The Human Need for Personalization
Profile and demographic data can be used to create predictions, however, context provides more accurate information about a shopper's desire and more insight into what they may also find helpful or interesting. Effective use of on-site search allows the shopper to define context in their own words and can be a valuable resource for retailers. Where prediction falls short, context can help build loyalty and a long-term relationship that will drive more sales overall.
By examining the psychological factors influencing consumer decisions and taking into account what shoppers really want, retailers can be far more effective with their personalization strategies and will see a measureable improvement in their business.
For online marketers looking to gain more in-depth insights and identify the key considerations to evaluate in order to improve the customer experience, you can read my new whitepaper, The Human Need for Personalization: Psychology, Technology and Science.