In the age of Amazon and ever-growing e-commerce, personalization has become a critical element of success.
As businesses race to capitalize on this booming industry, it's more important than ever to invest in personalization strategies that create a unique and engaging experience for each customer.
To stay ahead of the curve, it's important to understand just how important personalization is – and what better way to do that than by looking at some statistics?
In this blog post, we'll take a look at 44 different e-commerce personalization statistics.
You'll find everything:
data, privacy, and security
personalized messaging, AI, chatbots, and machine learning
mobile e-commerce personalization
With this information, you can create a winning e-commerce strategy that will set your business up for success in 2023 and beyond.
(Psst - we even have a free e-commerce personalization trends white paper that can help!)
Top E-commerce Personalization Statistics
Only 27% of businesses are completely satisfied with their capacity to create genuinely tailored customer experiences using data acquired across digital channels (Aberdeen).
Sixty-six percent of consumers want businesses to understand their specific requirements and expectations. However, just 32% of retail executives believe they can transform data into tailored pricing, offers, and items in real-time (Salesforce).
77% of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience (Forrester).
83% of consumers are willing to share their data to create a more personalized experience (Accenture).
If you fail to deliver personalization, you’ll most likely annoy your customers. As 71% of customers feel frustrated when a shopping experience is impersonal (Segment).
E-commerce Personalization Maturity Statistics
As customers become more demanding and technology evolves, businesses need to find new ways to stand out from the competition. Personalization is one of the most effective methods for doing this. While some businesses have been quick to embrace this trend, others have been slower to adapt.
1. Only 27% of businesses are completely satisfied with their capacity to create genuinely tailored customer experiences using data acquired across digital channels (Aberdeen).
2. 96 percent of retailers have faced some obstacles in their personalization efforts, such as limited IT capacity, difficulty selecting the right partner, and issues aligning internal teams (Netcore).
3. 41% of retail executives think their e-commerce platform is somewhat personalized, while 13% claim it provides a totally tailored experience (Netcore).
4. Personalization is used by 86% of retail marketers, however, most do not employ advanced personalization (LiveClicker).
5. 79% of businesses in the retail sector invest in personalization tools. This is higher than any other sector and may indicate that retailers stand to benefit the most from personalization (SmarterHQ).
Customers are demanding personalization from retailers and e-commerce businesses. And, when customers don’t receive personalized shopping experiences, they get frustrated.
6. 77% of customers demand a more personalized customer experience (Netcore).
7. According to 79 percent of customers, they are more inclined to engage with an offer if it is tailored to reflect past experiences with the brand (Instapage).
8. Customers now expecting offers to be tailored 52 percent of the time, up from 49 percent in 2019 (Salesforce).
9. According to 65 percent of shoppers polled, tailored offers and incentives are the most significant aspects of their shopping experience (Oracle).
10. Sixty-six percent of consumers want businesses to understand their specific requirements and expectations. However, just 32% of retail executives believe they can transform data into tailored pricing, offers, and items in real-time (Salesforce).
11. Personalized offerings are attractive to 74% of Gen Zers, compared to 67% of Millennials, 61% of Gen Xers, and 57% of Baby Boomers (Salesforce).
12. In return for personalized incentives, 67 percent of buyers are ready to provide personal information such as their birthdays (Salesforce).
13. 50 percent of online shoppers want real-time offers based on what they're browsing at the time (Oracle).
14. 91 percent of customers are more willing to buy with brands that deliver relevant offers and suggestions to them (Accenture).
Personalization is one of the most powerful tools that marketers have at their disposal. By tailoring content and messages to individual users, businesses can sell their products and services more effectively.
And with the advent of AI and machine learning, personalization is only getting more sophisticated. By analyzing data points like purchase history, demographics, and browsing behavior, businesses can create hyper-personalized experiences for their customers.
As a result, more and more businesses are leveraging AI and machine learning to provide personalized content at scale.
15. 46% of brands use machine learning for personalization, a 186% increase from 2018 (Salesforce).
16. In 2020s, retailers' adoption of AI in personalization is estimated to save $348 billion per year (Retail Dive).
17. 60% of customers are open to the use of AI in customer engagement, including 66% of millennials (Salesforce).
E-commerce Personalization Return on Investment Statistics
By tailoring products, services, and communications to the specific needs and preferences of each customer, businesses can build stronger relationships. When done right, personalization shows customers that they are more than just a number and helps to build loyalty and trust.
As a result, businesses that personalize their communications and experiences are more likely to create lasting relationships with their customers.
