Personalization in E Commerce: 10+ Strategies and AI Trends Driving ROI and Customer Loyalty

TL;DR

• Personalization in e-commerce is now an expectation, not a bonus.
• In 2025, AI and composable commerce are reshaping how retail brands deliver it.
• Done right, e-commerce personalization drives ROI through higher conversion rates, bigger baskets, and stronger customer loyalty.
• The best personalization strategies blend CRM, loyalty, and AI across email, SMS, push notifications, onsite, and in-store.
• Voyado helps retailers turn customer data into hyper-personalization that is simple, scalable, and profitable.

Your campaigns are running, but customers aren’t clicking. Customer engagement is low, loyalty is flat, and the personalization efforts you’ve tried so far aren’t enough.

That’s why personalization in e-commerce has become the biggest lever for growth in 2025. It’s not just about personalized recommendations or product suggestions based on previous purchases. It’s about delivering relevant content, building stronger customer relationships, and creating personalized shopping experiences that keep loyal customers coming back.

With AI e-commerce personalization and composable commerce shaping the next wave, retail brands that master the personalization process will gain a competitive advantage and win repeat purchases in a highly competitive market.

So, let’s start by defining what personalization in e-commerce really means today and why it’s so critical for online retailers to get it right.

What is personalization in e-commerce?

Personalization in e-commerce means tailoring online shopping experiences to each customer. It draws on browsing history, past purchase history, engagement patterns, and demographics to shape relevant offers and messages.

Instead of sending the same campaign to all customer segments, personalization uses customer data to deliver experiences that feel timely and valuable.

Personalization vs customization

Although often used interchangeably, personalization and customization fulfill different needs.

Here’s how not to confuse the two:

• Customization is when the customer chooses, such as filtering products by size or color on an e-commerce website.
• Personalization is when your business uses predictive analytics to anticipate needs and deliver personalized marketing, personalized search results, or targeted email campaigns.

The difference is simple: customization is customer-led, while personalization is data-driven.

Why it matters in 2025

Personalization in e-commerce is no longer optional. It is one of the most important e-commerce personalization features for driving:

• Customer satisfaction
• Higher customer lifetime value
• Stronger customer retention

Voyado’s Retail Radar 2025 shows that shoppers across markets expect online stores to recognize their preferences, provide personalized customer service, and engage them with relevant messaging at every touchpoint.

You can see more about this shift in our post on personalization in retail.

Retailers that cannot deliver these personalized shopping experiences will lose customers to competitors who can.

In 2025, winning loyalty and ROI depends on e-commerce personalization strategies that support personalization across the entire customer journey.

E-commerce personalization strategies that work

We know that personalization delivers results only when it is tied to clear strategies.

Too often, retailers spread their personalization efforts across too many areas or focus on features that do not connect back to ROI.

Based on what we’ve seen with our customers, these are the strategies that consistently drive stronger engagement, higher customer loyalty, and measurable growth.

Build a single customer view

The most successful brands start by unifying customer data across CRM, loyalty, POS, and the e-commerce store. Without this foundation, personalization stays limited and inconsistent.

• Combine browsing behavior, past purchases, and demographics.
• Segment customers based on real insights instead of assumptions.
• Use this single view to deliver relevant experiences across the customer journey.

Use AI-driven recommendations

AI is one of the fastest ways to scale personalization. Brands using AI to analyze behavior and previous purchases see big lifts in conversion rates and average order value.

• Personalized recommendations drive repeat purchases and higher customer lifetime value.
• Predictive analytics helps identify high-value customers and match them with the right offers.

Personalize search and discovery

Search is often overlooked, yet it is one of the most important moments in the customer journey. Retailers win when they treat search as a place for personalization, not just navigation.

• Highlight products based on past purchase history or browsing behavior.
• Use dynamic content to adapt categories and landing pages.
• Explore the top e-commerce search solutions and learn how to improve onsite personalization to create experiences that feel relevant.

Deliver relevant messaging across channels

Personalization works best when it follows the customer across every touchpoint. Single-channel efforts tend to lose impact quickly.

• Send targeted email campaigns and SMS with personalized messaging.
• Use push notifications to re-engage customers between visits.
• Align website personalization with loyalty rewards to strengthen customer relationships.

Reward loyalty with personalized offers

The strongest results come when personalization and loyalty work together. Brands like yours can transform customer retention by making loyalty rewards more relevant.

