Personalization Glossary

A/B testing? Recommendation models? The personalization engine space uses several acronyms that may seem daunting, so we're here to help. You can find definitions to the most common e-commerce customer experience optimization terms here!

Glossary Banner

What is a personalization engine?

What is a personalization engine

According to Gartner:

Personalization engines apply context about individual users and their circumstances to select, tailor and deliver messaging such as content, offers and other interactions through digital channels in support of three use cases — marketing, digital commerce and customer experience. These personalized interactions can increase conversion, marketing effectiveness and customer satisfaction, thereby improving business results.”

Personalization for e-Commerce is the process of delivering personal experiences by dynamically showing content, product recommendations and specific offers based on previous actions, browsing behavior, purchase history, demographics, and other personal data.

Personalization engine leverage data from user profiles or tracking of anonymous user behavior — usually on the web. Those profiles are enhanced with additional first- and third-party data, such as real-time behavior, transactions, geography and, even, affinity. It is then used by a personalization platform to segment and target audiences, and trigger messaging and content in one or multiple marketing channels (marketing use case).”

These are used by retailers to improve CX, UX and VX! For example, if a fashion student visits a website, he or she may see more discount options for students than an old age woman. Or, a visitor with an affinity for the Levis may see promotions for merchandise touting their favourite brand while another gets served products related to the Lee. Smart retailers incorporate this customer experience strategy into their conversion optimization plans and employ tools and/or services to capitalize on this capability.

Benefits of a Personalization engine:

  • Driving Traffic: Bringing traffic to your site helps achieve targeted email campaigns 
  • Deliver Relevant Content: Based on Customer site usage and browsing history, these engines can help deliver product recommendations for the user in real-time. 
  • Shopper Engagement: Personalized recommendations improve shopper engagement on the e-commerce site, as it enables for deep-dive capabilities that help customers focus on the product offerings.
  • Increase in Shopper Conversion
  • Increase in Average Order Value 
  • Increase in Number of Items in Order 

Learn about the and what makes it the only retail-only focussed personalisation engine.

Navigate between the letters, to explore the glossary terms