Looking for a way to stand out from your other e-commerce competitors and attract customers? One of the most effective ways to do this is personalization.
91% of shoppers are more willing to shop from brands that provide personalized experiences—those that remember their preferences and suggest relevant products [1].
So what exactly is personalization, and how can it help you grow your ecommerce business?
What Is Personalization in Ecommerce?
Personalization means tailoring the shopping experience to the individual needs and preferences of each customer.
It includes everything from recommending products in an e-commerce search based on a customer’s previous interests to displaying customized product recommendations on a website to sending personalized emails with special offers and discounts.
For example, if a person searches for autobiographical books, you can use this data to personalize their shopping experience. The next time this user searches for books, you can display autobiographical books higher on the search results page, improving engagement and increasing the likelihood of conversion [2].
Why Is Personalization Critical for Ecommerce Success?
Personalization plays a pivotal role in the success of any ecommerce business. It offers businesses a way to enhance customer experience, improve conversion rates, and better understand their customers.
1. Improved Customer Experience
By providing customers with an individually tailored shopping experience, businesses can make them feel valued, remembered, and understood.
This leads to increased engagement and customer loyalty, as customers are more likely to return to a website that offers personalized services [3]. In fact, 83% of shoppers are willing to share personal data to receive the benefits of a personalized experience [4].
2. Better Understanding of Customers
Personalization helps businesses better understand their customers and anticipate their needs. By analyzing customer data and behavior, businesses can gain valuable insights into customer preferences and trends. This enables businesses to adjust their product offerings and services to meet demand more effectively [5].
For example, reviewing search terms that lead users to a no-results page allows businesses to refine their product offerings or add synonyms to the search engine. This data-driven approach enhances customer satisfaction and retention.
3. Increased Conversion Rates
Personalization is a critical component for increasing conversion rates. According to studies, two-thirds of ecommerce businesses saw a rapid increase in conversion rates after implementing personalization strategies [6].
By providing shoppers with personalized experiences and product recommendations, businesses can build stronger customer relationships, leading to repeat purchases and higher conversion rates [7].
LupaSearch – A Trusted Ecommerce Search Partner for Personalization
LupaSearch is an ecommerce search provider that offers AI-driven site search with personalization capabilities. This fully customizable search solution allows businesses to personalize their ecommerce search experience, resulting in an average 40% increase in conversion rates [2].
By implementing tools like LupaSearch, ecommerce businesses can thrive in a competitive marketplace by offering personalized shopping experiences tailored to each customer.
Book a free product demo at LupaSearch, see it in action, and make your customers the happy ones!
References
Ramnarayan, S. (2011). Perceived Effectiveness Of Personalization. Journal of Business & Economics Research, 3. https://doi.org/10.19030/JBER.V3I9.2807.
Aslanyan, G., Mandal, A., Kumar, P., Jaiswal, A., & Kannadasan, M. (2019). Personalized Ranking in eCommerce Search. Companion Proceedings of the Web Conference 2020. https://doi.org/10.1145/3366424.3382715.
Ghansawant, S., Kumbhar, G., kawase, P., & Sharma, P. (2023). The Power of Personalization: Enhancing User Experience in E-commerce. International Journal For Multidisciplinary Research. https://doi.org/10.36948/ijfmr.2023.v05i06.8899.
Bleier, A., & Eisenbeiss, M. (2015). Personalized Online Advertising Effectiveness: The Interplay of What, When, and Where. Mark. Sci., 34, 669-688. https://doi.org/10.1287/mksc.2015.0930.
Dzulfikar, M., Purwandari, B., Sensuse, D., Lusa, J., Solichah, I., Prima, P., & Wilarso, I. (2018). Personalization features on business-to-consumer e-commerce: Review and future directions. 2018 4th International Conference on Information Management (ICIM), 220-224. https://doi.org/10.1109/INFOMAN.2018.8392839.
Adolphs, C., & Winkelmann, A. (2010). Personalization Research in E-Commerce - a State of the Art Review (2000-2008). Journal of Electronic Commerce Research, 11, 326. Personalization Research In E-Commerce – A State Of The Art Review (2000-2008) | JECR
Piller, F., Harzer, T., Ihl, C., & Salvador, F. (2014). Strategic Capabilities of Mass Customization Based E-Commerce: Construct Development and Empirical Test. 2014 47th Hawaii International Conference on System Sciences, 3255-3264. https://doi.org/10.1109/HICSS.2014.403.