Ecommerce Personalization in 2021: Five Predictions

Posted on by Chief Marketer Staff

2020 has been a banner year for ecommerce. But personalized online experiences have plenty of room to improve, evolve and mature. Here are five predictions for ecommerce personalization in 2021, from image recognition functionality to psychographic profiling to pinpointing long-term consumption patterns, according to a piece in Multichannel Merchant.

AI Personalization

AI-powered recommendations, writes Jan Soerensen, General Manager, North America at Nosto, will become more transparent to consumers by providing clearer explanations for why certain products are suggested to shoppers. For instance, the consumer might be told that the item is in their size or it has a similar color to a previous purchase. Such explanations will serve to make AI recommendations less intimidating and ultimately more successful.

Image Recognition

Shoppers will soon be able to search for products within images and videos, and online personalization engines will be able to recognize specific colors and patterns. While this “shop the look” capability exists now to some degree, the capability will gain more traction, particularly in verticals like fashion and interiors.

Psychographic Personalization

Demographics that are commonly used in ecommerce personalization include age, gender, geography and online behavior. But new types of personalization, such as personality types (i.e. trusting, confident, adventurous) could be applied to the user experience in the future and inform product recommendations.

For more ways in which personalization could evolve in 2021, including recognizing long-term consumption habits and pinpointing the most profitable visitor segments to target, read more in Multichannel Merchant.

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