Hyper-personalised shopping is becoming increasingly popular amongst consumers. Rapid e-commerce growth during the coronavirus pandemic has led to many retailers rushing to create personalised shopping experiences for their customers.
What is hyper-personalisation?
Hyper-personalisation “combines behavioural and real-time data a brand can extract from its customers”. As a customer browses, the website will begin to recommend similar products based on what the customer has searched or interacted with. In essence, it curates products for that specific customer.
Consumers want personalised shopping experiences
E-commerce websites have allowed consumers to view a much wider range of products than they could in-store. However, this has also led to customers being overwhelmed by the huge quantity of products available. For example, Amazon sells more than 12 million products. Whilst this offers convenience to the consumer, it also means that it can be a daunting space for customers to discover the products they want.
Consumers now expect personalised experiences on websites. 80% of consumers expressed that they were more likely to buy from a company that offers personalised experiences. They want to see products and services that are tailored to their individual needs and preferences. In a survey by Shopify, 59% of shoppers (and 78% of millennials) said they welcomed personalised product recommendations.
Personalised product recommendations often require the use of consumers’ data. However, research from Accenture and the Retail Industry Leaders Association (RILA) found that 63% of consumers surveyed are interested in personalised recommendations. Furthermore, 53% of them were willing to share their data in exchange for special offers or items that interest them.
Offering a personalised shopping experience can also benefit retailers greatly. A successful personalisation programme can result in consumers who are more engaged, receive a better experience, and are more likely to return. On average, marketers see an increase of 20% in sales when using personalised experiences.
How can retailers give consumers a personalised experience?
With e-commerce usage increasing year on year, it is important that retailers develop ways to make the shopping experience more personalised for consumers. There are several ways that retailers can give their customers personalised product recommendations. Amazon is the personalisation pioneer and has been delivering curated product recommendations for years. For example, when buying an item, Amazon will tell consumers which items were frequently bought together. Each customer on Amazon also receives a personalised homepage. The homepage is personalised with products in a customers wishlist, shopping cart and even with products that are related to products bought in the past.
Many beauty and lifestyle brands have also understood consumer demands for personalised products. There are numerous subscription-based services ranging from razors to vitamins to haircare, that encourage customers to fill out questionnaires in order to find (or even create) products that will best suit their needs.
Another way to create a personalised shopping experience for consumers is for retailers to integrate shopping assistants into their websites. BOON’s AI analyses each user’s responses to a set of psychology-based questions to understand their desires and personality. By doing this, BOON is able to select personalised product recommendations for online shoppers regardless of their situation.
Personalised product recommendations look to be an important part of retail going forward. Following the coronavirus pandemic, consumers have reconsidered their priorities and do not want to scroll through endless pages of products on websites. Instead, retailers must listen to consumer demands for personalised shopping experiences. Personalisation will not only benefit consumers but retailers too.