A hot topic in eCommerce, personalization is only profitable if you have the right data.

For those who are less familiar, personalization is an automated process that uses an artificial intelligence (AI) algorithm to generate unique and relevant content for each individual customer, mostly based on their past interactions on your website.

The data needed for personalization comes from 4 main sources:

Behavioral data: 

How consumers interact with your platform and channels.
Their behavior can be understood using:

  • Heatmaps to show where their cursors go
  • Search words
  • What content they downloaded from your site
  • Products clicked on
  • Time spent on each product page,
  • Number of your emails opened and more.

Transactional data: 

  • What a user puts into their cart
  • What purchase
  • Previous purchases
  • Average order value, etc.

Third-party data:

  • Users’ geographic data (where they are located)
  • Local weather at their location
  • Approximate or predictive demographics.

Used alone, these data points would constitute segmentation (see: How to Get Started with eCommerce Segmentation). But if used to create a holistic view of each individual consumer, it becomes a part of your personalization strategy and process.

Explicit (Opt-in) data:

The user responds directly to questions about what they like and what they are interested in, perhaps through a quiz or sign-up email form. This provides a better understanding of their specific style preferences and interests.

Warning:

If you’re a little TOO SPECIFIC (too good, some would argue) with your personalization, consumers can find it invasive, or downright creepy.

Your Next Step:

So … where do you get this data and how do you begin integrating personalization in your eCommerce ecosystem and roadmap?  Well, that’s when you call the experts.

To get started with personalization, increase average order value and raise value per session, get in touch with our eCommerce Consulting + Advisory Service team.  

Written in collaboration with Chiara Fumagalli, Absolunet’s Digital Personalization Expert

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