What is Personalization Technology and Why it is Crucial for Your Web Store

Personalization technology encompasses various software tools that collect, store, and manage customer data to deliver personalized experiences. Personalization is a crucial component in ecommerce for providing customized purchasing experiences and interactions that drive conversions.

7 months ago   •   3 min read

By Sortext

Be Wary of Changing Anticipations

According to Forrester, more than 89% of digital businesses now heavily invest in personalization and customer-centric strategies. Even household names like Netflix and Coca-Cola have jumped on board. These massive investments are not a waste of money. Many businesses have realized that the scope of customer retention has shifted dramatically. Currently, the ability to make a significant sales conversion is heavily reliant on customer personalization.

According to a survey conducted by Accenture, 91% of customers are more likely to patronize and retain brands that recognize and recommend relevant offers. In addition, according to a Forbes survey, 63% of consumers would stop patronizing a brand if they discovered that it used poor personalization tactics.

These figures are not implausible. Customers' needs are only now beginning to shift. When they realize that one brand is not meeting their needs, they switch to another. Therefore, your personalization strategy must be near-perfect for keeping a sizable market share. This can be accomplished by implementing personalization technology that provides your customers with a highly individualized experience.

What is Personalization Technology

Personalization technology aggregates and analyzes data using various software tools to provide customers with personalized shopping experiences. By analyzing visitor and website data, this technology deduces consumer purchasing behavior.

There are some personalization tools on the market. Adobe's Experience Cloud is one of the most popular, but it may not be appropriate for businesses without a large personalization budget. If your company is one of these, you may want to consider an inexpensive tool that produces the desired results.

Sortext, for example, uses artificial intelligence (AI) to provide ecommerce businesses with a one-stop personalization tool that analyzes visitors' spending power to increase average order value, conversion rate, and revenue.

About Sortext

Sortext is an AI-based ecommerce conversion platform for first-time visitors. Sortext boosts the conversion of first-time visitors to your web store and thus significantly increases your average order values (+15%), conversion rates (+15%), and revenues (+20%) without technical change or additional investment!

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How Personalization Can Help Your Business

Personalization technology can help your business in a variety of ways. Let's go over some of the most important ones:

1. Better Customer Experience

One way for businesses to lose customers is to offer generic and irrelevant deals. Customers are frequently dissatisfied, and they leave. Personalization technology, on the other hand, never has this issue because customers are provided personalized deals that are specifically tailored to their preferences.

For example, Sortext's primary value proposition is to provide a customized visitor experience. Sortext acts as a smart sales assistant that convinces abandoning first-time visitors to finish their shopping by providing them with time-limited personalized deals based on their spending power. Visitors have a positive and customized shopping experience this way, and they are more likely to purchase.

2. Higher Conversion Rates

In ecommerce, even though first-time visitors make up the majority of a web store's traffic, they typically generate very little revenue. Therefore, the easiest way for many online businesses to increase their ecommerce revenue is to convert more first-time visitors into paying customers.

Personalization is an effective method for achieving this objective. For example, implementation of Sortext doubles the conversion of first-time visitors to web stores, resulting in an increase of more than 15% in the overall conversion rate.

3. Increase in Revenue

Perhaps the most significant benefit of personalization technology for online businesses is an increase in revenue. By enhancing the customer experience, lowering abandonment rates, boosting conversion rates, and increasing average order values, personalization technology tends to have a significant positive impact on revenue generation.

In fact, AIs such as Sortext that implement personalized conversion technology typically experience a 20% increase in revenue at no extra cost. Therefore, personalization technology may be the most effective way for an ecommerce company to increase its profit margins.

4. Customer Loyalty

Enhanced customer loyalty is another essential advantage of personalization technology for businesses. Loyal customers are advantageous for ecommerce businesses because they account for a disproportionately large share of sales. By deploying personalized technology and offering customized deals, brands can make customers feel appreciated. Customers who feel acknowledged and valued are more likely to remain brand loyal.

Selecting a Personalization Technology

As an ecommerce company, your needs revolve around the current and potential requirements of your customers. Additionally, your budget and, most importantly, your current and future customer base will determine which form of personalization technology you choose to implement.

Consider implementing a personalization technology that aggregates and analyzes large amounts of visitor data in real-time.

However, only a few personalization tools, such as Sortext, have implemented this feature. Sortext functions as a virtual sales assistant that promptly identifies first-time visitors' spending power and offers limited-time personalized smart deals based on each visitor's spending capacity. That substantially improves conversions.

Want more customers?

Sortext can help you convert more first-time visitors into customers and boost ecommerce revenues by +20% without additional investment!

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