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blog|Customer Experience

Personalization vs Customization: Understanding Their Key Differences

Personalization tailors shopping experiences using data, while customization lets customers choose. Learn how both can boost engagement and sales.

by Michael Keenan
an icon person and settings icon on black and green background
On this page
On this page
  • Personalization is tailoring the entire customer experience
  • Customization is giving shoppers control over their experience
  • Key differences between personalization and customization
  • Personalization strategies
  • Customization approaches
  • Benefits and challenges of personalization and customization
  • Personalization and customization are vital to a better customer journey
  • Combining personalization and customization
  • Create better shopping experiences with Shopify
  • FAQ on personalization vs. customization

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Personalization and customization are two different ways to make shopping more relevant. 

Personalization is when a store automatically adjusts what you see based on your data, like showing products similar to what you've looked at before. Customization is when you make choices yourself, like picking product colors or arranging your account page to look how you want it.

This article will show how stores can use both approaches to create better shopping experiences. We'll look at real examples and practical tips for making your store more engaging for customers.

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Personalization is tailoring the entire customer experience

Personalization involves contextualizing a visitor’s shopping experience, from the moment they land on your site to the offers they receive, and even the information that surfaces at checkout. 

It relies on first-party data to understand customer behavior, preferences, and patterns, so each touchpoint (emails, promotions, on-site recommendations) feels uniquely relevant. Historically, third-party cookies allowed marketers to track shopper activity across the web, but that era is coming to a close. Regulatory changes and consumer privacy demands are ushering in a world where the best data is the data you own.

Now, with third-party cookies behind us, marketers on Shopify already have everything they need to optimize the shopping and checkout experiences with the best data out there: the data they own.

Bobby Morrison, Chief Revenue Officer at Shopify

Personalization has become a core differentiator, because customers expect more than generic messaging. Shoppers want to feel recognized and understood, anticipating that a store will remember past purchases, suggest complementary products, and highlight deals that matter to them. Delivering on these expectations can build trust and loyalty, as customers perceive the brand is tuned in to their specific needs.

Plant store orders page displaying confirmed, delivered, and out-for-delivery potted plants.
A personalized order history screen for logged in customer.

Examples

Shopify's unified data model sets it apart, as the platform where every channel—online store, social commerce, in-person retail with Shopify POS, and more—feeds into the same customer profile. 

With unified data, there’s no need to patch together multiple third-party tools to see a shopper’s entire history. Instead, this integrated approach powers a single view of each customer, letting you personalize every touchpoint, like: 

  • Tailored on-site experiences: Showcase products based on prior purchases, pages visited, or even shipping destinations in a personalized storefront.
  • Context-aware marketing: Send emails and SMS messages that reflect what a shopper has browsed or abandoned, pinpointing exactly where they left off.
  • Trusted, accelerated checkouts: Shopify’s checkout, including Shop Pay, remembers customer preferences to speed up future purchases, one of the easiest forms of personalization.
  • Localized storefronts: Shopify’s Managed Markets feature lets merchants automatically present local currencies, shipping estimates, and taxes. For example, if a shopper in Paris visits your site, they’ll see pricing in euros, shipping speeds aligned with local carriers, and relevant tax calculations, all without any extra clicks.
Mobile view of Sky Light Rose Gold Necklace with EUR, GBP, USD prices and color selection options.
Three side-by-side Sky Light Rose Gold Necklace product screens, each showing price in a different currency.

Tecovas, a Texas boot and Western wear company, focuses on making shopping personal and welcoming at their more than 30 stores. They offer free drinks and boot shines to make customers feel at home. 

To personalize even more, Tecovas built POS UI Extensions into their checkout system to show staff what customers have bought before and what they like. This helps store associates suggest the right products for each person, like recommending new boot styles or accessories that match their past purchases.

Customization is giving shoppers control over their experience

While personalization involves a brand using data to adapt behind the scenes, customization puts the shopper in the driver’s seat. It lets them tailor how they engage with a store, select product options, and even shape their own checkout process. 

