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How Does Personalization Impact Your E-Commerce Business In 2022

Co-founder, CEO
Personalization Impact on Your ECommerce Business
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4 min

As eCommerce consolidates its position across the globe, its hunt for personalization intensifies. A whopping 74% of consumers feel frustrated when eCommerce websites are not personalized.

But what do these eCommerce personalization trends indicate? What is it about eCommerce personalization that has left so many business owners in a tizzy? Could modern-day technologies unlock more customer value through personalized recommendations? Or is it another gimmick that will soon die out? Let us review all these pressing questions.

So, What is Personalization in eCommerce?

eCommerce personalization refers to curating a personalized experience for the customer by recommending products, displaying content, and offering deals based on their actions, location, behaviors, purchase history, and other patterns.

It can take many forms. Websites may deploy eCommerce personalization strategies that display personalized homepages to different accounts, or the content may change depending on the visitor’s geographical location.

Similarly, eCommerce personalization best practices can use personal elements in CTAs of your landing pages or tailor the push notifications. Some stores may even offer personal shopping assistants that can share useful buyer’s guides for product categories of their interest.

Regardless of the type of eCommerce personalization, the objective is singular - to deliver dynamic content based on user profiles and preferences.

Why is Personalization such a Big Trend?

The concept of eCommerce personalization is getting a lot of attention in the world of eCommerce. Mostly because personalized website design is a proven way to drive higher sales. Personalizing your website based on users' preference straightaway increases the likelihood of purchase for the target users. In fact, 80% of shoppers are more likely to buy from a store that offers personalized experience. All these factors make personalization a huge trend in the world of eCommerce.

Benefits of Personalization in eCommerce - Things to Keep in Mind

Nearly 80% of buyers are more likely to purchase from an eCommerce store offering personalization. Such eCommerce personalization stats indicate that customers want, or rather demand, personalization. So what’s in it for businesses?

eCommerce personalization can boost sales

One of the most obvious and far-reaching impacts of personalization in eCommerce is the increase in sales volumes. In 2016, Gartner predicted that eCommerce businesses following personalization best practices will register 15% higher profits by 2020.

And eCommerce personalization has not only managed to achieve it but also go above and beyond. Apart from the increase in total sales, businesses that offer personalization at scale see marketing cost reduction by 10-20%, a bump in sales conversion rates by 10-15%, and greater customer satisfaction by 20%! And these numbers are bound to witness an uplift if you are using a personalization tool for other services at various touchpoints, such as marketing, product recommendations, on-site search, pricing, pre- and post-sales support, checkout, customer servicing, etc.

Unlocks Additional Revenue Streams

Techniques like cross-selling and upselling contribute to nearly 30% of eCommerce revenue. Hence, they can be an excellent starting-off point for expanding your revenue streams. Fortunately, a powerful product recommendation engine can help you make smarter decisions on how you should go about making the product recommendation.

Apart from granting the option to purchase bundled or recommended products, eCommerce stores can also implement dynamic and personalized pricing to suit the buyer’s price sensitivity. Even if you are bagging a high-worth customer by offering them a discount, their long-term value will far surpass it.

Enhances Customer Experience with eCommerce personalization

Personalizing your website or its content according to the buyer’s need would make your store more relevant to their intent of purchase, tastes, and preferences. As a result, eCommerce personalization supports a customer-centric ecosystem that corresponds to an elevated customer experience.

Customer experience can play a significant role in shaping the buyer’s journey, especially while capturing new customers. A positive customer experience means that first-time customers are more likely to return and become repeat customers. eCommerce businesses can therefore use it to gain a competitive edge above the rest.

Fosters Customer Loyalty

As the eCommerce segment turns overly saturated, businesses have to battle it out to differentiate from each other and earn repeat buyers. And here’s where personalization for eCommerce websites steps in. A massive 91% of consumers are more likely to stick with eCommerce stores that offer product recommendations that are relevant to them. In the same vein, a Forrester report discovered that 77% of buyers have recommended a brand to new customers for its eCommerce personalization.

So whether you are dealing with first-time customers or repeat customers, personalization for an eCommerce business is the key to building loyalty. It puts the customer in control of their demands and expectations, which increases the probability of them purchasing from you (that too in greater frequency). As a result, you can nurture long-term customers with an equally proportional customer lifetime value!

It Helps Retain Attention

The concept of selective attention proves to be crucial in determining the success of eCommerce personalization. This bias focuses on instant gratification through immediate value offering and personalized content. And if your website is highly cluttered or loaded with information, it can overwhelm the buyer and thwart all attempts at making a sale.

Hence, even though selective attention caters to those with short attention spans, eCommerce recommender systems can exploit it to their advantage through personalization. It allows you to curate a website that contains a list of relevant product recommendations, targeted ads, and other elements that are strategically placed throughout the website. Resultantly, the key triggers that motivate action will be the highlight of the page and help deliver desired results.

Concluding Thoughts

Needless to say, eCommerce personalization cannot be achieved without the right set of tools. Luckily, AI-powered personalized recommendation engines are paving the way for the future of eCommerce recommender systems. These models carry out all the grunt work of evaluating a profile and deciding on the optimum level and degree of personalization.

In this respect, tools like Argoid help you derive all the advantages of personalization in eCommerce. Talk to us now.


How are personalization and eCommerce businesses related?

Personalization has become a must-have strategy for eCommerce stores. eCommerce personalization helps online stores to build an outstanding experience for users. With personalized product recommendations, users don't need to spend a long time on searching for the right products. They can get their desired products with a few clicks and help eCommerce stores to boost conversion.

What are the benefits of personalization for eCommerce stores?

Personalization in eCommerce has several benefits like increased sales, high conversion rate, high engagement rate, and improved customer loyalty.

What to expect from eCommerce personalization in 2022?

Standing in 2022, we can expect eCommerce personalization to reach the next step and increase the number of repeat customers with tailored product recommendations as per each customer's preferences.

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