Main benefits of personalization in eCommerce

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Online shopping for furniture

The eCommerce landscape is extremely dynamic. Lots of factors affect the environment. Technological advancement, changes in consumer behavior, competition amongst vendors, and customers' expectations - all these form the eCommerce. Hence a sophisticated and unique shopping experience is imperative. Our article reveals the main benefits of personalization in eCommerce, usage scenarios, and trends.

A survey conducted by McKinsey showed that over 76% of digital shoppers want to receive personalized personalized experiences and get upset when this does not happen.

What is personalization in eCommerce?

eCommerce personalization is about adapting the shopping experience to each visitor of your digital store. Being in different forms, it requires the collection and analysis of data about the needs, preferences, and interests. Below we listed various use cases:

  • Product recommendations and personalized offers are the most frequent forms of personalization. Using special algorithms, platforms analyze previous items bought and the digital footprint of their visitors. Then they suggest new products, discounts, and bonuses customers might like.
  • Emails with personalized content are sent based on the purchase history and interactions with the eCommerce platform. Examples would be reminders of the products they abandon, birthday discounts, or alerts about recent arrivals in categories they frequently shop.
  • Chatbots and virtual assistantsdeliver personalized online help. They also can use knowledge about previous shopping and customers' preferences. Bots answer questions, give recommendations, and solve problems.
  • Dynamic content means displaying the material depending on who is watching it. For instance, these are homepage banners, promotions, and even navigational elements might change considering various parameters.
  • Customized search results indicate that customers receive search results based on their past interactions. If they previously picked a specific brand or product type, these preferences become a priority of the search results.

5 benefits of personalization in eCommerce

Personalization brings multiple advantages for all sides of the deal. eCommerce providers have a chance to shine bright among competitors and gain business value. While customers get the best deals and close their demands. Here you have a detailed breakdown of benefits:

  1. Enhanced customer experience

    Browsing through tons of irrelevant items and details may irritate all of us. Personalization empowers a smoother journey. Digital shopping has become more relevant and engaging. When visitors see customized recommendations and offers, they feel like the store knows their intentions. They spend less time and effort looking for and studying products. This makes a favorable impression on customers.

    Designer working on car sketches
  2. Higher conversion rates and sales volumes

    Personalized offers mean products that are more likely to appeal to customers. Higher probability of a purchase, due to facilitation of decision-making. eCommerce platforms also can recommend complimentary or additional goods that the customer might have forgotten about, but needed. Thereby enlarging the volume of the shopping list.

  3. Increased customer loyalty

    With personalization, eCommerce can foster relationships with their customers. Corresponding suggestions and customized content demonstrate an understanding of consumers’ demands and preferences. An interesting offer sent on time may lead to an unintended purchase This approach has a long-term impact. In particular, increasing the probability of repeat purchases and strengthening long-lasting loyalty. Consumers are more likely to stay with your digital store for future purchases.

  4. Better customer insights

    Personalization assumes gathering thorough information about customer behavior, preferences, and interactions. These meaningful insights serve to uncover trendy patterns, vulnerable spots, and potential for enhancement. With a better knowledge about their consumers, eCommerce further deepens and refines personalization. Besides that, vendors can apply this data to develop new products and implement marketing strategies that are more likely to succeed. Focused efforts result in higher returns on investment and lower acquisition costs.

  5. Increased average order value (AOV)

    Upselling and cross-selling will not work without proper personalization strategies that consider purchasing habits and preferences. eCommerce should know when and what supplementary products to show to boost the customer's list of items. Also, add here personalized offers and promotions and gain more order value. On the other hand, personalization can directly affect common reasons for abandoning shopping carts, such as customer congestion or difficulties with finding products.

    Online shopping with a smartphone and credit card

We hope that we have helped to dispel doubts regarding the benefits of personalization in eCommerce. All the techniques and methods continue to be improved due to the technology advancements. Here rock Artificial Intelligence (AI), Augmented Reality (AR), and Virtual Reality (VR) and mobile devices capabilities. With their help, we can create more personalized and interactive shopping experiences.

Power of hyper-personalization

Hyper-personalization is taking experience to a new level making it ultra-adapted. Imagine you are walking around a digital store where all offers are personal. What makes it possible? Deep analysis of data coming from numerous sources. AI algorithms can analyze vast amounts of data in real time. Thus, recommendations are based not only on purchasing history but on web browsing behavior, current location, activities in social media, and even weather conditions. Besides the more precise and efficient content, AI has capabilities to empower chatbots and virtual assistants for in-store communications.

The privacy-first rule

As people are increasingly concerned about data privacy today, companies should take a more responsible approach to data collection and analysis. Transparency is an essential element. Customers wish to know what data the vendor collects and how they are going to utilize it. In addition, there should be freedom to opt in and -out. One of the valid ways of gaining data is by conducting surveys and quizzes.

Omnichannel approach

When making online purchases, we want to have a seamless shopping journey across all channels. Imagine you have added an item to the cart on the website, but it did not appear in the app. Omnichannel personalization is a solution that offers a consistent experience. It suggests using a single customer profile that unites data from all sales channels. You can add websites, eCommerce platforms, mobile apps, and social media. The vendor gets a comprehensive look at the behavior of their consumers. In such a way, recommendations and communication are coherent and don't contradict one another. As an example, visitors may view an item in one source. And then they get a personalized discount message through another.

Personalization is not limited to the interactions between customers and eCommerce businesses. It is not only recommendations, support, and offers. This approach also reflects how customers can interact with the items on the eCommerce platforms. From such a perspective, we specify two more trends:

Virtual try-on experience

The virtual try-on option allows your digital stores' visitors to visualize your products. This is a chance to test a product and how it will look in their environment. Or match their figure and type of appearance. This creates an intensely personalized shopping experience. Consumers just need to use cameras on their mobile devices. This technique combines AR and AI capabilities. Virtual try-on has great potential for clothing, footwear accessories, makeup cosmetics, furniture, and home decor. Products where customers can try different colors, sizes, and styles, being more confident in their choices.

Woman using a virtual try-on

Product customization

Within this option, visitors are able to customize products directly on eCommerce platforms and mobile apps. They can change all available parameters like colors, materials, and sizes. Due to this option, they order the item for their exact need. Advanced visualization technologies give real-time control and precise previews of the customized goods. Personalization through customization significantly improves customer experience.


Personalization is a vital practice for eCommerce providers. Efficient strategies help to turn “just view” digital store visitors into loyal consumers. Eventually boosting sales and driving business growth.

3D Source offers custom solutions for creating personalized shopping experiences. The company assists its clients with lifelike visualization of goods and product customization solutions using 3D modeling, 3D animation, VR, and AR. Drop us a line, and we will go over your tasks and come up with a solution.

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