For centuries, retail was a pretty straightforward proposition. Merchants opened stores, and customers came to those brick-and-mortar locations, browsed with the help of a knowledgeable sales associate, and went home with their purchases. While that model is still at the heart of modern merchandising, today, the most successful retailers pair that high-quality in-store experience with a carefully crafted website, seamlessly blending a store visit with the thrilling online eCommerce experience shoppers crave. Shoptelligence CEO Laura Khoury puts it this way:
“eCommerce has shifted from an add-on to a retailer’s digital foundation that permeates every step of the customer journey, from discovery to delivery. Shoppers don’t go from site to store. They start onsite and rely on some form of digital to enhance every interaction they have with a retailer.”
Comprehending the Value of eCommerce
To understand what an upgraded eCommerce plan can do for your business, begin by checking out the current size of the online shopping industry:
- 96% of Americans have purchased something online in their lives. (George Washington University)
- In 2021, retail e-commerce sales amounted to more than five trillion dollars worldwide. Experts expect this figure to grow by 56% over the next few years, reaching over eight trillion dollars by 2026. (Statista)
- Nearly 20% of all retail spending this year will be done online. (Shopify)
- To devise an effective omnichannel eCommerce strategy, you’ll also need to incorporate an understanding of how mobile devices come into play.
Meeting Shopper Expectations through Personalization
As the eCommerce sector has grown, shopper expectations have grown too. The most mentioned benefit of eCommerce among consumers worldwide is the ability to shop anytime, but more than simply creating a website is required. You’ll need to offer them a personalized experience that meets them where they want to shop and travels with them on their path to purchase, accompanying them across all channels, back and forth from online to in-store and back again.
What is Personalization?
Personalized online shopping offers consumers a tailored user experience, curating product discovery and communication to their tastes, preferences, and budgets. Unfortunately, many efforts at personalization fall flat by failing to reflect the shopper’s priorities and preferences. The best-received, most full personalization is much more than simple “if you like this, you’ll love that” recommendations. Top-notch personalization demonstrates that you know the customer, understand their priorities and can help solve their problem, often in ways they haven’t even thought of yet. Combine that data-driven personalization with the human touch provided by personal assistance, and you’ve got a winning formula.
The Value of Personalization
Numerous studies have demonstrated the potential benefits of personalization to eCommerce merchants, including increased engagement, improved conversion rates, increased average ticket size (AOV), and enhanced customer lifetime value (CLV). Segment’s 2022 State of Personalization Report provides valuable insight into the potential gain that personalization can offer your business:
- Nearly half (49%) of consumers say they will likely become repeat buyers after a personalized shopping experience with a retail brand.
- One in three consumers (38%) say that a good experience will cause them to prefer a brand and choose that company again despite the possibility of less expensive options.
- 62% of shoppers say that a depersonalized experience will cost a brand their loyalty. That figure rose nearly 40% from the previous year.
Personalization is no longer the future of data-driven marketing. It’s the most modern, contemporary approach to sales. Today’s empowered buyers expect a lot more from online shopping. They want to feel as understood as they used to feel when they were greeted by a friendly, trusted associate at their favorite store.
Is your business doing enough to give customers what they want and need?
Personalize Customer Experience to Maximize Revenue
Personalization works. McKinsey’s Next in Personalization 2021 Report says, “personalization drives performance and better customer outcomes. Companies that grow faster drive 40 percent more revenue from personalization than their slower-growing counterparts.” Data shows that businesses using Shoptelligence’s proven AI-powered personalization platform businesses have more than doubled revenue per visitor, grown revenue per buyer by 33%, lifted shopper time spent on site by a factor of 6x, increased conversion rate by 150%, boosted AOV by 42%. Most see a return on their investment in only 60 days.
Shoptelligence’s interactive merchandising platform can be installed on your current website, seamlessly blending in-store shopping experiences and offering intuitive recommendations from your current inventory.
Discover the many ways that partnering with Shoptelligence is helping businesses like yours thrive in today’s competitive online marketplace.
