Numerous products and services are created specifically for e-commerce in order to provide customers with a smooth, personalized experience. Customers nowadays desire specific services that align with their interests, rather than only making purchases. The e-commerce system’s incorporation of personalization methods has been triggered by this change in customer behavior. It has transformed the methods used by businesses to draw in, engage, and retain customers. In this article, we’ll look at some of the proven strategies of personalization that businesses can apply to enhance the customer experience.
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Key Considerations Before Implementing Personalization
Consideration of a number of important factors is necessary before commencing the implementation of e-commerce personalization strategies. For this, a strong foundation for data collection must be established, one that includes transactional, demographic, and behavioral data, etc. The other phase allows the formation of separate visitor groups designed for certain marketing initiatives. Delivering tailored experiences to each targeted group successfully is an important aspect.
It is possible to distribute personalized data based on these factors after specifying the targeting criteria under specific circumstances. These scenarios pertain to the field of marketing. For example, a personalized email contains exclusive offers. Therefore, this type of offer can be made to customers who have shown inactivity for 60 days.
As an alternative, making use of machine learning offers another strong implementation path. AI technological advancements have sped up the tedious task of individual personalization. Hence, enhancing the efficiency of large-scale processes can prove to be very beneficial. The duality of human and machine strategies does not have to be mutually incompatible. For example, robotic process automation (RPA) uses robots to replicate and carry out rule-based business operations. Such technologies operate continuously with an accuracy similar to human interactions.
Various Strategies for Personalization
Some of the strategies described below have proven to be easier to use or more successful than others. However, it depends on the industry and target demographic. So let’s examine each one separately.
Establishing Personalized Homepages
For existing customers, this level of e-commerce personalization is appropriate. The platform could show welcome pages with offers and products that are most likely to catch a customer’s attention when they register for their account.
Also, their prior transactions are used to generate product recommendations and time-sensitive promotions on the personalized homepage. Such elements encourage customers to move forward via the e-commerce sales funnel. This will depict their path from being a potential buyer to being a devoted customer.
Showing Recently Viewed Products
Before opting to place items in their shopping carts, customers frequently spend many browsing sessions on e-commerce websites. They will be gently reminded to continue exploring by seeing items they have already clicked on. Making offers exclusively for these recently seen products is a more advanced strategy. This can cause a customer’s choice to go from hesitation to commitment.
Benefits like free shipping can also convince customers to add more products to their carts. Adding a sense of urgency, such as with time-limited incentives, may help increase conversions.
Strategic placement of recently viewed products is possible, including on the homepage or specific landing sites connected through marketing emails. It also includes a consistent position at the core of all pages for e-commerce sites. Customers are able to follow their interests as they browse as a result of this.
Information about customers should be gathered in order to keep track of recently viewed products. It is suggested to consider the use of LaaS. The reason is that it reduces the costs and complexity of data security and storage infrastructure.
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Adjusting the Offers to the Location
Creating location-specific e-commerce feeds can prove beneficial for businesses with a wide customer base or a worldwide market. This may involve displaying goods in the region’s currency and language. Many e-commerce platforms can be customized to fit unique business requirements and effectively manage higher client volumes.
On a regional level, this e-commerce personalization strategy can be used. Seasonal fluctuations in inventory would be different between regions in the case of an online clothing retailer. By considering two areas, this may be understood. Supposedly, California and Michigan have two different climates. As a result, their variations will be distinct from one another. Marketing efforts might be made much more effective by making adjustments for these regional climates and preferred fashion.
Constructing Unique Campaigns as per Customer Behavior
It is crucial to provide customers with a variety of products in order to accommodate their diverse requirements and interests. The collection of information about user interactions with the website is required for this type of personalization. With this information in hand, businesses can utilize behavioral segmentation strategies to create customized campaigns for particular customer segments.
Targeting both existing and new customers can be accomplished with this method. By signing up for an email list or loyalty program, for example, businesses might provide incentives to first-time customers. They can also ask for feedback or reviews from existing customers who have recently made purchases.
There are over 3.9 billion daily email users in the world today. This gives businesses a wonderful way to interact with their customers. Such a large user base, however, also implies that there is more competition for customers’ attention. Therefore, to distinguish oneself within subscribers’ inboxes, the solution lies in e-commerce personalization.
When customers sign up for marketing emails, businesses can leverage their behavioral data to provide offers as per their interests. The probability that receivers will click on embedded links is greatly increased by this method. Particularly to ensure email opens, personalization should be used in the subject lines as well.
The use of such targeted email marketing benefits a variety of retailers online. Particularly, this approach might be a powerful tool for Direct-to-Consumer (DTC) businesses. Direct-to-Consumer, or DTC, refers to an advanced strategy used by manufacturers to avoid conventional distribution channels. The intermediates in the process are therefore removed as a result.
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Doing Recommendation of Products
According to a research by Barilliance, product recommendations contribute 31% of e-commerce site revenue. This demonstrates the clear cost-benefit potential that this approach offers businesses.
Customers can get disinterested in browsing through all the products in online stores with a wide variety of offerings. Therefore, the virtual guides that act as personalized recommendations help customers navigate the website.
These personalized recommendations act as a helpful employee, similar to a physical store. Such an option could resonate if a certain thing did not. A related suggestion is made if a buyer indicates interest in a product that is specific for them.
These recommendations can be constructed using information from abandoned shopping carts or previously viewed pages by the user. The quality of suggestions rises proportionately as user data depth increases. This results in a better shopping experience.
Effective use of Social Media
Through various platforms of social media, businesses can express their own unique value. Supposedly, the budget for a dedicated social media expert is unavailable. So it would be wise to establish a specified period of time each day to handle inquiries about the online platform. On sites like LinkedIn, Instagram, and others, this is done to assess if a response is positive or negative. It depends on the kind as well.
The choice to hire a qualified social media expert or outsource the service through a reputable digital marketing company remains an important one. It is for those with strong financial means.
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Adopting an Effective Content Strategy
To assist customers in resolving their primary problems is the goal of content marketing. This may apply to a variety of mediums. It consists of blogs, articles, instructions, interviews, videos, and visualizations oriented toward the offered products and services.
To simplify this process, keeping an easily accessible content calendar is advisable. The best strategy for carrying out efficient content marketing is to outsource the services of a skilled content marketer.
In essence, e-commerce personalization is no longer a mere enhancement but a strategic imperative that empowers businesses. It allows them to connect with their customers on a deeper level. As technology continues to advance, those who adeptly harness the power of personalization will stand out in a massive marketplace. Therefore, helping businesses secure strong relationships and long-term success in the dynamic world of e-commerce.