Ecommerce personalization examples, strategies & software [2019]

Last updated March 14, 2019

In this guide, we’ll show you that implementing ecommerce personalization in your store is both achievable and affordable. We’ll also demonstrate the effectiveness of ecommerce personalization and how it can change your business for the better.

But first, let’s start with the basics:


What is ecommerce personalization?

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ecommerce personalization is the practice of showing individual ecommerce shoppers different content, products or media based on their search history, purchase history, or buyer demographics.

While personalization can be done manually, most practitioners elect to use machine learning and AI so that they can more reliably cover different target personas, demographics, and markets without requiring a significant increase in effort or manpower.

Think of it this way: if you owned a brick and mortar shop, and had repeat clientele, you’d get to know what each person’s tastes are and what products they are most likely interested in when they come to your shop.

Online, you might still be able to do this if you operate a small storefront and interact directly with your customers on a one-to-one basis. But that’s not the reality for most internet vendors. So many transactions are completed without any sort of interaction between you and the consumer—how can you tell them when you have something you think they might like?

That’s where artificial intelligence comes in. By tracking shoppers and their purchase history, ecommerce AI software like LimeSpot Personalizer can get a feel for a customer’s shopping habits, and start making real-time suggestions accordingly.

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The impact of ecommerce personalization

There is a tangible business benefit to personalizing an ecommerce site. According to a 2016 report by Accenture, 75% of consumers are more likely to buy from a retailer who recognizes them by name, recommends items based on past purchases, or knows their purchase history.

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In a separate survey by Segment, 44% of consumers said that they’d become repeat buyers after a personalized shopping experience with a company. Additionally, 49% said that they have purchased a product they didn’t initially intend to buy after receiving a personalized recommendation from a brand. And 40% of consumers surveyed said that they’ve purchased something more expensive than originally planned because the shopping experience had been personalized.


Benefits of ecommerce personalization

There are many tangible benefits to personalizing the customer experience:

Increased conversion rate.
An ecommerce site can see significant increases in conversions by showing the most relevant products to a particular consumer. The shopper spends less time browsing and sees exactly what they need right in front of them.

Increase average order value.
Personalized cross-selling and upselling draws the user’s attention to related products and increases the chance of the buyer adding these to the basket. For example, a fishing rod purchase would need fishing line and fish hooks to go along with it.

Reduce choice overload.
Buyers often suffer from paralysis by analysis, where they can’t make a decision because they are considering too many options. AI recommendations reduce these choices down to the bare minimum, so that buyers have a small list of high-value options and can more easily decide to buy.

Improves overall store experience.
Visitors will enjoy shopping at your store because it will be easy to navigate, easy to find products, and easy to buy. This is especially important for mobile shoppers, who have limited screen space and shouldn’t have to scroll through cramped layouts and hundreds of items.

By making it easier and simpler for customers to shop, ecommerce vendors can increase visits, earn customer loyalty, and increase total revenue in a scalable and efficient manner.

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Ecommerce personalization types

There are different types of personalization in ecommerce; each applies to different situations and has its individual advantages.

In-store personalization is a sales tool that reduces friction and makes it easier for customers to buy. Here are some ecommerce store personalization features that fall under this category:

●     Display popular or trending products according to aggregate user data

●     Suggest related products

●     Cross-sell and upsell products, either manually or automatically generated

●     “Top Picks for You” recommendations based on individual buyer history

●     “Customers Who Bought this Also Bought” recommendations

Let’s take a look at some examples of ecommerce on-site personalization from LimeSpot’s personalization suite:

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Ecommerce personalization in marketing channels

Personalization can also be leveraged in marketing channels. Customers and prospective buyers can be segmented into different groups based on demographic, purchase or browsing history, location, and a number of other factors. By generating unique messages and applying them to your ecommerce personalization software, you can reach the reach the right people with exactly the right offers.

Personalizing marketing emails isn’t a nice-to-have; it’s a requirement.

Don’t believe me? You will when you hear that segmented email campaigns achieve a 100.95% higher click-through rate than non-segmented email campaigns. Emails with personalized content simply perform better.

There are many reasons why this might be the case. Firstly, customers feel more valued as individuals if they see you taking an effort to tailor your experience to them. In a survey by Active Trail, 52% of customers said they’d go somewhere else if they weren’t receiving personalized emails from the company.

