Ecommerce Personalization Statistics: The Data Points You Need to Know in 2024

What is ecommerce personalization?

Ecommerce personalization is where online stores customize the shopping experience for individual users based on their behavior, preferences, and other personal data. The goal is to create a more engaging and relevant shopping experience that increases customer satisfaction, sales, and loyalty. Some key ways of using ecommerce personalization are through:

1. Product Recommendations: Showing products to customers based on their past behavior, such as previous purchases, browsing history, or items in their cart.

2. Content Personalization: Customizing the content that users see on the website, such as banners, promotions, and articles, to align with their interests and preferences.

3. Personalized Search: Modifying search results to show products that are more relevant to the user based on their past interactions and preferences.

4. Category Merchandising: Arranging and organizing products within category pages towards shoppers’ preferences such as their style affinities.

Why personalizing your ecommerce store is important

Brands can achieve online personalization by investing in technologies that use data analytics, machine learning, and artificial intelligence to create powerfully personalized experiences. These technologies analyze vast amounts of data to understand user behavior and preferences, enabling businesses to create a more tailored and engaging shopping experience.

Ecommerce personalization is undeniably fundamental to driving revenue and retention. With acquisition costs rising, shoppers bouncing for cheaper deals, and people demanding more seamless product discovery journeys, brands must deliver a strong personalization strategy to keep up in 2024.

To help you understand the impact and importance of personalization within ecommerce, we’ve compiled some recent statistics from credible sources, including our own studies at Nosto, that illustrate why brands must personalize their commerce experiences.

Personalization leads to increased revenue and ROI

• Companies that excel at personalization generate 40 percent more revenue from those activities than average players, McKinsey (2021)

• 7 in 10 retailers who invested in personalizing CX have seen an ROI of at least 4 times, Netcore (2021)

Consumers expect personalized shopping experiences

• 73% of consumers expect companies to understand their unique needs and expectations, with over 50% thinking companies should go as far as anticipating them, Salesforce, (2022)

• As a result of the current economic climate, 52% of consumers expect a better experience from their favorite brands, Salesforce (2023)

• 71% of consumers expect companies to deliver personalized interactions and 76% get frustrated when this doesn’t happen, Mckinsey (2021)

• 70% of consumers say it’s important for brands to create personalized experiences, Nosto (2022)
• Nearly 70% of consumers prefer brands know more about them. Especially their style preferences, and household needs, Segment (2021)

• 82% of consumers are willing to share their personal data in exchange for a more personalized experience, PWC (2024)

• 92% of marketers believe their brands deliver personalized experiences to customers but only 45% of consumers agreed that the majority of brands they interact with provide personalized experiences, Nosto (2022)

• 80% of customers say the experience a company provides is as important as its products and services, Salesforce (2023)

Personalization impacts purchasing decisions

• 80% of consumers are more likely to make a purchase from a brand that provides personalized experiences, Epsilon (2022)

• 72% say they are more likely to purchase from a brand if it consistently provides them with a personalized experience, Nosto (2023)

• 70% of consumers surveyed are likely to complete a purchase if their search results are personalized to their purchase history, Nosto (2023)

Loyalty and customer retention improve with ecommerce personalization

• 65% of consumers say they will stay loyal if the company offers a more personalized experience, Salesforce (2023)

• 91% of shoppers would abandon an online retailer over a poor shopping experience, Netcore (2021)

• 60% of consumers say they will become repeat buyers after a personalized shopping experience with a retailer, Segment (2021)

Personalization drives business growth

• Companies that create personalized experiences grow year-over-year incremental revenue by 1.7x, and more than double the lifetime value of their customers, Adobe (2021)

• 95% of organizations are maintaining or increasing their personalization budget over the next 5 years, Adobe (2022)

Ecommerce statistics for personalizing onsite search and content

• 82% of brands surveyed agree that a personalized search is critical for higher conversions, Nosto (2023)

• During BFCM 2023, shoppers were 81% more likely (YoY) to click on personalized content campaigns, Nosto (2023)

Conclusion

These statistics underscore the critical role of personalization in ecommerce. By leveraging personalization, businesses can significantly enhance customer satisfaction, increase conversion rates, and drive revenue growth. As the ecommerce landscape continues to evolve with the likes of AI developments, staying informed about the latest trends and technologies in personalization will be crucial for maintaining a competitive edge.