E-commerce Personalization: Boost Engagement & Sales

a person using a macbook laptop while holding a credit card

The ecommerce scene is unbelievably competitive and it probably feels like all of your competitors have amazing websites so what can you do to stand out, gain an edge, and keep customers coming back? A simple but effective method is to utilize ecommerce personalization and I discuss what this is, how it works, and why it is beneficial below.

What is E-commerce Personalization?

Personalization in ecommerce comes in many forms, but the underlying premise is that it gives a tailored shopping experience for individual customers. This means that each customer has a different shopping experience when using your ecommerce store. Examples of ecommerce personalization include:

  • Showing your name on shopping welcome messages.
  • Providing tailored shopping feeds with relevant products based on your preferences.
  • Showing offers and products based on previous purchases.
  • Refining product listings for customer demographics.

You are essentially showing customers things they are interested in and filtering out the stuff they haven’t shown a preference towards.

Why is Personalization Important in E-commerce?

Long gone are the days when ecommerce websites could give a generic shopping experience that is the same for everyone. Consumers expect more from effective ecommerce SEO solutions and they expect their individual needs to be catered to.

We want to feel special when we shop and we also want to shop quickly without wasting time and this is where ecommerce personalization shines. Instead of wasting time trawling through product categories, personalization can instead show product feeds with items that the customer shows a preference for.

Ecommerce personalization enhances the shopping experience, but should also result in a greater ROI and brand loyalty.

The Benefits of E-Commerce Personalization

You should have some idea of the benefits of personalization in ecommerce, especially from the user’s perspective, but how does this help your business? I list the advantages of using this technique below.

It improves your customer’s shopping experience

The biggest benefit is that your customers enjoy a vastly improved shopping experience. Your ecommerce personalization is giving them exactly what they want and what they like and in today’s world where everyone is incredibly busy, this is a game changer.

A great example is when I do my online grocery shopping! I log in to my account, pick a delivery slot, and then the company shows me a list of frequently ordered items like milk, fresh orange, fruit, and cheese. This means that I can sort my food shop in a few minutes without any hassle – perfect.

Ultimately, a happy customer is a customer more likely to spend money with your business!

It can result in a higher AOV

Average order value is a metric that is often overlooked but if you can increase this it means there is less emphasis on securing new customers as your existing customers are spending more per order.

Ecommerce personalization can boost AOV and get your customers spending more. This is mainly done by recommending items and showing them similar items to things they have previously bought. My online grocery shopping is an example of this – I am far more likely to buy frequently bought items and thus boost my overall shopping cart value.

This mainly applies to existing customers as you need that customer data or cookie information to build up a shopping profile for them.

It can boost conversions

By showing customers relevant products, or items they have previously bought by using their history and account data you can drive conversions. Again, the grocery shopping example works perfectly here.

For example, maybe my frequently bought section shows some porridge oats on offer that I have previously bought. Even if I don’t need them this week, I may still buy them regardless to use at a later date and thus the grocery store got a bigger sale from me. Statistics show that personalized product recommendations like this can boost conversions by up to 8% which is not to be scoffed at.

It gives you a competitive advantage

Consider this – you have to pick between two online stores. Store 1 gives a generic shopping experience with no personalization which you struggle to use and find the products you want. Inc contrast, Store 2 has heaps of personalization including exclusive offers and personalized product listings which you find easy to navigate.

Which store wins? Store 2 of course! Simply put, personalization in ecommerce gives you a competitive edge and is one of the better promotion strategies for ecommerce. Without personalization, you are going to fall behind compared to companies that do offer it.

Customer loyalty can improve

Many ecommerce stores have personalized loyalty or reward schemes instead of something like a standard points scheme. Combine these with the website personalization and you have satisfied customers who are far more likely to stick with your brand and stay loyal.

Customer retention can be quite difficult compared to acquiring new customers so ecommerce personalization can give you a great boost here. Aside from loyalty schemes, things like customer referrals can also help improve loyalty and are another effective form of ecommerce personalization.

Add Ecommerce Personalization Today and Engage With Your Customers

Today customers crave that personalized shopping experience and it isn’t enough to merely have a generic ecommerce store. Instead, you have to tap into personalization in ecommerce to give a tailored experience, boost customer loyalty, and make sure each visit results in a big sale.

Article by:

Joshua George is the founder of ClickSlice, an SEO Agency based in London, UK.

He has eight years of experience as an SEO Consultant and was recently hired by the UK government for SEO training. Joshua also owns the best-selling SEO course on Udemy, and has taught SEO to over 100,000 students.

His work has been featured in Forbes, Entrepreneur, AgencyAnalytics, Wix and lots more other reputable publications.