The Fast Lane
Discover the world of AI-driven shopping optimization and fast-track your way to increased conversion rates, AOV, and customer loyalty. Explore expert insights on e-commerce personalization, merchandising, site search, and more.
Marketing4 Ways Social Media Marketing Drives Consumer BehaviorSocial media marketing, or social commerce, has the potential to drive consumer behavior thanks to the growing number of active users. According to DataReportal, around 4.76 billion people worldwide use social media. By using the right social media channels, you can create an emotional connection with your customers to influence and encourage purchases and brand loyalty. To help you tap into this potential, here are four strategies you can try.
1. Make Consumers Aware of Your Brand
Social media can help foster brand awareness and increase visibility across multiple platforms and through various online formats. However, the intense competition for attention can make it tough to get noticed. Some options include:
Leverage Influencer Marketing
Social media influencers can help boost brand exposure and promote your business. Try to identify influencers that match your niche audience and leverage their creativity and authenticity to grow your brand.
For example, the fashion brand Princess Polly partners with influencers on Instagram to promote their products. By featuring the brand's products in curated looks and sharing them with their followers, these influencers can help increase Princess Polly's brand awareness and attract new customers.
Launch Hashtag Campaigns
Hashtags are another effective way to drive brand awareness via social media. Use a combination of popular, trend-based, and niche-based hashtags to maximize the visual discovery of your content.
For instance, premiere shopping and lifestyle brand CURATEUR uses hashtags that can help create a brand identity that's easy to discover online. Ensuring your content is easy to find across platforms can help boost reach and sales.
» Check out the top eCommerce apps to optimize customer experience
Create Viral Content
Creating viral content like videos or memes can generate significant buzz around your brand. When content is shared by thousands, if not millions, globally, it has the potential to increase brand exposure and recognition.
BarkBox, a dog products subscription service, regularly shares animal-related memes on its social media pages, creating a strong brand identity and keeping its followers engaged.
2. Influence Consumers' Purchasing Decisions
Social media can play a crucial role in swaying customers' preferences toward a particular product or brand. By offering product information and social proof, brands can create a more informed and confident buyer. Consider the following strategies:
Display Customer Reviews & Ratings
Potential customers can read real feedback from others who have already purchased the product. This can create a sense of trust and credibility and lead to increased conversion rates.
For example, the handmade jewelry brand Made by Mary frequently features customer photos and reviews on its Instagram page, showcasing its products in a relatable way.
Offer Exclusive Discounts
Offering exclusive discounts or promo codes to social media followers can be a powerful motivator for purchase. By providing value to the audience, brands can increase engagement and loyalty.
For instance, fashion brand Steve Madden uses Twitter to promote exclusive discount codes for its followers, creating a sense of urgency and excitement among them.
» Looking to try AI? Learn how AI can improve conversion rates in eCommerce
3. Build Brand Loyalty Among Consumers
Brand loyalty is a key driver of profitability. Customers who exhibit loyalty choose your products or services repeatedly and also advocate for your brand, often recommending it to others. Here are three strategies to help you build brand loyalty:
Create Personalized Content
Personalization can demonstrate an understanding of customers' unique needs and preferences. Brands can personalize content by collecting data, such as:
DemographicsInterestsOnline browsing behaviors
Stitch Fix, an online personal styling service, collects data on its customers' preferences, style, and fit and then uses it to provide personalized clothing recommendations and styling advice. This personalized experience helps build long-lasting customer relationships.
» Find out why product recommendations need merchandising
Reward Loyal Customers
Offering exclusive discounts, early product access, or special promotions are some effective ways to show appreciation for loyalty.
For example, Fragrance Buy, an online fragrance retailer, gives its loyal customers points ("sprays") for specific actions they complete, which can be redeemed for discounts on future purchases. This gives customers a sense of exclusivity and encourages them to continue shopping with the brand.
Increase Direct Online Engagement
Social media engagement boosts loyalty by making customers feel valued and heard. Brands that respond to comments and feedback show that they care about their customers, fostering trust and appreciation in return.
A great example is 401 Games. This game and toy brand offers helpful and friendly responses on Twitter when customers reach out. This can help boost sales as customers feel valued and informed.
4. Encourage User-Generated Content From Consumers
User-generated content (UGC) can be highly effective as it adds authenticity and depth to a brand. When existing customers create content about a brand, they humanize it and provide real-world context for products and services. To encourage UGC, consider taking the following steps:
Run Social Media Contests & Challenges
These campaigns can encourage customers to share visuals of themselves using your products and create a buzz around your brand. Consider using branded hashtags for contests, as they can make it easy for customers to find and share your UGC.
Energy drink brand V, for example, asked customers to show their transformation after sipping a V energy drink using the branded hashtag. The brand then featured some of the best UCG on its own Instagram account, highlighting the impact of its product on real people and encouraging others to try it.
Share User-Generated Content on Your Own Channels
This is a smart way to increase engagement and add social proof to your brand.
Woolery, an online fiber arts brand, excels at this strategy. By sharing customer photos on its Instagram story, Woolery diversifies its content and increases engagement because it showcases real people's creations using its products. Plus, by adding these images to a pinned highlight reel, anyone can view it at any time.
Get More Insights into Your Consumers' Behavior
Using built-in social media tools and metrics, you can gather valuable data on customers to inform your marketing campaigns. Here are a few tactics to try:
Analyze social media metrics to track engagement, reach, and other key performance indicators.Conduct surveys or polls on social media to gather feedback from customers.Leverage audience segmentation to create audience groups and tailor social media content according to each group's preferences.
By leveraging these strategies, you can enhance the customer experience and get more conversions for your brand.
