10 Ways to Create a Personalized Customer Experience

Discover 10 proven techniques to create personalized customer experiences that drive growth using first-party data and unified commerce strategies.

The consumers of today no longer settle for subpar experiences. Brands who go above and beyond to prove they understand their customers win the sale—so much so, that 70% of online shoppers think it’s important for employees to know who they are and their history with the company, be that buying patterns or their purchase history. 

However, omnichannel personalization presents challenges for the modern retailer. Shoppers have heightened privacy expectations, and the decline of third-party cookies further emphasizes the need to adapt strategies that focus on understanding your customers directly. The technical infrastructure required for personalization can also inflate operating costs and cause innovation drag. 

Luckily, with advancements in technology like AI and unified data models, delivering a personalized customer experience is no longer a luxury but a sustainable route to business growth. 

This guide shares 10 techniques to create a personalized customer experience, leveraging insights and tools available to you in the modern ecommerce environment.

1. Build your personalization strategy on customer data

Customer data is the foundation on which personalization becomes possible. Only when you know who your customers are—and what they want—can you understand the customer journey and meet expectations for personalized shopping experiences.

Understanding your buyers requires a unified view of their interactions across all touchpoints—both online and offline, using internal and external customer data sources such as:

• Ecommerce platforms
• Point-of-sale (POS) systems
• Marketplace profiles 
• Customer relationship management tools
• Social media platforms
• Email marketing tools
• Customer loyalty apps 

Shopify's core customer model creates a unified profile whenever shoppers share their email address or phone number with your business. Any supplementary first-party data—such as browsing, purchasing, and order data from all selling channels—feeds back to this single customer view (SCV), giving you a single foundation for personalization efforts.

Mizzen+Main relies on this core data model to build a SCV for each individual shopper. Any products they’ve bought or loyalty points they’ve accumulated online are visible to in-store retail associates (likewise, in-store customer data is visible online). The team leveraged this data to grow retail revenue by 27% and online revenue by 15%. 

“Shopify comes into play a lot in-store, especially for education around sizing,” says store manager Trey Pritchard. “We open a customer’s profile and can see their full purchase history, which helps us make the right recommendations.”

2. Analyze data to understand customer journeys

Analyzing customer data reveals insights into shopper behavior and expectations. By examining patterns within your Shopify dashboard, you can identify key trends and adapt your strategies accordingly. These insights help you understand what customers want at every stage—from initial discovery to post-purchase engagement. 

We can see this in practice with a sportswear retailer whose customer journey map looks like this:

Example customer journey map for a sportswear brand.

This insight allows the company’s marketing team to identify people who are stuck in the “Conversion” stage. They’re almost ready to make a purchase, but often need an extra push to do so. This is where personalized marketing campaigns come into play. 

People who visit the sizing chart page, for example, are likely unsure whether the product will fit. They could receive an email marketing campaign to promote a free returns policy to settle their nerves. 

Similarly, people in the “Loyalty” stage might revisit your fitness challenge article. This is a great opportunity to welcome them to your community. Showcase results and testimonials from people who share their traits and interests, and invite them to share their own story in exchange for bonus loyalty points to redeem on their next purchase.

3. Use segmentation to enhance personalization

Effective personalization relies on segmentation—grouping customers based on their attributes and behaviors. When these segments are built with first-party data, it offers a powerful tool for creating targeted audiences for marketing campaigns.

Shopify’s segmentation features let you define the criteria for each segment using data from individual customer profiles, so you can effectively tailor experiences to meet specific needs and preferences. Here’s what those segments might look like for a beauty retailer:

• People who’ve visited a particular retail store
• Shoppers who’ve visited your “makeup” category but not your “skincare” category 
• Loyal customers with a lifetime value of more than $300
• Customers who discovered you through a word-of-mouth referral
• People who answered “acne” as their biggest skin concern in your quiz 

You can then tailor any sales, marketing, or advertising campaign for each segment—like promoting bestsellers among acne sufferers for people who slot in the final segment. 

Airsign, for example, used this feature to define a segment of customers who’d bought their vacuum cleaner but not signed up for a subscription of complementary filters. Cofounder Alex Dashefsky says: “We identified the segment in Shopify, created a discount for that specific segment, communicated with them in a way that was very personalized for their needs, and we saw about 30% of those people convert."

💡Tip: Create segments using ShopifyQL for detailed queries and advanced segmentation. Shopify Magic can also provide natural language translations to ensure accuracy when offering personalized customer experiences to international shoppers. 

4. Target ads with data-driven insights

Customer acquisition costs are rising across all industries. To maximize the return from your marketing dollars and reach people more likely to engage with your brand, you’ll need precise targeting based on customer data paired with a personalized message. 

Shopify Audiences analyzes shopper behavior to create lists of potential customers for prospecting and retargeting. It relies on machine learning to identify likely buyers while maintaining privacy, so you can connect ad platforms like Meta, Google, and TikTok to automatically generate lists for your campaigns. It’s been proven to increase retargeting conversions by up to 2x.

