5 Ecommerce Personalisation Strategies For Growth in 2024

Who wouldn’t love their online shopping experience to feel tailor-made just for them? In ecommerce, personalisation is crucial. Jeff Bezos, the founder of Amazon, once said, “If you do build a great experience, customers tell each other about that. Word of mouth is very powerful”. Providing exceptional experiences to customers is essential because it’s customers who spread the word and drive a business. 

Personalisation, in ecommerce, means tailoring the shopping experience to fit each customer’s preferences and needs, making interactions more relevant and engaging. Such experiences foster a sense of being understood and valued, increasing the likelihood of customers returning for more purchases. 

In this blog post, we’ve compiled the most effective personalisation strategies for ecommerce in 2024, which can help you grow your business and foster customer loyalty. 

What is ecommerce personalisation?

Ecommerce personalisation goes beyond the traditional one-size-fits-all approach to retail. It's the practice of customising the online shopping experience of a customer by delivering content tailored to their individual preferences and needs at every touchpoint. This ecommerce marketing strategy lets you treat each customer like a VIP by adding a personal touch to their shopping experience online.  

Ecommerce personalisation can be achieved through multiple ways, such as:

• Sending personalised product recommendations based on customer’s previous purchases and browsing history. 

• Tailoring the website navigation bar to highlight the shopper’s favourite product categories.

• Sending targeted emails with content that’s most relevant to the customers based on their shopping behaviour.

• Creating website pop-upstailored to the shopper’s browsing history and past purchases. 

• Showcasing shoppers’ favourite brands or products on the home page or product page of the ecommerce sites. 

• Customising the overall tone and messaging of a brand to resonate better with shoppers, making it more relatable and relevant. 

Big data and Artificial Intelligence (AI) power personalisation. Every touchpoint with an online business, whether it’s browsing products, adding items to a cart, or making a purchase, leads to the generation of valuable customer data. Businesses can collect data and leverage it to deliver personalised bestseller lists, tailored shopping journeys, and relevant content. 

Successful online businesses know there’s no better way to make an online customer feel valued and special than through a personalised shopping experience. Therefore, retailers are prioritising personalisation for their ecommerce businesses. It can not only elevate the customer shopping experience but also engage them, increase return purchases, and improve conversion rates. Personalising shopping experiences also play a critical role in enhancing customer retention and boosting sales. 

How does personalisation benefit your customer and ecommerce store?

Wondering why you should invest in personalising your customers' experiences? The benefits of personalising customer experiences are manifold, from heightened user engagement and increased sales to fostering stronger customer loyalty. In fact, personalisation could be the decisive factor in whether customers choose your brand or shop elsewhere.  

Dave Chaffey, co-founder and content director of Smart Insights and author of several bestselling digital marketing books writes, “One key benefit of personalising messages is that it recognises the customers as individuals. By marketing one way to prospective customers, another way to those who have already purchased a product, and another way to long-term, high-value customers you can make your marketing messages far more compelling and effective. Customers will also appreciate the personal touch, and you’ll stop driving them away by bombarding them with messages which aren’t relevant to them.”

Well, that’s not all. By personalising your customers’ shopping experiences, you can expect the following benefits:

Increased website traffic

In today’s digital world, ecommerce is constantly evolving, driven by new technology and consumer behaviour. Shoppers have become more tech-savvy and expect a tailored shopping experience, so ecommerce stores need to use smarter ways to meet these consumer demands. 

Personalisation is critical to the success of any ecommerce business. Employing AI-driven ecommerce personalisation tools, ecommerce brands can deliver highly personalised user experiences. These tools analyse customer data to provide relevant product suggestions, enhancing the shopping experience and increasing customer satisfaction.

By analysing customer data and offering relevant product suggestions, these personalisation tools elevate the customer experience, while simultaneously enabling ecommerce brands to enhance customer interactions through personalised emails and content. This tailored approach fosters a sense of being understood and valued and piques shoppers’ interest, leading to increased website traffic and enhanced user engagement.  

According to Harry Roth, a former success manager at Dynamic Yield, if your website is personalised to show products that pique the interests of site visitors without having to wade through product pages on your website, your website traffic will grow. 

Increased conversions and sales

According to a survey featured in a Harvard Business Review article titled “The Age of Personalisation”, businesses that leverage personalised content are more likely to attract new customers and retain them, consequently driving revenue growth. Simply put, personalisation helps businesses capture their customers' attention long enough to entice a sale. 

