Blog article

How to apply E-commerce personalization

If you show Real Madrid merchandise to an FC Barcelona fan on your website, you can be sure you won’t sell anything. Understanding your customer´s needs and preferences is key to your company's success.

That is where personalization comes in; the art of offering your customers experiences that are so relevant that they feel like a flow-state. A state in which there is no resistance to what is, symbolized by the inherent satisfaction that it induces.

In this blog, we’ll show you how to apply the powers of personalization in your e-commerce company. So that you can offer the feeling of flow to your customers.

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What is E-commerce personalization?

E-commerce personalization is the practice of tailoring the online shopping experience to your customers based on their preferences, needs, and behaviour. For the best results, e-commerce personalization should be applied through all of your channels, from website and mail to social media and advertising.

Through the usage of smart AI algorithms, E-commerce personalization even works for anonymous visitors. Via personalized content, emails, site layouts and more, your visitor is shown what meets their needs. Which works wonders for increasing your conversion rate and customer satisfaction. But those are just two of the benefits that E-commerce personalization offers.

What are the benefits of E-commerce personalization?

Seen from a customer’s perspective, the benefits of personalization quickly become clear. Because their online shopping experience exactly meets their expectations, the experience with your brand is more personal, and the buying process is less time-consuming. If their shopping experience truly meets their expectations, it can induce a state of flow.

But how does this translate to your business success? Let’s look at some stats:

  • 91% of customers say they are more likely to shop with brands that provide relevant offers and recommendations to them. - Accenture

  • 63% of customers will stop buying from brands that use poor personalization tactics. – Smart Insights

  • 78% of customers are more likely to recommend and buy again from a company that personalizes (shown below). - McKinsey

  • Marketers report that personalization efforts can boost revenues by up to 15%, reduce acquisition costs by 50%, and increase marketing spending efficiency by up to 30%. –Adweek

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As research shows, there is a lot to be gained by implementing E-commerce personalization. It is thus no surprise that there are many examples of companies applying personalization successfully. But to become successful, you first need to start taking the first steps.

Personalization made easy

There are many ways to apply E-commerce personalization to your business strategy. But it all starts with data. For data is the key to truly understanding your customer on a deeper level.

Although possible, collecting and analyzing all your data from multiple channels is a complex and time-consuming feat. These channels often do not communicate, leading to data silos that keep you from unifying it into one complete, 360-degree profile picture.

To start with effective E-commerce personalization, you need a tool that does the hard work for you. A tool that collects and unifies your data and lets you turn it into personalized content and experiences that convert.

A Customer Data Platform (CDP) does just that. It simplifies the personalization game by using AI to create individual customer profiles. Profiles that exactly fit each individual customer and make sure that the content shown to them is relevant.

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How to get started in 7 steps

When you’ve implemented a CDP, it’s time to start personalizing. You can do so by following these initial steps:

Step 1: Appoint a key stakeholder (or specific personalization team) and allocate sufficient time/resources to your personalization process. This can differ per type of CDP. With a CDP for marketers, such as Datatrics, it is generally easier to implement personalized campaigns, while other CDPs may require more technical expertise.

Step 2: Set up a (long-term) personalization strategy with your team. It should contain your concrete goals and a plan for continuous optimization.

Step 3: Define where the most potential for personalization lies. Do 60% of your sales come from email campaigns? Then that channel could be the right place to start.

Step 4: Visualize all touchpoints within the customer journey you’re focusing on and analyze their effectiveness. Is the percentage of customers leaving after a specific touchpoint high? Then it’s time to optimize.

Step 5: Start to create and publish personalized touchpoints. Start small by implementing one or two use cases and gradually adding others. You can also let the intelligent AI decide or build your own strategies.

Step 6: Test whether the results are as expected. If not, optimize!

Step 7: Expand this blueprint/strategy to other areas of your company where personalization can be of added value.

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