The Power of eCommerce Personalization: Creating Memorable Customer Experiences
July 19, 2023

The Power of eCommerce Personalization: Creating Memorable Customer Experiences

eCommerce is changing rapidly. Very rapidly. I started writing about this topic when I joined the Humankind team and coming from a SaaS and agency background, I can say that I've never seen a market move this fast.

Just a couple of years ago "eCommerce" basically meant that you were selling your product online, then Shopify came online and changed the game. Now, we're seeing new developments like augmented reality (AR), virtual reality (VR), conversational commerce software, and eCommerce personalization made available to almost every consumer shopping with a big brand.

We'll get into each of these concepts in-depth in a moment, but the key strategy that many of these developments revolve around is eCommerce Personalization. In short, by tailoring the online shopping experience to individual preferences and needs, brands can deliver unforgettable customer journeys that drive engagement, loyalty, and ultimately, sales. 

In this article, we will delve into the fascinating realm of eCommerce personalization, exploring its benefits, techniques, and the impact it has on the customer experience.

Understanding eCommerce Personalization

Answering the question, "What is eCommerce Personalization?"

E-commerce personalization, at its core, is a new concept that refers to a brand's ability to customize the online shopping experience to match customers individually. eCommerce personalization is when an online store is able to match unique preferences, behaviors, and even characteristics of a customer.

eCommerce personalization is a complete divergence from the traditional "post it on the website and they will buy it" experience. It uses a truly personalized approach that leverages rich customer data, conversational commerce, and insights gathered through direct connections with the customer to tailor every interaction and touchpoint with the brand to the customer's desires.

This approach ensures that customers get a curated shopping experience that's perfect for them.

The Benefits of eCommerce Personalization

Personalization has become a game-changer in the world of e-commerce - and eCommerce personalization offers several key benefits to both brands and customers.

First, eCommerce personalization enhances the customer experience. Personalized experiences make customers feel valued and understood. Brands that deliver relevant product recommendations, tailored offers, and personalized communication can create delightful experiences that foster long-term loyalty and advocacy.

Second, brands that utilize personalized shopping experiences can improve sales conversions. Customized product recommendations, tailored offers, bundles, and personalized content create a sense of relevance and increase the likelihood of purchase. When customers see personalized product recommendations or curated content that aligns with their preferences, they are more likely to make a purchase. Studies have shown that personalization can significantly boost conversion rates, leading to increased revenue for eCommerce brands.

This also increases customer engagement and satisfaction. Personalized customer service goes way beyond generic support. By understanding a customer's past purchases, browsing behavior, past conversations with a personal shopper or product expert, and preferences, e-commerce platforms can deliver tailored assistance and recommendations, increasing customer engagement.

Third, eCommerce personalization can improve customer retention: By consistently delivering personalized experiences, businesses can strengthen customer relationships and encourage repeat purchases. A study by Evergage found that 88% of marketers reported a measurable lift in business results due to personalization efforts.

Finally, tailored shopping experiences reduce cart abandonment. Personalized reminders and tailored incentives can help address cart abandonment issues. By understanding the specific reasons behind abandonment and offering personalized solutions, businesses can minimize this challenge and drive higher completion rates.

And as a bonus, all of the personalization creates a continuously supportive shopping experience for Returning Customers. E-commerce platforms that choose to create a personalized journey for returning customers by displaying their previous purchase history and offering relevant recommendations often generate more repeat purchases and future customer loyalty.

Now that we've explored the benefits of eCommerce personalization, let's take a look at some of the techniques and technologies used to deliver personalization experiences.

Techniques for Implementing eCommerce Personalization

Before we jump into the techniques for creating eCommerce personalization, let's look at two examples:

  1. MOO's E-commerce Personalization Strategy in Action: One exemplary case is MOO, an online printing and design company. MOO utilizes customer data to provide personalized recommendations, enabling customers to create customized business cards, stationery, and more.
  2. Cascadia Vehicle Tents (CVT): Humankind's conversational commerce software allows CVT to provide customers with personalized shopping experiences by providing real-time personal shoppers and product experts to serve customers on their website and through the most powerful channel, SMS. Product recommendations are delivered to the customers on beautifully designed landing pages that offer one-click add-to-cart shopping, making things easier for customers and lowering the barriers to entry to make a purchase.