Customers today expect to be treated like individuals and not a number. When a brand understands the needs of its customers and provides unique experiences tailored to their preferences, customers are more likely to gravitate towards the brand and feel more inclined to purchase from that online store. Epsilon research indicates that 80 per cent of consumers are more likely to make a purchase when brands offer personalised experiences. 

Another research conducted by Statista found that 63 per cent of marketers claim they saw an increase in conversion rates due to personalisation. That’s why retailers looking to increase their conversion rates and sales should prioritise personalisation. Developing an ecommerce personalisation strategy and tailoring the customer journey can effectively attract and retain customers, offering added value by ensuring they find what they are looking for, quickly.   

Enhanced customer experience

Shoppers want their shopping experiences tailored to their needs. They want the messaging to speak to them. They want their preferred products placed front and centre and don’t want to see other products they wouldn’t buy. Through ecommerce personalisation, you can create an experience like this. Providing such an experience to your customers can help increase customer satisfaction, attract new customers to your ecommerce site, create loyal customers, increase repeat purchases, and retain customers. 

Research conducted by Statista indicates that 90 per cent of shoppers find the idea of personalisation appealing. Tech giants such as Facebook, Google, and Amazon have spoiled today’s shoppers to the point where they expect extreme personalisation everywhere they go online. Customers have grown to expect personalisation at every touchpoint.

Optimizely highlights how much customers expect personalisation in their website personalisation article: Consumers’ expectations have shifted to the point that people expect a personal digital experience that mirrors the typical level of personalisation they receive offline. Many have grown accustomed to personalised experiences from their news feed, social networks, and shopping recommendations. 

Higher average order value (AOV)

When an online store offers a personalised experience, shoppers are more likely to spend time on the ecommerce site and explore more pages, resulting in increased engagement, higher average order value (AOV), and higher conversion rates. Personalisation provides a more targeted experience based on the purchase history and browser history of the website visitors. Almost half (40 per cent) of consumers say they’ve purchased something more expensive than they originally planned because the customer experience was personalised.   

The most effective way to personalise ecommerce experiences for your potential customers is through data. By leveraging data, you can understand your customers’ purchasing habits, create customer segments, and send personalised product recommendations, which is more likely to boost the AOV. For instance, sites like Amazon Australia, Netflix Australia, and Hulu Australia adapt their product recommendations based on the user’s past behaviour. Monetate found that ecommerce brands can increase AOV by up to 12 per cent by tailoring the customer journey.   

Repeat customers

Personalisation can yield huge results for your ecommerce business. Customers are more likely to return to your online store for future purchases if they have had positive interactions with your brand and believe you understand their needs. Taking time to tailor your website content and design to suit each customer’s needs and preferences can make customers feel valued and understood, which increases their likelihood of returning to your site and making repeat purchases. 

By bringing personalisation to your product recommendations, you can keep your customers engaged and increase visitor’s average time spent on site. The more relevant the products are to their interests, the more likely they are to add the products they like to their carts and make another purchase. It can also help you increase your average cart value.

To deliver a more tailored experience, you need to use data collected from various sources - customer purchase history, onsite web history, self-reported data, and preference centres. Whether you use this data to personalise recommendations on your site, in your email, or across other channels, more relevant content can offer a better experience for your customers, leading to more conversions. 

Competitive advantage

With the ecommerce space becoming more competitive than ever, as a retailer, you’ll need to do things that can set your ecommerce website apart from your competitors. The one thing that can distinguish you from your competitors is the experience you offer to your customers when shopping online. This is where ecommerce personalisation comes in. By personalising the shopping experience for your customers, they’re more likely to stick around and become your brand advocates. In fact, the experience your brand provides to your customers can impact their decision to purchase. 

According to Infosys’ report, one of the ways a business can provide a positive experience that entices a consumer to become a customer is by offering personalisation. Furthermore, customers are even willing to pay more for a brand that delivers customisation. That’s why brands should invest in personalisation. Your competitive advantage is not always the product you sell. The experience you offer to your customers can actually be your greatest strength.   

What can your store personalise for your customers?

Ecommerce personalisation can revolutionise your online store’s approach to user engagement. From tailored product recommendations to customised offers, discover how your ecommerce platform can create unique experiences that resonate with each individual customer and make them feel valued and special. 

Product recommendations 

One ecommerce personalisation strategy you can’t afford to miss is personalising the product recommendations shown to your customers. Displaying relevant products has become an integral part of the modern-day customer’s shopping experience, leveraging advanced algorithms and user data to offer tailored suggestions to site visitors. 

Ways to personalise product recommendations for your ecommerce store

Browsing history and purchase history analysis

By tracking the products a customer views, retailers can suggest similar products. For instance, if a customer frequently looks at winter coats, an ecommerce platform can recommend various brands and styles of winter coats. 

