What is Ecommerce Personalization Software?
Ecommerce personalization software allows online retailers to serve up relevant product recommendations, offers, experiences, and ads to shoppers browsing their site. The tools use large quantities of search activity and other data to segment visitors and determine what to show them. Personalized content may be delivered on the site itself, or sent via email later on to site visitors, in an effort to get them back onto the site. The goal is to increase site engagement and ultimately conversion.
Ecommerce Personalization Features & Capabilities
Common Features to Support Ecommerce Personalization
Not all ecommerce personalization tools have the same feature set. Some enable multiple types of personalization for ecommerce stores. Others focus on a specific element, like abandoned carts or offers/discounts.
Here are some of the capabilities products in this category may offer:
- Abandoned cart email retargeting
- Product recommendations
- Offers, discounts, and notifications
- Personalized navigation (i.e. redirecting returning visitors to the part of the site they visited before, or prioritizing certain sections of the site based on gender, location, etc.)
- Social insights (i.e. what other people are buying, products commonly bought together, what other products people who looked at X also looked at, etc.)
- A/B testing & analytics
- Dynamic pricing
Ecommerce Personalization Software Integrations
All ecommerce personalization point solutions need to integrate with the organization’s ecommerce platform/storefront. Depending on the approach to segmentation, and whether personalized campaigns are conducted onsite or via email, integration to CRM and email marketing systems may also be needed.
Ecommerce personalization may also be built into other systems or delivered as an add-on or plug-in, and therefore tightly integrated. For example, some ecommerce platforms and CMS products that offer ecommerce capabilities include personalization. Likewise, some A/B testing tools, like Monetate and Qubit, have a robust eCommerce personalization component.
Segmentation for Ecommerce Personalization
Segments may be based on data collected by the ecommerce personalization software, or by data collected somewhere else, like a CRM system or web analytics platform. Some common ways to segment site visitors for personalization include:
- New vs. returning
- Customer vs. non-customer
- By traffic source (direct, organic search, paid search, referral)
- By UTM parameters that indicate a specific referral source or campaign name
- By geo location / IP address
- By device type
- Based on onsite behavior
- Based on known data about the individual, such as name, gender, etc.
The right approach to segmentation depends on the resources available to design personalized campaigns and content for each segment, implement changes, and measure results. It’s best to start relatively simple, and develop a more complex segmentation and personalization strategy as you go.
Pricing for ecommerce personalization software varies widely. The least expensive solutions are add-ons to ecommerce platforms that address one aspect of personalization, like abandoned carts, offers, or product recommendations based on simple logic. More expensive solutions have a broader personalization feature set, and allow for more sophisticated segments, 1:1 personalization, testing, and analytics, with deeper integrations to other systems.