18. 38% of consumers intend to do more shopping online and visit stores that provide great experiences (Harvard Business Review).
19. Personalization, according to 98 percent of marketers, improves customer relationships (Evergage).
20. When companies provide tailored experiences, 80 percent of shoppers are more inclined to make a purchase (Epsilon).
21. 43% of organizations with extensive personalization see significantly greater retention improvements from personalization (Adobe).
22. 77% of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience (Forrester).
23. Personalization leads 44 percent of customers to become more loyal to a company (Netcore).
24. Consumers who believe companies are doing very well on offering personalized experiences shop more than three times more frequently (Epsilon).
25. Personalization makes 28 percent of buyers more likely to buy a product they didn't mean to buy, while 26 percent think it may drive them to buy something more costly than expected (Netcore).
26. Personalization can reduce customer acquisition costs by up to 50% (AdWeek).
27. 70% of customers believe that how well a firm recognizes their particular demands influences their loyalty (Salesforce).
28. 56 percent of online customers are more inclined to return to a site that offers product recommendations. 44% of customers who experience personalized shopping experiences say they’ll become repeat buyers (Invesp).
By tailoring content and messages to the individual, businesses can build loyalty, and stronger relationships, and differentiate themselves from the competition. And, perhaps most importantly, personalization has a measurable impact on your bottom line.
In addition, customers who feel that a business is invested in their individual preferences are significantly more likely to make repeat purchases.
29. 79 percent of organizations that exceeded revenue goals have a documented personalization strategy, compared to 31 percent of those that met revenue goals and 8 percent of those that missed revenue goals (Monetate).
30. Personalization resulted in a demonstrable increase in sales for 88 percent of organizations (Aberdeen).
31. Personalization increases AOV for 98 percent of online retailers (Netcore).
32. Personalized shopping cart recommendations influenced 92% of shoppers online to buy products (Instapage).
Data, Privacy, and Security Statistics in E-commerce Personalization
In the age of big data, personalization has become the key to success for many businesses. By analyzing the vast amounts of data available, businesses are able to better understand their customers and offer them products and services that are more likely to meet their needs. However, personalization also raises privacy concerns.
Customers are generally willing to share their personal information if they believe it will improve their experience, but they also expect e-commerce businesses to handle that information responsibly. As a result, e-commerce businesses need to strike a balance between providing personalized experiences and protecting customer privacy.
Those that are able to do so will be well-positioned to thrive in the data-driven economy.
33. 22 percent of consumers are willing to share some information in exchange for more tailored product recommendations (Deloitte).
34. 92 percent of online shoppers believe it is critical that brands respect the privacy of their personal information (Adobe).
35. 83% of consumers are willing to share their data to create a more personalized experience (Accenture).
36. 57% of online shoppers are ready to give their data for personalized offers and discounts (Salesforce).
37. 90% of consumers are willing to share personal behavioral data with companies for a cheaper and easier experience (SmarterHQ).
38. 64 percent of customers agree that brands should save their purchase history and preferences in order to provide tailored experiences (Blue Rush).
39. 38% of customers want personalization but don’t want to share too much data (Retail TouchPoints).
Cost of Doing Wrong E-commerce Personalization
No business wants to make a mistake when personalizing their e-commerce site for their customers. But the cost of doing so can be high. Not only can it lead to lost sales and increased customer frustration, but it can also damage your brand's reputation.
To avoid these costly mistakes, it's important to take the time to understand your customers and what they want from your site. Only then can you create a personalized experience that will delight them and keep them coming back for more.
40. 91% of shoppers would abandon an online retailer over a poor shopping experience (Netcore).
41. A lack of trust and inadequate personalization costs $756 billion in sales each year (Accenture).
42. If you fail to deliver personalization, you’ll most likely annoy your customers. As 71% of customers feel frustrated when a shopping experience is impersonal (Segment).
43. 63% of consumers will abandon firms that deploy bad personalization strategies (Smart Insights).
44. If the company they're buying with doesn't give relevant product ideas, 47 percent will go to Amazon (SmarterHQ).
The Bottom Line: Data-Driven E-commerce Personalization
Using e-commerce personalization stats to create data-driven e-commerce personalization strategies is essential if you want to stay competitive in today's fast-paced digital landscape. By analyzing the data provided by these statistics, you can gain valuable insights into what your customers want and need, as well as which marketing tactics are most effective at increasing customer engagement and driving sales.
By analyzing the data and statistics closely, you can help ensure that your marketing campaigns are more successful and profitable in the long run.