• Tailor offers to a customer’s past purchases and preferences.
• Recognize loyal customers with personalized customer service or early access to products.

See how this works in practice with our guide on how to increase customer loyalty.

The strategies above are what we know work.

Next, let’s look at how AI and composable commerce are shaping the next wave of personalization in 2025.

AI and composable-commerce: The next wave

Your team is sitting on mountains of customer data, but it is scattered across systems that do not talk to each other. Campaigns take weeks to launch, and by the time they go live, customer needs have already changed. This is exactly why AI and composable commerce are becoming game changers in 2025.

How AI elevates personalization

AI has changed what retailers can do with personalization. It is no longer just about recommending products based on past purchase history. With AI, personalization becomes faster, smarter, and scalable.

• Prediction: anticipating what a customer will want before they know it
• Scale: delivering personalized experiences to thousands of customers at once
• Speed: reacting in real time to browsing behavior and engagement patterns

Examples of AI in action

AI is most powerful when it connects directly to the customer experience. Here are some of the most effective ways retailers are using it to deliver personalization at scale:

Personalized search and discovery

Showing the most relevant results for each shopper, based on browsing history, past purchases, and customer preferences.

Predictive promotions

Sending offers when customers are most likely to convert, boosting both engagement and ROI.

Dynamic pricing and offers

Adjusting discounts and promotions based on customer segments, demand patterns, and previous purchase behavior.

Personalized delivery and fulfillment

Suggesting flexible shipping or pick-up options that match customer preferences, making the experience seamless from checkout to delivery.

Why composable commerce matters

Composable commerce gives retailers flexibility. Instead of being locked into rigid systems, brands can plug in best-in-class tools and adapt as customer expectations change. This is critical for supporting personalization because:

• Customer data can flow seamlessly between systems
• New personalization features can be added quickly
• Personalization scales across online stores, apps, and in-store channels

Together, AI and composable commerce help retailers close the gap between customer expectations and what their systems can deliver. This combination is what sets the next generation of e-commerce personalization leaders apart.

Personalization trends for 2026

Looking ahead, we see three clear e-commerce personalization trends shaping 2026:

• Hyper-personalization powered by AI, moving beyond segments to serve each customer as an individual
• Composable personalization features that let retailers adapt faster without replacing entire systems
• First-party data at the center, as privacy rules tighten and customer trust becomes a competitive advantage

Retailers who act on these trends now will be best placed to meet rising expectations in 2026 and beyond.

But personalization isn’t just for consumers. B2B buyers also expect tailored experiences that match their needs, roles, and accounts.

B2B e-commerce personalization: Meeting buyer expectations in 2026 and beyond

B2C aren’t the only ones looking for tailored experiences. B2B buyers now expect the same personalized journeys they get as consumers. Generic product catalogs and one-size-fits-all content are no longer enough.

Why personalization matters for B2B

• B2B buyers are doing more research on their own before contacting sales.
• They expect relevant content, clear pricing, and role-based recommendations.
• A personalized experience builds trust and shortens the buying cycle.

Common strategies for B2B personalization

• Account-based personalization: tailoring content and offers to key accounts.
• Role-based recommendations: delivering different product suggestions for buyers, engineers, or procurement managers.
• Contract-based pricing: showing the right price based on negotiated agreements.

Examples of B2B personalization

• Personalized dashboards that highlight relevant products and promotions.
• Email campaigns triggered by account activity or customer segments.
• Content hubs that recommend resources based on industry or role.

Retailers and brands that master e-commerce personalization for B2B gain the same advantage as in B2C: stronger customer relationships, higher retention, and measurable revenue growth.

And the best way to see that impact is through real-world examples.

Ecommerce personalization in action: What leading brands are doing

We know that the best way to understand personalization is to see it in action.

Here are real examples of e-commerce personalization strategies that have helped retail brands increase customer engagement, loyalty, and ROI.

NELLY: Building personalized customer experiences

Fashion retailer NELLY transformed the way they deliver experiences by connecting customer data across online and offline channels.

With Voyado, they’ve been able to personalize campaigns, segment customer groups more effectively, and boost customer engagement across every touchpoint.

JACK & JONES: Driving higher order values

JACK & JONES achieved a 33% higher average order value for members by focusing on personalized offers and loyalty-driven incentives.

