eCommerce Personalization: Benefits and Getting Started

Why should you personalize an eCommerce site experience? Because it has a big impact on customer satisfaction, conversion rate, and average order value. An electronics retailer we worked with noticed a whopping 170% increase in conversion rate and 41% in average order value when they implemented personalized product recommendations.

Every web visitor may be different, but they all have the same goal – to find relevant information and products quickly and easily. Most of them are also impatient, so you have only a few seconds to grab and keep their attention. And with real estate limited by the device screen size, it would be foolish not to make the most out of the time and space. A good personalization engine can help you achieve this goal.

There’s one thing that many eCommerce managers and marketers have in common: they’re super busy. Nobody has time to manually define what should be shown to each visitor persona. An AI-driven personalization engine takes care of the dynamic selection of products or content that is shown to a specific visitor.

This is how Frosmo defines eCommerce site personalization: “The website addresses me as a valuable customer so I feel at home and I want to buy from this service provider again and again.” To take the definition one step further, personalization can be divided into user experience and inspiration.

It’s all about the customer experience

User experience-related personalization helps a visitor find relevant information by taking their preferences into account. Personalization also makes the experience as friction-free as possible. One practical example with a huge impact on conversion rate is a dynamic front page. How it works with returning visitors: The visitor leaves after browsing your site, perhaps to compare selection and prices at other websites. When they come back to your site, you recognize their customer journey and if they are a step closer to the purchase, you should help them complete the transaction as seamlessly as possible. If nothing else, at least show them the products they recently viewed as shown below.

Inspiration taps into the industry and customer insights and serves visitors new ideas they didn’t think of before visiting the site. Utilizing content to help a purchase decision is often appreciated and it’s also great for SEO. If you don’t have time to create content, some AI-driven product recommendations can do the trick as well. Knowing what other visitors viewed or what was bought together with the selected product might just be the additional inspiration that a visitor didn’t even know existed. Using these types of recommendations is a powerful way to engage with customers, increase average order value and keep customers in the sales funnel. To put it in numbers, you can calculate the business case with a 10% uplift on conversion and a 10% increase in average order value.

In conclusion, one of the easiest ways to get started with personalization is through dynamic, AI-driven product recommendations. They provide a measurable business impact and allow you to deepen engagement, and increase sales and revenue.

Frosmo is a SaaS company that offers a personalization engine. Frosmo’s winning personalization formula consists of AI-driven product recommendations that optimize each step of the customer journey delivering the best results in the market. This leads to an uplift on conversion rate and basket size and a friction-free user experience.

Maija Erkheikki works as the Chief Channel Officer at Frosmo, helping partners and customers succeed in their personalization initiatives.