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Nov 28 2022

Personalization In ECommerce And The Role Of Artificial Intelligence (AI)- Part 1

Anjali Sharma

Content Writer

The majority of us live busy lives and only have a few minutes before we are distracted or occupied by something else, and that's the truth of it. The attention span is reducing from 12 seconds in 2000 to 8 seconds in 2013. That’s less than the attention span of a goldfish - 9 seconds! According to the study, retailers need to grab visitors' attention quickly, especially with visitors on their mobiles.

That is where personalization comes in - it’s about how brands can just provide them with tailored experiences to hold onto their interest. 

The key to personalization is asking “How can we help you?” without intervening in the shoppers’ purchase journey at every touchpoint. And moreover, when shoppers need help, they will ask for it. 

Personalization in technology benefits both retailers and visitors by reducing the time it takes shoppers to make a purchase. It results in measurable journeys that engage and leads customers to product discovery and repeat purchases through brand awareness and recall.

Personalized experiences rely on rapid response and consistency across touchpoints to facilitate smooth customer interactions. Retailers need to grab visitors' attention quickly, especially with visitors on their mobiles. Brands use technographic data such as measuring how visitors interact with different operating systems - android, iOS, or Windows to help personalize your eCommerce shopping experience. One-to-one personalization is the only way to make your shopper feel special. If a customer feels their needs are being met, they become loyal customers.

What is Personalization in Technology?

Starbucks, Nike, Disney, Lenskart, and Sephora, to name a few, use personalization effectively. Keeping up with trends, the brands offer a wide range of value-added propositions which include loyalty apps that provide personalized recommendations, early access to offers, early releases, customized physical goods, and augmented reality features for consumers to try on products. 

Let us first look at personalization in eCommerce.

Personalization in eCommerce is a business strategy aimed at improving conversions for eCommerce retailers. It allows eCommerce businesses to provide intent-driven consistent omnichannel experiences to every shopper. Some of the benefits of personalization in eCommerce are the improvement of customer experience, branding, conversion, marketing results, advertising, and metrics.

Now, personalization in technology is a big part of personalization in eCommerce. It includes tools and software that work by collecting, storing, and managing customer data to facilitate these personalized experiences. Any personalization engine should enhance the product discovery experience, improve conversion rates, increase average order value and instill customer loyalty.

Data Collection - One Complete View of the Customer

As a shopper, you interact with an eCommerce website from multiple touchpoints. A shopper will use the search bar, click on product or category pages, apply product facets or filters, browse through pages, add products to cart, and remove products from cart - before reaching the checkout. Considering the attention span of a user, they are unlikely to go past 3-4 pages (if we’re being optimistic)). Post that, the shopper will drop from the website. 

These metrics will help a retailer understand the audience that needs to be targeted by creating buyer personas. By understanding behavioral metrics and patterns of the user, retailers can optimize their merchandising strategy to drive conversions. 

This personalized experience is specifically designed for shoppers by way of dynamic product recommendations utilizing every shopper’s unique data. However, Unbxd does not collect any PII data, we use a visitor’s in-session data to create and develop personalization models. 

Trends and Tips to adopt Personalization Technology

How are you scaling your business? How will your online store look a year from now? Make right use of the new technologies and trends to up your personalization game. 


  • Making use of a shopper's data to present highly personalized product recommendations is a growing trend today. The majority of users are willing to share personal information in order to obtain personalized website experiences. 
  • Even though shoppers are willing to share their data, they want to remain anonymous. Every retailer fears that they will capture too little or no data. Unbxd solves for this by collecting only "in-session" data. Based on the most recent and current activities of the visitor, personalization is achieved. 
  • Product personalization is a major focus of eCommerce retailers, but it is not enough. The trend is to include price personalization in products. Deals, discounts, and price ranges tailored to each shopper will boost sales and build loyalty.


  • Choose the implementations that will help you reach your short-term goals, and then expand from there. Consider ROI, higher conversion rates, and where you can save. Don't let your technology slow you down. 
  • Get your teams familiar with the software and technology so they know what it does. Does the technology you picked work with other integrations? Think about it!
  • What's the point of your site if your shoppers drop off? Pick your technology with your end user in mind. The goal is to speed up the product discovery process!

Benefits of Personalization Strategies

Nearly 80% of buyers are more likely to purchase from an eCommerce store offering personalization.  So what’s in it for businesses?

Boosts sales

ECommerce businesses that offer personalization at scale see their marketing costs reduced by 10-20%, sales conversion rates improved by 10-15%, and customer satisfaction increased by 20%. As you implement personalization tools at various touchpoints, such as marketing, product recommendations, on-site search, pricing, pre-and post-sales support, checkout, customer service, etc., these numbers are bound to increase.

Expands revenue streams

ECommerce revenue is greatly influenced by techniques like cross-selling and upselling. This makes them an excellent way to increase revenue streams. Thanks to a powerful recommendation engine, you can make better decisions about how to provide product recommendations.

Maintains customer loyalty

Personalization is essential for building loyalty among both first-time and repeat customers. Due to the oversaturation of the eCommerce market, businesses are now competing against each other to earn repeat business. Forrester found that 77% of buyers would recommend a brand due to its eCommerce personalization to new customers.

Builds recall 

The concept of selective attention proves crucial for eCommerce personalization success. This bias focuses on instant gratification through instant value offers and personalized content. 39% of shoppers get overwhelmed by too many options and drop off the site. A personal touch increases recall by providing a unique experience.


Shoppers are spoiled with personalized shopping experiences. It is through experimentation that you can find what tips and tricks of personalization work best for you.  A mix and match of the right set of tools will help you improve your conversion rates, sales, and customer lifetime value, and most importantly the shopping experience. You require a system of accessible unified data, architecture, technological foundation, and a personalization software tool like Unbxd. If you’re curious about how we do it, read the second part of this blog. Stay tuned!

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