Since the trade relationship between people have started, “ensuring and protecting customer loyalty” mission continues in today’s world. Regardless of the sold product or service, the target is the sustainability of this trade. Monitors in online shopping which more comfortable than the street shopping are replacing face-to-face communication. Personalised shopping experience is more popular in the ecosystem.
E-commerce websites work to consolidate customer portfolio with secure shopping and easy payment advantages. But the taste criteria for those who choose e-commerce over physical stores are increasing. Accordingly, filtering tendencies are shrinking in product-based manner. This makes personalised shopping experience mandatory and e-commerce websites are pushed to follow target audience demands and habits.
How Does The Product Reach Right Consumer?
All information such as consumer, shopping tendencies, liking criteria can be transferred to data banks in online browsing. Consumers give this information with a survey or by viewing a product on the website. Thus, a connection is formed between the desired product and sold product.
According to personalized shopping experience, when consumers browse online for products, individual liking criteria and shopping habits are transferred to an artificial intelligence in the website algorithms. This information recorded by the artificial intelligence is used in a large data bank. It is necessary to determine the consumer characteristic and criteria to pinpoint the product. Studies show that 46% of the consumer in England and the USA are willing to give their personal information for a personalized product service.
Consumers that experience dynamic and personalised shopping can have loyalty for e-commerce websites and this loyalty can continue for a long time.
What Happens When a New Product Enters the Market?
E-commerce websites do not have a market, stand or other media where consumers can physically try new products in the market. In this case, consumers go for the street shopping to try the new product. But e-commerce websites have found a solution for that: A prototype of the new product is prepared and send to consumers that have purchased another products from that website as a gift. Thus, consumer can access the small model of the product. These types of gifts ease the market entrance and increase the loyalty of the consumer to the e-commerce website. This case shows the need for personalized shopping experience.
What Do Personalized Algorithms Promise?
Recommendations that the consumers on e-commerce websites should guide the consumers to shopping. For this purpose, e-commerce websites care more about collection data about the consumer. A study showed that consumers consider the e-commerce websites that provide recommendations for personalized shopping experience based on the following criteria:
- Budget: 32% want the recommendations to be based on consumer budget.
- Personal Style: 21% think that personal style is more important than anything and recommendations must follow the style.
- Liked Brand: 13% state that they want to have recommendations about the brands they like.
More Options Don’t Do Any Good Shopping Fatigue
At first, e-commerce websites had more products, more options and less categories. Over time, categories are divided into sub-categories. E-commerce websites started to expand their product range. But consumers shrunk their search criteria to find the product they are looking. This continues today. However, 64% of the global consumers complain about too many options on e-commerce websites. 38% of the people are surprise with the options in online shopping. This surprise lead them to leave the e-commerce website. This brings the personalized shopping experience to the agenda.
Consumers Adopt the Product They like
Consumer tends to adopt that product on the e-commerce website even though s/he will not buy that at the moment. Studies show that the main reason for that is the product will be out of stock. Therefore, 15% of online shoppers add the products they like to their shopping card. Another 15% looks for ways to leave marks such as adding to favourite. 13% removes all previous items in the shopping cart to purchase these products without thinking when they return. This shows the importance of personalised shopping.
Consumer Might Run Away From E-Commerce Website
If consumers do not find what they are looking for on that e-commerce website, they do not come back for a long time. If this repeats multiple times, the consumer never visits that website. A study shows the e-commerce website abandonment reasons and rates as follows:
- Unexpectedly high prices: 22%
- Website going down during shopping, interrupted shopping, freezing on payment screen: 18%
- Not finding the product they are looking for, bad search/filtering algorithm: 60%
- Consumers expect personalized shopping tools on an e-commerce website. An interface that shows how to search for products, how many products are left at stock and how much will the consumer pay.
How Should Recommendations Be?
Filters that are developed by using artificial intelligence in big data also ask customers how the recommendations should be. Consumers approach this as follows:
- For taste and areas of interest: 38% of the consumers want the e-commerce websites they shop to recommend close to their personal taste and areas of interest.
- Recommendations or sample consumers: 35% of the consumers want to know what other consumers similar to them have purchased. They want to have the recommendations based on purchased products. .
- Past purchases: 32% of shoppers want to have recommendations based on their past purchases.
What Else Can Be Done for Personalised Shopping?
For global e-commerce websites, target audience habits can change for sales country and region. Therefore, e-commerce websites must be equipped to match the target audience criteria of the region. Especially for cross-border e-commerce websites, it is important to design surveys to sell based on preferences in the targeted local region.
Regardless of the country, people love surveys. Consumers feel to discover a new information about themselves after the surveys. By the way, consumer sign an agreement that the personal information in the form will be used by the website. With these personal information, recommendations by e-commerce websites are more personal for the consumer. This also signals e-commerce websites for personalized shopping experience.
At the end of these types of surveys, large e-real-estate websites calculate the most suitable home for the consumer financial status. Some banks can find the best credits for the consumers. It is seen that consumer keep returning to these websites with surveys. In addition to returning, consumers recommend the website to people around them.
E-Commerce Websites That Respect Consumers
Interactive content algorithms created to keep the communication alive and form a more meaningful connections with the target audience must be constantly updated. When consumers feel that the brand knows them and cares for them, they feel good. Beyond this feeling, when the consumers realize that the brand talk to them and touch to their world, a connection is formed between the brand and the consumer. This bond gains strength with continuous communication and when the consumer opens the computer to purchase a product, s/he visits the e-commerce website with the strong connection.
Entertaining interaction with the brand, winning the rewards offered by the brand are the key in interactive content method. Computer games where a brand guides the customer with rewards make the opportunities unlimited. This way, while brands can easily access personal information about the consumers, consumers’ winning rewards at the end of the computer game creates a positive image for the brand.
Customer Experience Is Still Important
People have face-to-face communication when buying a house, bargaining with a seller or try to understand the parties in a collaboration. This approach is valid in virtual “shopping malls” on the internet just like social grouping in a neighbourhood.
Online or on the street, regardless of the shopping type, customers read the comments of other customers before purchasing. Approximately 45% of the online shoppers do that. As a result, although the brands have years of experience with thousands of customers, the words for a customer might determine the faith of that e-commerce website. This means, it seems like personalized shopping experience will be more common in the ecosystem.