But those are just two of the ways that eCommerce personalization can be effectively implemented. Let's explore a few more to give you ideas to bolster your next personalization push:

  1. Product Recommendations: By analyzing customer behavior, browsing history, and purchase patterns, eCommerce brands can provide personalized product recommendations. These recommendations can be displayed on product pages, in shopping carts, or through email marketing campaigns. Utilizing AI algorithms and machine learning, brands can continuously refine and improve the accuracy of these recommendations over time.
  2. Dynamic Pricing: Personalized pricing strategies can be implemented based on factors such as customer loyalty, browsing history, and purchase frequency. Offering exclusive discounts, tailored promotions, or personalized pricing tiers can incentivize customers and enhance their shopping experience.
  3. Personalized Email Campaigns: Email marketing remains a powerful tool for engaging customers. By segmenting email lists and crafting personalized email campaigns, brands can deliver targeted content, product recommendations, and special offers to specific customer groups. This level of customization can significantly increase open rates, click-through rates, and conversions.
  4. Customized Landing Pages: Creating dynamic landing pages that cater to specific customer segments or campaigns can further enhance personalization. By aligning the landing page content, visuals, and messaging with the targeted audience's preferences and needs, brands can provide a more tailored and compelling user experience.

Interestingly, 3 out of 4 of the strategies listed above can be implemented effectively with Humankind's "concierge commerce" model. Concierge commerce is a revolutionary way to personalize the customer journey, incorporating real-time personal shoppers and product experts into the shopping experience... and these trained experts help create excellent customer experiences.

The 4 R's of Personalization

One of the eCommerce personalization strategies making the rounds today is the 4 R's framework. 

Here are the four R's as well as our thoughts on these key personalization elements:

  1. Relevance: Personalization should be relevant to the individual customer's preferences, needs, and context. By understanding customer data and behavior, brands can tailor their offerings and communications to provide meaningful experiences.
  2. Responsiveness: Personalization should be responsive, adapting to customer interactions and real-time data. By leveraging AI and real-time analytics, brands can deliver dynamic and responsive experiences that meet customers' changing needs.
  3. Relationship: Personalization should focus on building and nurturing customer relationships. By creating a sense of connection, trust, and understanding, brands can foster long-term loyalty and advocacy.
  4. Respect: Personalization should be respectful of customer privacy and preferences. Respecting boundaries, providing transparency, and allowing customers to control their personalization settings are crucial for building trust and maintaining a positive brand image.

These all seem like pretty generic concepts when it comes to personalizing customer experiences, but they leave customers feeling like they've been heard and understood. Yet, in order to truly reap the benefits of personalization, it's important to understand how to create a personalized experience that is both effective and engaging.

The Importance of Personalization in eCommerce

The significance of personalization in eCommerce cannot be overstated. It has become a key driver of success for businesses across industries. Here are some reasons why personalization is crucial:

  1. Customer Expectations: In today's digital age, customers expect tailored experiences. They appreciate brands that understand their preferences and deliver relevant content, recommendations, and offers. Personalization helps meet these expectations and sets brands apart from the competition.
  2. Competitive Advantage: Implementing effective personalization strategies provides a competitive edge. Brands that offer personalized experiences are more likely to capture customer attention, drive engagement, and foster loyalty. In a crowded eCommerce landscape, personalization can be the differentiating factor that attracts and retains customers.
  3. Increased Customer Lifetime Value: Personalization contributes to higher customer lifetime value (CLV). By building strong customer relationships and delivering personalized experiences, brands can increase customer loyalty, repeat purchases, and overall revenue generated from each customer.
  4. Data-Driven Insights: Personalization relies on data analysis and customer insights. By collecting and analyzing customer data, businesses gain valuable insights into customer preferences, behaviors, and trends. These insights can drive informed decision-making, optimize marketing strategies, and identify new opportunities for growth.