» Discover how to tackle eCommerce hiccups that bust brand loyalty
Post and Share the Fast Way
With social media, you can engage with your audience quickly and easily. Because customers expect more from the brands they support, including personalization, social media is a flexible platform to accommodate their growing and ever-changing needs. Effective social media marketing strategies can help you achieve better brand awareness, conversions, customer loyalty, and engagement. Leveraging social media creatively can help your brand stand out from competitors and reach more potential customers.
MarketingGet Inspired: 5 Email Remarketing Campaign Ideas That Really WorkDid you know that almost 70% of eCommerce shoppers abandon their carts? But email remarketing campaign ideas can successfully work to fix this and help you get inspired. Also referred to as email retargeting, this strategy involves sending personalized emails to customers and leads who have become inactive. It can be a successful tactic to recover lost sales. For instance, a study shows that cart abandonment emails led to a 24.87% conversion rate.
So, let's look at five remarketing email campaign ideas you can try today.
1. Abandoned Cart Reminder
An abandoned cart strategy is essential to reeling in shoppers who never finished the checkout process. When you do it right, an abandoned cart email can remind customers of what they're missing and entice them to complete the purchase, increasing your sales and conversions.
Here are some tips for crafting an abandoned cart email:
Use persuasive copy that shows personality.Leverage email marketing tools like Klaviyo.Include product images.Create a sense of urgency.Give a clear call-to-action (CTA).Send in a timely manner—ideally within 24 hours of abandonment.Include customer reviews for the item(s).
Let's look at an example. Food 52 sends a short and sweet abandoned cart reminder. It has a light and casual tone, showing a photo of the item that's in the shopper's cart to remind them of what they were looking at. The CTA button takes them straight to the cart to finish checkout.
2. Win-Back Campaign
A win-back campaign is a type of retainment remarketing email that aims to "wake up" and re-engage an inactive customer (typically someone who hasn't made a purchase in 3 to 6 months).
These emails usually draw the customer back in with a special offer, promotion, discount, or simply a reminder of what's on offer. If you do it right, you can boost your sales, increase your customer lifetime value (CLV), and improve customer experience.
Some tips include:
Try sending between 3 to 6 emails, spaced out every 1 to 3 days.Create a sense of urgency for them to act now.Be direct and concise.Offer a clear CTA for their next steps.Use branding and imagery, including product photos.
In this example, beauty brand Aillea sends a friendly, broad win-back email to an inactive customer, encouraging them to browse more products. This method can also utilize personalization, as you can use the customer's interests based on previous purchases.
3. Post-Purchase Upsell
Upselling is an extremely valuable eCommerce merchandising technique for growing your average order value (AOV) and overall revenue.
Post-purchase upselling involves suggesting an "upgrade" from what a customer has just purchased.
Your approach should be methodical. In your upsell offer, consider products that are related to the most recent purchase.
To send a great post-purchase upsell email, you can use these tactics:
Try including the upsell offer in the customer's order confirmation email.Personalize the recommendations based on the user's purchase history.Use a simple, clear CTA.Include discounts and special offers to sweeten the deal.Add social proof for the recommended products, like customer reviews.Include visuals like branding and product images.
For instance, viral men's hygiene brand Dollar Shave Club takes advantage of the period right after a purchase, offering to toss more items into the customer's package before it's shipped.
» Want to know more? Find out the benefits of upsell and cross-sell personalization
4. Limited-Time Offer
A limited-time offer can cover any type of occasion, from a holiday sale to a product launch celebration to a "just because" personalized special offer.
The important factor is that you're prominently showcasing the value and the expiring time period of the offer so customers know exactly what to expect.
For a strong limited-time offer, check out these tips:
Be clear about the offer and how long they have to buy.Use standout graphics and colors to illustrate the offer.Include visuals like branding and product photos.Create a compelling CTA.Personalize the offer to your customer base if possible.
In this example, Targus, a computer accessory online store, uses bright CTAs to highlight what the offer is (15% off), where to purchase, and how long the offer is available ("Today"). Also, with a clear copy ("limited edition"), the brand also implies a sense of exclusivity, which can encourage conversion.
5. Product Recommendations
With the help of sophisticated algorithms, personalized product recommendations can be tailored to better match shoppers' intent. This strategy uses customer behavior data, like browsing and purchase history, as well as data from other customers with similar habits.
Here are some ways to use customer data to fuel product recommendations:
Suggest similar products to those already purchased.Show an additional product that's frequently bought together with a recent purchase.Highlight the most popular and best-selling products.Break up the most popular products per specific category.Push top-selling products based on lookalike audience segments.Remarket products recently viewed by the consumer.
Take the fashion brand Princess Polly as an example. This brand suggests items that are similar to ones you've viewed or purchased, plus extra items you can purchase to "complete the look". This encourages additional purchases and shows personalized attention, which can help boost retention.
» Learn why personalization for large audiences through anonymous data works
Fast-Track Your eCommerce Sales
If you're trying to find new ways to captivate customers, these email remarketing campaign ideas may be the tools you've been looking for. When you thoughtfully re-engage your current leads and customers who have gone stagnant, you can help create long-lasting relationships. This, in turn, can boost sales, customer retention, and the overall success of your business. So, why not try these ideas?
PersonalizationDecoding Personalized Pricing: What It Is and How It WorksResearch shows that increasing the average price of online goods by just 1% leads to an 11% boost in operating profit. But just changing your prices isn't enough—you need to use the right strategy. Personalized pricing is a data-driven pricing strategy that can help you give customers individual offers based on their history and preferences. Below, we decode personal pricing by outlining what it is and how it works to help you remain competitive and better meet the needs of your customers.
What Is Personalized Pricing?
Personalized pricing is a strategy that tailors prices to individual customers based on their personal data, such as purchase history, browsing behavior, or preferences.
Personalized pricing aims to optimize the price of goods or services for each individual, so you can build meaningful connections with different customer groups and expand your sales.
