The 5 fundamentals of “Best-in-Class” Ecommerce personalization
Coveo guest post: Ecommerce personalization has become the north star for customer-centric companies.
Why? The reason is simple – personalized digital experiences engender greater emotional engagement by showing customers more of what they want, when they need it. This has a positive effect on the conversion rate of ecommerce sites and also boosts loyalty and customer lifetime value. With 78% of US online adults having chosen, recommended, or paid more for a brand using personalized digital experiences or services, the personalization payoff is clear.
However, many companies are still lagging behind, despite being aware of the power of personalization. Many commerce players still haven’t even taken the first step of defining what “personalization” means to their customers and businesses. Several of them actually think they can check the box on personalization just because they greet the customer by name. Gestures like these are nothing more than empty acts that provide no value to customers. Personalization done wrong can also have damaging effects, costing US firms $756 billion and a total of $2.5 trillion globally.
Companies need a digital strategy that puts customers at the center in order to drive the innovation and personalization that customers value. Therefore, it is necessary to discuss the five fundamentals of best-in-class personalization that companies must champion in order to provide the best customer experiences. Personalization must be (1) relevant, (2) pervasive, (3) individualized, (4) effortless, and (5) integrated. In assessing their efforts across all areas, organizations can determine their personalization maturity as well as evaluate how they perform against their peers.
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