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8 min read

Category: Business Culture

30 Mar 2023

30 Mar 2023

8 min read / Category: Business Culture

Personalization in E-commerce: Browsing to Buying in 2023

Angry Nerds


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The art of personalisation involves adapting user journeys according to their unique preferences and behaviours which fosters interest and brand loyalty, ultimately leading towards increased conversion rates. 

E-commerce firms are rapidly ramping up their use of data-driven analytics as part of their strategy to communicate better with customers. The latest advancements in AI-based tools enable them not only to analyze large volumes of data but also to provide deep insights into consumer psychology, helping them understand buying behaviors such as purchase timings or preferred channels—factors essential for devising targeted marketing initiatives and delivering messages effectively at the right time. However, the increase in tools and data collection options also comes with a set of challenges in today's world. In this article, we are going to go over some of the key best practices that help e-commerce companies improve the user journey and enhance customer experiences to increase conversion.

From One-Size-Fits-All to Immersive Shopping Experiences

The current generation of consumers is increasingly selective, valuing interactions with companies that make them feel valued by creating customised experiences and remembering personal details about them, rather than receiving standardised services. 73% of shoppers anticipate that brands will understand their unique requirements and preferences.

Personalization is the most valuable way for companies to fulfill their customers' growing demands as collecting large sets of data, combined with technological advancements, pave new roads towards consumer satisfaction.

Failure to adapt to the current trend of personalized experiences could lead to significant customer loss for businesses across all industries. Competitors who prioritize personalization are better equipped to attract and retain customers, leaving those who do not lagging behind in a highly competitive market.

It's no surprise these days that every business should be prioritizing personalizing its services and offerings for customers. After all, without doing so, there is a risk of losing out on opportunities for repeat business and driving away potential revenue streams - a real problem in competitive markets.

According to research by McKinsey & Company, focusing on personalization can actually drive better financial outcomes and help your brand grow faster; fast-growing companies that made an effort towards customized experiences were able to generate up to 40% more revenue per year than slower-growing firms.

Despite this fact, there remains a significant gap between how much businesses believe they're practicing personalization techniques versus how much customers actually perceive this happening in their experience, with only about 60% of people feeling like their interactions with touted 'personalized' brands are really hitting the mark.

Privacy-Conscious Growth

As worries about data privacy continue to mount, consumers are becoming more attentive towards how their private information is being leveraged by companies. Therefore, it has become vital for brands to harmonize effective personalization strategies with responsible and secure methods of managing customer data.

Online retailers that emphasize the importance of user privacy have a key advantage in building trust with their customer base over the long term. Through strategies such as firm privacy policies, secure data storage, and encryption technologies, e-commerce businesses can demonstrate their commitment to customer security. By prioritizing privacy in this way, companies may enjoy greater rates of repeat business and positive word-of-mouth reviews among consumers.

According to the Forbes Technology Council, safeguarding data is vital for e-commerce companies. Firstly, companies should know and control their data by understanding what it is, whose it is and where it is, and then take steps to protect it while ensuring regulatory compliance. Secondly, e-commerce companies should focus on first-party data management to protect customer data and comply with local legislation. Thirdly, they should practice data rationalization by storing only data that has defined value and purging data that has no value.

Another crucial principle in risk management is to include cybersecurity as a critical component. This means that preventing unauthorized access by acquiring or building secure infrastructure should be a priority.

Multi - Channel Interactions

At The Retail Bulletin Omnichannel Futures Conference 2023 in London, Loek Berendsen - IKEA's global omnichannel strategist - declared that retailers need to evolve their physical stores to remain attractive to customers, with younger demographics being the focal point.

Berendsen urged retailers to revamp their store space by using it for options like delivery hubs and ushering customers to bring unwanted merchandise back into stores. Additionally, he stressed the crucial role of in-store staff acting as customer service agents for their online store so that patrons have access to the entire range of offerings.

In the fast-changing world of retail, Bunty Stokes, consultant managing director of Asquith, believes that physical stores should offer customers something they can't get online - emotional connections. Staff should fill in the gaps that are happening within the online customer journey.

Meanwhile, Linda Campbell, The Body Shop's former global retail director, says businesses need to attract and keep top talent if they want to deliver unique in-store experiences as their knowledge and expertise are going to represent the brand and stay in the mind of the customer both online and offline.


Gamification aims to address the challenge of maintaining consumers' interest in products due to their shrinking attention span. To achieve this, brands and retailers use gaming strategies to make the browsing or purchasing process more exciting and engaging for consumers, effectively turning previously mundane activities into enjoyable experiences and customer journeys.

According to the Digital Marketing Forum, 60% of consumers would be more likely to purchase from a brand if it offered an appealing game. By incorporating gamification, brands can encourage customers to remain engaged over time, explore new levels, and reap both psychological and tangible rewards. These activities help reinforce the brand's online presence and marketing strategy.

With gamification as a tool in an ecommerce strategy, you are going to gain important information on how clients interact with your products or services. It is not only a fun and engaging tool for your customers, but also allows for developing customized marketing tactics and tweaking product offerings.


In today's competitive e-commerce landscape, personalized experiences are crucial for revenue growth. Companies can leverage AI-based tools and data analytics to understand customer preferences, but must prioritize responsible data management to build trust. Secure storage, encryption technologies, and privacy policies are essential. Gamification techniques can encourage customer participation and profitability. To stay ahead, businesses must adapt to changing customer expectations and offer unique experiences online and offline.

Angry Nerds


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