Halil's Blog on Technology and Product Management

Smart Segmentation and AI-Based Personalization in E-Commerce

Breaking down the customer pool in e-commerce into equal slices like pizza and assigning them to classic segments is now OUT! 👎

User segmentation is undoubtedly crucial for the success of e-commerce. Without it, your users would remain as a single piece. But there’s a problem! No user is alike, and even when you correctly divide them into segments, you still end up making some generalizations and classifications. So, what’s IN?

👍 Making customers happy without trying to understand them better, without implementing dynamic segmentation, and without personalizing their content and products is now challenging! But to achieve these steps, first, you need to gather data. Yet, there’s another issue! Collecting data is now tougher. With third-party cookies disappearing, privacy will continue to be top of mind for users and managers. Additionally, old-fashioned behavioral models don’t quite align with the world where data is gathered within products using artificial intelligence tools.

👉 To overcome the challenges in the data collection process, it’s necessary to adopt a transparent and user-centric approach, safeguard user privacy, and securely handle the data collected with their consent. Providing personalized experiences using predictive AI and dynamic segmentation methods is now much easier compared to the past.

đź§µ In summary, in the not-so-distant future of e-commerce, those who can convince their users to share data and proactively benefit from it will thrive.