example, by hourly product rankings, occasion type, or items featured in Japanese monthly magazines.
Uniqlo ecommerce personalization
Provides personalized fit recommendations and offers customized products through its Levi's Tailor Shop.
Levi's ecommerce personalization
Men’s Razor Brand motivates clients to recommend products to friends and use ecommerce personalization by promotions based on customer shaving preferences and purchase history.
Harry's ecommerce personalization
Birchbox provides personalized beauty product recommendations and customized boxes based on customer preferences.
Birchbox ecommerce personalization
After joining Petco’s Pals Rewards Program and submitting information about their pets, every customer is rewarded with personalized engagements.
Petco ecommerce personalization
Airbnb provides ecommerce personalization based on customer location, previous trips, or recent searches, which might sometimes eliminate the need to use Search altogether. It can accelerate relevant content discovery, saving time from manually searching in some cases and overall helping users become more productive.
Airbnb ecommerce personalization
Expedia’s personalized vacation recommendations target specific consumer communities. The brand works with groups connected through shared affiliations or life stages, such as the military and students. This personalization and customization in ecommerce focus on socially connected shoppers, which leads to a loyalty increase.
Expedia ecommerce personalization
Booking.com uses ecommerce personalization in the following way: first, the website showcases the customer’s last search as the primary recommendation and then supplements it with similar travel destinations.
Booking ecommerce personalization
Walmart centers its tech capabilities around customization to make people more confident about their purchases by tailoring shopping experiences towards shoppers’ preferences and meeting their rapidly changing demands.
Walmart ecommerce personalization
Shopify ecommerce personalization provides consumers with an improved experience by considering the individual consumer’s prior behavior, shopping, user profile, and demographic.
Shopify ecommerce personalization
Personalization in ecommerce can be divided into two stages:
1. Interaction with the user on the website
At this stage, it is crucial to consider the user's interests and preferences and help him purchase easily and quickly. Personalization technologies allow you to adjust the site in real time to the user's needs following his behavior. Product results automatically change depending on the user's interest in certain products, categories, brands, price ranges, etc.
2. Communication with the user after he has closed the website page
This item includes email newsletters, trigger letters, sms, and push notifications, messages in instant messengers, and other channels. All communication is aimed at returning users to the online store and motivating them to repeat purchases.
Let's start with website ecommerce personalization. In the experience of retail giants like Amazon, Wal-Mart, and Ozon you can see that the content of their sites dynamically changes depending on the actions of the visitor. The online store adapts in real-time to the interests of the user, due to which the buyer gets the feeling of communicating with the retailer face-to-face.
When a customer first comes to an online store, he sees a version of the site for new visitors since there has not been any information about his preferences and interests. But as soon as the user shows interest in a product category or specific position, the site's content automatically adjusts to his needs. Moreover, a sound personalization system evaluates not only explicit actions, such as clicks on products, additions to the cart, and purchase history, but also various product characteristics: color, brand, price range, and other properties. Thus, after showing interest in at least one product or category, the site's content automatically adjusts to the user's preferences. And the next time he visits, all site pages, including the main one, will be personalized. In real-time, the system will consider previous sessions, the user's purchase and browsing history, and his new interests and preferences.
Claspo widgets help solve many marketing problems. The first and, perhaps, the most important thing is to draw the attention of site visitors to crucial information. After all, only a small percentage of users will carefully study your website. Most will simply ignore some of the content. So, using the widget, you can, for example, talk about the current promo or offer a discount on a purchase.
Secondly, widgets have pretty accurate targeting. You can choose to whom, when, and what to show. This allows a marketer or entrepreneur to work with each audience segment separately, increasing the conversion from a lead to a client. A great example is our client, DeepStateMap, which had a x3.9 conversion increase using Claspo.
Here are Claspo's best features:
- User-friendly drag&drop editor
Using ready-made templates and tools, you can easily launch popups on your website without any experience in design or programming
- Large Template Library
You can choose from a variety of templates and enjoy swift integration with your platform
- A/B testing
Easy to test and improve the conversion and customer journey on your website
- Unlimited customization
The Claspo team is working daily to create new options and remove restrictions.
