Know-hows of eCommerce Personalization and Why it is Important

eCommerce Personlaization

Exclusivity is something that every consumer will love and hold on to! When it comes to online shopping, the moment you stop making your consumers feel special, they’ll turn to someone who would! The competition has penetrated to rock-bottom and eCommerce Personalization is the answer! If you’re new to eCommerce Personalization and looking for a considerate guide for your eStore, you’re at the right place.

What is eCommerce Personalization?

eCommerce personalization is a mechanism of displaying dynamic content, products, offers, and recommendations for your website users based on their demographics, shopping history, browsing behavior, and their journey on the website. This practice provides each buyer with an individualized feed, personalized according to their choices and experience.

A great example of personalization is found on When you search for a product on their site once, the next time, you visit Amazon, your home page is flooded with products that are similar to your last search. They even recommend products for various categories you may have browsed.

Why Implement eCommerce Personalization?

A study by Accenture shows that 91% of consumers are more likely to buy from brands who remember them and provide relevant offers. Further, 83% of them are also willing to share their data in exchange for a personalized experience.

Modern-day shoppers are impatient due to the various options available on the web. If they do not get what they are looking for what they need on your site, they will immediately move on to the next vendor. You can address these concerns correctly through onsite personalization since you can deliver what every shopper wants without forcing them to do a lot of searching.

Benefits of Personalization in eCommerce

1) Increase In Conversions

Today, customers have a very short attention span which lasts only a few minutes. If you can grab their attention with particular content which is customized just for them and doesn’t distract them from their purpose to explore your website, you can persuade them to purchase from your store.

2) Enhanced Customer Experience

If customers get to see what they want in the first few minutes of their search, their experience with the website is bound to be positive. Irrelevant content like advertisements, banners, and links to products which are not related to the initial search, frustrate the customer and they are prompted to abandon your website and look for the product elsewhere.

3) Consumer Engagement

If you work on personalization, your engagement automatically improves. This is because your target users engage more with the website if they relate to the displayed content. They are prompted to add the products to their cart, wishlist, or even purchase them if the product matches their expectation. Moreover, they take the initiative of exploring other products to see what best suits them. For example, if you show user products that complement the product he is currently viewing, he will explore those too and might even buy them.

4) Consumer Retention

If your customer engages with the website, spends time on it, and goes on to purchase a product or two, you can comfortably say that they will return to your site for buying other products. A study by Target and Forrester Consulting pointed out that 84% of marketers believed that personalization positively impacted customer retention and loyalty.

Types of eCommerce Personalization Strategies

  1. Pop-up Menus
  2. Personalized Search Results
  3. Product Recommendations
  4. Complementary Items
  5. Category Specific Discounts
  6. Behavioral Emails
  7. Product Recommendations at the Checkout Page
  8. Reviews and Testimonials


How These Strategies Can Be Implemented For Your eCommerce Website

1) Customize emails & communications

When a user signs up on your website, they offer many personal details like their name, email address, address, etc. Make sure you study these demographics properly to send them personalized emails with their name, recommendations, etc.

2) Analyze buyer journey

Make use of eCommerce analytics tools to analyze the buyer journey, study customer intent, and track the purchases made by your buyers. Send them emails for re-targeting, utilize this data to run campaigns, and most importantly, show relevant content, CTAs, product recommendations, discounts, etc. to these segments.

3) Segment users appropriately

Once you have enough data, segment these users based on their interests, shopping trends, etc. to make sure none of your personalization efforts go waste. Segmentation will help you add more value to your emails and send the right content to the right individuals.

How to Measure the Success of Personalization on Your Website?

There are many ways through which you can judge the success of your website’s personalization. Your end goal is to increase conversions and tracking the following parameters can also help you get an idea of how your efforts are performing. These values can be traced to any tool that you may use for eCommerce analytics.

1) Average Page Views

It is defined as the total number of page views divided by the total number of visits during the same time frame.

Average Page Views per Visit = Page Views /Number of Visits

2) Add-to-Cart Rate

This metric shows the percentage of viewed products, that were also added to the shopping cart within the same visit.

Add-to-Cart Rate = Qty of Product Added to Cart(%) / Qty of Product Views * 100

3) Cart Abandonment Rate

This tells you about the items that are added to the shopping cart but not purchased. It is calculated by dividing the total number of completed purchases by the number of shopping carts created.

Cart Abandonment Rate = 1 – [ (#) Completed purchases / (#) Shopping carts created ] x 100

4) Revenue Per Visitor

Revenue per Visitor (RPV) depicts the amount of money generated every time a customer visits your website.

It is calculated by dividing the total revenue by the total number of visitors to your site and is a method of estimating the value of each additional visitor.

Revenue Per Visitor =  Total revenue / Total number of visitors to your site

5) Average Order Value

The average order value is an indication of the amount of money a customer spends in your store on each transaction.

Average Order Value (AOV) =Total revenue earned / Number of orders placed


eCommerce Personalization is here to stay. With Artifical Intelligence and Machine Learning capabilities, eCommerce stores are getting smarter every day. Saving cookies and using them to monitor and cater an exclusive,  customized experience to each visitor is what we’re capable of due to personalization. Stick to it and make the most out of it to gain the loyalty from your consumers.