Creating a personalized experience for your customers has become key to achieving their satisfaction. In fact, the eCommerce industry has been on the hunt for offering personalization and an experience that’s relevant to the customer’s individual needs and goals. If you are in the eCommerce business, you may have most likely heard of personalization also known as personalized e-commerce.

It streamlines customers’ shopping journeys on your online store and provides them with a seamless buying experience. So, what exactly personalization is, and why your business needs to create a personalized journey for your customers? Let’s discover more about personalization for eCommerce businesses.

What is Personalized E-commerce?

There are two approaches to doing business. You can either create a personalized shopping experience by understanding their buying patterns, tracking their buying history, and displaying products based on their interests and previous purchases. Or, you can use a one-size-fits-all approach where all customers are treated the same and your product list is displayed randomly, irrespective of the customer’s individual preferences.

Adapting to a personalized approach can be done in different ways. Some businesses may develop a personalized homepage for different users, while others might filter the product list based on customers’ geographical location or their search history. No matter which method you choose, the ultimate goal of this approach is to increase customer conversions, engagement, and retention. That is achieved by sharing dynamic content which is optimized for customers’ needs and preferences.

Why is Personalization a Big Trend?

Personalization has become a standard practice in the eCommerce world, and it’s not hard to see why. Research shows that 80% of customers are highly likely to buy from a store that offers a personalized shopping experience. 90% of them find the idea of getting personalized treatment. The trend has received attention in all markets and from all online shoppers.

It’s become an ideal way to drive organic traffic to your website, increase sales, and multiply your revenue. As exciting as the idea sounds, it can get pretty overwhelming. With such a vast range of options and tools available to personalize your websites, homepage, apps, and social media, finding the best personalization marketing strategy can get difficult. Let’s see what makes personalization important for merchants in the eCommerce world.

Benefits of Personalization for the E-commerce Industry

Before the eCommerce industry emerged, shopping was pretty straightforward. Customers would walk into the retail store, find an assistant who’d help them find the product they are looking for, and assist them throughout their shopping journey. That’s, however, not possible in the eCommerce world. The complex digital industry makes it difficult for merchants to take care of the customer’s individual needs. You might get hundreds of thousands of visitors to your online store, but you can’t attend to each customer individually without the right tools.

Social media and eCommerce marketplaces have raised customers’ expectations. They demand a personalized experience where they are shown products based on their preference instead of a random list of products or a homepage that doesn’t seem relevant to their buying patterns.

eCommerce personalization creates a customer-centric ecosystem, which improves your customers’ experience by providing them with content, pricing, and products they have been looking for. It gives businesses a competitive edge.

Let’s take a look at some key benefits of personalization for eCommerce businesses.

Increased Conversions

The above stats show the importance of personalization for customers. A majority of them feel frustrated if the content on a website doesn’t match their needs or shopping profile. When a customer returns to your store, they will most likely buy something similar to what they have bought before or the same product.

Knowing their buying patterns will help you personalize their shopping feed by displaying the content and products they must be interested in. Customers tend to stick around when they get personalized deals. This increases your conversion rate, driving higher sales for your eCommerce store. And it’s not just about the product lists. You can personalize your customer’s shopping experience at various touchpoints, including pricing, checkout, etc.

Boost Sales

Personalized recommendations create an additional revenue stream for merchants. Have you ever bought a recommended product that seems relevant to your needs and something that you were planning to buy but couldn’t find? Thanks to the AI-powered recommendation engine. It streamlines your customers’ buying journey and increases your revenue.

There’s a good chance a customer won’t need any convincing to buy these recommended products. The technology automatically captures your customer’s purchase patterns and history, thus showing them things that are useful for them. This can be a complementary product, such as a shampoo recommendation for those buying hair oil. Or, a full grooming kit for customers that just searched for oil, face wash, and shampoos.

Builds Customer Loyalty

If you think personalization will affect customers’ privacy, studies show that 83% of customers are fine with sharing their data with the eCommerce stores if they get a personalized experience in return. Customers also tend to recommend your store to their friends and families based on the personalized experience they get.

These customers are highly likely to visit your store for repeat purchases. That is the ultimate goal of every merchant. Personalization helps you turn your first-time customers into loyal customers that are willing to pay a higher price to buy from you.

