The world of eCommerce has recognized the need for a more personalized shopping experience, and that’s where eCommerce personalization comes into play. An Epsilon study revealed that 80% of consumers are more likely to make a purchase when brands offer personalized experiences. Yet, understanding how to effectively personalize your online store can be challenging, especially as trends in eCommerce personalization evolve rapidly.

In this article, we’ll explore what eCommerce personalization is and what its benefits are. We’ll provide real-life examples of how leading eCommerce websites are implementing personalization to deliver customized shopping experiences. After reading this article, you will have all the necessary tools to create an entirely personalized online shopping experience.

What is eCommerce Personalization?

eCommerce personalization is all about customizing the shopping experience to suit each customer based on their behaviors, preferences, and past interactions with the site. For example, imagine browsing an online store where instead of a generic homepage with random products, you’re welcomed with a selection of items tailored to your specific tastes. That’s eCommerce personalization at work. It can bring a range of benefits to your business.

5 Benefits of Personalization in eCommerce

Personalization in eCommerce offers a wide range of benefits that impact every stage of the customer journey, ultimately influencing all related metrics. By tailoring the experience to individual customers, you can see improvements across various key areas. The most significant benefits of eCommerce personalization include:

  1. Enhanced customer experience
  2. Increased customer engagement
  3. Improved conversion rate
  4. Higher customer loyalty
  5. Boosted sales and revenue

These improvements are essential for growing your business, and there are very few downsides. In fact, 83% of consumers are willing to share their data in exchange for personalized experiences.

1. Enhanced Customer Experience

Personalization greatly enhances the customer experience by tailoring it to each individual’s preferences and needs. A customized shopping experience leads to more relevant interactions, which improve overall satisfaction. Epsilon reports that 80% of consumers are more likely to make a purchase when brands offer personalized experiences, showing the significant impact personalization has on customer behavior.

2. Increased Customer Engagement

Personalization boosts customer engagement by offering relevant content and product recommendations that resonate with each shopper. This leads to longer browsing sessions and more frequent interactions. According to Accenture, 91% of consumers are more likely to shop with brands that deliver personalized offers and suggestions, highlighting how crucial it is for businesses to engage customers in a meaningful way.

3. Improved Conversion Rates

Personalization has a direct impact on conversion rates as it reduces friction in the buying process and guides customers towards relevant products. McKinsey’s report reveals that personalization can provide five to eight times the ROI on marketing spend and increase sales by 10% or more, showing how valuable personalized experiences are for improving conversions.

4. Higher Customer Loyalty

Personalization builds customer loyalty by creating a sense of connection and understanding. When consumers feel that a brand understands their preferences, they are more likely to return. According to Segment, 44% of consumers become repeat buyers after a personalized shopping experience, underlining how critical personalization is for long-term customer relationships.

5. Boosted Sales and Revenue

Personalization directly impacts sales and revenue by driving increased average order value and customer lifetime value. A study by Infosys found that 74% of customers are frustrated when website content isn’t personalized, showing the importance of tailored experiences. Brands that invest in eCommerce personalization benefit greatly, with its recommendation engine driving 35% of total sales.

20 eCommerce Personalization Examples

When it comes to personalized eCommerce, it isn’t just about AI features or recommendations. In fact, there are many different ways that you can personalize your customers’ shopping experience, using different personalization tools. Now that you have a general understanding, let’s explore eCommerce personalization examples in action! 

1. Personalized Landing Pages or Homepage

When a customer visits your eCommerce website, you can personalize their landing page or homepage based on their past interactions, purchase history, or preferences. By displaying relevant products or categories upfront, you can create a more tailored and engaging browsing experience. For instance, a customer who frequently purchases sports equipment may see a homepage featuring the latest sports gear and promotions. 

personalized homepage agoda

2. Product Recommendations

Product recommendations can increase revenue by up to 26%. This involves displaying personalized suggestions based on the user’s browsing and purchase history. By analyzing the products a customer has viewed or bought in the past, you can offer tailored suggestions that align with their preferences and interests. For example, imagine a customer browsing an online clothing store. Based on their previous purchases of casual t-shirts and jeans, the website recommends a stylish jacket that complements their fashion preferences. 

ecommerce personalization through recommendations amazon

3. First-Time Promotion

Providing a special sales promotion or discount to first-time visitors is a great way to personalize their experience and encourage them to make a purchase. By displaying a pop-up or banner with a unique promo code or exclusive offer, you can create a sense of urgency and make first-time visitors feel valued. For example, imagine a customer lands on an online beauty store for the first time. As they browse the website, a pop-up appears offering them a 10% discount on their first purchase if they sign up for the newsletter. This personalized offer incentivizes the customer to take action and become a loyal customer. 

