Personalization: what is it and why is it important for e-commerce

Personalization is a strategy that bets on the exclusivity and individuality of people to offer targeted and more assertive products, services or experiences. To customize, it is necessary to identify traits, characteristics and needs of individuals and, based on that, offer tailor-made solutions.


 

In a world as globalized as ours, permeated by large-scale production and a flood of information at all times, it is difficult to offer something new and differentiated to the consumer. 

In this context, customization emerges as a strategy to stop doing more of the same and attract people's attention, making them feel special and unique. 

Want to know more about it? So read on and learn all about personalization and how to apply it in e-commerce.

What is personalization?

Personalization is a strategy that bets on exclusivity and individuality of people to offer targeted and more assertive products, services or experiences. 

Therefore, we can say that personalization is the opposite of generalization and it goes to the opposite side of mass communications, which treat all individuals in the same way. 

To personalize it is necessary to identify traits, characteristics and needs and, based on that, segment and offer bespoke solutions for each person or specific group of people.

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    Types of customization 

    There are many possibilities for customization. These are strategies that can complement each other and often go hand in hand. Check out the main ones below.

    • product customization
    • Content customization
    • Personalization of service
    • Navigation customization
    • Experience customization

    product customization

    The personalization of products allows the consumer to customize an object, inserting prints, colors, material, sayings, models and whatever else their imagination allows according to their desire. 

    In some cases, it is possible to scale personalization, offering products with names of people, teams, cities, bands, etc. A great example of a scalable personalization action is Coca-Cola cans with proper names or letters of the alphabet indicating the initials of names.

    product customization - coca cola names

    Content customization

    The personalization of content is closely linked to digital marketing actions and inbound marketing. It is about the development and distribution of segmented and targeted content for groups of people and specific pains, taking into account personal and professional information, market data, navigation data and stage in the purchase journey. 

    Personalization of service

    The personalization of service is a strategy bias that seeks to meet the needs and desires of each customer individually. As well as content personalization, in this case, it is necessary to segment the audience into groups, analyze all possible data and information and thus create personalized services. 

    Another very common way to personalize service is to call each customer by their first name and use language appropriate for their reality, also showing proximity.

    Navigation customization

    Through data analysis and, in many cases, the use of artificial intelligence and big data, we also have the personalization of internet browsing. It is present in social networks, search engines (Google), streaming services (Netflix, Spotify), virtual stores, among others. 

    This strategy takes into account the browsing history and behavior of the user on the internet and, based on that, shows and recommends content, advertisements, products and other relevant items. 

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    Experience customization

    Already the personalization of experience can refer to each of the types mentioned above — since everything is experience — or to the union of two or more types of personalization present throughout the entirety of the experience. user experience with a brand or institution.

    Read also: User experience: what it is, how to do it and how to optimize.

    Why customize the e-commerce experience?

    Personalization is an increasingly necessary feature in the market, but in the online retail and in other digital businesses, this is even more imperative to stand out from the competition. After all, consumers have access to all kinds of information and can compare prices, products, purchase conditions and payment options very easily. 

    What are the advantages of personalization for online stores?

    Discover below the main advantages of personalization for virtual stores.

    • Improved shopping experience
    • Increase in conversion rate
    • Customer loyalty
    • Promoters for the brand

    Improved shopping experience

    Personalization makes the consumer feel unique and special, in addition to, in many cases, facilitating the purchase journey. All this contributes to the shopping experience of it is positive and unforgettable. 

    Learn more: Shopping experience: 11 tips to boost your sales.

    Increase in conversion rate

    Personalization also influences the increase in sales conversion rate, as it acts on the client's pain and offers him the best solution to the problem. This consequently also reduces the bounce rate and the cart abandonment, increasing store revenue and return on investment.

    Customer loyalty

    Another advantage that personalization generates for virtual stores is the Customer Loyalty. After all, who doesn't like to be treated in a special and exclusive way?

    Promoters for the brand

    By gaining customer loyalty, it becomes easier to obtain promoters for the brand. They like your service so much and trust what you offer so much, that they will recommend your store to friends and family, promoting your brand spontaneously and free of charge. 

    How to customize the shopping experience in e-commerce? 4 tips

    You can customize the customer experience in the entire purchase journey in e-commerce. We separate 4 tips to help you in this mission. Check out!

    1) Segment the lead base

    2) Customize navigation within the site

    3) Enable product customization

    4) Provide a smart checkout

    1) Segment the lead base

    One of the main steps to apply personalization in an e-commerce is to segment the lead and customer base. I.e, separate them into groups by common characteristics and affinities. For this, it is necessary to use the collection of personal, professional and demographic data through forms as well as browsing analysis. 

    With this, it is much easier to use personalized communication with each one, creating and sending personalized content by email, blog, chat, WhatsApp, calling them by name and perhaps even sending a personalized note when the product is delivered.

    2) Customize navigation within the site

    Another very popular and assertive way is to customize the navigation of each user within your virtual store. This can be done through a recommendation system, which analyzes navigation and consumer behavior within the site to recommend the most relevant products. 

    These recommendations can be made in virtual showcases, do not search field — with the help of a smart search and banners — on product pages, in the shopping cart, in retention pop-ups and hotsites.

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      3) Enable product customization

      If possible, allow your customers to customize some products by entering their name, a phrase, an image, etc. In many cases, it is something that generates a low cost for you, but that can make all the difference to your client and, consequently, to the success of your business. 

      4) Provide a smart checkout

      Facilitate the purchase process and provide a smart checkout, that is, a checkout capable of retrieving information that the consumer has already passed through at some point, such as name, email, telephone and even credit card. In addition to improving the shopping experience, It will greatly decrease your bounce rate..

      Conclusion

      Personalization is a very assertive and versatile strategy. It can be used in different segments, areas, stages and in different ways. The important thing is always to know your market, your target audience, your personas and, of course, your business and, from there, identify which actions are relevant and will bring more results. 

      In e-commerce, offering the personalization of the shopping experience within the virtual store is something increasingly necessary and demanded by consumers, as it optimizes and helps the purchase journey. 

      Do you want to implement this strategy in your e-commerce? With SmartHint's smart search, recommendation windows, retention popups, and hotsites, you can customize the experience conveniently, quickly, and cost-effectively! Get to know!

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      Written by: Tania d'Arc.

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      Tânia d'Arc

      Tânia d'Arc

      Graduated in letters and post-graduated in digital media, she is passionate about words, communication and details.
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