The Significance Of E-Commerce Personalization

ecommerce personalization

A compelling user interface or a speedy checkout on your e-commerce platform are just some terms you would be acquainted with within the dictionary of e-commerce personalization. It extends much above recommending some products on your user’s last search or welcoming a customer back on your platform.

These things would look like a breeze to one, but with a large amount of data available to the marketers, the actions they take on the same are a big hustle.

Get a glance at the below-given stats and the extent to which this trend is recognized of vital importance in the e-commerce industry.

The Significance Of Ecommerce Personalization

Source: OptinMonster

Another study done by O2 states that e-commerce experienced a hike of 7.8% over a short period by adding personalization. Also, 94% of businesses agree that adding personalization has been a crucial factor in their success.

Even with such a large number on the plate, a three-fourth quarter of marketers struggle to deliver a personalized content experience.

So, to acknowledge you on the same, let’s learn from the beginning in detail about the e-commerce personalization and significance of the same for your e-commerce business.

What Is E-Commerce Personalization?

The procedure of developing a customized user experience as per the behavioral aspects and interests of the user on your e-commerce platform is known as e-commerce personalization.

The main aim of offering personalization to the user on your platform is to work out a dynamic change so that you can drive more sales in your business.

It plays a vital role in luring the customers and keeping them engaged on your e-commerce platform.

Why Is It Crucial for Your Business?

With such a big inventory of products on an e-commerce platform, it is crucial to showcase or suggest each product to the right customer.

For example, a person in dire need of shoes won’t buy a handbag if recommended on your e-commerce platform.

If your e-commerce platforms work on this track, your inventory will remain untouched, and your product won’t even reach the people who need them.

By offering a unique tailored experience as per the choice and needs of the user, you can provide your visitors with a worthy experience.

Why It Is a Must-Do Thing

You would think that your business is going well. Why would you need e-commerce personalization?

Think about the time when there will be better options for your customers in the market. They will get what they are looking for in under two to three clicks. At that time, if you start with the personalization process, you would have already lost a portion of your customers.

To maintain your loyal customer base and offer an up-to-date experience on your online platform as your competitors in the market, you must adopt it.

Apart from this, there are arrays of other factors that will astonish you about what works great with e-commerce personalization for your business. These are listed below.

  • It offers ease of use to the customers, especially the new ones.
  • With smooth navigation to what the customer came searching for, quick checkout makes every customer happy.
  • Great recommendations based on browsing history and behavior of the customers can drive more sales from the customers by offering products of their taste.
  • The marketers can provide great offers to the customers by laying out personalized web content.
  • Customers get touched by the efforts e-commerce businesses put in providing a personalized experience to the user. By providing a well-curated list of products, you will be able to earn loyal clientele.
  • With personalized experience on social networks, a news feed, and more, Customers expect the same experience on the e-commerce platforms.
  • Delivery of personalized results and analysis of customer insights can take customer loyalty and growth to great heights.

E-commerce Statistics That Will Make You Adopt E-Commerce Personalization

This marketing tactic is finding its place in the market at a greater pace. Let’s check out the e-commerce statistics to understand their effect on online shopping.

  • The organizations handling e-commerce personalization seriously in their marketing strategies are predicted to experience a 15% boost in their business. (Gartner)
  • 94 % of marketers agree that Customer relationships become better with e-commerce personalization and 74% of marketers believe that it has a strong impact on business.
  • A measurable lift of 10% is experienced by 54% of marketers and a 13% lift by more than 30% of marketers. In total, up to 87% of marketers have experienced a boost in their business through their personalization efforts.

As per the customer’s point of view, the Evergage Annual Reports statistics are as follows.

