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The Unsang Power of Personalization in Cost-to-Serve Reduction


If you are running an e-commerce company, you probably know the importance of personalization to grow your sales. However, most companies do not implement personalization correctly and end up being less effective than they could be. In this article, we'll show you how to use personalization to reduce cost-to-serve (CSTS) so that you can increase your growth even further.

Over the past few years, personalized recommendations have become a hot topic in marketing. And for good reason — personalized content provides users with what they're looking for, and avoids them having to search through all that other stuff. But how do you implement personalization into your business or website? Here are five tips on using personalization to your advantage. According to a 2021 Mckinsey research, personalisation typically results in a 10 to 15% increase in sales (with company-specific lift spanning 5 to 25 percent, driven by sector and ability to execute). The benefits increase as a firm gets better at using data to increase consumer intimacy and knowledge. Personalization is not only how digitally native businesses develop a data-backed direct-to-consumer business model market; it is also how these businesses run.

Personalization is more important than ever in an increasingly competitive market. But how do you use personalization to reduce cost-to-serve?

The most effective way to create a personalized experience for your customers is to personalize not just the individual user but also their behavior, preferences, and demographics. For example, a restaurant might let you choose between two different entrées on a typical visit. If you prefer one over the other but are willing to go with the first choice if it is on special that day, then it's worth your while creating an entirely new experience for that person rather than just adapting existing features such as selecting dishes from menus or entering information manually into a computer system (which can be time-consuming). This approach helps improve interactions with customers by making them more enjoyable and ensuring they get exactly what they want when they visit -- even if there may be other options available at the same time of year (such as having several menu items available at once instead of just one).

Your goal should be to offer an experience that makes every customer feel like you're tailor-made just for them.

Personalization is an important part of any successful marketing campaign. It’s how you create a unique experience for every single customer, making them feel like you are tailor-made just for them. This can be achieved through many different methods, including data analytics and artificial intelligence (AI).

The best way to determine whether personalization is right for your business is by looking at all aspects of your business holistically and determining which one(s) will benefit most from implementing it. For example:

  • If a large number of customers are visiting your website on desktop computers but spend more time reading content there than on mobile devices like tablets or smartphones, then personalizing content may not be beneficial because they wouldn't see it unless they were logged into the site at the time. On the other hand, if most people prefer using their phones over desktops when browsing online because they find sites easier to navigate with smaller screens--then this could make sense! Just remember that each situation needs careful consideration before deciding whether or not adding personalized elements would help improve conversions/visits from visitors/customers.*

When it comes to personalization, the general rule is the more relevant, the better.

Personalization is all about making the customer feel like you know them. So, how do you get there?

Relevance is based on your customer's preferences and behavior. You can infer these by looking at their past actions, or directly asking them for their preferences (e.g., via surveys). Inferring preferences from past actions requires that you deliver on your promise of a great experience—which means that time will always play a role in its creation because it's essential to give customers what they want when they need it most!

Value propositions must be unique to each customer and situation; otherwise, they risk being overlooked by others who have similar needs but different tastes or budget constraints (or both).

A great customer experience is informed by company-wide knowledge of customer preferences and behavior.

The foundation of personalization is accurate, up-to-date customer data. A good customer experience requires that all employees understand their customer's preferences and behaviors. This can only come from having access to accurate information about your customers, which means that you need company-wide knowledge of what makes them tick (and what doesn't).

You also need to make sure that this data is accessible by everyone in the organization—not just sales or marketing teams—so they can use it for making decisions based on real insights rather than gut feelings or hunches. It should be easily accessible so there's no excuse not to use it when making business decisions; otherwise, it could lead you down an expensive path with poor results!

Faster is always better when it comes to personalized eCommerce.

When it comes to personalized eCommerce, the faster you can get your product into the hands of your customers, the more likely they’ll engage with it. And when they engage with it and share their experience with others on social media or elsewhere online—or even buy from you again—you’re getting more revenue in less time than ever before.

The benefits of fast personalization are many:

  • It reduces friction for consumers who want to buy immediately
  • It increases customer loyalty by making them feel special (and therefore inclined towards repeat business)
  • It gives you a competitive edge against other companies offering similar products

Personalized eCommerce will only improve customer loyalty when customers see a benefit in it.

The first step to using personalization effectively is to understand what makes a customer engage with your eCommerce site. To do this, you need to know what motivates them and how they interact with the product or service that you offer. This can be done through surveys and focus groups or by talking directly with customers on social media platforms like Facebook or Twitter (if they are active). These conversations mustn’t just focus on one specific topic—the more diverse the topics discussed, the better!

Once we have an understanding of our customers' motivations behind engaging with us in a personalized fashion through eCommerce platforms like Shopify Plus Enterprise Edition; then we'll use this knowledge as part of planning our next steps towards improving retention rates by reducing cost-to-serve as much as possible without sacrificing quality service delivery at all times during transactions.

Personalization must create value for customers, or they will not engage with it.

Personalization is one way to create value in your customers’ eyes. It's not just about personalizing content; it's also about personalizing the experience.

As you think about how you can make your product or service more relevant and personalized, here are some questions you might want to ask yourself:

  • Is my product/service providing value? If so, why would anyone pay more than what they already paid? What will make them feel like their needs have been met by this change (if any)? How can I help them achieve those goals with my product/service without increasing its price point?
  • How does my company compare with other companies when it comes down to providing great customer experiences through personalization efforts such as loyalty programs or marketing campaigns? Are there any barriers that prevent us from reaching our full potential as a business machine based on these factors alone - even though we're doing everything right from an internal standpoint?

When you're starting a new business, it's easy to get overwhelmed by all the things that need to be done. Whether you're launching a new product or expanding your company, there are a ton of different things you can do to start making money. One of those things is using personalization.

Personalization can help you reduce cost-to-serve by providing the right information to your customers at the right time. Here's how it works:

  • You'll need to have a database of customer information to use personalization effectively. This could include things like their name, phone number, email address, and other data points that will allow you to tailor content specifically for each customer.
  • You'll need some sort of system in place where you can connect this information with every piece of content your business produces on its website or mobile app so that when someone visits your site or app, they can see their preferences reflected in everything from blog posts to emails sent out by salespeople.


Personalization is a great way to reduce cost-to-serve while also improving your chances of getting the best possible traffic and conversion. Personalization is not just about putting yourself first, though: it’s about using insights from your customers to improve their experience with your business.

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