Attract Customer’s Attention

Making a sale in today’s competitive eCommerce landscape requires creativity. Personalization focuses on your target customers that are going through similar problems and are searching for products/services that can resolve their issues easily. Curating your websites, social media, landing pages, and the entire marketing campaign according to your customer’s needs will help you get a competitive edge.

Your customers will rely on your recommendation. Personalized feeds are appealing to your customers. Unlike cluttered websites that are loaded with too much unnecessary information, personalized pages are designed keeping the customer’s buying patterns, problems they are facing, and their overall shopping profile in mind. It will attract their attention and keep them on your page for a long time.

How to Achieve Personalization?

Now that you know the benefits of personalization for the eCommerce industry and how it can affect your bottom line, the next big question is how you implement personalization.

Understand Your Target Audience

A personalized shopping experience is all about understanding each customer’s individual needs. It’s the blend of technology and your knowledge that will help you offer a personalized shopping experience to each buyer. You can start with how they reached your website or what led them to search for the keywords that you have optimized your website for.

Suppose you run an eCommerce store selling sports equipment and a customer visits your page through the search engine using the keyword “affordable cricket accessories”. Now you know what the customer is looking for. So, instead of taking them to your comprehensive sports section, you can just show the list of the cricket accessories that have been trending in your store or the reasonably-priced cricket items they must be interested in.

Intelligent Search is Important

Your search bar should be beyond the words customers type in the search bar. That’s because the keywords can be misleading at times or incorrect. Typos are very common. But your customers expect the search bar to understand what they are looking for and personalize their shopping feed based on their preferences. For instance, if someone is searching for skirts, makeup, bags, and other accessories, the intelligent search feature can identify the customer as a female and recommend products accordingly.

Tracking their Buying Pattern

Leveraging the power of Machine Learning and Artificial Intelligence will help you deliver a great customer experience. Just like a salesman stays with a customer throughout their buying journey, understands their color preferences and model choice, and shows them the product they will like, eCommerce store owners can do the same. AI and ML can identify your customer’s buying patterns, recent searches, and the choice of customers from the same segment. Using this data, you can show a personalized feed to each customer.

Personalization

You may have seen eCommerce websites showing prompts like “You might also like” or “Others have purchased”. This is the product recommendation engine showing complementary items you might want. Recommending random products won’t attract your customers’ attention, and nor is it a good strategy to sell your products.

You need to use AI to understand their shopping pattern and recommend products that are relevant to their search history or are something they have bought before. For example, if a customer has recently bought a laptop, they might be looking for laptop accessories, like a wireless mouse and keyboard set or a laptop case. You can show these products in the recommendation section.

Bottom Line

A long-term personalization strategy can increase your conversions, revenue, and customer retention. It won’t just increase the number of products they purchase from your store, but their frequency of visiting your online store too. These customers are highly likely to recommend your business to others.

With the eCommerce segment growing at an exponential rate, there’s a need for an optimized payment structure. Banks, acquirers, processors, payment gateways, and other financial institutions work together to process a transaction. To simplify the process, merchants consider payment orchestration, which aims to deliver a unified transaction experience to customers.

A vast majority of eCommerce stores have embraced multiple payment options to provide their customers with the convenience of transferring payment through their desired channel. Merchants accept card payments, mobile payments, transactions through retail POS, cash-on-delivery, and instant payments. There are many options. But this convenience presents the challenge of managing transactions from different channels and transferring this data to the ERP system.

This makes payment infrastructure complex, especially for small businesses that rely on multiple payment processors. Let’s see how payment orchestration can help reduce the complexity of the transactions and make the entire payment infrastructure smooth, cost-effective, and efficient for the merchant.

What Exactly is Payment Orchestration?

Working with multiple payment processors, gateways, and banks seems pretty overwhelming. For the customer, it’s just a one-step process. They click on the “buy” button, pay the amount, and get their order confirmed. However, the backend process involves several steps. Payment orchestration refers to the integration of payment processors, fraud detection services, banks, and other operators in eCommerce transactions into a single software layer.

