Why Personalization Matters in E-Commerce
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About: FreshTech is a product & service company with 17 years of experience. We create solutions for business digitalization and startups launching using our low-code automation platform Spiro

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Why Personalization Matters in E-Commerce

Publish Date: Jun 5
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Personalization in e-commerce involves customizing content, product recommendations, interfaces, and communication to fit each user’s unique preferences. This is based on data like browsing history, purchase habits, user behavior, location, device type, demographics, and traffic sources.

Levels of personalization include:

  1. Content: changing banners, text, and on-page elements according to user interests or past actions.
  2. Products: offering dynamic recommendations and curated selections using machine learning or manual grouping.
  3. Interface: tailoring the layout or order of items in catalogs, search results, and filters.
  4. Communication: sending emails, push notifications, or messages with updates, special deals, or reminders about abandoned carts.

The aim of personalization is to deliver a relevant experience for each user, making it easier and faster for them to make a purchase, while increasing the value of every interaction.

Here are some examples of how personalization can be applied:

🟣 Dynamic website blocks

Elements like the homepage, banners, CTA blocks, and category offers adapt based on traffic source, user behavior, or purchase history. For instance, a new visitor might see the brand’s unique selling proposition (USP), while a returning customer is shown current promotions in their favorite category.

🔵 Triggered emails

Emails are sent automatically in response to specific user actions, such as viewing products, adding items to the cart, making repeat purchases, or periods of inactivity. The content is personalized based on the user’s interests, purchase history, or segmentation, making each message relevant and timely. This helps boost engagement and motivates users to move forward in their buying journey.

🟡 Push notifications based on user actions

Notifications are activated by particular behaviors like product views, extended inactivity, or discounts on favorite brands. This strategy encourages users to return to the app at moments when they’re most likely to engage.

🟢 Product or content collections

Collections are created either automatically through algorithms or manually based on segments, behavior, and preferences. Examples include collections for beginners, brand enthusiasts, seasonal shoppers, or high-value customers. These personalized recommendations increase the chances of user interaction without feeling like direct advertising.

Where to start?

To start with personalization, businesses should first assess their existing data, including analytics, purchase history, traffic sources, and CRM segments. This helps determine what personalization elements are already in place and what needs improvement or additional data collection.

When choosing tools, off-the-shelf services offer quick setup for basic needs but have limited flexibility. Custom development provides scalable, tailored solutions that fit unique business processes and allow for advanced segmentation and integration. The choice depends on the company’s goals, budget, timeline, and data complexity.

Segmenting users based on behavior, preferences, and past interactions is crucial for delivering relevant offers and messages. Clear logic for each segment ensures a more personalized user experience.

Finally, A/B testing plays a key role in optimizing personalization by revealing which content and design elements resonate best with users, allowing ongoing refinement based on real user data.

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