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