It's important to differentiate between personalized pricing and dynamic pricing. Where personalized pricing focuses on the individual, dynamic pricing adjusts prices based on external market conditions like product supply and demand, seasonality, and competition.
Personalized pricing exists in different forms, including:
Customer-based pricing: Prices are tailored to individual customers based on personal data, such as browsing behavior and order history.Demand-based pricing: Prices are adjusted in response to market demand and other relevant factors to reflect current conditions.Location-based pricing: Prices vary based on geographic location, allowing you to adapt pricing strategies to specific regions or markets.
How Does Personalized Pricing Work?
Personalized pricing works through intelligent algorithms and advanced technologies like machine learning and AI. These tools analyze real-time demand and customer data and, with predictive personalization, calculate prices that will appeal to individuals. Using personalized pricing, you can adapt your prices as and when needed to maximize revenue and cater to shopper preferences.
Personalized pricing is a common strategy in the hospitality industry, which uses a broad range of customer data, including device type, location, booking history, and browsing history. For example, the online travel agency Booking.com uses customer data and AI algorithms to determine accommodation rates for each customer.
As you can see below, the rates differ for the same accommodation, dates, and number of people. However, the searches were done by two people on separate devices and in different locations. In this instance, the second customer, who had a Booking.com account and had made previous bookings through the website, was charged $20 less than the first customer.
Benefits of Personalized Pricing
1. Improved Customer Experience
An enhanced customer experience lies at the core of personalized pricing. For example, an online fashion retailer analyzes customer data to offer tailored pricing options. By seeing each customer's preferences and purchase history, the merchant can provide personalized discounts and promotions on items that align with their unique style. This strategic approach creates a seamless and gratifying shopping experience where customers feel valued and understood.
2. Higher Customer Loyalty
As customers have better shopping experiences, their increased satisfaction often fosters customer loyalty. Tailoring prices to meet individual needs and offering targeted discounts, promotions, and product bundles allows you to build stronger relationships and establish a deeper connection with your customer base. When customers receive personalized offers that cater to their unique interests, they feel valued and are more likely to remain loyal.
» Read more about how to address barriers to brand loyalty
3. Increased Market Share
In the quest for market dominance, personalized pricing is a powerful tool that strategically distinguishes you from your competitors. Tailoring prices to individual preferences and needs gives you a significant advantage in attracting and retaining customers. With personalized pricing as a key strategy, you can forge your path toward market leadership.
4. Increased Revenue
By tailoring pricing options to individual customers' specific preferences and behaviors, you can enhance the appeal of your offerings. Improved customer satisfaction and loyalty and gaining a competitive edge over rival stores drive more sales and revenue—both in the short and long term.
Ethical Considerations
Personalized pricing raises some ethical concerns that you must address.
Fairness of different prices
When companies increase product prices because demand outweighs supply, they potentially price out individuals with limited purchasing power or those who prefer to buy products at regular prices. This practice can perpetuate disparities and create a perception of inequity among consumers.Privacy and transparency regarding personal data
Businesses often rely on AI to boost conversions, employing algorithms that operate behind the scenes to collect and analyze customer data. However, customers are often unaware of how these algorithms determine their personalized prices. To address this, consider offering customers the option to opt out of personalized pricing and empowering them with knowledge about the practices involving their personal data.
Personalized pricing is advantageous for you and your customers when you aim to find the best balance between generating the most revenue and offering customers the best deals.
Get Ahead of the Competition Fast With Personalized Pricing
This individualized approach to pricing is fast becoming one of today's online shopping trends, with more brands investing in sophisticated technology to display the right price to the right shoppers at the right time.
As AI in eCommerce continues to grow exponentially, the future of personalized pricing is bright. But if you decide to incorporate this pricing strategy, it's essential that you work to develop personalized pricing strategies that prioritize fairness for customers.
» Learn more about the personalization experience and how else to implement it in your store
MerchandisingEvolution of Merchandising: How Visual Appeal Drives Online SalesMerchandising is a crucial aspect of e-commerce in today's digital age. The way you present and market your products online has a significant impact on consumer behavior and sales.
Below, Ashlee Colliver—an e-commerce professional and digital growth expert—takes a look at the evolution of merchandising and how visual appeal helps to drive online sales.
Early Days of eCommerce Merchandising
Initially, eCommerce merchandising strategies were basic. It mainly involved listing products on a website without much emphasis on visuals. So, consumers had a less engaging online shopping experience due to fuzzy images and a lack of categorization. However, as technology advanced and consumer expectations grew, merchandising became more important.
» Blast from the past: Explore the rich history of merchandising
Power of Captivating Imagery
One notable merchandising strategy that has stood the test of time is using captivating imagery. Just like flipping through a magazine and being drawn to a visually stunning full-page image, your online shoppers respond similarly to beautiful visuals. Whether it's an enticing lifestyle image or an aesthetically pleasing product photo, visual merchandising creates a momentary pause and captivates consumers, enticing them to explore further.
But visual appeal goes beyond aesthetics. In physical retail spaces, packaging and product placement are crucial to attract customers. Similarly, effective online merchandising relies on well-designed websites and engaging visuals to draw users in. By strategically using colors, typography, and social proof, you can encourage your customers to complete their buying journey.
Spiceology: Adding Flavor to Product Promotions
Spiceology, a spice seller for professional chefs and home cooks, promotes a new range of beer-infused BBQ spice rub with a colorful product banner. This is offset by a black block with a product description. Plus, the orange call-to-action button makes it very clear how the customer should proceed. Finally, a bright pink banner stands out at the top of the page to let customers know about a sale.
» Want to optimize your visual merchandising? Consider these do's and don'ts
How Personalization Influences Visuals
The evolution of e-commerce has led to personalization and automation. You can now create personalized experiences based on users' preferences and behavior, thanks to technologies like AI and chatbots.