For example, clothing brands might let buyers select fit, color, or custom embroidery. A home goods store could allow customers to bundle items to suit their décor preferences. 

In each case, the customer is the one actively defining the experience. From choosing product variants that match their personal style to arranging shipping or subscription options that meet their schedule, customization lets shoppers build their own journey.

Examples

When a customer orders a travel backpack from a gear retailer, the site lets them choose the bag's color, add their initials, and pick specialized compartments based on their typical adventures. The customer is in control of how the product looks and functions, making it their own. That's customization.

Another example is an intranet or portal. In these private digital spaces, customers can create shortcuts to frequently accessed links, rearrange homepage modules, and add a weather widget for the cities they plan to visit. Each customer can build an interface that reflects their needs and interests.

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Key differences between personalization and customization

Level of customer control

  • Personalization: Driven by the brand or platform. Algorithms and data silently adapt the experience on the customer’s behalf, recommending products, tailoring ads, or sending targeted cross-channel messages. The customer doesn’t actively make these changes, but benefits from relevance that’s built-in.
  • Customization: Initiated and managed by the customer. They decide what they see and how they interact with the platform, whether by rearranging a homepage, configuring product features, or choosing which notifications to receive. 

Use of customer data

  • Personalization: Relies on first-party customer data (purchase histories, browsing behaviors, location) to make relevant suggestions. Shopify’s unified customer data model collects and centralizes these signals across every channel, so businesses can tailor messaging, products, and promotions.
  • Customization: Draws on available data but prioritizes customer autonomy, offering a menu of options rather than predictive suggestions. While insights from your analytics can inform which customization choices to present (like popular color variants or region-specific preferences), the customer ultimately configures their own experience.

Personalization strategies

Customer sign-in

Encourage shoppers to create accounts or log in with small but meaningful perks. Offer exclusive discounts, saved-cart functionality, faster checkout, or loyalty rewards. Once logged in, all of a customer’s activity across browsing, checkout, and even physical stores using Shopify POS ties back to a single customer profile.

You can gather the first-party data you need to personalize product suggestions, email campaigns, and on-site experiences. Returning shoppers who log in can check out in one tap with Shop Pay, boosting conversions and leaving behind more data for you to personalize future experiences.

Product page recommendations

On product pages, recommend items that directly relate to what a shopper is viewing. Think upsells (slightly pricier or higher-tier versions) or cross-sells (complementary accessories). 

Shopify’s app ecosystem (e.g., Nosto, Klevu, Rebuy) integrates seamlessly, tapping into your store’s data for real-time recommendation widgets. This allows you to serve hyper-relevant options that encourage bigger carts and better discovery.

Loyalty programs 

Loyalty programs are a rich source of first-party data that can inform deeper personalization. Track member behavior (like spending patterns or product interests) and use that data to tailor offers, restock reminders, or early access to new launches.

With Shopify’s segmentation tools, you can easily build segments (e.g., frequent skincare buyers or VIP members) to send targeted emails, SMS, or promotions. Popular loyalty apps like Smile.io plug directly into Shopify, sharing real-time point balances and purchase triggers with your unified data model.

Customized checkout

Checkout isn’t the end—it’s another chance to personalize the customer journey. Surface loyalty redemption options, offer relevant upsells, or prompt quick product add-ons. With Shopify’s Checkout extensions, add custom logic (e.g., discounts, free gift prompts) or design tweaks without needing a custom-coded build.

📚Learn: 5 Ways to Customize Shopify Checkout

Customization approaches

Standardized options

Give customers products they can personalize without having to build everything from scratch. Colors, materials, and add-on features are all standard components that shoppers can mix and match without driving up prices or production time. 

Young shoppers want products that feel special to them. By letting them pick certain features, you give them something that feels personal.