- Simple installation on the website
You can install the widget using Google Tag Manager or another solution
- Advanced display rules
Eas to customize your widgets in detail and control who and when will see them on your site
- Powerful targeting options based on user behavior and segmentation
- Integration with popular email marketing platforms
Integrations with other marketing tools like Mailchimp and eSputnik make your job much easier
- KPI-driven analytics
You can track the impact of widgets on business performance
Reach a wider audience and provide a better user experience for visitors who speak different languages.
- Email domain verification
Verify if an email address is valid and deliverable and confirms if an email address has a reliable domain such as Gmail or Yahoo.
- Sniper Links
Minimize distractions while leading users to the inbox of their email service provider detected on signup.
- Single-page applications support
SPA is the type of website where the required code is loaded on a single page. This saves time from re-uploading the same items, and the URL does not change.
- Overlap Protection & Annoyance Safeguard
Prevent multiple widgets from overlapping on a web page, ensuring annoyance safeguard so that the user can view and interact with each widget separately.
57% of online buyers are happy to exchange personal data in return for personalized offers or discounts, and 58% say personalized experiences are essential when buying from a company. So, ecommerce personalization directly affects sales success, increasing all the performance indicators of an online store. Neglect of a personal approach is lost not only profit but also actual losses that threaten the retailer.
1. Why is ecommerce personalization important?
Ecommerce personalization is crucial because it can help businesses increase customer engagement, loyalty, and sales by creating a more personalized and relevant shopping experience. By tailoring the shopping experience to each customer, businesses can improve customer satisfaction, reduce cart abandonment rates, and drive repeat purchases.
2. What data do ecommerce businesses use for personalization?
Ecommerce businesses can use a variety of data to personalize the shopping experience:
- Customer demographics (age, gender, location, etc.);
- Purchase history;
- Browsing behavior;
- Search history;
- Product preferences;
- Social media activity;
- Customer feedback.
3. How do ecommerce businesses implement personalization?
Ecommerce businesses can implement personalization using a variety of tools and technologies:
- Recommendation engines;
- Dynamic pricing software;
- Customer relationship management (CRM) systems;
- Marketing automation platforms;
- Personalization engines.
4. What are some examples of ecommerce personalization?
Examples of ecommerce personalization include:
- Product recommendations based on past purchases or browsing behavior;
- Dynamic pricing based on customer location or purchase history;
- Customized email marketing campaigns based on customer preferences and purchase history;
- Personalized landing pages based on customer demographics or interests;
- Tailored customer service based on customer purchase history or browsing behavior.
5. How can businesses measure the effectiveness of ecommerce personalization?
Businesses can measure the effectiveness of ecommerce personalization by tracking key performance indicators (KPIs) such as:
- Conversion rates;
- Average order value;
- Customer retention rates;
- Cart abandonment rates;
- Click-through rates (CTR);
- Return on investment (ROI).
E-commerce personalization refers to tailoring an online shopping experience to the individual needs, preferences, and behaviors of each customer. It involves using data and technology to create a customized shopping experience that is relevant, engaging, and enjoyable for the customer. E commerce personalization can be applied throughout the entire ecommerce customer journey, from the initial product discovery to the post-purchase experience.
There are several ways ecommerce businesses can personalize their customer experience. Some common examples include:
- Product recommendations: suggesting products based on a customer's past purchases, browsing history, or similar products viewed by other customers.
- Dynamic pricing: adjusting prices based on a customer's location, browsing behavior, or purchase history.
- Personalized content: displaying relevant content, such as blog posts or product descriptions, based on a customer's interests and preferences.
- Customized email marketing: sending targeted emails with personalized product recommendations, promotions, and offers.
- Tailored customer service: providing personalized support and recommendations based on a customer's purchase history or browsing behavior.
Ecommerce personalization can help businesses increase customer engagement, loyalty, and sales by creating a more personalized and relevant shopping experience for their customers.