How would you feel if you walked into an apparel store and the sales attendant immediately recognized you? They even remember what you were looking for during your previous visit, the color, and even the size. They then suggest another piece of clothing that could perfectly match what you bought last time.
You’ll certainly be happy with the service offered in that store, and the next time you need to add something to your wardrobe, you’ll want to go back to that particular store. This will be influenced by the fact that you had a great connection with the sales attendant. Moreover, they seem to have incredible suggestions on your sense of style. What more could you ask for?
This is a precise example of how eCommerce personalization works. It is the use of technology to ensure that every online store customer gets a personalized experience. The ultimate goal is to connect with each customer at a personalized level.
According to recent statistics, 60% of online shoppers believe that they can find more befitting products in personalized online stores. Over 50% of online shoppers return to a site that recommends various products.
Personalization in e-commerce is one of the most effective ways to boost your sales. On average, it can increase your sales by a whopping 19%.
You see, with personalization, you avoid overwhelming your customers with too many options. Once you make the mistake of overloading a customer with a host of options, they have a hard time deciding on what to buy and feel dissatisfied with the product they choose.
For this reason, you’d better be strategic with your online store product catalog. You want to strike the right balance by having a variety of products, and ensure that it will in no way overwhelm your customers. The objective is to make it easier for a customer to find the right product.
Personalization revolves around tailoring each customer's shopping experience. This is done by offering them the most relevant products.
If you regularly visit websites like Spotify and Amazon, you may have realized that they always recommend a list of products for you. This helps you to arrive at the best decision on a product much faster. You don’t even have any of these products in mind until you see them.
Previously, personalization may have been an expensive technology only available to a select few, but that has now changed. Over the years, it has become accessible and more affordable for online business owners.
How does personalization work?
Personalization is a technology that heavily relies on organization. Therefore, your inventory has to be well-categorized so that the system can easily pick out the products to recommend. For example, an online clothing store needs a well-defined inventory record that is categorized in terms of gender, size, age, color, and so on.
Reduce the options
The more options you have, the more difficult it becomes for the system to pick out relevant products in the recommendation process. According to experts, you shouldn’t have more than 7 options in a particular category.
A personalization engine should always show a few relevant products. The sole purpose of this is to enhance a customer’s experience.
Winning users trust and convincing them to sign up
In business, reputation comes first. After establishing your online store as reputable, you should convince your potential clients to sign up for membership. You can use incentives such as discounts to motivate them.
The reason why you want them to sign up is so that you can get the information that your recommendation engine will use to recommend the right products.
As part of the process, it helps to know what your customers purchased during their last visit to your store. This suggests to you some of the other similar products that you could recommend to them. Based on this information, you can recommend popular or related products.
Have you been wondering how you can increase your store's revenue? Tried a few things here and there without getting the desired results? Personalization is a marketing technique that can help you grow your revenue. Besides that, it does more than just increasing revenue. It significantly increases your conversions as well as transaction value. It is a worthy investment that could easily take your business to the next level. It all starts by finding a competent engineer who can build you a recommendation engine.