The professional distinction of Ecommerce Personalisation. Retailers are always on the lookout for ways to stand out from the competition, increase customer loyalty and keep their customers happy. Many are well aware that one of the key ingredients to effectively doing all of those things is personalisation.
However, when it comes to ecommerce, brands like Amazon have already set the bar so high that a new approach is necessary to compete. Hyperpersonalisation is becoming the norm as brands discover that a one-size-fits all approach is no longer sufficient to meet the evolving customer demands. As Forrester points out, “organisations that fail to meet buyers’ expectations for personalised omnichannel communications risk losing market share to competitors that do.”
Ecommerce personalisation provides a way for brands to maximize their capabilities and increase sales. Unfortunately, not executing on such a strategy can cause brands to suffer. In this article we’ll dive into the world of ecommerce personalisation and highlight why it’s important, the benefits of such a strategy.
What is ecommerce personalisation?
The term “ecommerce personalisation” relates to the set of practices in which an online store displays ensures customer data, such as demographics, intent, preferences, browsing history – impressions, previous purchases, and device usage—for instance, whether the customer is shopping on a mobile, tablet, or even a smartwatch, is being used to tailor product offerings to the individual consumer.
Why is personalisation important in ecommerce?
Personalisation ensures that the offers presented to your customers are relevant. Consumers have indicated time and time again that personalisation is very important to them, with data from Epsilon showing that when brands provide them with personalised experiences, 80% of customers are more likely to make a purchase. Not to mention the fact that the opposite is also true. When brands fail to deliver personalised experiences to their customers then these customers are likely to want to choose a competitor that does a better job of tailoring their experience.
What is the difference between personalisation and customisation?
While marketers may be tempted to give customers the option to customise their experiences, it’s important to note that personalisation and customisation are two different things. When brands enable customers to customise a product, they are placing the onus on the customer to build their own experience.
On the other hand, with personalisation, the duty is on the brand to properly leverage customer data and provide an experience that the customer will want. By anticipating the customer’s needs before they have a chance to express them, brands can drive customer loyalty and improve their experience. However, there are also more benefits to doing personalisation in ecommerce.
Benefits of ecommerce personalisation
Personalisation in ecommerce can be the difference between customers choosing your brand vs the competition, but why should brands choose to use personalisation when selling products online? Here are a few reasons:
Better Sales Conversions
When a customer visits an ecommerce store and is going to decide if they’re going to make a purchase, they don’t want to be greeted by the same experience as everyone else. Ecommerce personalisation can increase conversion rates by showing customers exactly what they’re looking for before they buy. By using tactics such as product recommendations when a customer is about to checkout, brands can showcase products that specific groups of customers are more likely to buy, increasing conversion rates for items that may not be popular with all of their customers.
Improved Brand Engagement
If you know where your customers want to shop and the types of products they are more likely to buy then you can improve engagement and the way they choose to interact with your brand. Personalisation entices customers to want to interact with your brand because you showcase the products they want to see in the way they want to see them.
Increased Customer Loyalty
Ecommerce personalisation makes your customers more loyal. By showing them that you consistently know what is expected of your brand and how to provide the experiences they want, they are more likely to show their loyalty and continue shopping with your brand vs the competition.
Enhanced Customer Experience
Personalisation provides an enhanced customer experience because it helps your brand to better cater to customer needs and make their time shopping with you more enjoyable. Through personalisation brands can remember customer preferences and direct them exactly where they want to go from the first time they enter your store. Showcasing the products they will want to see, storing payment information for quick access and updating them on upcoming promotions that they will be most interested in are just some of the ways personalisation improves the customer experience.
Better Understanding of Customers
Ecommerce personalisation doesn’t just help you improve the customer’s experience, it helps you to understand them better. Personalisation requires brands to collect customer information to provide a better experience. When used correctly brands can discover where their customers are located, the types of products they enjoy buying and also the ones they don’t. This information can be used to determine which products to continue making and which ones to stop selling.
Competitive Advantage
If your competition isn’t using ecommerce personalisation then chances are that you will have an advantage over them. Personalisation provides an opportunity for your brand to differentiate itself from others and endear itself to your customers. Customers can sometimes change their minds at the drop of a hat. However, if you’re providing a more personalised experience that they can’t find elsewhere, they are more likely to stay with you and even become brand advocates.