Apparel retailer Mac Duggal, for example, turned to Shopify Audiences after struggling to meet return on ad spend (ROAS) targets. They consulted agency partner Prospect Knight to merge their first-party data with Shopify Audiences. The results speak for themselves:

• 2x return on advertising spend 
• 2.3x larger retargeting audience size
• 3.6 lower cost per purchase with the retargeting ad set 

“Pulling in data from other sources, such as Shopify, is a key ingredient to Mac Duggal’s success,” says Conor Maurice, head of digital at Prospect Knight. “The ROAS from Shopify Audiences was two times better than our existing activity, so we have used it ever since.”

Expand retargeting lists with Shopify Audiences.

5. Deliver personalized offers and promotions

Personalized offers are key to positive customer experiences. By analyzing customer data and leveraging segmentation, you can deliver relevant discounts to specific customer groups.

Plus, personalized discounts help to build your customer database and overcome data privacy concerns that limit how much first-party data you collect. In fact, one report found that 53% of consumers are willing to hand over their personal details in exchange for a special deal.

Here are some examples of segments you might create and how you’d tailor the experience for each one:

• People who’ve viewed your “Golfing” category page: Send a targeted email campaign that offers them 10% off their first purchase with the code “GOLF.” Guide them towards your bestselling golf products, and include an endorsement from a pro golfer as an extra seal of social proof. 
• Customers who usually shop in-store: The segment of Chicago shoppers might get a “rainy day” promotion when bad weather is forecast, while your Los Angeles shoppers get a game day flash sale when the Lakers win. 
• Loyalty program participants: Run retargeted social media ads that show the value of their loyalty points and which products they can redeem them on. Even better, apply further segmentation criteria to point shoppers to products within the category they’re loyal to (e.g., the moisturizer they’ve bought three times before). 

Here’s a great example of a personalized email I received from Gymshark. I’ve purchased multiple pairs of black seamless leggings from their online store. In an attempt to get me to make a repeat purchase, they sent me this email to promote black-colored workout clothes, with prices in my home currency (GBP) and the subject line “Your favourite colour’s on sale 🖤”: 

Personalized email I received from Gymshark.

6. Craft personalized storefronts

A personalized customer experience doesn’t end when someone visits your ecommerce website off the back of a targeted campaign. Use customer data to deliver dynamic content, tailored recommendations, and experiences that resonate with each visitor through a personalized ecommerce storefront. 

Let’s put that into practice and say you’re a sports jersey reseller. Your ecommerce platform detects that customer Andy is browsing your website. Here’s how you might use data from Andy’s unified customer profile to tailor your storefront:

• In a customer feedback survey, Andy said his favorite sports player is Patrick Mahomes, so the homepage banner shows user-generated content of other happy customers wearing their Mahomes jerseys.
• Andy’s favorite team, the Kansas City Chiefs, are playing a big game this weekend, so you offer a custom “GO CHIEFS” coupon popup offering 10% off the jersey.
• Andy’s shipping address is within a 10-mile radius of your Kansas City store, so you display jerseys that are available for same-day pickup. 

Also think about how you can personalize the entire customer experience for international shoppers. Jewelry brand J&Co, for example, serves overseas shoppers through their ecommerce website. They rely on Shopify to gather each visitor’s location data, and use this insight to translate website copy and convert product prices into the correct home currency. 

“Customization and personalization are important to us, and Shopify Plus enables that,” says founder and CEO Jenny Kwang. “Not only can we segment customers and customize to their individual needs, we can also easily integrate apps like language translator and currency converter to help us strengthen our international footprint.”

💡Tip: Forward-thinking merchants build habits with buyers around logging in for self-serve functionality. This creates greater personalization potential through insightful product recommendations, saved carts, and highlighted discounts. 

J&Co’s store shows prices in GBP when it detects I’m visiting the site from the UK.

7. Optimize the checkout for a seamless experience

The checkout process is a critical touchpoint. It’s the final touchpoint you have before someone commits to their purchase. Optimizing it for a seamless, personalized checkout experience is vital for conversion. 

Here are some practical examples of how you can do this:

• Prepopulate payment and shipping options with Shop Pay. 
• Upsell and cross-sell products related to those in the customer’s cart.
• Display social proof from customers who share the same traits as the buyer.
• Facilitate charitable donations for climate-conscious shoppers. 
• Highlight your returns policy for first-time shoppers who might be on the fence. 

For many retailers, the technology infrastructure that powers online checkout determines how easy it is to personalize the experience. Shopify Checkout, for example, is designed for high conversion rates, while Shop Pay offers a fast, trusted option that outperforms other accelerated checkouts.

Plus, Checkout Extensions and Functions APIs allow for customization, enabling you to integrate personalized elements directly into the checkout flow. You can add dynamic content and tailored payment options to reduce cart abandonment and improve the overall experience, without custom-coding an entirely new checkout solution.

Everlane uses Shop Pay to speed up the checkout process for Shop Pay users.

8. Use marketing automation for consistent engagement

Marketing automation delivers consistent, personalized experiences throughout the customer journey—without the need for your marketing team to identify segments and reach out with the right message—at the optimal time. 