Second, a targeted email is able to promote products or services that have a higher probability of converting the recipient than one sent with no particular focus group. According to Salesforce, 62% of customers expect companies to send personalized offers or discounts based on items they already purchased.

Let’s have a look at an example personalized email that was generated via LimeSpot’s personalization suite:

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Ecommerce personalization strategy

There are a number of different strategies one can use/adopt/employ in order to personalize their ecommerce site, and more are being developed all the time. There are some trends that are gaining a lot of steam:

Personalized pricing is when the retailer goes beyond offering favorite products to also provide preferred pricing in the forms of deals, promos, and special discounts. These offers would be tailored for and limited to a specific group of customers. This is primarily driven by purchase history for both the individual buyer and other buyers across their segment.

Persistent shopping is similar to persistent shopping carts, in that the store remembers what the customer was browsing the last time they were on the site, and displays the same kinds of products to help them pick up where they left off.

A/B testing is a good way to improve your site gradually over time. In A/B testing, you create two versions of the site, test which change outperforms the other, and apply the higher-performing version to your site. You can apply A/B testing extensions to your store layout and product recommendations in order to identify the best performing setup.

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Ecommerce Personalization through Artificial Intelligence

Machine learning and artificial intelligence allow your site to constantly learn from buyer behaviors, and to optimize itself over time. While these automated tools used to be exclusive to only the biggest retailers (Amazon, Zappos, etc) they’re becoming more and more readily available to sellers of all sizes.

LimeSpot is a leading solution that can give your storefront the AI-powered shopping and email recommendations it needs to convert sales in the modern online marketplace. It uses natural language processing and image recognition software to determine what products each consumer is most likely to buy, then recommends those products to the shopper on your site.

All of this helps shoppers overcome a phenomenon known as “choice overload.” Essentially, if a shopper is presented with too many choices, they end up not making any. Sophisticated AI recommendation software overcomes this problem by offering a selection of recommended products that  have been carefully chosen through a sophisticated AI algorithm, with deep learning and demographics data that help it form predictive trends.

Remember that seasonality also impacts buying intent. We’re not just talking about the major holidays of Black Friday and Christmas; there’s also the seasonality of your target audience. Things like the start of a new school year, the start of surfing season, and the approach of prom night—anything that would prompt your customers to start shopping around—will all be factored into machine learning software, resulting in better shopping recommendations for your audience.


Ecommerce personalization software statistics

A study conducted by Compass uncovered a significant increase in average revenue for companies that applied personalization features on their ecommerce site. The respondents used the LimeSpot Personalizer – Targeted Recommendation App on their Shopify storefronts, and the companies measured the results from 15 days before and 60 days after installing the app. Their findings were very significant:

●     41% increase in average revenue for companies with at least 60 Shopify transactions

●     33.6% increase in average revenue for companies with at least 240 Shopify transactions

●     6.4% increase in average transaction value for companies with at least 240 Shopify transactions

●     18% average revenue increase across all respondents

There are a number of ecommerce personalization software choices available, but you don’t want to settle for just any random tool. Multiple organizations consider LimeSpot to be the premier ecommerce personalization software solution in the market.

●     According to Datanyze, LimeSpot is the leading ecommerce personalization technology, with the highest market share at 15.07%.

●     Shopify ranks LimeSpot as the top personalization app with a 4.9 star rating driven by over 1,100 reviews.

●     LimeSpot’s AI engine has been trained by over 18 million products, $2 billion annual GMV, and shopping behaviors from over 120 million unique monthly shoppers across the globe.

What this means for you is an ecommerce personalization tool that has built up intelligence gathered across of thousands of ecommerce retailers and millions of transactions. LimeSpot’s AI will reduce friction across your ecommerce platform and increase your conversions and boost your revenue, both on a per-transaction basis and your overall numbers.

Try LimeSpot for free

giles thomas

Author:

Hi, I’m Giles Thomas. Founder of AcquireConvert, the place where ecommerce entrepreneurs & businesses go to learn how to increase conversions & profits. I’m also the founder of ecommerce growth agency Whole Design Studios. I’m a head marketing mentor at the Google Launchpad Accelerator & Google Marketing Expert. Ps. Check out my new blog RisePro.co

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