The development of personalized customer communication has gained momentum in recent years, resulting in many useful services for consumers across a range of channels. Personalization in retail now has countless application scenarios – all of which ultimately serve the goal of inspiring and retaining customers.
The use of personalized product recommendations in the area of conversational commerce, i.e. customer dialog, for example via chatbots, voice assistants or messaging apps in the purchasing process, offers retailers a good opportunity to provide their customers not only with information but also with suitable purchase recommendations. The recommendation engine behind it calculates the purchase recommendations based on certain key points – for example, a customer writes to the chatbot, “I'm currently reading the book >The Guardians< by John Grisham – do you have similar books?” In this case, the recommendation engine can suggest suitable books based on the genre and author given, which are highly likely to match the customer's interests. The customer's previous purchase and movement data in the online store can also be incorporated.
Depending on the industry and online store, different keywords (attributes) are included in the basis for the recommendation engine's calculations: in the fashion industry, for example, these are the brand, the clothing category such as “jacket”, “hat”, “trousers” or the colors, in the DIY sector the different product groups, areas of application or brands. The retailer can use their experience and define the attributes.
Would you like to learn more about this topic? We have been implementing various personalization scenarios in retail for over 25 years and would be happy to assist you.
Would you like to learn more about other application scenarios? Here you will find more information on the topics
- Omnichannel personalization using the example of e-readers and language assistants
- Personalization in the area of gamification
- Replenishement recommendations based on online and offline purchases
Are marketplaces and personalization relevant for you? Here, you can read seven ideas for an individual shopping experience on marketplaces.