E-commerce personalization is the process of creating unique experiences for shoppers. It works by changing elements based on each user and comes in many forms, including product recommendations and promotions.
Personalization is essential for great customer experiences. As your catalog grows, it takes longer to find products. With personalization, however, you show what's most relevant to a user's needs. Doing so removes friction, making the buying process easier. The result is ultimately increased sales and repeat purchases.
Research shows that 80% of shoppers are more likely to buy from a brand that personalizes their experience. Further studies reveal that 77% of users have paid more for a brand just because of personalization.
There are many tools you can use to personalize your e-commerce experience. In this post, we'll cover how e-commerce personalization software works and how you can use it to grow your business.
Personalizing the E-Commerce Experience
Data collection is key to personalized experiences. Personalization software takes data to create unique customer segments. Either the software itself or another system collects this data. The software often features AI and machine learning. This allows it to process data in real-time.
There are various ways to segment your users. Some standard criteria include:
- Traffic source
- Customer vs. non-customer
- Customer lifetime value
- Products purchased
- Pages visited
You can also use more personal data, such as age or gender.
Data gives you many options for refining your personalization strategy. You can start by creating unique experiences based on location. You can also go complex, which requires more granular data like the user's personal info or purchase history. Let's examine two examples of how you can provide a highly personal experience.
Display product recommendations using a DXP
Product recommendations are the backbone of e-commerce personalization. With fabric Experience Manager (XM), you can use reusable components to create a product recommendation section. The components can personalize products based on inputs like location. You can also base products on the user's order history by connecting your order management system using APIs.
XM comes with native A/B testing. This allows you to test which elements your users respond to the most.
Present unique offers using a pricing and promotions engine
With a promotions engine like fabric Offers, you can present your customers with personalized promotions. You do so by defining the segment to receive the offer. This allows you to create simple segments like customers and non-customers.
Or you can make more granular lists like people who've bought a specific item. With more detailed segments, you can create deeper personalization. For example, you can create a discount for a cross-sell item for a group that has purchased a complementary product.
Connecting the Personal Experience Across Channels
Personalization at scale requires flexible solutions. Customers don't just want personalized experiences; they want cohesion between different touchpoints. Take advantage of XM and connect with your omnichannel experience. Doing so allows you to manage your customer experiences in a single place, easily pushing them to every channel through APIs.