Personalization also translates to your online store's visuals. By tailoring the shopping experience to each user's interests, your store can visually adapt to individual shoppers. For example:
Promotions on your homepage can be for products the customer regularly buys.Product collections can showcase relevant discounted or new products first.Personalized product recommendations on product pages or during checkout create good upsell and cross-sell opportunities.
A personalized approach lets you enhance your visual merchandising by aligning content with the shoppers' interests, increasing the likelihood of conversion.
Bright Minds: Shedding Light on Individual Customer Needs
Bright Minds, a children's educational online retailer, personalizes their customers' shopping experience at three points:
Recently viewed products (browsing history)What others have bought (upsell and cross-sell opportunities)Top sellers that customers might enjoy (personalized product recommendations)
Pro tip:Use AI Visual Discovery to let your customers search for products with images. Optimized for mobile, this integrated shopping experience can also boost your social commerce.
Balancing Personalization and Exploration
While personalization and automation enhance the overall shopping experience, it's still important to strike a balance between the benefits of personalization and the need for customers to explore. In extreme cases, customers are presented only with what they already intend to buy. They can lose the opportunity to discover new items. The ideal middle ground is to encourage exploration and serendipitous discovery within personalized shopping experiences.
» Learn how to create the ultimate personalization experience for your shoppers
How Branding Solidifies Merchandising
Branding plays a significant role in merchandising. While some companies prioritize selling their products, others understand the power of branding and storytelling.
Branding goes hand-in-hand with visual appeal to drive online sales. Consistent and compelling branding elements, such as logos, color schemes, and imagery, create a cohesive and recognizable brand identity. When shoppers encounter these familiar branding elements, they develop trust and loyalty, making them more likely to engage with your brand and make a purchase.
Nike: Just Doing Branding and Merchandising
Nike solidifies their branding and merchandising by focusing on the emotional connection and lifestyle associated with their products. They sell more than just clothing; they sell confidence, power, and a sense of belonging.
When shopping in their store under "Sport", the products are shown in action. In some cases, famous athletes are showing how they use Nike's products. This brings across a sense of authority because it suggests that Nike is preferred by professionals. Plus, it empowers customers and prospective athletes because they're using the same products as their favorite athletes.
» Make sure to address these e-commerce hiccups that influence brand loyalty
Mastering Visual Appeal in eCommerce Merchandising
Merchandising has undergone a remarkable transformation, driven by technological advancements. Visual appeal has consistently been the key to capturing the attention of shoppers, both online and offline. With the rise of personalization and automation, you can leverage captivating imagery and thoughtful branding to create a compelling online presence and drive sales.
PersonalizationB2B vs. B2C Personalization: 5 Key DifferencesPersonalization is non-negotiable for online shoppers. If more than half of your customers want a curated shopping experience, then it's essential to get it right. But where should you start? It's all about context. B2B (Business-to-Business) vs. B2C (Business-to-Customer) personalization can help you understand what your customers are expecting and find the right approach to meet those expectations. Below, we take a look at the differences between B2B vs. B2C personalization so you can develop effective personalization strategies.
5 Key Differences Between B2B vs. B2C Personalization
Audience characteristicsRelationship buildingPersonalization methodsData collection and analysisMetrics and ROI
1. Audience Characteristics
When trying to evaluate the characteristics of your audience, you'll need to look at some critical categories like buying habits, decision-making processes, and expectations.
B2B
A B2B audience is more relationship-driven. You don't just focus on logic and numbers. You also need to build a sense of loyalty and trust. This means that a B2B purchase cycle may take weeks, months, or even years, depending on what's being purchased. Plus, this decision might involve multiple stakeholders, so you'll need to build relationships with all of them.
B2C
In contrast, a B2C audience is more product-driven. This means you'll need to focus more on selling the value of the products while appealing to emotion and using easy-to-understand language. A B2C shopper also has a much shorter purchase cycle than a B2B buyer, especially if the item is relatively inexpensive.
2. Relationship Building
To build long-lasting customer relationships, you'll need to be trustworthy, reliable, and consistent, no matter who your customers are.
B2B
Building on our previous point, the relationship-building process should be more in-depth in a B2B environment. These customers have higher expectations for what you're bringing to the table and how you show up. After all, you're not simply selling a product—you're giving expert advice and delivering custom solutions for specific business challenges. This means your communication with B2B customers will also be more intimate via meetings, calls, or email exchanges.
Pro tip:
If you have a sales team that speaks directly with buyers, we recommend using a customer relationship management (CRM) platform to keep track of critical details, like who you're speaking with, what you're discussing each time you engage, and how the purchase is moving through the pipeline.
B2C
Your customer relationships aren't necessarily as intimate as those in B2B. Because you're serving a larger audience, you communicate with your customers all at once via different digital channels like websites, mobile apps, and social media. Your focus is also to build trust with your audience and demonstrate why your brand and products are better than your competitors.
Pro tip:
Build credibility and social proof with reviews, surveys, and user-generated content.
» Delve deeper into how user-generated content creates conversions and increases brand loyalty
3. Personalization Methods
All audiences, regardless of who they are and what they're buying, want to see information that's relevant to their wants and needs.
B2B
In the B2B world, your personalization methods must be focused and relevant to the customer's industry and business model. The average B2B buyer will read 13 pieces of content before deciding which vendor they'll go with. On the other hand, someone buying a case for their iPhone likely won't be doing such thorough research. This means proving your credibility and value in different ways, including:
Showcasing your expertise through reports and research.Establishing your customer service through case studies and customer testimonials.Offering dynamic pricing structures and product packages to meet customer needs.Assigning a specific account manager to offer personalized advice.
