3 Personalization Trends That Will Change E-Commerce in 2023
The tides are turning in the consumers’ direction. New shifts in the consumer market solely based on their preferences have taken hold in the retail industry, especially in e-commerce, as personalized experiences are now an integral part of the customer journey.
In a larger context, personalization in 2023 will be more about brands tailoring their marketing campaigns to suit customers’ needs, becoming flexible, and letting users’ interests dictate market behavior. Brands that can meet their customers at this endpoint will be successful as they’ll gain an increase in revenue and drive stronger customer loyalty.
Retailers are quickly adopting personalization technologies to match consumers’ influence on the market. According to Statista, the estimated global revenue of customer experience personalization and optimization software will surpass US$9 billion. This projected spending on personalization technology further reaffirms the possibility of a much-improved omnichannel experience.
That said, the baseline of personalization still involves the consumer experience. Staying ahead of the trend is essential to make informed decisions. Expect the following three personalization trends to make an impact in 2023.
1. Artificial Intelligence Takes Center Stage
Only a handful of top retail brands like Amazon, eBay, Drinks, and Alibaba were early to the AI party and tailoring it to their customer journey. For example, eBay has its Shopbot, a personal assistant that helps consumers find the best deals. Many retailers are jumping on the AI bandwagon, with 96% of respondents to a PwC 2022 survey indicating they plan to implement AI in their business operations.
Furthermore, it won’t be a surprise to see companies leverage AI in facial recognition to provide a seamless omnichannel experience to customers. A good use case is AI using data from facial recognition technology to recommend products to users based on their facial attributes.
Currently, the facial recognition market is projected to grow to $12.67 billion by 2028 — and right now, it’s already picking up the pace in retail. Companies like Alipay (Alibaba) already have a head start with their “smile to pay” technology that accepts a picture of a customer’s face as a form of payment.