If you're selling on Shopify, you can:

  • Easily offer different versions of products (like different sizes and colors)
  • Suggest upgrades (like picking premium materials)
  • Keep shipping and payment simple, even with these choices

Build-your-own bundles

Give shoppers the option to create their own product sets, like building a gift box. They could pick different face creams for a skincare set, choose snacks for a snack box, or clothing items to complete an outfit. 

When people build their own sets, they usually buy more than they would if they were shopping for items separately. Plus, they enjoy creating something that's just for them. 

Even though customers get to choose what goes in their sets, stores still control which items they can pick from. This makes it easier to manage what's in stock.

💡 Apps like Shopify Bundles and Bundler make it easy to create “kit-builder” style product pages. These apps calculate prices on the fly and track each item in your inventory.

Interface customization 

Interface customization lets customers control how they shop and view their account. They can organize information their way, like saving favorite items, creating shortcuts, or making wishlists.

Benefits and challenges of personalization and customization

Benefits

Going beyond a generic approach to focus on personalization and customization changes how customers interact with your brand. Here’s how it's advantageous: 

  • Increased conversions: Offering product suggestions tailored to customers' browsing and purchase history can bump conversion rates by 8%, according to a study from Monetate. 
  • Revenue growth: Brands that deploy data-informed personalization (e.g., cross-sells, upsells, or dynamic bundles) see up to 12% higher AOVs. Customization can also play a role here, as allowing customers to build bundles or upgrade product features can naturally bump up their total.
  • Higher customer satisfaction: 87% of millennials cite convenience as a key factor in their decision-making. By personalizing and customizing the experience, from self-serve account options to intuitive checkout, brands can deliver the fast, convenient interactions these shoppers want.

Challenges

Companies looking to implement more personalization and customization strategies must also navigate the following demands:

  • Balancing privacy and personalization: While traditional third-party cookie tracking made customers feel uncomfortably monitored, the deprecation of cookies has pushed companies toward more transparent, first-party data approaches. Customers are more willing to share data when they explicitly opt in and receive clear value in return.
  • Protecting customer data: To make personalization work, customer data must be accurate and secure. Using old or incorrect data leads to poor recommendations that can damage trust. Privacy laws like GDPR and CCPA also require companies to carefully protect all customer information.
  • Overcoming consumer skepticism: Consumers often feel that personalization attempts are shallow or miss the mark entirely. This skepticism grows when customers sense that companies collect their data without providing real value. Not overwhelming customers and being honest with them is key to enhancing the consumer experience.

Personalization and customization are vital to a better customer journey

Today's shoppers want experiences tailored just for them. When businesses personalize their stores and customize how customers shop with them, everyone benefits.

Easy shopping experiences

Shopping should feel natural and simple. When stores use customer data thoughtfully, they can show customers the products they actually want to see. 

Most younger shoppers say convenience is their top priority when choosing where to shop. When you implement personalization across websites, apps, and physical stores, it’s easier for customers to find and buy what they want.

Better customer connections

When stores remember what customers like and show them relevant products, it creates a stronger relationship. Right now, 67% of online shoppers in the US think their shopping experiences are just average. 

But when businesses use customer information to offer personalized recommendations and rewards, shopping becomes more meaningful and customers are more likely to return.

Connected shopping channels

For personalization to work well, all shopping channels need to work together, whether the customer shops online, through social media, or in a physical store. 

When businesses connect all their systems, they can better understand how their customers shop and quickly adjust to serve them better. This makes shopping smoother for customers and easier for businesses to manage.

Prepared for the future 

Some 89% of business leaders believe personalization will be critical for success in the coming years. The key is collecting and using customers’ data responsibly, with their permission. 

Instead of tracking cookies, businesses should focus on building trust and gathering information directly from customers. The right personalization and customization approaches create better shopping experiences while respecting privacy. 