B2C
Because B2C has a shorter purchasing cycle than B2B, you're trying to encourage customers to buy now. Plus, if they had a pleasant shopping experience, they'll come straight to you next time instead of browsing competitors. You can personalize the B2C shopping experience by:
Making personalized product recommendations and taking advantage of upsell and cross-sell opportunities.Offering personalized pricing strategies.Giving custom rewards through loyalty programs.Using behavioral retargeting to showcase tailored ads.
» Find out how to create the best personalization experience on your eCommerce store
4. Data Collection and Analysis
While both B2B and B2C businesses use strategies like website tracking (e.g., Google Analytics) and third-party data sources, their data collection and analysis differ in terms of volume, complexity, sources, and goals.
B2B
While B2B has a lower data volume, its data collection and analysis are more intricate and detailed. Because the goal is to build long-term relationships with customers and offer personalized business solutions, you must collect detailed information about your business customers' companies. You can collect data from:
Account management platforms.Customer support systems.Email exchanges.Interactions with multiple role-players in the business.
B2C
B2C has a large data volume because it serves a large customer base made up of multiple individuals, each with their own needs and preferences. To offer personalization to a large audience and improve their shopping experience, you need to divide your audience into segments—for example, according to behavior or demographics. But before you can segment and analyze data, you have to collect it from the right sources:
Customer interactions on your website.Customer activity on social media.Customer feedback through reviews, surveys, comments, or emails.
» Use these customer segmentation strategies to grow your eCommerce business
5. Metrics and ROI
Both B2B and B2C businesses must measure the effectiveness of their personalization strategies to identify areas for improvement and optimize future campaigns.
B2B
Because B2B transactions have longer sales cycles and more complex decision-making processes, the metrics you track focus on monitoring the different stages of your sales pipeline. This can include lead-to-opportunity conversion rates, average deal size, sales velocity, and win/loss ratios to understand and improve your sales performance.
Additionally, you'll calculate ROI (Return on Investment) at the account or customer level because you're aiming to establish long-term relationships. You'll look at factors like revenue generated, margins, and the costs associated with acquiring, serving, and retaining customers.
B2C
In comparison, because B2C has shorter sales cycles, you'll look at metrics that focus more on immediate customer actions. This can include conversion rates, average order value, and repeat purchase rates.
When calculating ROI in B2C, you'll focus on specific campaigns, channels, or marketing initiatives and their impact on sales, conversions, and customer acquisition costs.
The Fast Lane to Personalization
To successfully implement personalization and effectively engage and retain customers, it's critical that you understand the key differences between B2B and B2C audiences.
Just keep in mind that you'll likely need to experiment until you find your perfect combination of strategies. Create a plan, test your personalization strategies, and analyze your performance. Once you've found your personalization sweet spot, you can effortlessly grow your eCommerce business.
» Discover more ways personalization can help your business
PersonalizationPower of Omnichannel Personalization: Enhance Your Customers' Shopping ExperienceAre you familiar with the more, the merrier? Your customers are. That's why 76% of them prefer it if you engage with them on different channels. But simply throwing an "omnichannel net" of generic content your customers' way isn't enough. Each interaction on each channel must be personalized and relevant to make sure your customer feels valued. This is where omnichannel personalization can help you enhance customers' shopping experience, drive customer loyalty, and boost sales.
What Is Omnichannel Personalization?
Omnichannel personalization is when you cater to the unique needs of individual customers at every touchpoint on the customer journey and across every channel they use to engage with your brand.
It's often confused with "multichannel personalization", which is typically disjointed and doesn't connect the whole experience into a single ecosystem across the various channels used.
Omnichannel personalization can help you provide personalized experiences to your customers at each point of contact, including:
Brick-and-mortar storesOnline marketplacesSocial media platformsPrivate communications like chats and messaging
How Can You Achieve Omnichannel Personalization?
There are many types of omnichannel personalization methods you can start applying to your business. These include strategies like:
Personalized product recommendationsCustom contentTargeted promotionsPersonalized pricingTailored social media marketing
Timberland: Taking Personalization Up a Step
Brick-and-mortar locations are using technology to take omnichannel to a whole new level. For example, footwear brand Timberland uses in-store tablets and digital displays to let customers create favorite lists, learn about products in the store, and continue their shopping journey at home.
Bright Minds: Use Data to Increase Your Personalization Efforts
Like behavioral marketing, to succeed in omnichannel personalization, you must use customer data to create personalized experiences. This can include using a customer's purchase history, browsing history, and favorite lists to recommend relevant products or offer customized discounts. As your company grows, use a central tracking and analytics system to keep track of all touchpoints. Incorporating AI systems into your store can supercharge these efforts.
For example, the educational toys online retailer BrightMinds leveraged advanced personalization technology to analyze customers' demographics, purchase history, and preferences. With this data, BrightMinds could offer their customers tailor-made shopping experiences with highly relevant information. This led to a conversion rate of over 25% for personalized shoppers.
» Learn more about how personalized recommendations work
Benefits of Omnichannel Personalization
1. Increased Customer Satisfaction
Personalized experiences at different touchpoints can lead to increased customer satisfaction and loyalty. This happens when you can meet customers' expectations and create a reliable, consistent, and more enjoyable shopping experience at each stage of the customer's shopping journey.
One simple way to do this is through a rewards system, like the one Starbucks has been using to keep tens of millions of customers happy. They make the program available on their site and through a mobile app. This rewards program drives half of all their sales—proof that customers who use the app are engaged and satisfied.
» Mobile commerce is making waves in the eCommerce space. Find out all you need to know about m-commerce
2. Improved Brand Reputation and Differentiation
Integrating channels that deliver a consistent and positive experience helps develop a clear brand identity that customers can trust. A strong, identifiable, and unique brand identity is necessary to improve customer perception of your business. This, in turn, is necessary to ensure you stand out from the crowd and make an impact on the market.
