How personalization can reduce the customer acquisition cost


One of the biggest challenges e-commerce companies nowadays have to face, is coping with the rising cost of acquiring new customers. It almost seems ironic for outsiders to realize that although the whole world is at your fingertips online, it is not that easy to keep on attracting new clients. The customer acquisition cost keeps on rising, which puts online retailers under pressure to come up with new ways, new ideas to keep growing while keeping the acquisition cost under control. Online Heroes believes strongly that the key for unlocking these challenges lies in AI based personalization.


Personalization to date has mostly been based on data generated after a visitor has already been active on the website. That however is too late, since you then missed your chance to make a convincing first impression, to engage and persuade your customer of your products.

It’s impossible to overestimate the impact personalization has on both user experience and revenue. An astonishing 74 percent of customers feels frustrated when website content is not personalized. What’s more, 93 percent of ecommerce companies sees an uplift in conversion rate from personalization. It should come as no surprise then that personalization is a great way to provide an outstanding customer experience and reduce your customer acquisition cost.

So ideally, the moment your customer launches your homepage, even for the first time, he or she should be faced with items and messages adapted to his or her needs, wishes and preferences. Gladly, new technologies and platforms like Pegasys make this happen, which helps an online retailer to reduce the customer acquisition cost from the first visit on.

There are already several good examples of fashion brands investing in personalization based on behaviour or external data:

Personalization based on behaviour

Use the visitors’ interests and demographics to show different content

Multi-brand store Asos uses data to track what you’re interested in. As of the second time we visited their homepage, Asos redirected us immediately to the women’s section, because that was what we were looking at earlier on:


Showing products that fit your style

Tastes differ, there’s no doubt about that. Different people like different things, so why not show your returning customer items that totally match his or her style? If data shows your customer has an athletic look with a sporty style, chances are she will be more willing to buy a pair of sneakers than high heels for instance. Adapting the products to her needs will improve customer satisfaction.

Don’t have a clue what your new visitor likes? A so-called style finder helps him or her finding the style that suits his or her needs and size. By letting him or her fill in a questionnaire, you will able to suggest products which he or she will like.


Someone who’s visiting your site on an iPhone X will probably be likely to spend more on luxury items than someone who’s using a less expensive or older model.

Showing content based on the device type

Making sure your website is mobile-friendly is essential nowadays. But did you know the device a visitor uses to browse your website not only says a lot about his or her buying habits, it also opens possibilities in showing content, like product categories, based on it? Someone who’s visiting your site on an iPhone X will probably be likely to spend more on luxury items than someone who’s using a less expensive or older model.

Personalization based on external data

Using geo-location to inform the customer

Instead of letting your customer select his or her country page (and make him or her wait longer for your real content), data makes it possible to automatically show the right country page using its geo-location. Another way to convince your customer to complete his or her first order, is to persuade with personalised services. Asos uses geo-location to automatically calculate exactly what the delivery time and price of your order will be.


Personalization based on the weather
The British retailer shows products based on the weather that day on your location. When you first visit the website while being in Oslo on a cold winter day, they show you clothes to stay warm, whether colourful outfits show up on a sunny day if you are in Madrid.

Country- or region-specific holidays or traditions
Are you an online retailer that sells internationally? Then you’ve probably already faced with the many different holidays that are celebrated all around the world. Meeting the needs of customers celebrating these (national) holidays is much easier using personalization. Is your customer visiting your website from the Netherlands where ‘Koningsdag’ or King’s Day is coming up, he or she will certainly appreciate you recommending items that can be worn or used on that specific day. Of course, showing these items to someone who’s not living in the Netherlands would be useless, so personalising the experience based on location is the way to go.


The great news is that these are just the first steps in personalizing the customer experience. These first practices open new possibilities to provide an experience that is totally tailored to your visitors’ needs, preferences and even emotions. Imagine what positive effects these will have on your customer acquisition cost and conversion rate. You ain’t seen nothing yet, but you can count on us to make it happen!

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