Understanding The Growing Importance Of Online Shopping Personalization
Posted on December 16, 2013 by Avery
If you offer a friendly, personalized shopping experience on your store, there’s a 60% chance your shopper will return for more. If you don’t believe us, talk to the marketers, 51% of the global ecommerce pool, that have already implemented personalized shopping! Here’s why you absolutely must personalize your audience’s shopping experience.
About Shopping Personalization
By shopping personalization, we mean adjusting your web page content to suit your audience’s location, device and bandwidth. For example, if shoppers from a cold region such as Alaska are browsing a personalized clothing store, they should see images of warm outerwear on your pages. The same page, when accessed from sunny California should display beach clothing.
That’s the beginning of it – you can take personalization to a micro level in terms of customized content and advertising. For this you need to generate user analytics including demographics, purchasing power, previous purchases and so on. You can then leverage this shopper information at an individual level as well. For example, you can check what prices the shopper prices; recommend products of the right type and colors, display favored product categories and so on. By doing all this, you can deliver a more relevant shopping experience which results in greater ROI.
The Benefits Of Online Shopping Personalization
Increased Trust In Your Site
According to statistics, 59% of shoppers feel that when they visit a personalized site, it’s easier to find products that are more interesting to them. Why do they get this impression? It’s because they realize that if you’ve taken steps to personalize your site to their tastes in order to please them. Take this as an opportunity to find out what kinds of products your target audience searches for, and doing one better.
The trust factor takes on an additional form when you recommend products. Apparently, 53% of online shoppers are more likely to return if you recommend products. Why is this? It’s because your shoppers understand, at some level, that you know what they need better than they do. They view the extent of personalization you do as a valuable service to them. Plus, they trust you to look up better products than they can, given your industry experience and expertise.
Increased Brand Engagement
Personalization not only provides valuable information – it also strong influences your audience’s shopping habits. Specially targeted Ads tend to earn more eyeballs, goading customers to shop for those products. The more they shop, the more they tend to trust your recommended products. Over time, your audience starts to actively engage with your brand. They become spokespersons for your brand and you will benefit from more visitors.
Increased Marketing ROI
Your marketing team will know exactly how to target your audience based on close knowledge of their preferences. This will help them to target Ads to select audiences. Such Ads succeed better than random ones, which is great news for your marketing ROI. Statistics indicate that people who shop 4 times a year, spending at least $250 over the year are happier to hand over their personal information. In exchange, they look forward to a more personalized experience and greater engagement with the company.
Increased Customer Loyalty
Obtaining information from your target audience is not easy, unless they trust you with it. People don’t easily part with their credit card info, banking info, address or phone number lightly. Personalizing your site helps make your audience more comfortable and trusting, which makes it easier to obtain this information. Customer loyalty begins with trust and increases with every personalized service you provide. Over time, engaging with your business pays off for your customers too – after all, online shopping is fraught with danger. Who wouldn’t want a safe, trust-worthy store to shop at, especially one that caters to the shopper’s unspoken needs?
Customer Lifetime Value and Increased Revenue
Shopping personalization tends to cultivate new spending habits in customers. Increased customer brand engagement leads to more conversions and repeat purchases, which leads to greater Customer Lifetime Value (CLV). You can achieve a 300% improvement rate in CLV by adopting personalization as your centric marketing tactic. Is it any wonder then that shopping personalization is seeing a 25% increase in online sales in many ecommerce sites? The more you study your audience and the more you personalize, the greater the revenue you can earn.