The Power of Personalisation in E-commerce
The ‘open secret’ to success in business, especially in consumer-facing sectors, is personalisation. Studies have shown that consumers are willing to pay a premium for personalised services. In fact, a McKinsey report reveals that fast-growing companies generate 40% more revenue from personalisation compared to their slower counterparts. The challenge lies in executing this strategy effectively, unobtrusively, and ethically.
Understanding Personalisation in E-commerce
Personalisation in e-commerce revolves around crafting experiences tailored to individual preferences and interests, leveraging data from users’ previous interactions. Advanced technologies such as virtual reality (VR), augmented reality (AR), artificial intelligence (AI), generative AI (GenAI), and 3D rendering are spearheading this shift, enhancing online shopping by making it more informative, immersive, and enjoyable.
Elevating the Online Experience with Technology
AI and GenAI have transformative potential across various business applications. For instance, GenAI-powered chatbots assist customers in discovering products, answering queries, and providing recommendations based on parameters like age and budget. They can also direct shoppers to expert reviews, streamlining the buying process.
Moreover, GenAI has capabilities such as translating reviews into preferred languages or summarising them, enriching the online shopping experience. Additionally, it can create realistic product images in diverse settings, enabling a more vivid and appealing product showcase.
This deep level of personalisation will continue to grow as technology evolves. As customers engage with e-commerce platforms, these advanced tools will help refine searches and recommendations, leading to more satisfying shopping experiences.
The Rise of Video Content
A significant portion of online shoppers, particularly Millennials and Gen Z, have a preference for video content. It is, therefore, prudent for businesses to incorporate video-based assistance and influencer-led livestream commerce. GenAI-enabled 3D videos, complete with AI-generated scripts and avatars, are set to become commonplace, enhancing customer engagement.
You can expect to see auto-play videos and multi-modal searches that allow consumers to refine their results using visual elements, such as colors and styles. Technologies like AR, VR, and 3D modeling seamlessly bring the window-shopping experience online, providing inspiration and guidance, especially in fashion and beauty sectors.
Innovative Virtual Experiences
Virtual try-on scenarios for products like eyeglasses, makeup, and even furniture empower customers to visualize and select what best suits them. Moreover, smartphones have become one of the best-selling online products today, prompting the need for a comprehensive user interface understanding prior to purchase.
This “try before you buy” concept extends through 3D product views where customers can interact with a virtual representation of the product’s UI and explore its features.
The Metaverse and Customer Engagement
The metaverse unfolds new avenues for brands and e-commerce platforms to craft immersive virtual worlds where customers can interact not just with products but also with one another. Enhanced customer engagement is achievable through secure, blockchain-based loyalty and reward programs, ensuring a safe environment for shoppers.
As the landscape of e-commerce continues to evolve, we can anticipate even better experiences that incorporate both implicit personalisation—fueled by past interactions—and explicit personalisation—engaging customers to share their preferences for tailored experiences.
Personalisation for Sellers
Personalisation also extends to sellers within e-commerce marketplaces. AI and GenAI enhance seller interactions by acting as tailored account managers. The onboarding journey for sellers is critical in their choice of e-commerce platforms—it can be significantly improved through technology, simplifying the process and making it more efficient.
AI further provides sellers with data-driven insights. This helps them understand customer behavior and optimise their offerings accordingly, increasing the likelihood of success within competitive online spaces.
Looking Ahead
As e-commerce platforms solidify their technological foundations and integrate innovative solutions that align with their goals, we can expect ongoing improvements in user experience. The advancement of AI will lead to more seamless interactions, offering enhanced experiences for consumers.
The author is CPTO of Flipkart. Views expressed are personal.
Frequently Asked Questions
1. What is personalisation in e-commerce?
Personalisation in e-commerce refers to creating tailored shopping experiences for consumers based on their individual preferences, behaviors, and interactions with the platform, using advanced technologies and data analytics.
2. How does AI contribute to personalisation?
AI enhances personalisation by analyzing customer data to provide recommendations, answer queries, and improve the overall shopping experience, thereby making it more relevant and engaging for users.
3. What role does video content play in modern shopping experiences?
Video content plays a crucial role in capturing the attention of today’s consumers—especially younger generations—by offering interactive product demonstrations, tutorials, and influencer engagements that enhance shopping experiences.
4. What are some technologies that enhance e-commerce personalisation?
Prominent technologies include virtual reality (VR), augmented reality (AR), artificial intelligence (AI), and generative AI (GenAI), which facilitate immersive shopping experiences and enhance customer engagement.
5. How does personalisation benefit sellers on online marketplaces?
Personalisation helps sellers by improving their interactions with customers, streamlining onboarding processes, and providing data-driven insights to optimize their offerings, thereby increasing sales potential.
