ECommerce Personalization : A quick guide (2024)

Personalization is rapidly transitioning from a nice-to-have to a must-have in the world of eCommerce. According to research conducted by McKinsey, a staggering 71% of consumers now anticipate personalized interactions from businesses, with 76% expressing frustration when interactions lack that personal touch.

Moreover, nearly half of all consumers (48%) have abandoned a purchase due to a poorly curated website experience.

Perhaps the most telling statistic lies in the willingness of customers to spend more on brands that prioritize personalization.

Accenture's research reveals that a whopping 91% of consumers are inclined to purchase from brands that remember their preferences and offer tailored recommendations and deals.

As social and mobile platforms increasingly provide curated shopping experiences, integrating personalization into eCommerce strategies is paramount for both acquiring and retaining customers.

Understanding eCommerce Personalization

eCommerce personalization involves tailoring a customer's shopping experience to align with their unique preferences. This practice leverages customer data such as demographics, purchase history, and browsing behaviors to dynamically deliver product recommendations, content, and exclusive offers.

The Benefits of eCommerce Personalization

1. Increased Revenue: Companies excelling in personalization activities reportedly generate 40% more revenue than their counterparts, according to McKinsey. Additionally, personalization can significantly boost conversion rates, leading to increased sales.

2. Enhanced Customer Experience: Every customer craves that feeling of being seen and understood. Personalization ensures customers receive tailored content and recommendations, resulting in a more satisfying shopping experience.

3. Boost in Customer Loyalty: Customers who feel understood and appreciated are more likely to stick around. A survey by Segment found that 44% of consumers are inclined to become repeat customers following a personalized shopping experience.

4. Larger Average Order Size: Ever find yourself adding more items to your cart than planned? You're not alone. The Netcore/Wakefield survey reveals that personalized shopping experiences can lead to a 10% increase in average order value for three out of five retailers.

The Best Tools for eCommerce Personalization

As a business owner, you have a plethora of personalization options at your disposal. Here are some key tools to consider:

1. Your Online Store or Website: Your website is ground zero for personalization efforts. It's where you collect valuable customer data and tailor content based on shopper behaviours. With tools like Square Online, you can offer personalized shopping experiences that'll knock your customers' socks off.

2. Text and Email Marketing Tools: Don't underestimate the power of a well-crafted email or text message. According to the Square Future of Commerce report, 60% of consumers like to hear from businesses via email.

3. Social Commerce Tools: Social media isn't just for memes anymore. With shoppable posts and dynamic ads, you can turn your followers into loyal customers faster than you can say "retweet."

4. Visual Commerce Tools: Want to take your personalization game up a notch? Visual commerce tools allow you to create stunning product visuals that'll leave your customers drooling.

5. Loyalty Programs: Keep your loyal customers coming back for more with personalized rewards and incentives. Platforms like Square Loyalty make it easy to create digital loyalty programs that'll have your customers feeling like VIPs.

Crafting Your Personalization Strategy

1. Segment Your Customers: Group your customers based on shared characteristics to create meaningful segments. Tools like Square Customer Directory can help you identify key customer groups and tailor your marketing efforts accordingly.

2. Identify Personalization Opportunities: Once you've segmented your customers, brainstorm ways to personalize the shopping experience for each group. Whether it's creating special offers or revising website content, the goal is to make every customer feel like a VIP.

3. Deploy the Right Tools: Personalization at scale requires the right technology. Square offers all the essential features you need to deliver a consistent and personalized shopping experience across all channels.

Personalization Ideas to Try

Whether it's through email campaigns, your website, or loyalty programs, there are countless ways to personalize the shopping experience for your customers. Here are a few ideas to get you started:

1. Email/SMS: Send customers special offers or gifts on their birthdays. Who doesn't love a little birthday surprise?

2. Website or Online Store: Display personalized product recommendations based on a customer's browsing history. It's like having a virtual personal shopper!

3. Loyalty Programs: Reward customers with special offers based on the number of loyalty points they've earned. It's the gift that keeps on giving!

4. Social Commerce: Retarget customers who have visited your website with dynamic ads featuring shoppable content. It's like giving them a gentle nudge in the right direction!

5. Visual Commerce: Integrate a visual configuration tool that allows customers to customize their own products.