Imagine visiting a new athletic apparel website. As the fall weather cools, you’re hunting for the perfect running jacket. When you type the term in the search bar, the retailer shows you tank tops and shorts. You’ll likely never return to the site, right?
Today, consumers expect brands to anticipate their needs—especially younger generations. A recent survey found that 75% of Gen Z shoppers would abandon a brand if they did not receive personalized service.
In this article, we’ll discuss the benefits of ecommerce personalization and provide real-world examples. We’ll also review the top ecommerce automation platforms and share best practices to get started.
Ecommerce personalization customizes the online shopping experience based on customers’ demographics, preferences, shopping behavior, and purchasing history. It helps brands deliver a more relevant and engaging shopping experience.
Generative AI and machine learning software have made it easier for companies to deliver tailored shopping experiences. These algorithms analyze vast amounts of personal data to predict customer preferences and behaviors. From customized product offerings to custom content recommendations, AI empowers brands to create experiences that resonate.
Ecommerce personalization helps brands meet evolving consumer expectations while driving revenue. McKinsey found that high-performing ecommerce brands generate 40% more revenue from personalization than their lower-performing competitors.
The benefits of ecommerce personalization include:
It's no secret that personalization has become a buzzword in the last few years. Many brands have invested in software and tools to customize the shopping experience. But brands must ensure their personalization strategy provides customers with value and drives sales. Brands should engage in ongoing testing to track the performance of their personalization tools.
Personalization strategies create more efficient and engaging customer experiences. But, these strategies vary based on the target audience, industry, and channel. Here are some real-world applications of ecommerce personalization.
With ecommerce personalization tools, brands analyze a customer’s browsing history and past purchases. Companies use this data to showcase products that meet customers’ preferences and needs—creating opportunities for cross-selling and upselling.
Furniture brand Article breaks down its recommendations into three categories. When a customer views an item, Article will show similar products, items from the same collection, and complementary pieces that fit the customer’s aesthetic. The brand also has bundles where customers can shop complementary products based on the specific room (e.g., kitchen, bedroom, or living room).
Dynamic pricing adjusts the cost of a product based on customer demographics and purchasing behavior. For example, a retailer may offer a flash sale to a customer who has viewed a product multiple times but has yet to buy it.
At the same time, customers may be more price-sensitive depending on their preferred social media platform. For example, shoppers on Facebook may be more price-sensitive than those on Instagram or TikTok. Brands can adjust their pricing to increase engagement and conversions on digital ads.
Companies create more personalized marketing campaigns with customer segmentation. By tracking a customer’s preferences and interactions on a website, brands can optimize their marketing messages.
For example, a customer may view drinkware on a home brand’s website but not purchase it. The retailer can use this interaction to create a retargeting campaign showcasing its drinkware collections on a social media ad.
Activewear brand Vuori uses customer-preferred activities (e.g., running, yoga, or crossfit) to create personalized email marketing campaigns. Their emails showcase products specific to that activity. The brand will also send invitations to nearby events based on the customer’s location.
Ecommerce personalization creates a better search experience. Brands use customers’ interests, locations, and past purchases to suggest more relevant products.
When searching for a product on Sephora, the brand will highlight products customers have “favorited.” The company also includes banners next to each product highlighting relevant categories—such as Clean Skincare, Vegan Skincare, or Black-owned brands. And Sephora uses your location to show products in stock or available for same-day delivery.
Ecommerce personalization enhances the effectiveness of pop-ups. Personalized pop-ups can offer content and offers that are relevant to the user’s interests. Brands can also better control timing, such as displaying pop-ups before customers leave.
For example, furniture company Joybird uses the following pop-up when customers abandon their shopping cart. The brand can use the customer’s answer to customize its messaging on future social media or email marketing campaigns.
Ecommerce personalization software enables brands to tailor the online shopping experience better. These tools use data analytics, machine learning, and customer segmentation to automate your ecommerce personalization strategy.
With 92% of companies using AI-driven personalization software, many options are available. Here, we’ll review the top six platforms to help get you started.
Rebuy is a personalization platform helping Shopify stores optimize the customer experience.
Pricing: Free. The Scale plan is $99 per month. The Pro plan is $249 per month. The Grow plan is $499 per month. The Advanced plan is $749 per month. The Enterprise plan is $999 per month.
Bloomreach is an ecommerce personalization platform that uses AI to customize the online shopping experience.
Pricing: Contact their team for a customized quote.
Edrone is an ecommerce customer relationship management (CRM) and marketing automation platform.
Pricing: Not available.
Yieldify is an ecommerce personalization platform with tools to customize the entire customer journey.
Pricing: Not available
AfterShip has a suite of automation tools to power ecommerce. Powered by AI, its ecommerce personalization software helps brands create a more customized experience.
Pricing: Billed annually, the Essentials plan starts at $9 per month, the Pro plan starts at $99 per month, and the Premium plan starts at $199 per month. Custom Enterprise plans are available. Pricing varies by number of shipments.
Segmentify is a customer engagement platform that powers omnichannel personalization.
Pricing: Not available.
Today, personalization can be a buzzword, but with the right data and strategy, ecommerce personalization generates tangible and sustainable results.
Whether you’re new to ecommerce personalization or looking to refine your strategy, here are some best practices to help get you started.
When it comes to ecommerce personalization, A/B testing is critical. Also known as split testing, A/B testing helps companies assess the effectiveness of their personalization efforts. It allows you to compare two or more variations of a webpage, email campaign, or other relevant content to determine which will drive results.
Some examples of A/B testing include:
Personalized experiences are critical. Today, customers are busier than ever and have shortened attention spans. At the same time, the retail landscape is crowded. Across categories, there are more options than ever before. To remain competitive, brands must anticipate customer needs. That’s where SplitBase comes in.
SplitBase is an ecommerce conversion optimization agency. We help ecommerce brands optimize and personalize their online stores and landing pages. And our full-suite optimization program uses A/B testing to ensure brands meet their sales goals and increase conversion.
Get started today to see how SplitBase helps world-class brands like Frank And Oak, L’Oreal, Amika, and Manduka create personalized shopping experiences.
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