Today, most customers prefer buying through online shopping channels. Businesses have also realized the power of online commerce and listed their products on ecommerce apps. The plethora of options available to any modern consumer has made their life easier. But it also turned e-commerce into an immensely competitive space. To stand out, ecommerce apps need to deliver highly personalized experiences to users. Personalization, of course, goes far beyond simply adding your first name to email subject lines or sending you a reminder regarding an abandoned cart. Thanks to the advancement in technology, there are endless points in a customer’s journey where personalization is being successfully applied. 

So, why is personalization so integral to ecommerce? And how can you use it to gain a competitive advantage? Let’s find out.  

Why Is Personalization in Ecommerce Important? 

Ecommerce apps create highly personalized browsing and buying experiences for customers using data. This data is derived from their browsing behavior, past purchases, personal demographics, and preferences shared while using the app. This practice, called personalization, may come in many forms—product recommendations while using the app, suggesting popular or complementary products to the user, or even enticing inactive customers with carefully curated deals.  

A clear advantage of personalization is that it eases a user’s buying journey. They are able to find what they are looking for. This means they are more likely to buy the product. 

Here are some of the ways personalization benefits your business: 

• Improved Conversions:

  In this age, customers have dozens of ecommerce apps to shop from. Personalization is an effective tactic as it helps you cut through the noise. It also allows users to find what exactly they need. An app’s homepage may have a lower bounce rate when the content has been modified as per the user’s location, and their language, and currency preferences. Likewise, if they are simply browsing an app, product suggestions may lure the user into completing the transaction.  

• Enhanced Customer Loyalty:

  When customers shop from an ecommerce store that understands them, they are more likely to return for future purchases. In a recent study, it was found that 35% of the revenue of ecommerce stores comes from just 5% of their repeat customers. The cost of acquiring a new customer is always high. It, therefore, makes sense to invest more in retaining the existing users than gaining new ones.   

• Better Customer Experience:

  Often, users leave an ecommerce app because they are overwhelmed with the choices available. They are unable to figure out how to look for what they need. Tailored recommendations and deals help such users narrow down their search range. This reduces friction from their buying journey.  

So, in essence, personalization is closely tied to conversions and business growth. Now the question is—how can you put it into practice and make it work for you? There are several stages, touchpoints, and micro-moments within a user journey where it is possible to implement it successfully.  

How to Apply Personalization to Ecommerce Apps? 

1) Personalized Product Recommendations 

This is one of the commonly applied personalization tactics. Here, the ecommerce site recommends products based on a user’s past searches, purchases, and other interactions.  

Some ecommerce apps go a step beyond. These apps suggest complementary products to a user once they have arrived at a product page or added something to their cart. The suggested items are the ones that go well with the product the user is checking.  

Recommendations are a great way to upsell. They often prompt the user into buying things they didn’t initially intend to buy. For instance, users looking to buy a table may be shown table covers. Or users searching for a laptop may be shown mouses or earphones. 

   2)  Dynamic Content 

Many ecommerce apps tailor their content according to the demographics, location, device, and behavior of the user. Some of the criteria used when serving dynamic content to a user include: 

• IP Address:

  The app identifies the user’s country, state, or locality through their IP address. The language, currency, and shipping charges shown on the app will be tailored accordingly. 

• Device (Mobile or Desktop):

  Showing fewer items when users shop using a mobile device boosts conversion. 

• Demographics:

  Customize the messaging and recommendations based on a user’s age, gender, and income. e.g. showing luxury items to users belonging to high-income groups. 

• Behavior:

  Messaging varies depending on whether a user is new or returning. New users are usually shown introductory messages to help them get acquainted with your app. Returning users are shown items they added to their cart or wish list during their last session on the app. This way, they can resume browsing from where they left off.  

 

   3)  Omnichannel Marketing 

Forging a stronger connection with users requires ecommerce businesses to deliver a personalized, consistent experience across all touchpoints. This improves brand recall and increases the chances of their buying from you. Here are a few ways through which an omnichannel experience can be created: 

• Ads:

  If a user views an item on your app and leaves, show ads of similar items when they are browsing social media sites. This approach called ‘retargeting’ often lures users into revisiting your ecommerce app. 

• Emails:

  If a user abandoned a cart, send an email with high-quality images of the products they viewed on your app. Urge them to complete the purchase by offering deals or discounts.  

• Text Messaging:

  To create a sense of urgency, personalized SMS messages are sent to the customer. These may include a lucrative deal or discount. 

In addition to improving sales, omnichannel messaging helps you understand a customer’s buying journey. These insights inform your upselling and cross-selling strategies. 

   4)   Loyalty Programs 

Loyalty programs are a powerful tool used by ecommerce stores to nurture their customer base. Individuals are enticed into signing up for these programs through reward points, discounts, cashbacks, free shipping, and member-only perks. All these benefits encourage repeat purchases.  

These days, users often find themselves on the fence while looking for an item online. Rewards programs push such users into completing their purchases and join the memberships. Loyal customers typically buy more frequently from a brand. They also spend more per transaction than the average customer. This way, they help boost your bottom line. 

 

5) Personalized Search Results 

Many ecommerce apps tailor their search engine results based on the user’s past behavior, interests, and preferences. The goal behind doing so is to deliver a unique search experience to every user. So, a single query on the app may display very different search results for different users. These results will depend on their browsing history, online behavior, location, demographics, device, and more. 

For instance, if a user usually books luxury accommodations on a travel app, they may be shown more of such options in their searches. This way, they will be able to find properties that meet their preferences. Personalized search results thus lead to enhanced customer satisfaction and higher sales. 

 

6) Personalized Subscription Boxes 

Ecommerce apps that sell consumables—beauty and skincare products, pet supplies, or beverages—are choosing to provide their users with subscription boxes. Subscription boxes are a curated collection of products delivered to users on a recurring basis. These are crafted keeping in mind the tastes and preferences of an individual.  

Personalized subscription boxes help ecommerce brands earn a consistent revenue stream. They also help them retain customers at no additional expense. These are also a potent brand-building tool as businesses create a highly engaged community around their products, fostering a sense of belonging. The subscription ecommerce market is seeing tremendous growth. It touched $193 billion in 2023 and is projected to reach $5014 billion by 2032. 

Conclusion 

Personalization has become a strategic necessity in this age of rising customer expectations. Done right, personalization has the power to take your ecommerce business to new heights. That’s why you should always seek the support of an expert when developing your ecommerce app.  

Partnering with an ecommerce app development company will help you implement personalization tactics that enhance user interactions and improve conversions. Their expertise will allow you to build a seamless user journey and stand out in a ruthlessly competitive market.