Importance of Personalization in eCommerce

Importance of Personalization in eCommerce

Customers have a set of personal criteria they use while making a purchase, and it’s extremely important to appeal directly to each one of them. They don’t feel overwhelmed when websites are displaying discounts on products and categories which are not relevant to their needs. As online buyers, they expect offers and discounts that are relevant to their choice of products.

And this is one of the key reasons why the concept of personalization is being adopted by many eCommerce businesses. With this trend, merchants can make their online stores capable of personalizing the content of websites as per their visitors’ interest in real-time. Because most consumers say that they are influenced by eCommerce personalization. And almost 90% of marketers have witnessed an increase in revenues because of eCommerce personalization. 

What is Personalization in e-commerce?

When you dynamically change the content of your website with images, products, offers, and other details as per the interest of an individual customer or online visitor, this process is known as personalization in the eCommerce world. Personalization can be based on a customer’s browsing behavior, previous purchases, language, geographic location, and other personal information.

The aim of offering a customized atmosphere for every individual based on their behavioral aspects and their interests is to deliver a unique user experience to them and drive sales through it. This improvisation in the user experience will not only increase the number of online orders, but also helps better product engagement, and increase the duration of the visits.

Successful eCommerce brands know that offering a personalized shopping experience is one of the best ways to make an online customer feel special. Ecommerce personalization allows brands to build stronger customer relationships, encourage loyalty, and enhance trust. Creating a personal connection between your brand and your customer can improve brand perception, increase conversion, and drive repeat sales.

By the way, have you personalized your eCommerce website and marketing campaigns yet? If not, then read out this article, where we’ll dive into the world of ecommerce personalization and highlight the benefits of such a strategy. Also, why it’s important, along with some stats and trends related to eCommerce personalization.

Some Ecommerce Statistics 

Some Ecommerce personalization stats:

  • 55% of Ecommerce businesses don’t have sufficient data to analyze and provide personalization services.
  • 70% of customers give their loyalty only if a company understands their individual needs.
  • 59% of customers find it easy to find more interesting products in a personalized store.
  • When website content is not personalized, 74% of customers feel frustrated.
  • 98% of Marketers agree that on-site personalization helps in advancing customer relationships, while 74% claim that it has a strong impact.
  • Customers prefer ecommerce chatbots for a personalized experience, as they have the ability to provide quick replies to simple questions. 
  • 45% of customers are more likely to shop in a personalized store.

Researchers have labeled Ecommerce personalization as the ‘Top Commerce Technology’, which confirms that Ecommerce personalization in 2022 and in years to come will be a too big thing.

Why is personalization important for retailers and shoppers?

For Retailers: 

E-commerce personalization is increasingly important to eCommerce retailers when it comes to customer experience because they have products in large quantities , and it is a must to display each product to its right customer. Otherwise, the product inventory will remain intact without ever reaching the person who needs them.

Ecommerce Personalization helps in providing a unique customized experience to each customer based on their needs and choices and also ensures that the offers or discounts presented to customers are relevant. 

Based on some recent research in eCommerce personalization has revealed that nearly 9 out of 10 retailers accept that their customers and online visitors prefer a personalized user experience. So, the duty is on the brand to provide an experience that the customer will want by properly leveraging the customer data. Additionally, brands can drive customer loyalty by anticipating the customer’s needs before they have a chance to express them. 

For Online Shoppers:

Online Shoppers have indicated on a regular basis how important personalization is to them. Epsilon research indicates that when brands offer a personalized experience to their customers, 80% of customers are more likely to make a purchase. Not to mention the fact that if brands fail to deliver these personalized and tailored experiences to their customers based on their needs and interests than with no time these customers will choose a competitor brand who are better at offering a personalized experience.

Refer to the below image to know what consumers feel if they get the personalized experience from the brands:

Source: Gartner

There are a lot more benefits of personalization in the ecommerce world. Let’s dive into each of them: 

What are the benefits of website personalization?

Personalization can be a powerful strategy when used right. Marketers are using this strategy for so long to improve their marketing efforts. In fact, research shows that personalized email campaigns receive 26% higher email open rates and 41% higher click-through rates than ordinary emails.

Let’s find out what are the benefits of eCommerce personalization and why should brands choose to use personalization when selling online products online:

Ease of Use: 

Personalized experience allows your customers an opportunity to easily find out what they’ve been looking for. 

Enhanced Customer Experience: 

Through eCommerce personalization, business owners can provide an enhanced customer experience by laying out personalized web content. Make their shopping experience more enjoyable by providing them with attractive promotions. 

Remembering customer preferences, recommending the products they are looking for, storing their payment details for quick access, and updating them on upcoming promotions are some ways personalization improves the customer experience.

Better Understanding of Customers: 

Along with the improved customer experience, eCommerce personalization helps you to understand your customers in a better way. To provide a better and personalized experience, brands need to collect customer information. This information can be used to determine which products are in demand, and which ones to stop selling. 

Using this data, brands can recommend the right products and provide targeted offers to customers. These recommendations are based upon the browsing behavior and purchase history of the customer himself.

Better Sales Conversions:

If you display customers exactly what they’re looking for before they buy, there is definitely an increase in sales and conversion rates. Ecommerce personalization helps you to recommend products when a customer is about to check out, and showcase products to specific groups of customers who are more likely to buy.

Improved Brand Engagement: 

Personalization attracts customers to interact with your brand because you showcase the products they want to see or are more likely to buy. This can improve engagement and the way they choose to interact with your brand. 

So, yes. Personalizing your marketing strategy is actually beneficial.

It’s Time To Adopt The Trend Of Ecommerce Personalization 

Adopting a new marketing trend is not an easy task because it may come with challenges and barriers that may hinder the overall process, and personalization is no exception to this marketing trend. Let us inform you that personalization isn’t a new concept either, in fact, it has already been a practice in the traditional market. Business Owners have always made an effort to keep a personal touch with their customers and this is the demand of Ecommerce too. As the importance of eCommerce personalization is realized, Ecommerce businesses are already taking measures to enhance their website on the personalization front. 

To be a part of a splendid Ecommerce future, personalization is going to play an immensely important role and without its proper use; Ecommerce businesses might fail to know and understand what customers truly want. So all you need to do is a start, even if it’s just a few lines here and there. 


Author Bio: Vishal Lakhani

CEO and Magento Solution Specialist at Rock Technolabs with over 10+ years of experience in eCommerce. Apart from blogging and playing with Magento, he loves to read, travel, and learn new technologies that help make the development process easier and more appealing to clients.