Article

The Power of eCommerce Personalization for Customer Retention

Have you ever had an online shopping experience that was so wonderful and tailored to your interests that you just had to share it with a friend?

Not only is personalization in a website “nice to have” but it’s also absolutely crucial for driving a shopping experience that will convert first-time visitors into loyal, repeat buyers. 

Personalization is the key driver of customer retention for online stores!

According to a study, 80% of customers are more likely to buy from a company that provides a tailored experience. And another 70% say they’re more loyal to companies that understand their needs.

In the past, offering this kind of ultimate personalization was only possible at in-person stores with talented and trained salespeople. 

Today, tools such as LimeSpot, can offer each of your website’s visitors a personalized shopping session that will only show them the most relevant and useful products they are most likely to buy.

In this article, we’ll highlight why eCommerce personalization is crucial for customer retention and give tips on how you can offer a more personalized experience for your shoppers today.

Personalization is crucial for eCommerce customer retention

Providing personalized shopping experiences online has been proven to be effective in increasing customer loyalty, and customer satisfaction, and boosting conversation rates.

Up to 44% of customers in one study claimed to be more likely to become repeat buyers after a personalized experience, and another 49% of customers admitted to making impulsive purchases after receiving a personalized product recommendation.

How LimeSpot enables personalization for Shopify stores

Wouldn’t it be great if you visited an online store and every interaction, product suggestion, image, and product description were tailored specifically to your interests?

For a long time, this type of hyper-personalization wasn’t possible. In the past, each Shopify store was exactly the same for every new visitor and customer.

However, thanks to tools like LimeSpot, 1:1 personalized shopping experiences are now scalable and available for every single customer on your Shopify store.

LimeSpot uses smart algorithms for real-time personalized experiences 

LimeSpot’s product recommendation engine uses smart algorithms to analyze each customer’s behavior, preferences, and purchase history to update and provide personalized product suggestions in real time as they’re browsing your website. 

Tasks such as categorizing similar products and combining them with shopper behaviors used to be tedious and confusing exercises. 

Luckily, LimeSpot’s tool can crawl a Shopify store’s product catalog and automatically extract attributes and combine them with shopper profiles and behaviors for each of the store’s customers. 

Now, you can easily offer product suggestions, upsells, cross-sells, and post-purchase offers, and optimize the entire shopping experience using A/B testing.

LimeSpot’s visual editor allows Shopify owners to customize the layout, design, content type, and placement for each product recommendation without coding.

LimeSpot can also personalize images, text, videos, products, and calls-to-action (CTAs) across every page of the store, and can embed product suggestions into marketing emails as well.

The data-driven recommendation system tracks customer journeys across different digital touchpoints to assist them to find the right product at the right time.

Best practices for implementing personalization on Shopify

Personalization can lead to an increase in sales because your customers will be interacting with the products they are the most interested in buying. 

Instead of viewing a general shopping page, their home page will be filled with product suggestions based on their browsing habits, purchase history, and the audience segment they’re part of.

Let’s look at some of the best practices for implementing personalization for your Shopify store using LimeSpot.

Understand who your customers are and their referral sources

LimeSpot’s data-driven engine will help you understand who your customers are and where they’re coming from using the following built-in features.

Customer analytics

View your customers’ interests and buying patterns, such as products viewed, time spent on your website, total order value, average order value, and more.

Customer segmentation

You can segment your audience into smaller, more specific groups based on their behavior and preferences. 

Segmentation can be helpful for targeting specific groups with personalized product recommendations and promotions, which increases the likelihood of making a sale.

Referral source tracking

Find out exactly how your customers found your website, whether it’s from a Google search, Facebook link, YouTube video link, or from an influencer’s promo code or special tracking link. 

Customizable reporting

LimeSpot’s analytics dashboard helps you create customized reports based on metrics that are most important to your business, such as average order values, shopping frequency, time spent on the site, referrals, and more!

Customize your product recommendations

With LimeSpot, you’ll not only be able to change what kind of home page each customer sees but drastically customize the entire shopping experience to include personalized product recommendations throughout each page.

You’ll be able to customize the layout of your product suggestions, such as the number of products displayed, the order they’re displayed, and the placement on the page.

Additionally, you can use A/B testing to see which works, and what doesn’t to fine-tune your approach.

You can also use LimeSpot to select specific products that you would like to include as product suggestions, such as surplus items or best-selling items. Similarly, you can exclude certain items, such as items that are out of stock, low in inventory, or irrelevant based on your shopper’s preferences.

Optimize for your unique customer journeys

By segmenting each audience member, you can ensure they’ll be interacting with a website that has their best interests and products at heart while hiding or ignoring all the irrelevant items they’re not likely to purchase.

Experiment by identifying key customer segments, such as high spenders or repeat buyers. Also, use LimeSpot’s multivariate A/B testing to try out different layouts and algorithms to see which leads to higher conversion rates.

Try incorporating product bundles, upsells, and target cross-sells that offer higher-priced alternatives to your “big spenders” group, for example. 

Track your results with real-time analytics

Monitor your product recommendations performance, as well as monitor sales funnels from the home page to product pages to checkout pages.

Use the gathered information to identify areas where customers are dropping off and make the necessary changes to improve the customer experience and improve conversion rates.

Additionally, LimeSpot’s built-in analytics can help you monitor the performance of email marketing campaigns, social media campaigns, and paid ads. 

Case studies: How LimeSpot’s eCommerce personalization boosted customer retention and AOV for BeautifedYou.com 

LimeSpot recently helped our client, BeautifiedYou.com, optimize their website to include powerful product recommendations and a 1:1 shopping experience that increased their AOV by 32%!

Initially, BeautifedYou was using a built-in product recommendation tool on their website that offered seemingly random product recommendations that weren’t converting.

However, after switching to using LimeSpot, BeautifulYou.com was able to look at customers’ past history to create more effective product detail pages and product bundles that eventually led to larger shopping baskets and naturally larger shopping totals. 

Download your free 15-day trial of LimeSpot today! 

LimeSpot is an all-in-one eCommerce conversion platform and AI-powered product suggestion app that creates a 1:1 personalized shopping experience across Shopify, email, and SMS messages.

Shopify merchants use LimeSpot to increase customer retention, conversion rates, AOV, and customer engagement through product recommendations, upsells and cross-sells, and content personalization.

Create different audience segments based on various metrics and user behaviors to deliver the most relevant and personalized shopping experiences.

Download your free 15-day trial today and watch your conversion rates and customer retention increase.

Want to see more content like this?

Thanks, you're all signed up!
Oops! Something went wrong while submitting the form.

Join the world's fastest-growing indie brands.

Request a Demo