What are the benefits of personalization?

Benefits for the user


Personalization improves user experience which implies overall well-being during and after the store-visit: 60% of online shoppers opinionated that in a personalized e-store it’s easier to find the products they are interested in.


After explained to customers, personalization also induces a higher feeling of trust. 77% of shoppers trusts more in the buying process after they are explained how personalization exactly works. Stronger willingness to share personal data correlates with higher trust:  57% of e-commerce shoppers are ready to betray personal data as long as it serves their benefit.


The trust does not limited to single visits: 56% of the shoppers expressed strong desire to buy again in those sites that apply product recommendation.


Personalization is a perfect tool to dismiss the irritation caused by irrelevance:  a research made by Janrain Customer Identity and Access Management states that approximately  ¾ of customers gets heavily frustrated by getting irrelevant emails. The same study points out some of the most powerful factors that can really make online consumers out of patience: 74 % of the visitors get frustrated when the content they meet has nothing to do with their interests, 67 % leaves the site if asked to donate to political parties or organizations they have no sympathy with. 50 percent leaves the site if shown recommendations to buy clothes that is for the opposite gender. And once the customers are lost, the e-commerce market competition makes it very difficult to get them back before they get into the attraction of another sales funnel.


Benefits for the ecommerce store


Launching personalized campaigns with recommendations would demand years of human workforce:  if a grocery store like Cora, WalMart or Tesco was about to target each buyer with a personalized flyer based on their preferences, they would need to track back the customers` previous histories by human workforce, or the customers would be held at the cashier desks until they fill in forms about the goods they bought in the recent years. Then the forms would be processed to predict future purchases, and after horrendous printing costs hundreds of thousands of unique flyers would be sent to the customers` addresses. After received advertising materials that is personalized to their needs and appealing to them, customers would feel more connected to the retailer.  

Seeing the horrible costs of such kind of off-line campaigns we are not surprised that the catalogs of brick and mortar giants landing in our mailboxes are still non-personalized. To invest into an offline personalization campaign described above would not worth even for the largest giants. But investing into e-commerce personalization is a viable and affordable way even for the smallest e-commerce stores, especially in the era of performance-based recommendation engines that enable the stores to calculate more accurately with the occurring  personalization costs.


Personalized e-commerce stores induce higher affection: after using them, people will genuinely and viscerally be attracted to them. 53% of customers shopping online on a monthly basis genuinely believe that personalized shopping experiences give more meaningful services than those stores who don’t use.


The following KPIs are proven to increase by e-commerce personalization:

Average Visit Duration - Visitors spend more time in the store.  ( Growth: 10-50% )

Product Engagement - Visitors view more product pages and add more products to the cart. By personalization e-stores can boost  delivering content which is appealing to the present or prospective customers’ needs, likes, interests and product engagements.

Order number - Visitors turning over to be customers place more orders into their carts.

Average Order Value - Goods placed into cart and bought represent a higher average value ( Average growth: ( + 8 - 25%)

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