In other words, payment orchestration is software that facilitates every stage of payment processing. From validating the payment to its settlement, it streamlines the entire process by bringing all parties involved in transactions into a single centralized platform. In addition to payment routing and settlement, this software can handle accounting, payment reconciliation, and billing.

With all stages of the transactions displayed on a single platform, it gets easier for the merchant to get a clear, consolidated view of every stage of payment processing. They can collect key metrics, stats, and data to make informed decisions. It’s also easier to scale the payment processing system as your business grows. You don’t have to upgrade your plans for each unit individually. The software works as a central payment hub, where you can collect data about your recent and previous transactions.

Why Consider Payment Orchestration?

The biggest challenge a business faces during payment processing is failed transactions. Sometimes, it happens because of the unavailability of the payment processor or a technical difficulty. With payment orchestration integrated into your eCommerce infrastructure, it’s possible to work with multiple acquiring banks. This is called smart payment routing.

Instead of relying on a single payment service provider, you can partner with multiple payment processing companies to ensure a low-cost, fast, and smooth transaction. If, for some reason, your payment processor fails to process transactions, you will have peace of mind knowing that the payment orchestration software will route these payments to another processing company.

It’s helpful for businesses operating globally. Payment orchestration streamlines this process by combining all payment processors and fraud detection service providers into a single unit. It doesn’t just make payment processing smoother for businesses, but payment orchestration offers greater flexibility to the customers and helps merchants achieve their satisfaction.

How Does It Work?

The process may vary from one payment provider to another. But, the basic steps are the same for most. Here’s how it operates.

Step 1: A customer adds a product to their cart and heads to the checkout page where they choose a suitable payment method. The options may vary depending on the customers’ location.

Step 2: They enter their card or other payment details on the checkout page and initiate a transaction. If you have enabled payment orchestration, the software will scan the available payment processors and route the transaction to the nearest and most affordable payment processing unit.

Step 3: If the payment processor is unavailable or there’s any technical issue at the moment, the orchestration system will re-route this transaction to the next best acquiring bank. The whole purpose of this re-routing system is to prevent declined transactions.

Step 4: Once the payment processor clears the payment, the merchant and customer will be notified about the successful transaction.

It may seem like a lengthy process, but the entire operation takes place so quickly that within seconds, you will receive the “Payment successful” notification. Not only for payment routing and settlement, but the right payment orchestration software can handle batch processing and billing at regular intervals. The entire process is automated. Additionally, merchants can check their dashboards to collect key metrics about their payment infrastructure.

Benefits of Payment Orchestration

As businesses are incorporating multiple payment options and expanding their operation on a global level, they are implementing payment orchestration. If you have not yet considered the system, here are some reasons why you should integrate payment orchestration into your payment infrastructure.

Lower Transaction Fee

Businesses running globally need multiple payment service providers to process global transactions smoothly and at lower costs. The biggest advantage of payment orchestration is that it scans payment processors that charge the lowest fee for international transactions. Even if you save a few cents for each transaction, you can save a lot in the long run. Payment orchestration is an excellent way to save money in transaction fees.

Intelligent Payment Routing

Gone are the days when direct routing was the only option for eCommerce stores to process online transactions. Today, intelligent routing has become a common practice and is embraced by most merchants operating globally. Smart routing chooses a payment provider based on predetermined protocols, such as speed of transaction, cost, and other factors.

It reduces the number of declined payments, thus reducing revenue loss from failed transactions. If the payment processor declines the payment for some reason, intelligent routing re-routes the transaction to another payment provider.

Assess and Track Data

Payment orchestration covers all payment processing platforms in one system, enabling merchants to get clear insights into important metrics on a unified system. Since everything is available in a centralized location, you can easily analyze and track data. This helps you get a consolidated view of your payment structure, business performance, and number of successful and failed transactions. These software applications generate automated reports.

Quick and Smooth Payment Integration

Generally, merchants are supposed to integrate their fraud detection programs with payment gateways to ensure that each transaction is verified before it’s processed. This process can be hectic and time-consuming. By installing payment orchestration, it becomes a whole lot easier to integrate different PSPs and facilitate quick payment for customers.

Satisfied Customers

A business is likely to lose a large number of its customers because of the limited payment options. With payment orchestration, you can let your customers choose from different payment choices. Since all payment processors are integrated into a single software layer, the transactions are processed quickly and effortlessly.

