Personalization Only Gets Better With Time Due To Continuous Machine-Learning
Ecommerce personalization is more than a marketing strategy now. It’s an ever-evolving aspect of your marketing efforts, and when done right, it can bolster your brand and bottom line, leaving your competition trailing in your wake.
The reason for the success of personalization today is a by-product of oversaturated markets and the prevalence of irrelevant content online.
Nobody wants to waste their time now. People expect to be treated as unique individuals, and have little patience for anything that doesn’t interest them. It’s time to get personal with your customers.
How Does Personalization Actually Affect On-Site Behavior?
An astounding 97% of online consumers will immediately leave an ecommerce store if the first product they see isn’t of interest.
Personalized product recommendations must be accurate now. Machine learning technology allows you to refine your ecommerce personalization over time, so that your company delivers a constantly improving service. This results in some great long-term benefits for your company.
It Increases Conversion Rates
With a great recommendation engine implemented in your site, it’s possible to offer personalized product recommendations that are more likely to be engaged. This will likely generate higher conversions. As you collate more data on your visitors, these offers will become increasingly accurate.
It Encourages Impulse Purchases
49% of online shoppers make impulsive purchases after they receive a personalized product recommendation. Research indicates than impulse buys are more likely to happen online than offline. Hence, there’s a lot to be gained by increasing ecommerce personalization on your online store. People will respond to it. With clever placement, such as adding related products at the check-out stage, you can encourage impulse decisions, which result in a higher average order value (AOV).
It Creates Loyal Customers
According to Business Insider, 44% of online customers become repeat buyers after they have a personalized shopping experience. As machine learning-led personalization is somewhat of a modern strategy, it may be little surprise to learn that it is most effective on Gen Z and Millennial audiences. Over 50% of these groups consider personalization to be a big factor in driving loyalty. Regardless of the demographic, almost anyone can relate to the frustration of looking for products online, only to be greeted by irrelevant clutter and recommendations that are completely off-target.
How Ecommerce Personalization Improves Over Time
It gets better because the machines never stop learning.
Every time people visit your website, data is collected. Data on their on-site behavior, what they click on, what they look at, how long they spend on each page, and so much more. The technology collects information on all your visitors, wherever they may come from, through emails, social media channels or paid advertising. And all the time, it is constantly updated and analyzing your data records.
It’s always evolving. Always striving for improvement, to offer greater ecommerce personalization for each and every customer. The more data it gets, the smarter it becomes.
Machine Learning Enhances the Online Shopping Experience
Forbes found that 75% of companies currently using machine learning report a 10% boost in customer satisfaction.
People expect personalization. They want brands to know more about them.
Machine learning makes this possible. Companies can learn more about each customer, and tailor the content and personalized product recommendations. This improves the customer’s online shopping experience. Further to that, machine learning can help with customer service, as it can anticipate issues before they happen.
For example, with data insights on a customer’s queries about products before the point of purchase, your recommendation engine can offer products that have the highest social proof and performance, rather than risk the customer taking a chance on a product that has previously been returned by other customers.
Over time, this will reduce cart abandonment rates, and drive sales volumes.
It might be difficult to understand all of it at once, but you can take machine learning courses to get the idea of how does it work and what it is capable of.
Machine Learning Improves Search Query Results
If you want a great example of machine learning getting smarter, then you’ll struggle to find a more successful model than the mighty Google. Long gone are the days when poor-quality content skyrocket to the top of search results because of some shady black hat SEO tactics.
Now, Google is a very smart and sophisticated machine, which focuses on searcher intent. In milliseconds, it delivers the most accurate, detailed and relevant answers and solutions to whatever query is entered. For retailers, getting their ecommerce personalization to act like Google can result in massive payoffs. Companies typically record personal information on users, such as their preferences listed in their account, or their purchase history.
With machine learning, they can then improve search query results, anticipating searches by user preferences, rather than relying on traditional methods like generic keyword matching. Huge global retailers like eBay have more than 800 million items listed. Using machine learning to predict search queries is definitely worthwhile, whether your company is big or small.
Chatbots Enable Personalized Customer Service
In case you were under any illusions about just how quick artificial intelligence is spreading throughout global industry, here’s a couple of fun facts:
- By 2020, around 80% of businesses will have adopted a chatbot to boost revenue.
- People are ten times more likely to engage with a live chatbot.
And why shouldn’t they?
Rather than sitting in long phone queues to speak to someone who isn’t always equipped to answer your queries, you can quickly connect to a chatbot that is able to streamline issues and offer quick solutions. The more interactions a chatbot has, the more it learns, which makes it more personalized and capable of helping customers.
This is one trend in ecommerce personalization that isn’t going anywhere. Chatbots are here to stay, and as online shoppers get more familiar with them, more companies will get onboard.
Machine Learning is The Future of Ecommerce
Personalized product recommendations are a great way to tempt any visitor to your store, offline or online. Everyone wants to feel special, and getting special offers that cater to your tastes is a great feeling. Machine learning takes this marketing strategy to another level. And then it keeps going, opening the doors for companies to scale significantly.
Through constant data collection and analysis, machine learning in marketing allows for greater ecommerce personalization, right down to a one-to-one basis with every individual customer. It’s no passing fad.
Machine learning is the future of ecommerce.