TAGS: AI CX Merchandising Online Shopping Retail
We explore why personalization is at the core of ecommerce success.
On February 21, premium publisher Raconteur published their special report, Future of E-Commerce, in The Times of London. In addition to insights about how to differentiate from Amazon, the best ways to battle GAFA, and breaking into the world of Alibaba, the report also features Fredhopper’s own John Raap, Chief Commercial Officer. John talks about how personalisation can make all the difference in online retail.
John discusses the best strategies for using personalisation to increase sales and customer loyalty. He offers insights and advice for making the process work best in a retail environment. ‘Offering personalisation is the next natural evolution that will enhance current merchandising strategies,’ he says.
But, John warns, effective personalisation doesn’t come out of a box. It takes targeted insight and effective data to really have an impact. ‘Current personalisation techniques are based on algorithms, and are usually applied to recommendations on product detail pages or some landing pages,’ John says. ‘But an average of 70 per cent of all retail site traffic takes place on search result, navigation and category pages. This is the kind of real estate where intuitive, less obvious personalisation can really take effect.’
John also offers insight into how adaptive personalisation – customising the shopping experience on the fly – can boost the bottom line and customer loyalty. And how app users can be a source of real-time data that can be used to enhance personalisation strategies. And data, he says, offers the keys to the kingdom.
But retailers should take care not to move too quickly, John advises. Personalisation isn’t a one-off exercise, but should be part of a longer-term strategy. ‘Small, incremental personalisation efforts and accompanying A/B testing can help to determine what works best for your audience. It will also help you to collect more data,’ he says. And with each step and improvement, retailers will see their personalisation efforts pay off.
In addition to John’s insights about personalisation, Future of E-Commerce offers a look into automation, with comments from our own Georg Spielmann, Presales Manager. You’ll also find articles about replicating consumer eCommerce success in the B2B market, and the role that social media will play in the eCommerce world.