The best marketing automation tools use predictive analytics to anticipate what a customer would need to progress through the sales funnel. 

For example, your data might show that 40% of people stuck in the “Evaluation” stage convert if they receive a free shipping incentive. Use this insight to personalize your ecommerce storefront with a banner that offers free shipping for returning visitors who’ve visited your website within the last two weeks but not yet made a purchase. 

Combine this personalized storefront with offsite campaigns that drive people back to your site, using specific customer behaviors or segment memberships. That might include triggering emails or SMS when they complete an action—for example, when a customer completes a quiz, they receive personalized product recommendations in exchange for their email address.

💡Tip: Set up custom templates in Shopify Email and leverage customer data through segmentation to automate personalized communications. This ensures timely and relevant engagement, enhancing satisfaction and driving growth.

Lean on Shopify Flow templates to automate personalized marketing campaigns.

9. Personalize in-person interactions with unified data

The digital environment allows brands to collect and use a wealth of data on their customers. When those shoppers step into a physical shopping environment, however, it’s not uncommon for those insights to get lost in translation. 

Loyal customers can turn up to a brick-and-mortar store and get the same experience as a first-time browser, simply because retail associates don’t have the data required to recognize and adapt their approach. 

Shopify POS brings the benefits of unified customer data to customer service interactions in the flesh. Retail associates can gain access to the single customer view that compiles touchpoints, behaviors, and interactions across all sales channels. This allows staff to offer more personalized service, recognize returning customers, and tailor recommendations—a personal touch that enhances the overall experience and fosters loyalty.

Take it from luxury retailer Diane von Furstenberg, who switched from Salesforce to Shopify in an attempt to make unified data more accessible to in-store personal stylists. “With our previous commerce platform, customer data was siloed,” says assistant store manager Joanna Puccio. “That made it difficult for our stylists to offer the kind of bespoke service our clients expected. We needed to see the full scope of their interests, purchases, and preferences at a glance.”

Now, the brand’s retail team can consult customer profiles inside Shopify POS to offer bespoke shopping experiences. Stylists can see:

• Products each shoppers has purchased online and in-store 
• Their favorite colors or sizes
• Products they’re excited about from the brand’s next collection

“If we weren’t using Shopify POS, I think our team would have a harder time building rapport with our customers and staying in touch with them,” Joanna says.

10. Embrace unified commerce across all channels

It’s great to have a personalization strategy that tailors the shopping experience to each individual customer. However, many retailers struggle with a complex and expensive technical infrastructure they’ve custom-built to offer these personalized experiences across multiple channels and touchpoints. Symptoms of this approach include:

• High maintenance and integration costs
• Technical debt that limits your ability to innovate 
• Misjudged or poorly timed campaigns due to lack of real-time data synchronization

Unified commerce exists to solve this problem. It integrates all sales channels and data, providing a holistic view of the customer, with a “write once, deploy everywhere” approach for new features and updates. This enables consistent, personalized experiences across online and offline interactions, without the technical complexities or skyrocketing costs of operating siloed systems. 

But don’t just take our word for it. Research conducted by a leading independent firm found that operational improvements created by Shopify enable up to a 5% uplift in gross merchandise value for physical retailers, while reducing platform total cost of ownership by 22% on average.

"When we saw Shopify POS, we didn't hesitate,” says Saül Aleu, chief technology officer at Bobo Choses. “It provided the functionalities we needed in order to realize our omnichannel strategy without requiring any complex integrations or development work. 

“We have gone from spending 80% of our time fixing technical incidents to a number closer to 10%. And the time we used to devote to solving technical issues, we now use to add value to the business.”

Personalize the customer experience, no matter the touchpoint

Creating a personalized customer experience is essential for sustainable growth in today's competitive market. 

By leveraging first-party data, utilizing tools for segmentation and targeted advertising like Shopify Audiences, personalizing your storefront and checkout, and embracing a unified commerce approach, you can build stronger customer relationships, improve conversion rates, and drive long-term success. 

Shopify's suite of integrated growth solutions is designed to empower businesses of all sizes to understand their customers better and deliver the personalized experiences they expect. Explore Shopify's growth tools today to start building deeper connections with your customers and achieving your business goals.

FAQ on personalized customer experience

What is a personalized customer experience?

A personalized customer experience relies on data you’ve already collected on customers to offer relevant content during their buying journey. For example, you might personalize the customer experience based on each individual customer’s interests, purchase history, or loyalty program status.

What is the customer experience personalization strategy?

A customer experience personalization strategy is when retailers use data they’ve collected on a customer to tailor their communications. This allows the customer to feel recognized and valued.

What is an example of personalized customer service?

An example of a personalized customer experience is a regular shopper who visits their favorite retailer’s ecommerce website. The homepage carousel shows products similar to those they’ve bought before, in their preferred currency. They also receive marketing emails with a reminder to join the brand’s loyalty program for a discount on products they’ve bought before.

What are the 4 D's of personalization?

The four D’s of personalization are: data, decision-making, design, and distribution. All four work together to help retailers personalize the customer experience at scale.