4. Top Products

Showcasing top products serves as a form of social proof for your offerings. By featuring a section on your website that highlights the most popular or best-selling products, you create a sense of trust and credibility. This can influence customer behavior by encouraging them to consider products that others have found valuable and enjoyed. For instance, when visiting an online electronics store, a customer notices a section labeled “Best Sellers” displaying highly-rated headphones. This feature helps them quickly identify the most popular and well-regarded products. 

personalization through top products best buy

5. Personalized Push Notifications

Leveraging push notifications with personalized content based on customer behavior and preferences can re-engage customers and drive them back to your eCommerce site. For example, a customer who frequently purchases sports equipment might receive a push notification about a flash sale on athletic gear, enticing them to revisit the website and make a purchase. This personalized approach helps maintain a consistent presence in the customer’s mind and drives repeat visits and conversions.

personalized push notifications

6. Targeted Promotional Banners

Searchandising involves tailoring marketing messages and ads to specific customer segments based on their search queries. When a customer performs a search on your website, you can display targeted promotional banners that align with their search terms. This ecommerce personalization technique helps to capture their attention and direct them towards relevant products or offers. For example, let’s say a customer searches for “summer dresses” on an online fashion retailer’s website. As they navigate through the site, they notice targeted banners promoting summer dress sales or discounts on related accessories. These banners enhance the customer’s shopping experience by providing them with enticing offers and encouraging them to make a purchase. 

targeted promotional banners

7. Win-Back Emails

To re-engage customers who haven’t visited your website or made a purchase in a while, offering a special deal can be highly effective. By analyzing their previous interactions and purchase history, you can send personalized offers or discounts via email or targeted ads to entice them to return and make a purchase. For instance, a customer who hasn’t visited an online home decor store in several months might receive a reengagement email with a special discount code, welcoming them back and encouraging them to explore new products.  This personalized approach helps to regain the customer’s attention and drive them back to your eCommerce site. 

8. Smart Filtering Suggestions

Guided search provides smart filtering suggestions powered by AI during the search process. As customers type in their search query, the system can offer relevant filter options to help them narrow down their search results. This eCommerce personalization technique simplifies the shopping experience by saving time and effort, ensuring customers find the products they’re looking for more efficiently. For instance, while searching for a smartphone on an online tech store, the search bar offers intelligent suggestions for filtering options such as brand, price range, and features, enabling the customer to narrow down their search more effectively. 

smart filtering suggestions 4elementos

9. Product Recommendation Emails

Email marketing is a powerful tool for personalization in eCommerce. By segmenting your customer base and sending targeted emails with relevant product suggestions and exclusive deals, you can create personalized experiences that drive engagement and conversions.  For example, a customer who recently purchased running shoes from an online sports store might receive an email with personalized recommendations for running accessories or upcoming sales on fitness apparel.  This targeted approach makes customers feel understood and valued, increasing the chances of repeat purchases. 

10. Search Bar Suggestions

Recommended searches involve offering autosuggest search results and autocomplete functionality to assist customers in finding the right products.  As customers start typing their search query, the system can provide suggestions based on popular or related search terms. This helps refine their search and offers alternative options they may not have considered initially.  For example, as a customer starts typing “laptop” in the search bar of an online electronics store, the website provides auto-generated suggestions such as “laptop for gaming,” “lightweight laptop,” or “laptop under $1000,” helping the customer refine their search and find more specific options. 

search bar suggestions ebay

11. Customized Loyalty Programs

Personalizing loyalty programs based on a customer’s preferences, purchase frequency, and spending behavior can boost customer retention and encourage repeat purchases. Offering exclusive rewards, discounts, or special perks tailored to each customer’s preferences and loyalty level can make them feel valued and more likely to continue shopping with your eCommerce store.

12. Personalized AI Search Results

Personalized AI search results involve delivering search results that are tailored to each online customer based on their behavior and preferences.  By analyzing a customer’s previous interactions, purchase history, and browsing patterns, you can present them with search results that prioritize products most relevant to their interests.  For instance, a customer searching for “digital cameras” on an online photography store receives search results that prioritize mirrorless cameras based on their previous interactions and purchases, tailoring the search outcome to their specific interests. 

13. Geo-Located Search Personalization

Geo-location-based search personalization tailors product recommendations and offers based on the user’s location, improving search relevance. By identifying a customer’s location, you can adjust search results to highlight items suited to local weather conditions or upcoming holidays. This creates a more personalized eCommerce experience, as demonstrated in the example below.

geo located search personalization

14. Product Bundling

Product bundling involves suggesting items that are frequently purchased together. By analyzing past customer behavior and purchase patterns, you can recommend additional products that complement the item being viewed. 

This ecommerce personalization technique simplifies the shopping experience by presenting customers with bundled options and saving them time and effort in searching for complementary products. 

For example, when a customer adds a gaming console to their cart on an online electronics store, the website suggests additional controllers, games, and charging accessories as a bundle, providing customers with convenience and encouraging them to make a comprehensive purchase. 

zalando ecommerce recommendations

15. Abandoned Cart Offers

Lost buyers are customers who have shown interest in your products but haven’t completed their purchase. Personalization can help you re-engage these lost buyers and entice them to come back and complete their transaction. By sending targeted abandoned cart emails or notifications with personalized offers, you can remind them about the products they were interested in or provide incentives to encourage them to reconsider their purchase decision. 

