The Effect of Personalization on Customer Engagement in E-Commerce

Abstract

In today's rapidly growing e-commerce environment, personalization has emerged as a significant tool for enhancing customer engagement. This research delves into the influence of personalized user experiences on customer engagement in e-commerce platforms. Drawing from existing literature, prior research has demonstrated varying degrees of enhanced user interaction, prolonged visit duration, and increased purchasing intentions with personalization implementations. However, gaps persist in understanding the depth of this influence and its scalability across diverse e-commerce niches. Using a mixed-methods approach, this study assesses user interaction patterns across several e-commerce platforms, both personalized and non-personalized. Our findings reveal that personalization significantly increases user engagement metrics, including time spent on the site, click-through rates, and conversion rates. Moreover, this research uncovers nuances in how different demographic segments respond to personalization. Ultimately, personalization's ability to cater to individual user preferences underscores its paramount importance in crafting effective e-commerce strategies and enhancing user satisfaction and loyalty.