Personalization in e-commerce: 12 tips for a unique shopping experience

The digital shopping experience presents a unique challenge to engage customers and build loyalty. But with data analytics and some proven tactics, e-commerce brands can attract and retain customers.


The cornerstone of all businesses has always been customer engagement, and it remains a fundamental tool — and now also for digital commerce, as nearly 20% of all goods are purchased online. One of the biggest challenges for online retailers is to generate user engagement and personalize their customers’ shopping experience. The digital shopping experience presents a unique challenge to engage customers and build loyalty. But with data analytics and some proven tactics, e-commerce brands can attract and retain customers to build a thriving online business. Here, we highlight 12 of them.

#1 Retargeting consumers with personalized ads

The best way to engage customers is to dynamically fill retargeting ads with content or products that were viewed on the last visit. Targeted ads have been shown to perform ten times better than generic ads and allow online retailers to build brand loyalty by targeting content that customers have engaged with positively in the past. Test different types of targeted ads, such as previously viewed products or content, suggestive content based on past purchases, and similar content to get a comprehensive view of how your audience responds to personalized ads.

#2 Cross-sell and upsell

Cross-selling and upselling represent THE opportunity for online retailers to generate more sales from existing customers and is one of the most effective methods of personalization in online retail. By identifying previous buying habits, you can offer specific content or products. Since these customers have already made a purchase, it becomes 70% easier to get them to buy again with a personalized ad. The key consideration when upselling and cross-selling is determining the right time to target a customer and keeping your finger on the pulse to identify future trends for potential engagement.

#3 Dynamic content driven by data analytics

Any content that changes based on user behavior, data, or preferences is considered dynamic. By using dynamic content, online retailers can create personalized engagement with customers based on their past online activities. What makes dynamic marketing so powerful is that it adapts to the moment and the needs of consumers by analyzing what they have engaged with and predicting their preferences. Dynamic marketing can be the number one catalyst for converting potential customers by reaching them at the ideal time.

#4 Adapt ads to weather conditions

Consumer behavior can be significantly affected by weather conditions. Because this type of personalized marketing is hyper-focused, its strength lies in its ability to capture consumers’ needs, emotions, and upcoming purchases. By compiling local and regional weather data and forecasts, you can integrate real-time conditions into your personalized marketing strategy. Studies have shown that weather subconsciously influences consumer behavior. By combining past trends with weather forecasts, online retailers can personalize ads to increase conversions while understanding the needs of their customers. And to even save money.

#5 Target customers based on location and time of year

Ad campaigns based on geotargeting tailor the digital shopping experience to a consumer’s exact location, allowing marketers to develop a profile of their target demographics and the unique content or products they need. This is critical in the digital age as online retailers have the potential to reach global markets. Geotargeted content is very focused and makes the content very relevant to their target market. It also allows brands to stand out and become part of the local consumer community, increasing recognition and loyalty. By combining consumer data and dynamic real-time marketing, online retailers can create personalized marketing campaigns that work both globally and locally.

#6 Dynamic demographic personalization

Today’s consumers have many ways to interact across multiple platforms, devices and digital marketplaces, and differentiation from other brands is fundamental to continued success. This diversity in the marketplace also means that no two consumers are identical, and creating customer profiles that address their unique needs will build loyalty and recognition. The fundamental concept of dynamic personalization optimizes a consumer’s journey and enhances the overall digital shopping experience. By using powerful algorithms, online retailers can analyze data such as age, gender, location, online behavior, shopping trends, and even preferred devices. This can create important personalization in online retail and provide users with a tailored shopping experience.

#7 Identify time-based market interest

Choosing the right time for personalized marketing is especially important for e-commerce personalization success. Many consumers engage on platforms before work, during lunch, and in the evening. So if you were to target a consumer at 3 a.m., your chances of generating engagement would be drastically reduced. Using data analytics, you can figure out when your consumers are online and ensure your personalized ads reach them at the ideal time to drive conversions and generate organic engagement. You systematically address your customers’ needs in real time. You can incentivize customers by offering a flash sale or keeping an item in their cart for only a certain amount of time.

#8 Dynamic pricing

Dynamic pricing is nothing more than selling the same product to different customers at different prices based on their current needs and market conditions. A great example of this concept is peak pricing, which recognizes when the most customers are on your website and prices according to demand. Penetration pricing is another type of dynamic pricing that works well to get known in a new market by offering below-market prices to attract customers who can then be targeted later with personalized ads based on data collected during their initial engagement.

#9 Suggest scarcity or limited supply

By suggesting that a product is in limited supply or out of stock, online retailers can generate interest and increase sales by compelling customers to take action. This model is particularly useful for the digital shopping experience because customers do not interact with the product in person. Even if a customer is undecided about whether to make a purchase, the perceived scarcity can drive them to make a purchase instead of leaving the site to browse competitors or view other content.

#10 Maintain relevant, thoughtful reviews

One of the most important factors in a purchase decision is online reviews, and consumers trust products and content with good reviews that include honest opinions from peers. Word of mouth has moved online. By keeping your reviews up to date, responding to negative reviews or criticism with a thoughtful solution, and building a personal connection with your customers, you can generate digital referrals. When you receive a five-star review, respond to that customer with an authentic greeting, and you build a relationship with your customers that they will trust as their needs evolve.

#11 Create content that customers interact with

Interactive content is preferred by more than 93% of digital marketers and is an effective tool to create personalized ads. When a consumer interacts with your content, you get a snapshot of who they are and what inspires them to choose a product or content. This information is critical to creating a personalized digital shopping experience that feels natural and builds trust.
The world of digital marketing is constantly changing. With a dynamic, personalized ad campaign, you can ensure your e-commerce business stays ahead of the curve and builds a natural bond with your customers while delivering thoughtful ads that build brand loyalty and recognition.

#12 Have enough inventory in stock

It is crucial to have enough supply of the products that you're promoting. Having different suppliers through platforms like 35up allows you to always be able to offer the right products at the right time - without inventory constraints.

Klaus Wegener