By tailoring promotions to past purchases and customer segments, they turned personalization into a direct driver of revenue growth.

LAKRIDS BY BÜLOW: Creating seamless omnichannel personalization

Premium confectionery brand LAKRIDS BY BÜLOW boosted loyalty by connecting their in-store and online experiences.

With Voyado, nearly 50% of in-store customers now identify as loyalty members, making it easier to personalize messaging and rewards across channels.

POWER: Scaling customer engagement with automation

Electronics retailer POWER grew customer engagement by 300% using personalized automations in Voyado.

By unifying CRM and loyalty data, they scaled targeted campaigns that reached customers with the right message at the right time.

Björn Borg: Boosting engagement through user-generated content

Sports fashion brand Björn Borg integrated ratings and reviews into their customer experience.

By combining feedback with Voyado’s customer engagement tools, they created personalized shopping experiences that increased review volume, boosted conversions, and improved customer satisfaction.

These e-commerce personalization examples show how brands across different industries are using customer data, loyalty, and AI to deliver relevant content and personalized shopping experiences.

The common thread is clear: when personalization supports the full customer journey, it delivers repeat purchases, stronger customer relationships, and improved ROI.

These examples show what’s possible when unified data and smart execution power personalization.

Your next step is understanding how Voyado brings these capabilities together into one retail-first platform.

Voyado’s retail-first approach

We know from experience that retailers struggle when CRM, loyalty, and personalization tools sit in silos. Data is fragmented, campaigns are slow to launch, and customers never get the seamless experience they expect.

That is why Voyado takes a retail-first approach.

At its core, Voyado unifies customer data, loyalty, and AI in one platform. This makes it possible to:

• Segment customers with precision using demographics, preferences, and past purchase history
• Deliver personalized recommendations and dynamic content across email, SMS, push notifications, onsite, and in-store
• Orchestrate the customer journey so every message feels timely and relevant
• Use predictive analytics to anticipate customer needs and increase customer lifetime value

Retail brands using Voyado are proving the impact. For example, fashion brands leading the way in personalization are showing how unified data and loyalty-driven strategies turn personalization into stronger engagement and higher revenue.

The result is personalization that feels simple for teams to manage, but powerful enough to drive ROI and improved customer loyalty at scale.

Compliance and trust in personalization

Trust is now just as important as technology. Customers expect personalized shopping, but they also expect transparency and control. Retailers who ignore this risk losing both loyalty and revenue.

First-party data is the foundation

With third-party cookies going away, first-party data is now the backbone of e-commerce personalization. It comes directly from your customers through loyalty programs, online shopping, and in-store visits. That makes it more reliable and more transparent.

• Customers know where the data comes from
• It’s easier to connect behavior across channels
• It keeps personalization compliant with European regulations

Consent-driven personalization

Consent is no longer a box to tick. Shoppers want to understand how their data is used and what they get in return. Brands that make this clear earn stronger engagement.

• Show the value exchange: data for better offers and experiences
• Keep consent choices simple and visible
• Build communication around trust, not legal fine print

Ethical use of AI

AI powers personalization at scale, but it must be used responsibly. Customers are quick to lose trust if AI feels manipulative or biased.

• Be transparent about how recommendations are created
• Test for fairness across different customer groups
• Always give customers the option to opt in or out

The bottom line: compliance isn’t just about avoiding fines. When personalization is built on trust, customers feel safe to engage, share data, and stay loyal.

Over to you: Get started with personalization

We know your team is under pressure to drive growth, but customers are harder to reach and harder to retain. Loyalty is flat, acquisition costs are rising, and generic campaigns are no longer working.

The brands winning in 2025 are the ones turning customer data into relevant content, personalized messaging, and seamless journeys that build real loyalty.

Getting there can feel complex, but it doesn’t have to be. With Voyado, personalization is unified, scalable, and designed for retail teams that want results without extra complexity.

Here are three steps you can take right now to move forward:

1. Audit your customer data – Identify where browsing behavior, past purchase history, and loyalty data sit, and map out gaps.
2. Start small with quick wins – Focus on one area like personalized recommendations or targeted email campaigns that will drive immediate ROI.
3. Explore a retail-first platform – See how Voyado can help you deliver personalization across every channel with one connected solution.

Book a Voyado demo and see how easy it can be to deliver personalization that drives ROI and customer loyalty.