Using AI-driven software, online retailers can leverage customer data into providing them a shopping experience that is fast, easy and customized to their individual needs.

Both businesses and individual consumers want personalized shopping experiences when buying online. Using AI-powered on-site personalization supports online shops in providing that experience, including personalized product recommendations and improved customer service.

While the case for on-site personalization is strong, many businesses have yet to take the steps necessary to implement the strategy. It involves using artificial intelligence-driven software to learn more about a customer’s behavior and understanding how to leverage that information to provide customers the personalized service they expect.

The Case For Personalized Service

A study done by the Boston Consulting Group found that implementing personalized experiences on a website led to a 25% increase in revenue. The study projects that companies can quadruple revenue if they become the best in class for delivering personalized experiences.

The study also found that customers increasingly say they want a shopping experience that is easy, fast and that helps them make shopping choices. They think less about the mechanics of personalization and more about the benefits it provides them.

What Is On-Site Personalization?

On-site personalization for a retail website involves creating a customized experience for customers who visit and shop on your site. It’s much like the idea in traditional stores of the proprietor knowing his customers, greeting them by name and directing them to products he knows they will like.

The same idea works for a website. Rather than giving every visitor the same, broad experience, on-site personalization calls for presenting each visitor to the site with a unique experience at important touch points that meet their needs.

Of course, a traditional store gives you the advantage of being in the same place. For an online retail shop, it takes smart investments in innovation technology.

How On-Site Personalization Works

Successful on-site personalization requires the harnessing and leveraging of data by building personalization capabilities. That’s done primarily through the use of AI and machine learning that allow online retailers to better understand their customers’ behavior and interests.

AI continuously collects data on how customers shop, when they buy and what they are looking for in a product.  Online retailers can then use that data to develop a unique experience for customers, including making product recommendations. While the entire experience is typically not unique, companies can use technology to personalize critical touch points along the customer’s journey on your site, driving value for the customer.

Examples of on-site personalize include:

  • Retailers offer customers promotional items or discounts for products that their browsing history shows they might be interested in
  • Travel sites offering promotions based on current weather or season in places customers have researched
  • Media outlets offering videos and articles to visitors based on their location

Using on-site personalization forges a stronger relationship between an online business and their customers, whether those customers are businesses or individuals. The key is getting the right AI-driven software for your site and understanding the best practices for using customer data to provide customized experiences.