Combining personalization and customization

Here are some examples of brands that have leveraged personalization and customization: 

  • Omy: This brand helps customers find the right skincare products in two ways. First, they use AI to look at your skin and suggest products that would work best for you. Second, they have a tool on their website that lets you create your own custom skincare products. Since updating their website with these features, Omy has achieved a 35% increase in repeat business year over year and makes 95% of its sales through ecommerce. 
  • Ruggable: Ruggable boosts their sales through two smart personalization features. Their "Rug Quiz" helps match customers with designs that fit their style, leading to more purchases. Plus, their AI technology analyzes customer room photos to recommend the best rugs, making the shopping decision easier. 
  • Venus et Fleur: Venus et Fleur makes gift-giving more personal in their online and physical stores. Online shoppers can add custom card messages and pick exact delivery dates. Store staff can do the same at checkout using a special calendar tool. These personalization features helped reduce abandoned carts by 12% and boosted their average order value by 10%-15% year over year.

Best practices for implementation

1. Start with a clear strategy

A clear strategy helps you avoid “random acts of personalization” that might excite a few customers, but fail to move the needle in a measurable way. Pick what metrics matter most, like getting more sales, bigger orders, or keeping customers coming back. 

Then, look at where customers interact with you, from arriving at your website to making purchases. Finally, guarantee you have enough money and people to track how well things are working and make improvements.

2. Collect relevant first-party data

The most valuable information comes directly from your customers. Examples of first-party data are:

  • Basic demographic information 
  • Purchase history
  • Email addresses
  • Phone numbers
  • Website browsing behavior
  • Search queries on your site
  • Loyalty program activity
  • Account login details

Group similar customers together so you can send them more relevant messages. Many retailers see a double-digit lift in conversion when they segment VIPs (heavy spenders) versus first-time buyers, and craft different email flows for each segment. 

Focus on collecting the info you need for meaningful segmentation, like order value or product categories viewed.

3. Analyze your data

Once you have a handle on collecting data, don’t let it sit idle. Real-time data helps you fix problems and take advantage of opportunities right away.

  • Monitor key metrics like cart abandonment and repeat purchase rate daily.
  • Use Shopify Flow to build automations based on data streams. 
  • Create personalized marketing campaigns and offer product recommendations. 

💡 Tip: Test new personalization or customization ideas (like reordering upsells in checkout) and pivot if the data suggests lower performance.

4. Prioritize privacy

Be honest about customer data. Tell people what information you're collecting and how you'll use it to improve their shopping experience. Keep their information safe and follow privacy laws like GDPR and CCPA. 

5. Scale gradually

Personalization and customization can become resource-intensive if you try to do everything at once. Pick one or two high-impact areas, like abandoned cart recovery or product recommendations, before tackling more complex tactics. 

Whether your goal is a specific lift in conversion or a reduction in cart abandonment, tie your experiments to clear metrics. Once you see meaningful improvements, apply those learnings to the next phase (e.g., loyalty programs, location-based personalization).

Create better shopping experiences with Shopify 

Two things drive successful ecommerce today: personalization (using your customers’ data to tailor their shopping experience) and customization (giving shoppers control over products and customer interfaces). With both combined, shoppers feel understood and your brand stands out. 

Shopify connects it all through one unified data model that powers customer insights, extensible checkout, and targeted marketing. When you blend personalized experiences with customization options, you create experiences that shoppers love, leading to more sales, happier customers, and repeat business.

Create personalization in a post-cookie world

Why rebuilding ecommerce on the strength of your own data is the path forward in this new era.

Download the whitepaper

FAQ on personalization vs. customization

What is product customization and personalization?

Customization lets your customers modify products, like picking colors or adding initials. Personalization is when you use their data to show them things they'll likely want automatically. Both customization and personalization can improve the shopping experience and lead to more sales.

What is an example of personalization?

When you email customers suggesting clothes similar to what they've looked at before, you're using their browsing history to show items they might want.

What is the difference between personalization and adaptation?

Personalization shows customers content based on their specific behavior and preferences. Adaptation makes broader changes based on general factors like what device they're using or where they are.

MK
by Michael Keenan
Published on 20 Feb 2025
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by Michael Keenan
Published on 20 Feb 2025

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