3. Increased Sales and Conversions
Personalized experiences can lead to increased sales and revenue for businesses. Personalized experiences like targeted promotions and product recommendations, coupled with omnichannel integrations like cross-channel experiences and support, ultimately drive sales. When customers can start engaging on one channel, move onto another, and then complete their purchase on another, they're much more likely to move forward with the purchase.
Challenges and Solutions for Omnichannel Personalization
While there are many benefits associated with personalization, you'll also face some omnichannel personalization challenges as you find your path to developing and implementing your strategies. For example, many businesses face obstacles around data integration, data interpretation, and customer privacy concerns.
Here are a few tips to help overcome common challenges:
Don't skimp on the tools and tech you use to collect and manage data. For instance, consider a headless content management system (CMS) instead of a traditional CMS. Headless commerce offers maximum flexibility and capabilities.Get a 360-degree view of your customers to better track data across all channels.Clean and organize your data so it's easier to segment, analyze, and interpret.Get customers' permission to collect their data, and don't overcollect.Clearly communicate your privacy policy to customers so there are no gray areas.Ensure that all of your tools and tech are secure and compliant with data privacy regulations in all regions where your store does business.
Having a clear strategy and setting realistic goals for implementing omnichannel personalization are essential. As you get into the flow, be sure you're continually analyzing and adjusting personalized experiences to meet changing customer needs and preferences. A/B testing is a good way to try out different ideas at the same time and compare results afterward.
Fast-Track Your Business Growth With Omnichannel Personalization
When it comes to enhancing your customers' shopping experience, an omnichannel personalization program can have incredible power. By implementing data tracking and analysis, interpreting the data into meaningful strategies, and incorporating those strategies into your company's foundations, you can drive growth and revenue for years to come.
Just keep in mind that it takes some experimentation—what works for one brand may not work for another. The next step is to get out there, do research, and try your own omnichannel personalization strategies. It'll help you continually adapt to changing customer needs and stay ahead in the market.
» The next step: Leverage omnichannel merchandising to accelerate your business growth
Personalization6 Benefits of Using AI in eCommerce PersonalizationPersonalization is here to stay. Up to 63% of your customers expect personalized recommendations from you. This might feel like a lot of pressure, but you can easily tick all the personalization boxes by incorporating AI into your personalization strategy. This means using capabilities like machine learning, natural language processing, and predictive analysis to give your customers personalized product recommendations, emails and messages, social media content, and more. Below, we discuss the benefits of using AI in eCommerce personalization to help you take your store to a new level.
6 Benefits of Using AI in Personalization
Enhanced customer experienceIncreased customer loyaltyImproved sales performanceCost savingsCompetitive advantageScalability
1. Enhanced Customer Experience
Happy customers are more likely to return, leave positive reviews, and recommend your business to others. AI can help you create an exceptional customer experience by:
Making data-driven recommendations
AI can provide personalized recommendations based on a customer's browsing and purchase history, making it easier for customers to find the products they want.Offering personalized customer service
Personalized chatbots can elevate your customer service. Available 24/7, chatbots can instantly answer customer queries and provide support when your customers need it. This quick and seamless experience can boost customer satisfaction.
By enhancing customers' experience with AI, your eCommerce business can build long-lasting relationships with customers, driving revenue and growth.
» Boost your chatbot service by including ChatGPT in your eCommerce strategy
2. Increased Customer Loyalty
Customer loyalty is important to any eCommerce business because it leads to:
Repeat businessPositive word-of-mouth marketingHigher lifetime value for each customer
AI-powered personalization can help you increase customer loyalty by:
Offering personalized rewards
AI can help you improve traditional loyalty programs by giving your customers personalized rewards based on their behavior. By analyzing past purchases and overall engagement, AI can work out which rewards are best suited for each customer.Interacting with customers in real time
AI-powered systems can monitor store and customer activity in real-time. So, if a customer has added products to their cart but isn't completing the purchase, AI can immediately react. By offering a limited-time discount or personalized reward, AI can encourage the customer to finish their buying journey.
These personalized interactions with your customers not only encourage them to make more purchases but also make them feel valued and appreciated.
» Enhance your customer interaction by understanding the difference between personalization vs. customization
3. Improved Sales Performance
AI-powered product recommendations and upselling and cross-selling opportunities can significantly improve your business's sales performance.
Upselling
AI can analyze customers' browsing and purchase history so it can recommend relevant products to upsell. For example, if AI picks up that a customer is buying the individual components of a specific product range, it can upsell the entire bundle as a complete set.Cross-selling
Similar to upselling, AI can use customer data to cross-sell relevant complementary products to customers. For example, if AI notices that a customer is browsing your store for a new camera, it can suggest a compatible tripod when the customer checks out. So, AI will also be able to determine at what stage of the sales funnel it's best to cross-sell.
» Explore additional benefits of upsell and cross-sell personalization
4. Cost Savings
AI can be a cost-effective solution for eCommerce businesses because it automates their personalization efforts and eliminates the need for manual labor in many cases.
Sephora: Your Personal Makeup Artist
Sephora uses an AI-powered app to help customers with product recommendations, beauty advice, and easy shopping. But the app's most interesting feature is the Virtual Artist. Its AI capability allows the customer to "try on" different beauty products, play with different looks, and follow makeup tutorials for their face shape and skin type. AI allows Sephora to put a 24/7 makeup expert in their customers' pockets—reducing costs associated with sales reps, overheads, and product samples.
5. Competitive Advantage
When you use AI effectively, you can set yourself apart from your competitors. This isn't just in terms of customer experience but also making sure you stay ahead of trends.
H&M: Predicting Personalization to Stay Fashion Forward
H&M uses AI to predict fashion trends by analyzing large amounts of data from search engines and blogs. The algorithms inform decisions such as how much to buy, when to buy, and where to place products in stores. This helps to reduce waste and make more sustainable decisions. H&M's data-driven approach gives them a competitive advantage, allows them to stay ahead of trends, and provides customers with what they want.