Product recommendations can also be based on a customer’s previous purchases. For instance, if a customer has bought a smartphone, ecommerce platforms might suggest accessories such as cases, screen protectors, or headphones. 

Customer segmentation

Leverage audience segmentation to deliver personalised recommendations. With the data insights, you can understand the preferences or behaviours of the customer group and recommend products popular within that customer segment. For instance, customers who purchase fitness equipment might receive suggestions for new workout gear. 

Behavioural data

Retailers can leverage user data, such as time spent on product pages or items added to wishlists, to personalise product recommendations. For instance, if a customer spends a lot of time on pages for camping gear, recommendations could include a tent, sleeping bag, lightweight cookware, camp lights, or other camping accessories.   

Collaborative filtering

By employing algorithms, retailers can suggest products based on the visitor’s in-session behaviour. For instance, if other customers who bought a particular book also bought another book, your site could recommend the second book to customers with similar interests.  

Seasonal and location-based recommendations

Retailers can tailor product suggestions based on the customer’s location and current seasons or trends. For instance, if the customer is based in a colder region, your ecommerce store might recommend winter clothing and accessories. During the summer, product suggestions might focus on swimwear and beach accessories. 

Examples of personalised product recommendations from Amazon

Amazon does an excellent job with its ecommerce personalisation. They track your web history and previous purchases to show you products they think you’ll be interested in. Personalised product recommendations often include items viewed or purchased by users with similar browsing habits, past purchasing history, and wish list items. For instance, if you search for an office chair, you’ll receive suggestions for an office table, monitors, office desk organisers and other office products. You’ll also see similar products from different brands. This personalised approach helps customers discover new products they might be interested in and increases the likelihood of making a purchase, boosting customer engagement and conversions.   

Targeted on-site pop-ups

Targeted on-site pop-ups are dynamic messages that appear on a website based on a user’s real-time behaviour, preferences and demographics. They are designed to engage site visitors with relevant content and offers. These pop-ups can be triggered by various user actions, such as time spent on a page, items added to a cart or a user’s entry point to the website. For instance, if a site visitor is browsing a particular category or products repeatedly, a targeted pop-up might offer a discount on those categories and products or suggest similar products, encouraging them to make a purchase.

Here are some of the instances where ecommerce businesses can create personalised targeted on-site pop-ups:

• Discounts for new users for their first purchase. 

• Free shipping above a set threshold for users with items in their cart.

• “Pick up where you left off” messages and welcome-back discounts for returning customers.

• Discounts in exchange for newsletter sign-up.  

Many ecommerce brands leverage targeted pop-ups to drive conversions and reduce cart abandonment. By delivering tailored messages at the right time, businesses can effectively guide users through the buying journey, address their potential hesitations, and ultimately boost conversions.     

Examples of targeted on-site pop-ups from ergoPouch Australia

Founded in Australia, ergoPouch is loved by families all over the world. It’s a market-leading and award-winning brand in Australia, and the company’s products are sold in over 40 countries worldwide. 

ergoPouch Australia effectively leverages on-site pop-ups to boost customer engagement and conversions. By offering $15 off the first order in exchange for joining the ergoPouch community, they incentivise visitors to provide their email addresses and other key details. This strategy enhances user experience by providing a tangible benefit but also expands their email marketing list for future promotions. The pop-ups are likely tailored to appear upon entry, which ensures maximum visibility and relevance to potential customers. This approach helps ergoPouch build a loyal customer base while driving immediate sales. 

Abandoned cart reminders 

Many shoppers get distracted and leave ecommerce sites without making a purchase. Optimising your checkout experience for customers can greatly help in reducing cart abandonment rates. When shoppers do leave the sites with items still in their carts, you can remind them with an abandoned cart email. 

With abandoned cart reminders, you can capture inactive consumers and encourage them to take the desired action. You can reward them with exclusive online events and previews, loyalty programs, and discounted subscription plans as appreciation gifts for making a purchase. Marketing automation tools can help automate these processes seamlessly. 

Examples of abandoned cart reminders from Target Australia 

Abandonment cart reminders help re-engage potential customers who left items in their virtual carts. Target’s abandonment cart strategy encourages customers to return and complete the purchase. Many customers may leave the site without checking out when the price is not quite right. Target effectively captures such customers by offering them a great deal on items that they recently browsed. A well-timed discount can make all the difference by re-engaging shoppers and bringing them back to the site. 

Target also includes links to related products for a chance to cross-sell. So, even if the customers change their minds, they still have multiple relevant products to browse.  

