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The State of eCommerce Personalization In 2021: What The Pandemic Has Taught Us

Adjustment to market trends may be a key pillar of eCommerce, but no one could have predicted just how quickly those trends could have grown in 2020.


It’s staggering to consider the growth of eCommerce as a result of the COVID-19 pandemic. In just 90 days, the market experienced 10 years worth of growth in the US to reach $160.3 Billion in sales. But there’s always a sacrifice that comes with increased traffic and increased sales. And it’s more prominent in digital retail than anywhere else. Personalization.


Recent research has indicated that 74 percent of eCommerce sites have now adopted custom personalization strategies, and are expected to reach over 90 percent by the end of 2021. But where does this leave brands relying on digital marketplaces for the bulk of their sales? How can third party sellers on Amazon optimize personalization to their advantage? And just how can a fully personalized customer journey translate in a digital medium?



Converting the Unconverted: A Key to Understanding eCommerce Personalization

The customer is what defines eCommerce personalization. It’s their demographic. Their habits. Their history. Their values. And if your content doesn’t reflect all three, your chances of converting the curious browser is going to be lost in a sea of virtually indistinguishable product offerings and details.


The strength of physical retail is its tactile presence. Brick and mortar retailers have always used the intimacy of physical shopping to their advantage. But the pandemic has afforded consumers surprising flexibility in their purchase decisions. A 2020 survey from Google found that 73 percent of respondents described themselves as “channel agnostics” regarding their decision to purchase online or in-store, compared to 65 percent prior to the current health crisis. What this means for eCommerce is that it’s the customer who is now in control, not the brand.


As a result of the downtick in brick and mortar retail, customers are demanding a personalized experience now more than ever. A 2018 survey from Epsilon revealed that 80 percent of consumers are more likely to purchase from a brand providing personalized recommendations, communications and promotions. But that was prior to the pandemic and the subsequent growth in eCommerce sales. As reliance on digital channels becomes more prevalent, can e-tailers manage to fill the personalization gap left by brick and mortar?



Customer Expectations and Customer Behavior in 2021

Until recently, the most fundamental metric in measuring actionable marketing was driven by behavioral data, in particular by the use of third party cookies. But customers are becoming increasingly concerned about the harvesting of personal data. A 2019 study from the Pew Research Center indicated that 81 percent of Americans felt the risks of data collection from private companies outweighed the benefits, while 59 percent have little or no understanding of what companies actually do with the data. The concern has become so significant that Google recently announced they were phasing out use of third party cross-site tracking and targeting tools across all of its advertising platforms.


It’s clear that there’s a need to measure customer engagement through targeted real-time solutions. But while customer concern over privacy continues to mount, there’s little evidence that behavior-driven data is ineffective. A recent survey from SurveyMonkey found that while 74 percent of social media users are tired of seeing advertising, almost half of them have made a purchase as a result of clicking on an ad.


Customers may demand greater relevance and personalization in marketing. And both sellers and brands have a need for data-driven solutions to fulfill those demands. Yet at the same time, consumer concern over privacy is at an all time high. How can this gap be bridged while maintaining personal privacy?



Personalization, eCommerce and the Customer Journey: What’s Really Changed?

The customer journey in eCommerce begins with intent and ends at purchasing. It can be sparked by something as simple as impulse or drastic as necessity. But what will actually be driving eCommerce conversions in 2021?


It’s not simply the best deal. By and large, it will be personalization. And 66 percent of consumers have indicated that a non-personalized experience has prevented them from making an online purchase. But there’s no one-size-fits all solution that’s effective in eCommerce personalization. A/B split testing may result in significantly higher CTRs, but if you don’t have the necessary customer data to even develop two ads or listings, you’re going to be testing the efficacy of your communications on blind faith alone.


The weakest link in any personalization strategy has always been defining just where it’s most effective in the customer journey. For some brands it may be driven by product recommendations, while for others it’s the result of post-purchase fulfillment. But where it’s most effective is the starting point of understanding how that information will be used. It’s what drives your conversions. It’s what makes your programmatic strategies and PPC campaigns leaner, stronger and healthier. And just like the customer journey itself, those touchpoints are always changing.


Personalization may be no less relevant in 2021 in driving sales, but developing a potent strategy depends on two factors: understanding your target audience and understanding the best solutions to reach them. And just like a customer, no two strategies will be alike. If your product is strong enough, you will gain conversions. But how to use those conversions more effectively will be up to you.

 

Color More Lines provides white glove, global account management of your eCommerce platforms so mission-driven companies can focus on new product development, branding and growth strategies. Find out more atColor More Lines.

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