6. Scalability
The culmination of all the AI benefits discussed so far can help you scale your personalization efforts and, ultimately, your business. By processing large amounts of data and providing real-time recommendations, you can personalize the shopping experience for each customer. AI can help you identify patterns in customer behavior and preferences, enabling you to make data-driven decisions about which products to offer, how to price them, and how to promote them.
Use AI to Personalize Your Site Fast
AI can bring significant benefits to your eCommerce personalization strategy. You can:
Provide an enhanced customer experience.Increase customer loyalty.Improve sales performance.Save costs.Gain a competitive advantage.Achieve scalability.
However, it's important to remember that your store is unique. Consider carrying out A/B tests to find out what's the best way for your business to incorporate AI into your personalization strategy. Once you're in the right groove, you'll grow your eCommerce store in no time.
» Incorporate AI into your customer communication: Here's how to use AI in personalized email marketing and to optimize social media
Personalization5 Elements You Should Personalize in Your eCommerce Store (+ Examples)In today's eCommerce landscape, personalization is no longer a luxury but a necessity. By personalizing your eCommerce store, up to 80% of your shoppers are more likely to buy. But you need to make sure you personalize the right parts of your customers' online shopping experience for it to be effective. In this post, we'll explore the top 5 elements (with examples) you should personalize in your eCommerce store.
5 Elements to Personalize in Your eCommerce Store
HomepageProduct recommendationsEmail marketingCustomer account pageCheckout process
1. Homepage
Your homepage is the first thing your customers see when they visit your website. It's your storefront; it needs to be inviting, engaging, and tailored to your customers' needs. That's where personalization comes in. A personalized homepage is essential for your eCommerce business because here you can showcase products and content relevant to your customers, increasing the likelihood of them making a purchase.
Amazon: Bringing Personalization Home
One of the best examples of a personalized homepage is Amazon. By using customer browsing and purchase history, Amazon offers every individual customer a personalized experience. This makes it easier for customers to find what they're looking for.
For example, the non-personalized homepage contains general content: banners for newly released movies, daily deals, and suggested gifts for Mother's Day. None of these offers are tailored to the customer. But the personalized homepage encourages the customer to "pick up where [they] left off", "keep shopping", or "buy again". The customer can easily complete their purchase or repeat it without starting their shopping journey over.
Not Personalized
Personalized
» Does your homepage need more refinement? Follow these best practices for promotions on your homepage
2. Product Recommendations
Personalized product recommendations are a great way to enhance your customers' shopping experience and increase sales—they can make up 31% of your revenue. By using customer browsing and purchase history, you can tailor products to your customers' needs and preferences. This way, you also create upsell and cross-sell opportunities because your customers may discover new products they would've otherwise overlooked. For example:
Use their recent search history: If a customer has been searching for running shoes, recommend running accessories or clothing.Use their purchase behavior: If a customer has been purchasing skincare products for acne, recommend a relevant skincare product that's recently been added to your store.
Netflix: Personal Recommendations For You
Netflix uses customer data such as viewing history, search history, and even time of day to recommend personalized content to their customers. This includes suggesting top picks for each customer, encouraging customers to finish watching content, and allowing customers to compile their own lists of their favorite movies and shows for easy reference.
3. Email Marketing
Email marketing is a powerful tool to connect with your customers and drive sales, but a generic email blast to your entire email list may not be effective. Instead, personalized emails get more engagement because they feel more relevant and personal to the customer. Emails with personalized subject lines have open rates 20% higher than those with generic or static subject lines.
You can use customer data such as browsing and purchase history, preferences, and behavior to create personalized email campaigns. For example:
Send personalized product recommendations based on a customer's browsing or purchase history.Send exclusive deals and offers based on specific customer segments.
Birchbox: Personalized Communication From the Start
Birchbox takes personalization very seriously. In fact, they've built their business philosophy on it by putting customers in control of what they receive in their beauty box. This also extends to their email campaigns. Birchbox emphasizes personalized communication already from their signup form to collect customer emails.
» Learn how to improve your personalized email marketing with AI
4. Customer Account Page
The customer account page is an important touchpoint in the customer journey. This is where customers can manage their orders, view their purchase history, and update their personal information. This page is all about the customer, so you can improve their user experience and increase their loyalty by personalizing its content with relevant product recommendations, insightful social proof, and custom rewards or discounts.
Sephora: Accounting for Personalized Customer Experiences
Sephora has a rewards program called Beauty Insider. One of its perks includes receiving a free beauty gift of your choice (as opposed to a general gift chosen by Sephora) plus free shipping. During your birthday month, a banner will appear on your account page to remind you to choose your gift.
5. Checkout Process
The checkout process is the final step in the customer journey and can make or break a sale. Personalizing the checkout process can reduce cart abandonment and increase sales by providing a more convenient experience for your customer. For example:
Reduce the time it takes your customer to checkout by offering the option to save their payment and shipping information.Personalize payment and shipping options according to the customer's location and preferences.Create upsell and cross-sell opportunities by offering personalized product recommendations.
Princess Polly: Making Customers Feel Like Royalty
Princess Polly personalizes the checkout process for their customers at two points. Firstly, when you view your shopping cart (or "bag", as Princess Polly calls it), the store recommends additional products that will complement your purchase. Secondly, you receive a personalized discount that you can either claim or reject. In this case, the store knows you're a new customer and haven't joined their mailing list yet, so you can claim 20% off your purchase by signing up.
» Explore more ways upsell and cross-sell personalization can benefit your eCommerce business
Do It the Fast Way
Personalization is crucial for your eCommerce business. It can have a significant impact on your customers' shopping experience and overall sales, but only if you personalize the right elements of your eCommerce store. The key is to understand your customers and use their data to create relevant, personalized experiences that make them feel valued and appreciated. In turn, this can lead to building long-term customer relationships and repeat business.
