Why personalization has a huge potential in ecommerce?

Personalization utilizes collected user data to create and distribute relevant content that is tailored to the unique demand of each of the customers. E-commerce stores prominently utilize web personalization to:


-collect data and behavioral patterns about the customer


-set up logics and initiate (real-time) product recommendations


-address personal messages across all the channels the e-store is available


The massive, immanent potential gained in user experience can be caught along the whole length of customer journey and sales funnel:


-Search function gets more efficient. E-commerce companies must record not only the purchasing and navigation history but the browsing details as well: the desires of the visitors as they are searching in the supply. With completed/uncompleted/broken searches ordered to each customer it will be easier to align personalized search results with them.


-Eliminating the Problem of Irrelevance. Customers don’t like being besieged with irrelevant products. Bouncing rate soars when frustrated visitors can’t find the intended product but they are bombarded with other products they have nothing to do with.


-Engagement raised, level of interaction emerged. After you learned the most meaningful interests and pain points of your buyer, you will be able to better react them. Customers will appreciate the messages that shed the light more on their problems, and they will be more likely to get in interaction with your store. Once the interaction is solidified and customers start to feel related to your store, the whole interaction can be turned over to a progressive conversation aiming to sell.


-Communication becomes more efficient. When customers are addressed with their names and targeted with the most personalized contents, the most suitable products, their level of attention intensifies and they become receptive even to other products may those be relevant or irrelevant, therefore this is a perfect channel to upsell or offer bundle sales.


-Personalization Increases Conversions:  Once you have managed to catch the attention of your visitors, they will spend a longer time in your e-store. Maintaining long attention spans in this rushing and bustling internet scene will end up in higher trust that will entail higher conversion.


-Customer Loyalty Improved. Features of personalization (personalized communication and relevant content)  are more likely to increase the numbers of your loyal customers who will come back even for the products they could be able to buy somewhere else, even on a lower price. The more they spent in your store the more convinced they become of that they had the best choice and they are more prone to become keen brand advocates or evangelists and they will appear as a voluntary recommender of your product.


The core outcomes are the following:


-A deeper understanding of individual customers - moving beyond segments and general personas to understand the needs, preferences, and buying triggers of each individual customer.

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