5 Ways Ecom Brands Can Use Customer Data to Personalize the Shopping Experience

As consumers are inundated each day with new products and brands, personalization continues to play a growing role in creating the types of meaningful, memorable user experiences that drive conversion. Consider the following statistics:

  • 73% of consumers prefer to do business with brands that use personal information to make their shopping experiences more relevant (Digital Trends)
  • In-house marketers who personalize their web experiences and are able to quantify the improvement see an average 19% uplift in sales (HubSpot)
  • Personalized emails improve CTR by 14% and conversion rates by 10% (HubSpot)

Let’s take a look at how some of today’s leading ecommerce brands are applying consumer data to create highly relevant and timely customer experiences, and the steps your business can take to start developing a personalization strategy.

Product Recommendations

Amazon is a master at driving checkouts and basket size by providing customers with relevant recommendations for new and additional items based on their purchase histories, viewed items, shopping carts, wish lists and Facebook data.

Personalized Discounts

One strategy to drive customer retention and loyalty is to tailor discounts and special offers to consumer preferences and behaviors. While some retailers show customers they care by sending surprise coupons for recently viewed or favorited items, Birchbox helps combat shopping cart abandon by sending discounts to customers who didn’t quite make it through checkout.

Recommendations from Friends

When users login using their Facebook accounts, brands can request the ability to view their friend lists. When a user logs in to Netflix using his Facebook account, Netflix shows him a list of his Facebook connections’ favorite shows and movies, as well gives him the option to view individual friends’ recently watched items.

Tailored Product Showcases

Trunk Club makes style accessible and convenient by offering personalized clothing showcases and delivery to men. Customers are served a style questionnaire, paired with a personal stylist and mailed a monthly shipment of custom-selected clothing that fits their unique preferences and body measurements.

Recognizing Life Events

Consumers often share life events like engagements, marriages and new babies with their social networks. These are great triggers for celebratory messages and offers, like the “happy birthday” email and discount Total Wine & More sends its customers below.

Your Path to Personalization

To start building tailored user experiences on par with those listed above, your business must establish a comprehensive personalization strategy and adopt the tools necessary to responsibly and effectively collect and apply consumer data.

Step 1: Establish Consumer Identity – an identity-based view of consumers enables your brand to break demographic stereotypes and hypothetical personas to personalize user experiences based on consumers’ individual interests, actions and behaviors. Social login is a great solution for reducing barrier to registration and capturing rich customer data in a totally permission-based manner.

Step 2: Get a Single Customer View – break down data silos across your organization by implementing a master database that offers a single view of your audience. This database should have the ability to reconcile and index both structured (email, name, etc.) and unstructured (relationships, Facebook likes, etc.) data from multiple sources in real-time, as well as offer automatic, bi-directional synchronization with your 3rd party marketing platforms.

Step 3: Reconcile Profile & Behavioral Data – a single customer view enables you to tie consumer profile data, such as relationships, birthdays and interests, to on-site behavioral data like discount redemptions and checkouts. This 360 degree view of your customers allows you to identify and tailor your messaging to speak to the types of characteristics and behaviors driving revenue and KPIs for your business.

Step 4: Turn Data into Action – offer marketers an actionable view of end-user data housed within your consumer identity database via a user-friendly, web-based dashboard. Give business leaders the power to easily run queries based on any number of user attributes and strategically build custom audience segments to reach consumers with relevance at scale.

For more information on how eCommerce brands are turning unknown shoppers into known customers and driving shopping cart conversions, download our new eCommerce eBook.

By Tobias Meyer-Grunow