» Review these top eCommerce websites to help you create exceptional customer experiences
MerchandisingTransforming eCommerce Merchandising With AI: 6 Strategies and Tips for SuccessIt's estimated that by 2032, the eCommerce AI market will reach a staggering $45.7 billion. Brands are increasingly recognizing the transformative power of AI, starting with their customer experiences.
Integrating AI into online merchandising practices unlocks a store's potential for improving the shopping experience, nurturing customer relationships, and driving sales. Here are six strategies and tips on using AI to transform your eCommerce store's merchandising.
6 Ways to Transform Your eCommerce Merchandising With AI
Harness AI for personalized product recommendationsOptimize pricing with AI dynamic pricingStreamline inventory management with AI forecastingEnhance visual merchandising with AI image recognitionOptimize customer service with AI chatbotsLeverage AI for sentiment analysis and customer insights
1. Harness AI for Personalized Product Recommendations
AI is revolutionizing the way companies offer personalized product recommendations. Using smart algorithms, AI tools are able to analyze vast amounts of customer data, such as purchase patterns and browsing history. This information allows businesses to leverage personalization and enhance the post-purchase experience.
Some benefits of using AI for personalization include enhanced customer experience and improved conversion rates.
Pro tip:Use an AI-powered recommendation tool to provide personalized and valuable suggestions to shoppers. For instance, the online clothing retailer, Fashion Nova, uses Fast Simon's personalized recommendation engine to display the best items based on site search queries, purchases, and other behavioral data.
» Learn why product recommendations require merchandising rules for maximum returns
2. Optimize Pricing With AI Dynamic Pricing
Have you ever heard of the Amazon effect? It's essentially the continuous adjustment of prices to outpace competitors and maximize profits. AI can help you replicate this effect by implementing dynamic product pricing.
This means that AI can analyze your product's demand and adjust prices in response to market shifts. This approach offers several key benefits, including maximizing average order value and improving cash flow.
Returning to our example of Amazon, they're estimated to change the price of their products 2.5 million times a day, which has helped increase their profits by 25%. How do they achieve this? Using AI to track and analyze vast amounts of data, like inventory levels, shoppers' buying and browsing history, and competitor pricing.
Pro tip:Utilize AI-driven pricing algorithms, like predictive analytics software, to dynamically adjust prices and optimize revenue. These algorithms analyze diverse data sets in real time, providing accurate pricing models aligned with customer preferences.
3. Streamline Inventory Management With AI Forecasting
It goes without saying that optimizing stock levels is one of retail businesses' top priorities. AI is a key tool in this regard, reducing the costs and time associated with inventory optimization.
AI algorithms analyze historical sales data, market trends, and external factors to accurately predict future demand. For instance, they can forecast whether your best-sellers have low or high inventory.
This allows you to make informed decisions regarding their placement. It also helps to ensure that you have sufficient stock to meet customer demand while avoiding inventory depletion. As a result, you'll save valuable time and resources that you can allocate toward other critical areas of your business.
Pro tip:Implement AI-powered inventory management systems to forecast demand and ensure optimal stock availability. These systems automatically update inventory as new products arrive, existing ones sell out, and new eCommerce trends emerge.
4. Enhance Visual Merchandising With AI Image Recognition
Visual merchandising is the new way for stores to promote their products. It involves using rich imagery to promote and display products at their best. However, the images must be properly optimized and easy to navigate.
That's where AI comes into play. Using image recognition technology, the tool improves visual merchandising by automatically tagging and categorizing product images. Accurate product categorization leads to better merchandising and intuitive customer navigation.
Pro tip:Use AI visual discovery to create an immersive shopping experience. With features like auto-tagging and product categorization, shoppers can find relevant products in your store fast. They no longer have to sift through menus to find their desired product/category—visual discovery puts it in front of them.
5. Optimize Customer Service With AI Chatbots
Potential customers may have questions before making a purchase. Answering them instantly can set you apart from others competing for their business, and AI-powered chatbots can be immensely valuable in this regard.
These chatbots enhance customer service experiences by addressing customer inquiries, offering product recommendations, and facilitating seamless transactions. You can configure them to answer customers in your brand's voice as well as connect to a human agent in case someone wants real-time support.
Pro tip:Add AI-powered chatbots to your customer service toolkit. They can free up your time by answering simple questions without intervention. Chatbots are accessible to all shoppers, and even those who aren't tech-savvy can use them without hassle.
The curated shopping membership company, CURATEUR, conveniently offers shoppers customer service even when their support staff is offline. They do this through their easy-to-use AI chatbot, as shown below.
6. Leverage AI for Sentiment Analysis and Customer Insights
Understanding customer sentiment regarding your merchandise is crucial to developing an effective business strategy. Analyzing this can be challenging, but AI makes it much simpler for everyone.
AI can evaluate customer feedback to provide granular insights into their preferences and needs. It can also analyze social media posts' likes, shares, and reactions to understand how customers received them. This can help you determine what customers are looking for and optimize your eCommerce merchandising strategy for the best results.
Pro tip:Use AI sentiment analysis to gain valuable customer insights from interactions. Use them to guide your decision-making, inform product development, and create targeted marketing campaigns. This is just one way AI can improve your conversion rates.
eCommerce 2.0: Using AI to Transform Your Business Fast
When done strategically, AI can drastically impact your brand's performance. If you're looking to grow sales and stay competitive in today's ever-evolving online marketplace, start implementing the six strategies and tips now. AI in eCommerce merchandising isn't just a passing trend—it's a growing practice that will only continue to evolve and revolutionize the industry.
» AI's not only making waves with merchandising. Discover the benefits of AI in eCommerce personalization