Personalisation is the process of tailoring a product, service, or communication to the specific needs, preferences, characteristics and behaviour of a customer. It involves using customer data, such as browsing history, purchase history, demographic information, and other behavioural data, to provide personalised product recommendations, targeted promotions, and other relevant content. Personalisation helps to improve customer engagement, loyalty, and overall satisfaction by creating a more relevant and enjoyable shopping experience.
Personalisation offers three key benefits. Firstly, it improves the customer experience by providing personalised product recommendations, promotions, and offers, helping customers navigate through numerous options and reducing decision fatigue. This enhances customer satisfaction and decreases the likelihood of customers leaving a website due to overwhelming choices.
Secondly, personalisation increases sales and conversion rates by enabling customers to easily find what they’re looking for, resulting in a higher likelihood of making a purchase. Personalised homepages tailored to individual browsing and purchasing history contribute to a lower bounce rate.
Lastly, personalisation enhances customer lifetime value by allowing marketers to adapt to changing customer needs at scale. It fosters customer engagement and encourages repeat purchases, leading customers from initial awareness to ongoing action. Overall, personalisation plays a crucial role in customer retention and revenue generation.