Three Personalization Trends To Impact E-Commerce in 2023

New shifts in the consumer market solely based on their preferences have taken hold in the retail industry, especially in e-commerce. Personalized experiences are now an integral part of the customer journey.

In a larger context, in 2023 brands will be tailoring their marketing campaigns to suit customers’ needs, becoming flexible, and letting users’ interests dictate market behavior. That’s all key to their success, profit and customer loyalty.

Retailers are quickly adopting personalization technologies to match consumers’ influence on the market.

Statista estimates global revenue of customer experience personalization and optimization software to surpass US$9 billion. This projected spending on personalization technology further reaffirms the possibility of a much-improved omnichannel experience.

Three personalization trends to make an impact in 2023 are connected with:

1. Artificial Intelligence

Following top retail brands like Amazon, eBay, Drinks, and Alibaba many more retailers are actively implementing artificial intelligence in communication with customers as personal assistants and in facial recognition. A good use case is AI using data from facial recognition technology to recommend products to users based on their facial attributes, like “smile to pay”, providing a seamless omnichannel experience to customers.

2. First-Party Data

In 2023 retailers and marketers will face stricter laws on the collection of consumer data. Users will decide whether they want their activities tracked making it impossible for advertisers to use their data to run retargeted ads without their approval.

First-party data will be collected directly from customers via their experiences on the website or app. This will help provide a personalized approach and get accurate insight into customer behavior to understand better why, how, and what motivates their decision-making process.

3. Brand Loyalty

Businesses grow and drive more revenue by retaining existing customers versus acquiring new ones. The goal is to keep customers engaged and make them feel they’re part of a trusted community.

Making customers part of the brand takes personalization to a new level. Customers prefer a reward-based program that aligns with their needs or for a good cause to simple discounts, according to a recent study.

For instance, Amazon Prime personalizes the entire shopping experience for customers with free and fast shipping, special offers, and a point-based reward system.