By Martin Harper, co-founder of Quickfire Digital
If you’re anything like me, you’re probably tired of being endlessly bombarded with promotional marketing online.
And we’re not alone: consumers up and down the land—indeed, worldwide—feel the same way. So what’s the alternative for ecommerce brands in 2025?
Hyper-personalisation.
Now more than ever, online shoppers expect hyper-personalisation from brands, with four-fifths worldwide saying they enjoy the uniqueness it brings to customer experiences.
But with cookies fading and online privacy rules tightening, how can ecommerce brands take advantage of hyper-personalisation? Below I tackle this issue after first addressing why hyper-personalisation is important to online retailers in 2025.
Why is hyper-personalisation so important for ecommerce this year?
It’s simple: consumers are increasingly demanding highly personalised online shopping experiences—and hyper-personalisation is the answer.
Unlike regular personalisation, which uses a rules-based approach to differentiate individuals, hyper-personalisation typically uses machine-based learning to provide bespoke experiences across the customer journey. It’s why, for instance, eBay’s homepage looks different depending on who’s using it.
But for ecommerce businesses, doubling down on personalisation is more than just a necessity; it’s a major opportunity, as the projected 65% growth in revenue of the global customer experience (CX) personalisation industry between 2021-2026 testifies.
Together, with recent analysis that highlights 95% of senior marketers regard their personalisation strategies as successful, this is a clear sign of the times, and one that ecommerce businesses worldwide would be wise to heed.
So how can you leverage hyper-personalisation for your business? Let’s explore through the lens of first-party data collection.
How can you collect and maximise first-party data while respecting ever-tightening privacy laws?
With third-party cookies well and truly on their way out, marketers are increasingly relying on first-party data to understand target audience behaviours and preferences.
Getting first-party data right will not only help you sell more stock, retain customers, and increase customer lifetime value, but will also enable you to leverage AI chatbots, which 58% of business leaders believe will be the most impactful personalisation technology over the next five years.
So how can you collect this all-important data?
- First, be clear on the data you need, and explain to your customers why handing this over benefits them—whether that be in the form of personalised recommendations, exclusive access, or discounts.
- Strictly comply with privacy laws like GDPR and CCPA; using best practice consent mechanisms, such as double opt-ins, sends a clear signal you value your customers’ privacy, fostering trust.
- Collect data directly from customers through surveys, quizzes, and preference centres, as well as customer data platforms (CDPs), which help unify and segment data. Only pursue data that is relevant to the buyer journey.
- Exploit owned channels such as email, SMS, and loyalty programmes, which provide a wealth of first-party data, while minimising your reliance on third-party platforms for customer data.
How can businesses tailor the entire customer journey to speak to different personas?
Tailoring your customer journeys and overall CX requires knowing two things: who your customers are, and how they interact with your brand across your funnel’s different touchpoints. Understanding this involves asking questions like:
- How do different personas interact with your brand across devices?
- What’s the time lag between first engagement and conversion?
- Do your customers add items to a cart and return after a reminder, or do they buy immediately? Are they using features like wish lists to plan purchases?
- How do behaviours and habits vary across demographics, such as Millennials and Gen Z?
Establishing these nuances is becoming increasingly possible thanks to AI, which uses first-party data to predict this information and then responds to it by adapting CX in real time (expect generative UI to become huge in the coming years).
The net result for online retailers? Hyper-personalisation that drives retention and conversions.
What technologies and tools can help brands deliver seamless, personalised experiences?
Three sets of tools stand out here. The first are tools for cross- and upselling. Rebuy’s a good example: it helps personalise the shopping experience by providing (among other things) tailored product recommendations, smart cart features, and dynamic upselling.
Second are customer behaviour analysis tools such as GA4 and Hotjar. These are vital for capturing the customer checkout journey, and the behaviours associated with this—all of which is essential for hyper-personalisation.
Third, A/B testing tools such as Optimizely and OptiMonk help you understand majority behaviours and preferences across your customers (including across demographic tramlines), which can help with personalising—and therefore optimising—your sales funnel.
Finally, expect to see more all-in-one tools like VWO, which provide a high-level, interconnected picture of your users’ behaviour and brand funnel interactions. Mark my words—these will be the future of personalisation and conversion optimisation!
Exactly how can data-driven strategies boost retention and conversion rates?
Long story short, online retailers whose strategies don’t leverage first-party data to provide tailored customer experiences can expect a loss of retention and revenue as customers look to their competitors to provide superior buying experiences.
Hyper-personalisation is already underway and it’s only going to grow in importance in ecommerce. My advice to online retailers? Make it a non-negotiable element of your strategy in 2025 and beyond. If you do, I’m confident the coming years will be great for your business.