  • About 48% of customers spend above their usual limit on a personalized store.
  • On a personalized store, 59% of customers find interesting products more easily.
  • Around 56% of products return to a store where they get recommendations for products.
  • Shopping from a personalized store is preferred by 45% of customers.
  • 53% of customers understand that valuable service is provided by retailers who offer personalized web experiences.
  • If the content on an e-commerce store is of no relevance to the customers, 74% of the customers get frustrated.
  • Around 55% of e-commerce businesses do not have access to the data to provide personalized services.
  • Only for 8% of organizations, the personalized maturity is advanced while for 52% organization rates their personalized maturity as limited.
  • Market surveys state that businesses have lost about $756 Billion because of poor personalization.

Current Scenarios and the Benefits of E-Commerce Personalization

Heavy shortcomings can be seen in the present-day personalized experience, although the benefits expected from the same have made every business concerned about making their on-site personalization a lot more effective.

Catch a glance at the shortcomings in the path of the marketers who struggle to achieve personalization on their e-commerce websites.

Current Scenarios

Source: Exit Bee

Personalization has existed in the market when marketers were involved in traditional marketing too. The ancient business owners had their special ways of adding a personal touch for their shoppers. The same is now the demand of e-commerce stores.

Personalization budgets are increased by over 97% of e-commerce businesses while 77% of businesses believe that personalization is the top priority.

Thus, on-site personalization is going to be proving very vital for e-commerce businesses. With this important aspect missing in any e-commerce business, it’s going to be very hard to recognize precisely what is required by the customers.

Enhanced Engagement

Personalization aims at learning about the pain points of the buyers and providing the solution of the same. If the customer is able to relate to your website, they tend to generate more sales and spend more time on your website.

It has been noticed that customers visit website that offer them good recommendations on their search. It increases the engagement of the user on your online platform.

A recent study by HubSpot states that 42% more view to submission rates for targeted CTA than generalized ones. It gives insight into how the customized CTA’s at various levels of buying process affects the behavioral and emotional triggers for different customers.

Precise Information

Irrelevant information often makes the user bombarded with frustration. The user will eventually leave your website, and you will lose a customer forever. Show the customer recommendations that match their taste as you check the same with their browsing history. It helps in enhancing the conversion process and offers the user a happy experience on your platform.

precise information

Personalized Communications

Try to interact more with your customers through personalized messages. It adds to your reputation in the mind of the customer and promotes interactions with the same at a close level. Learn what they would like to see more on your platform and present them the same or ask for ratings of their experience on your platform.

It will help you let your customers know how much they mean to you.

Customer Loyalty

In the retention of any customer, customer loyalty plays a vital role in the personalization of any e-commerce platform. Customers notice every effort of yours to which extent a business goes to make the user experience an excellent one.

Control in the Hand of Customers

Personalization comes more when customers feel that they are in charge of their experience.

When customers are not interrupted with irrelevant ads on an e-commerce platform, they are more likely to get into the buying process as compared to in the case of when hindered with ads. Replace the annoying ads with the recommendations that appeal to the customer as people’s innate desire to be in charge.

Extended Search Capabilities

Ecommerce businesses need to adapt exceptional ability to be flexible to the online searches of the customers with filters like product details, ratings, availability, and more. IT helps businesses to retain their competitive edge as compared to others. With these options in the search bar, the customer gets personalized results and a smooth buying process.

Beat Your Competition Out in the Market

With boundless capabilities for your e-commerce brand, Personalisation is not an exception. You just need to get started and incorporate various ideas that will prove to be beneficial for your brand.

Be it personalizing your platform through data that you have or through the behavioral aspects of the users, every company has a different approach. Make your marketing strategies effective and let your customers know how worthy they are for you.

It will help you touch the heights of the market. Include the wow factor in your e-commerce business and be the magnet in the pool of competitors for customers.

Author Bio:

Rajesh Bhimani is the Founder of Skynet Technologies, Website Design, and Development Agency. He has 20 years of experience in the Technology and Marketing industry. When he isn’t working, you can find him cooking for his family or reading some fiction. You can connect with him on Twitter.


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