Relevance of eCommerce Personalization to Brands

At Humankind, our customers are brand marketers within large eCommerce brands, such as Taylormade Golf, Wolverine, Saucony, REN Skincare, and OLAPLEX Haircare. Their customers spend a lot to look, feel, dress, and shop a certain way.

Marketers at these brands and more have told us that the topic of eCommerce personalization is highly relevant to them, so we've implemented its concepts into our platforms. Here are the top 6 things they want to see in an e-commerce personalization platform.

  1. Personalization for Profitability: E-commerce personalization is a key driver of success in the digital landscape. Brands that make their customers happy by giving them a special shopping experience often get higher repeat purchase rates. This will help the business be more profitable so it can compete with other businesses, understand its customers better, and keep its customers for a long time.
  2. Increased Customer Lifetime Value: Personalization efforts contribute to higher customer lifetime value (CLV). Offering relevant content, personalized recommendations, and special promotions based on customer behavior and preferences is one of the first steps to maximizing the revenue generated from each customer.
  3. Competitive Advantage: In a crowded e-commerce market, personalization provides a competitive edge. Understanding and meeting customer needs better than competitors give businesses a way to differentiate themselves, attract new customers, and retain loyal ones.
  4. Dynamic On-Site Personalized Product Recommendations: On-site personalization is a highly effective strategy to increase customer engagement and drive conversions. Analyzing customer behavior, purchase history, and browsing patterns gives e-commerce platforms the ability to display personalized product recommendations in real-time, guiding customers toward relevant and enticing options that suit them.
  5. A Better Understanding of Your Customers: E-commerce personalization allows businesses to gain deep insights into customer preferences, behaviors, and interests. By analyzing rich customer data and applying machine learning algorithms, brands can tailor their offerings and marketing strategies accordingly... but we've already said this 100 times.
  6. Improved Brand Engagement: By delivering personalized experiences, e-commerce platforms can enhance brand engagement. Personalized product suggestions, customized landing pages, and targeted discounts create a more intimate connection between the customer and the brand.

All in all, eCommerce personalization is actively transforming the way we interact with our customers. It's said that the future is "digital," but without watching a SiFi movie, we never would've grasped what that would truly look like.

Just a few years ago, Amazon was the most high-tech convenient eCommerce platform on the planet - today, it's almost antiquated.

Today, you can use your iPhone's lidar capabilities to scan your body dimensions for a custom-made suit. Brands like Saucony already offer virtual reality shopping experiences. As the Apple Vision Pro launches, we'll add new layers to the shopping experience. Harnessing the power of virtual and augmented environments will help brands create unprecedented, personalized experiences that will keep customers coming back.

We're able to accomplish these amazing feats of technological magic through the power of harnessing data and customer insights. With these same components, eCommerce brands can create memorable, personalized experiences that drive customer satisfaction, loyalty, and growth.

As marketing professionals within large eCommerce brands, it's crucial to embrace the power of personalization and leverage its benefits to stay competitive in the dynamic eCommerce environment.

In Conclusion...

E-commerce personalization is the key to unlocking the full potential of your online store. By leveraging customer data, employing personalized marketing strategies, and delivering tailored experiences, businesses can boost sales, increase customer loyalty, and enhance overall customer satisfaction. Incorporating these e-commerce personalization examples into your strategy it will empower you to create a personalized shopping journey that drives engagement, conversions, and long-term success.

Remember, the power of personalization lies in understanding your customers, leveraging data-driven insights, and delivering relevant and customized experiences. Stay ahead of the competition by embracing the potential of e-commerce personalization and revolutionizing your online business.

To see how Humankind can help you win loyal customers by creating truly personalized and connected shopping experiences, Book Your Demo of our platform today, and see what a personalized approach can do for you.

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