For example, a customer adds a pair of shoes to their cart but doesn’t complete the purchase. The retailer can send them an email a few days later with a personalized discount code for those specific shoes, reminding the customer of their interest and providing an extra incentive to make the purchase. 

16. Similar Products

Offering similar products involves providing alternative suggestions based on the item being viewed by a customer. By analyzing the characteristics and attributes of the product, you can recommend similar items that align with the customer’s preferences and interests. This ecommerce personalization technique broadens the customer’s options and allows them to explore related products. 

For instance, while browsing a fashion retailer’s website, a customer looking at a specific dress is presented with similar dresses in different colors or patterns, enabling them to explore more options and find the perfect style. 

similar products suggestions blue banana

17. Personalized Live Chat and Customer Support

Providing personalized live chat and customer support experiences can improve customer satisfaction. By using customer data and purchase history, you can tailor your responses and recommendations to address specific customer needs and inquiries. This ecommerce personalization helps create a positive and efficient customer support experience, leading to higher customer satisfaction and loyalty.

18. Search Query History

When a customer uses the search bar on your eCommerce site, the search bar can remember their last search query, making it convenient for them to revisit and modify their search. This ecommerce personalization feature saves customers time and effort by eliminating the need to retype their entire search query if they want to make slight modifications or refine their search. For instance, if a customer searches for “almonds” and then navigates to a different page, when they return to the search bar, their previous query is automatically populated, allowing them to make adjustments or add additional criteria without starting from scratch. 

grapetree personalized search history

19. Personalized Mobile App Experiences

If you have a mobile app for your eCommerce business, personalizing the app experience can enhance engagement. By leveraging data such as location, browsing behavior, and previous purchases, you can customize app content, offers, and recommendations. For instance, a food delivery app might offer personalized restaurant suggestions based on the customer’s location and cuisine preferences.

20. Synonym Recognition

Synonym recognition is a natural language search personalization technique that enhances the search experience by understanding and interpreting different variations of search terms. It allows the search system to recognize synonyms or related terms and provide relevant results, even if the exact search term is not used. For example, if a customer searches for “sweatshirt,” the system can recognize that “hoodie” and “jumper” are synonymous terms and display relevant products for those search variations as well.  This ensures that customers find what they’re looking for, even if they use different terminology. 

How to Get Started with eCommerce Personalization 

Now that you understand the benefits and have seen some examples of eCommerce personalization, you might be wondering how to get started. There are many eCommerce personalization tools, such as the search solution by Doofinder. Doofinder offers powerful site search features that enable personalized search results, product recommendations, and enhanced user experiences.

So, sign up for your 30-day free trial today to take advantage of the benefits of personalization in eCommerce. It’s time to embark on a journey to deliver a truly personalized shopping experience for your customers!

FAQ about eCommerce personalization

eCommerce personalization typically relies on a variety of customer data, such as:

  • Demographics: Age, location, gender, etc.
  • Behavioral Data: Browsing history, purchase history, cart activity, and engagement with email campaigns.
  • Device Data: Information on the type of devices customers are using to access the website (mobile, desktop, etc.).
  • Transactional Data: Previous purchases and interactions with your products or services. Collecting and analyzing this data allows you to deliver relevant product recommendations, targeted promotions, and a customized shopping experience.

Several tools are designed to help businesses implement personalization, including:

  • Product Recommendation Engines: Nosto, Algolia, and Dynamic Yield.
  • Email Marketing Platforms: Klaviyo, Mailchimp, and Omnisend.
  • Customer Data Platforms (CDPs): Segment, BlueConic, and Salesforce CDP.
  • AI-Powered Personalization: Yusp and Vue.ai.

No, personalization is beneficial for eCommerce businesses of all sizes. While larger companies may have more resources, small and medium-sized businesses can use affordable personalization tools and strategies to improve their customers’ shopping experience. Even simple personalized recommendations or targeted email campaigns can yield significant results.

The success of eCommerce personalization can be measured through metrics like:

  • Conversion Rate: The percentage of visitors who make a purchase.
  • Average Order Value (AOV): The average amount spent per transaction.
  • Customer Retention: The frequency of repeat customers.
  • Click-Through Rate (CTR): For personalized emails, recommendations, and offers.
  • Customer Satisfaction and Engagement: Using surveys, reviews, or feedback to assess how well the personalization strategy is resonating with customers.

Yes, eCommerce personalization can be automated with the help of advanced AI and machine learning algorithms. For example, automated recommendation engines are capable of analyzing customer data to deliver personalized product suggestions in real-time, enhancing the shopping experience. Additionally, using a tailored search bar can significantly improve personalization. To discover more about how a customized search tool can elevate the customer journey and boost revenue, be sure to read more about Doofinder’s Guided Search Tool.