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What e-commerce personalization trends do you predict will grow in popularity in 2023? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.
Answer by Alexandre Robicquet, CEO of Crossing Minds, Stanford ML Research Scholar, on Quora:
First and foremost, the imminent demise of third-party cookies and increased public scrutiny on data privacy will be top-of-mind for all e-commerce businesses, as these directly affect their personalization strategies. Fortunately, third-party cookies were never really the most optimal way to achieve personalization, and e-commerce businesses already have access to a wealth of data that can help them do so.
In the past, traditional e-commerce personalization technology has used personal information collected via third-party cookies to make assumptions about what the user may be interested in, solely based on what other users of a similar demographic liked. This practice can be effective in certain instances, but it fails to predict the user’s unique tastes and preferences. It’s also highly invasive and will be virtually irrelevant once third-party cookies are phased out.
In 2023, we will see e-commerce businesses increasingly make use of first-party data for true 1:1 personalization. This form of data is much more valuable than what can be gleaned from third-party information. Whereas third-party data puts users into buckets based on stereotypes surrounding their age, location, or gender, first-party data is highly specified information about an individual provided directly and willingly to a business. This information can then be used to provide a truly unique and highly specific personalization experience on the site that takes into account an individual’s likes and interests – with product recommendations that they actually want.
In addition to the way businesses utilize data, the new year will bring new ways of getting recommendations in front of consumers.
A business’s homepage is often a customer’s first touchpoint with the brand, so it’s important to optimize the experience for the user from the very beginning. This has proven to be challenging for retailers because they often have to choose between displaying the most widely appealing products; a mix of everything, with the hope that one option resonates with any given visitor; or product categories, rather than the products themselves. In 2023, however, they won’t need to make these sacrifices because they will have personalization options that allow them to market more strategically. Predictive AI allows businesses to create separate website experiences based on user’s first clicks and behaviors, thus allowing them to choose more pinpointed messaging and images that resonate with a more specific subset of customers.
Serving customers with a highly personalized experience when they visit a digital storefront is just the starting point. To fully engage customers across their entire digital ecosystem, e-commerce businesses need to use an omnichannel approach to personalization that provides item recommendations to customers even when they navigate away from a website. Through email personalization, push notifications, and text …….