Online shopping continues to face growing pains as more consumers transition away from the constraints and difficulties of in-store shopping, worsened by recent supply chain issues, in favor of the convenience and instant access offered by digital marketplaces.
Online vendors frequently receive consumer feedback on improvement areas as this transition continues. More personalization is at the top of online shoppers’ wish lists. However, many new entrants to e-commerce are still learning how to fulfill these demands.
E-commerce success hinges on two main factors. One is the merchant’s skill in replicating the in-store experience of viewing products and interacting with associates. The other is creating an engaging shopping journey through customer personalization. Here is how personalization can skyrocket your e-commerce sales in 2024.
What is eCommerce Personalization?
eCommerce personalization involves tailoring the customer’s shopping journey based on:
- Purchase history
- Browsing habits
- Location
- Language
- Personal details
Picture yourself on your favorite online store, where it anticipates your needs, remembers your favorites, and streamlines your checkout process. That’s the magic of eCommerce personalization. Thanks to this approach, online retailers can offer each visitor a unique shopping experience, simplifying their buying process.
Personalization in eCommerce has always been crucial as customers prefer shopping from stores that recognize them and provide personalized offers.
According to a study, 77% of consumers opt for brands offering personalized services, with 83% willing to share their data for a customized experience. A personalized online store ensures customers enjoy a delightful shopping journey, ultimately boosting your store’s sales.
User-Specific Campaigns
As a marketer or e-commerce site owner, recognize that each customer has unique needs. Personalization is key to effectively serving these diverse requirements.
For instance, provide a signup bonus to first-time users. Even if they don’t make an immediate purchase, the goal is to capture their email address and drive future conversions through promotional emails.
Avoid presenting this offer to existing customers, as it holds no value. Instead, give them discounts or free shipping on products they will likely purchase. Encourage personalized videos or messages to build a stronger connection with your brand. Check this guide to personalised videos for further insight.
Segment Your Audience
Divide your contact lists into various sub-groups or segments. This practice, audience segmentation, is essential for your store’s growth. Audience segmentation involves categorizing your audience into smaller groups. These are usually based on shared characteristics.
For example, an eCommerce retail store might have segments for “men” and “women.” Other segmentation criteria could include:
- Demographics
- Purchase history
- Browsing behavior
- Personal preferences
- Geographic location
The more effectively you segment your audience, the more tailored your marketing efforts can be. Picture yourself running an international clothing store. Suppose you can offer free shipping to North American customers for a limited time.
When crafting an email campaign, you wouldn’t want to promote this offer to European or Asian customers. That’s because the offer is only relevant to your North American audience.
By properly segmenting your audience, you can present this offer to North American customers, maintain a high user experience for your entire audience, and increase sales efficiently.
Use Push Notifications
Another approach to tailoring your eCommerce customer’s experience is to utilize push notifications. Push notifications are brief alerts that appear in your subscriber’s browser.
Moreover, these alerts appear even when they are not browsing your website. This means you have immediate and direct communication with your audience.
Additionally, push notifications usually don’t require personal contact details for users to subscribe. They can simply click a button to opt in.
This presents a significant advantage over other eCommerce personalization methods because it results in a higher subscription rate.
With these messages, you can send targeted notifications to:
- Retrieve abandoned carts
- Recommend products
- Announce special promotions
- Offer discounts and coupons
And you can manage all of this with just a few clicks.
Boost Average Order Values
Average Order Value is a crucial metric in eCommerce. Understanding your customers’ expenditures allows you to assess the efficacy of your marketing strategy.
A reduced AOV may indicate lack of engagement with your recommendations, upsells, or cross-sells. When promotions and product suggestions lack relevance, customers tend to ignore them.
Enhance your shopping experience by showcasing recommendations tailored to browsing history and behavioral targeting. Focus on customers’ genuine interests rather than assumed preferences for improved relevance (consider utilizing data).
Streamline the Customer Experience
Numerous points of contact exist throughout the user journey, each of which adds some resistance. Only a small percentage (3.3%) of all sessions result in a conversion—a tiny fraction compared to total store visits.
Although shopping cart abandonment can occur for various reasons, the lack of personalization is a significant factor. Research indicates that 71% of customers find impersonal shopping experiences frustrating, and 63% avoid purchasing from brands with inadequate personalization.
In essence, eCommerce personalization is rapidly becoming crucial for a positive shopping journey. Utilize personalization to eliminate obstacles in the customer journey, reduce bounce rates and cart abandonment, and boost sales.
Enhance Your Retention Skills
Loyal customers are crucial for eCommerce brands as they tend to convert more easily due to their familiarity with the brand. Yotpo reports that repeat visitors account for about one-third of online shopping revenue and spend three times more on average than new shoppers.
Providing personalized experiences enables merchants to build customer loyalty effectively by making shoppers feel valued as individuals.
Increased Conversion Rates
Personalization directly affects conversion rates as it offers customers tailored products, promotions, and content. Research indicates a 20% rise in order value and a 10% increase in conversion rates attributed to personalization. Customers tend to complete a purchase When they engage with personalized suggestions tailored to their preferences and past purchases.
Develop conversion tactics for personalized experiences. Generic interactions lack personal touch and often result in deserted shopping carts. On the contrary, personalization nurtures a feeling of connection and relevance, reducing cart abandonment by 10% and ultimately boosting sales.
Endnote
Custom recommendations have become essential for retailers to boost sales. These tailored suggestions align with individual preferences by utilizing consumer data and predictive analytics, enhancing conversion rates. Businesses that skillfully implement intelligent, personalized engines into their digital platforms see notable customer engagement, loyalty, and revenue increases. Therefore, personalization is a fundamental strategy for increasing sales and delivering a distinctive, customer-centric shopping experience in 2024 and beyond.
