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    The Importance of eCommerce Personalization, Explained

    Lakisha DavisBy Lakisha DavisJune 14, 2021
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    The Importance of eCommerce Personalization, Explained
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    The global market size for eCommerce is expected to reach 4.89 trillion in 2021. Growth in the industry has been truly remarkable over the years. As a result, the sector has opened up lucrative opportunities for entrepreneurs the world over.

    But digital business isn’t without its challenges. A staggering 90 percent of businesses in the eCommerce sector don’t make it past the first 120 days. The top reason for this high failure rate is the inability of these businesses to attract and retain clients.

    The online business space can be incredibly competitive. One way to differentiate yourself is to have a solid eCommerce personalization strategy.

    In this post, we explain what eCommerce personalization is and why you need it in your digital business today.

    Read on to learn more.

    What Is eCommerce Personalization?

    ECommerce personalization refers to the process of providing personal experiences on your e-commerce site. You do so by displaying content, recommendations, and offers based on such factors as a user’s:

    • Previous actions on the site
    • Browsing behavior
    • Demographics
    • Purchase history

    Personalization in eCommerce can help you address the unique needs of each of their customers.

    Why Do You Need an eCommerce Personalization Strategy?

    The importance of eCommerce personalization cannot be overemphasized. Here are eight ways personalization in your online business can help you stay ahead.

    It Enhances Customer Experience

    The main goal of personalization in your eCommerce business is to offer a positive experience to users. In doing so, you boost the likelihood of these users coming back. The idea is to nurture long-term relationships with clients.

    A simple way for e-commerce businesses to enhance user experience is by having customized landing pages. Other approaches include creating targeted ads, curating your email messages, and so on.

    Through personalization, your users can find content that appeals to their specific needs. It’s all about creating a customer-centric experience as opposed to a business-centric experience. The good news is that the vast majority of consumers notice and appreciate when a brand personalizes offers and messaging for them.

    It Helps You Make Precise Product Recommendations

    eCommerce personalization helps you suggest products that users are most likely interested in.

    Recommendation engines can collect data based on user behavior to generate results that are as precise as possible. That means it’s possible to make accurate predictions. You can thus arrange products or services systematically to match a visitor’s preferences.

    Recommendation systems work by saving a user’s real-time data through their browsing history. They also take note of how the users behave throughout the browsing session. The systems then associate each visitor with the products or services that match their preferences the most, which prompts a sale.

    You Get More Conversions

    eCommerce personalization can help drive digital sales and increase conversion rates. Businesses that use targeted content generally report an increase in:

    • Sign-ups 
    • Sales 
    • Lead generation
    • General conversation rates

    Personalization helps you catch and maintain the attention of consumers long enough. This is extremely important, given the brief attention span of internet users today.

    You Get to Provide Selective Information

    Online shoppers don’t like to be bombarded with countless products they have no interest in buying. Most will leave your website if that happens, and you may lose them for good.

    By personalization your eCommerce site, you prevent information overload. You ensure that all content you’re displaying is curated and personalized. Customers can easily comprehend your content, which improves the conversion process.

    Customers Can Take Charge of Their Experiences

    One of the biggest reasons eCommerce personalization is so effective is due to people’s inbuilt desire to be in control. Consumers want to stay in charge of their experiences rather than feel they’re being told what to do.

    Personalization ensures that users see only what appeals to their desires. You’re not shoving products that don’t interest them or cajoling them with annoying ads. As long as a consumer is in control of their experience, conversions are easier and faster.

    You Boost Customer Loyalty

    Few eCommerce tips are more effective at customer retention and loyalty than personalization. 80 percent of consumers are more likely to do business with a brand that offers personalized experiences.

    Personalization makes users feel that you highly esteem them and are going out of your way to listen to them. That boosts trust and loyalty, and you can expect return business and referrals from your customers.

    You Enhance Search Capabilities

    Personalization also involves adapting your eCommerce site to the needs of users who wish to explore what’s on offer. You need to offer online searches that enable users to use search criteria as product availability, details, price, and ratings.

    Once you provide these search capabilities, it becomes easier for your site to generate more personalized results. This helps save users time and boosts their overall experience.

    You Get to Communicate Efficiently

    Efficient communication entails delivering the most suitable content to the right user and at the right time. Through eCommerce personalization, you can achieve this.

    Ultimately, you get to promote more meaningful interactions with each user. This can help[ boost your reputation.

    Leverage eCommerce Personalization for Business Success

    Thriving in today’s competitive online business space means keeping your customers satisfied. eCommerce personalization can help you achieve this. You get to negate information overload, allowing users to remain in control. It also makes it possible to display only products that interest your customers.

    Would you like to read more content on how to boost customer experience on your eCommerce site? Please, keep visiting our blog. 

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    Lakisha Davis

      Lakisha Davis is a tech enthusiast with a passion for innovation and digital transformation. With her extensive knowledge in software development and a keen interest in emerging tech trends, Lakisha strives to make technology accessible and understandable to everyone.

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