Personalization: The game changer in ecommerce

May 10, 2017 - 17:47

Personalization has become the game changer for ecommerce sites. It helps store owners to proactively engage with visitors and provide them what they want. Customers also expect e-commerce systems to provide them unique experiences based on their preferences. Studies prove that personalization has increased customer engagement and sales to a great extent.

JD Sports, a sports wear dealer located in Bury, England states1 that the implementation of personalized product recommendation feature in their website Millets.co.uk in the year 2014 has constituted an increase of 332% in user conversions. It also accounts for 19% of the total revenue generated by the website.

Ecommerce platforms collect as much information as possible from customers based on their interactions in the portal. Here are some ways in which e-commerce portals can deliver personalized experience to customers:

Call to actions targeting the customer

Specific call to actions can be displayed based on the customer behavior. For instance, display a pop-up advertisement for a product which the customer has viewed in her previous visit and offer a discount. Or prompt the user to input their email address to get a discount coupon for the specific product she is looking for if the user is a first time visitor.

Engaging returning customers through customer portals

Encourage users to sign-up by giving them special offers. If customer identity is known, the engagement will be stronger. It also enables the portal to engage with the customer even though multiple devices are used to access the portal. For example, if the customer searches for a specific product on her mobile device and later visits the portal from her laptop, the site can identify the user and show the products she is looking for.

Intelligent predictions

Based on the data collected from various sources, personalization systems can make intelligent predictions on the probability of purchasing a specific product. Based on this information, various automated actions can be taken to increase conversion.

Informed chat agents

The integration of personalization systems with chat systems allow the informed chat agents to communicate with a visitor accordingly. In the case of a customer accessing the site via a special advertising campaign email, the chat agent will get a real-time notification and can initiate a conversation with the customer with that information.

Enhancing user experience with virtual reality

Due to the availability of multiple channels for product purchase, customers now tend to go with platforms that deliver them the best user experience. Virtual reality is the trend now. People expect ecommerce platforms to deliver a real-time experience of the products using their VR devices. Eg: For a clothing store, if an option is provided to try a shit virtually using VR devices or even in their web platform, it will certainly deliver a good experience for users. Another one is allowing users to explore the interior of a car using their VR device. This will give them a feel that they are sitting inside that car.

Personalization will not only increase the revenue but also will build brand loyalty among customers.

Works Cited:
1. Simon Peirson, "How JD Sports outdoors brands Blacks and Millets integrated personalisation into their experience", Case study, October 2016, Smart Insights, accessed April 2017.

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