Most wanted e-commerce innovations worldwide 2023, by generation

According to a global survey carried out during the second quarter of 2023, around 55 percent of Gen X online shoppers wished e-commerce sites would enhance frictionless payment methods. Additionally, some 45 percent of surveyed Millennials would like to have personalized products recommended when shopping online, an option which appealed to the same percentage of Gen Z online shoppers.

E-commerce companies seem to have listened to their audience. In 2021, almost seven in ten professionals from e-commerce businesses stated personalization will be a key investment area in the future.

Personalization drives conversion rates

Investing in a personalized shopping experience pays off. A 2021 study analyzing conversion rates of U.S. e-commerce sites showed that a higher percentage of purchases were finalized after the shopping experience was tailored to the users. Although conversion rates improved across several e-commerce segments, marketplaces showed the biggest difference in pre-and post-personalization.

Easier said than done

For buyers to get a personalized shopping experience, retailers need to retrieve significant amounts of user data throughout the entire customer journey – from customized newsletter to web visits, from mobile app usage to payment preferences. Extensive tracking of online user data requires adequate IT capacity. Over 40 percent of U.S. executives from e-commerce companies could not ensure a personalized shopping experience due to lacking IT bandwidth. The second biggest pain point was the missing cooperation with solution partners enabling the personalization.