Promotions and discount offers 

If you’re looking for a foolproof strategy to captivate your customers and keep them returning, personalised promotions and discount offers are key. They provide a unique and personalised experience to customers, which can foster customer loyalty and satisfaction. Personalising promotions and discounts isn’t just about offering general discounts, it involves understanding the purchasing preferences of individual customers. It enables you to offer your customers deals, discounts, and promotions that interest them rather than cluttering their inbox with offers and discounts they don’t want or can’t use. 

You can offer personalised promotions and discount offers to your customers, depending on their purchase frequency and shopping behaviour, for more sales and conversions. Set loyalty levels and offer progressive discounts and special gifts to your loyal customers as they reach milestones. Adapt your promotions based on the customer's location by offering them specific coupons for local events or special promotions at the nearest physical store. You could even offer your customers discounts for special dates such as birthdays. Personalising discounts and promotions helps create an emotional bond and increases the likelihood that the customer will choose your store for their purchases. 

Examples of personalised promotions and discounts from Woolworths

Consumers are increasingly shopping on promotion. They’re searching and stocking up on the best deals and discounts, forcing major retailers to ramp up their loyalty schemes by creating personalised and tailored offers to keep existing customers keen. Woolworths, a popular Australian grocery retailer, has been shaking up Australia’s retail landscape by offering personalised promotions and member pricing to loyalty program members in real-time.

Through its Rewards program, Woolworths personalises discounts and special offers based on individual shopping habits, encouraging return purchases. With its Everyday Rewards app, Woolworths makes the process of hunting for specials easier. Shoppers can enjoy their own personal weekly catalogue sent straight to the app and inbox. Furthermore, the more shoppers shop with their Everyday Rewards app, the more it learns about their favourite products, allowing it to send personalised special offers. Shoppers also receive the best rewards points boosters, tailored to their needs. 

Content recommendations 

Generic content can make it hard to cut through the noise as shoppers see so much content every day. Ecommerce brands need to do something unique to attract customers. Personalised content can grab customer’s attention, engage them and lead them to conversion. 

Ecommerce stores can personalise content recommendations for customers in the following ways:

• By taking into account a user’s past viewing history, purchasing history, demographics, and preferences, businesses can deliver content similar to what the user has previously enjoyed and introduce them to new content they may not have otherwise come across.

• Look at engagement metrics to determine which content users interact with most and the channels used during different stages of the buyer’s journey. 

• Implement machine learning algorithms to predict and recommend content based on historical data and real-time interactions. 

• Create detailed user profiles that encompass their preferences and other relevant information to tailor recommendations accurately.  

Examples of personalised content recommendations from Adore Beauty

Launched in 2001, Adore Beauty is Australia’s first cosmetics retailer to sell exclusively online. The business carries 11,000 products from over 200 brands, including cult brands, everyday affordable products, high-end department store brands, and salon professional brands. 

Adore Beauty needed to replicate the in-store experience without compromising customer satisfaction, which was tricky in an ecommerce environment. By leveraging data analysis, customer data, and user profiles, the platform could deliver advice to customers with skin and hair concerns and recommend skincare and beauty products based on each customer’s skin and hair type, concerns, and past purchases. This marketing tactic was extremely effective as it allowed customers to find the best products for them by “delivering beauty facts and not opinions”. 

Summary

Data collection is the most important step when it comes to personalising customer experiences. AI tools and website tracking analysis tools can help with valuable data collection for ecommerce personalisation. Ecommerce companies can leverage these data insights to personalise product suggestions and deliver content tailored to customer’s preferences. Offering loyalty programs and exclusive discounts and leveraging user-generated content are great ways to encourage customers to make purchases. Personalisation is also a powerful tool for retaining existing customers. From the beginning to the end of the customer journey, personalisation can be effectively employed to optimise satisfaction and loyalty. Even post-purchase, personalised follow-up emails and recommendations can keep customers engaged and encourage repeat purchases.  

FAQs

What is ecommerce personalisation?

Ecommerce personalisation is an effective marketing strategy that leverages data to understand customers’ preferences, enabling businesses to provide tailored, relevant experiences to their customers. It helps enhance satisfaction and loyalty through relevant product and content recommendations. 

What are the steps for successful ecommerce personalisation?

The steps for successful ecommerce personalisation involve collecting user data, understanding user journeys, analysing user behaviour and preferences, tailoring content and product recommendations, and delivering a personalised shopping experience to customers.   

What are the challenges in implementing personalisation strategies?

Some of the challenges in implementing personalisation strategies include data privacy concerns, technology limitations, and the need for continuous optimisation and testing to ensure effectiveness.