In addition to that, the payment rerouting increases the chances of a successful transaction, which results in more satisfied customers. Many people tend to abandon carts because of the lengthy checkout process. If the transaction is declined on the first attempt, the customer will most likely leave the cart and buy from another store.

Scale Your Business Easily

A merchant experiences many obstacles when conducting online transactions. The last thing they want is the customer abandoning a cart during checkout just because their transaction can’t be processed. This can slow down your business’ growth.

Payment orchestration doesn’t just provide multiple payment options, but this smart routing ensures that payments are processed instantly, irrespective of the sales volume. The biggest perk of payment orchestration is faster payment processing for overseas transactions. Now, you no longer need to worry about the exorbitant transaction fee or the PSP’s unavailability.

Compatible with the Latest Payment Methods

With the payment industries evolving rapidly, customers’ needs regarding payment methods are changing. People are on the lookout for payment options that are convenient for them. The Buy Now Pay Later (BNPL) scheme, for instance, has drawn the attention of most customers.

It has allowed people to buy expensive stuff and pay for it in installments instead of waiting for years to buy that. Fortunately, payment orchestration is compatible with the BNPL and other latest payment methods. So, there’s no need to rework the entire payment structure to integrate a new payment alternative.

Achieve Security Compliance

Merchants are supposed to follow PCI DSS compliance to protect customers’ data and provide them with fair services. Payment orchestration is PCI-compliant. Since the software is integrated with fraud detection programs, it scans each transaction for suspicious activities and validates the customers’ credentials before processing the payment. This ensures PCI compliance and safety for the customer.

Conclusion

Payment orchestration offers fast and cost-effective payment processing for international transactions. It connects different payment service providers with fraud detection services and payment gateways. All these parties are integrated into a single software layer, which offers clear visibility into the essential payment metrics. It shows you your business’ entire payment infrastructure. The demand for this software is not going to slow anytime soon, as merchants have been constantly looking for ways to optimize their payment processing for customers.

An eCheck is a type of electronic payment that allows you to send money using online banking. It is similar to writing a check, but it’s done electronically through your bank. You won’t physically see or touch the eCheck when it’s sent, and the money usually takes one to three business days* (normally less than one day) to be withdrawn from your bank account and deposited in the recipient’s.

When you send an eCheck, it will appear on the recipient’s statement as a “Payment From” followed by your name or business name. This is because funds have to be moved from your account to the recipient’s, which means that there are two parties involved: you and your bank.

After you submit an eCheck payment, both parties have to approve the transaction before it goes through. When funds are moved from one account to another, a hold is put on those funds for a short period of time, which can vary depending on the individual bank policies. The time between authorization and settlement is called the ACH debit delay.

Here is what you should know:

• eChecks, which can also be referred to as “remote checks” and “e-checks”, are electronic payment transactions that use your bank’s online bill pay service, meaning that no paper check or physical money is used in the transaction. This is why they are sometimes referred to as “virtual checks”.
• eChecks are processed electronically, which means that the online bill pay service providers will communicate directly with one another. This is how your bank can verify whether or not the recipient’s account number and other information match up with their records. Banks usually have a process in place for eCheck transactions, but it can vary by bank.
• It can take one to five business days for an eCheck payment to process from the date of submission. This is why it’s important that your customers know when they can expect to receive the funds you send them via eCheck.
• eChecks are a safe and secure way to send and receive money, which is why they have been growing in popularity. Many online bill pay services allow you to save your billing information, which means that the process of sending an eCheck takes even less time and is hassle-free.
• When it comes to eChecks and security: if your bank uses an electronic check conversion (ECC) service, you will be required to enter your routing and account number in order for the transaction to go through. This is not like a bank wire transfer, which requires you to input your full 16-digit checking account number; ECC transactions only refer to the last four digits of this number.
• As a business owner, you can send an eCheck payment to your own business account or to another individual’s account. You don’t have to be set up with the online bill pay service that the recipient is using in order for you to send them an eCheck payment.
• An eCheck will require two parties—the sender and the receiver—to authorize the transaction before it goes through. This is why receiving an eCheck payment confirmation email doesn’t mean that the recipient has actually received the funds. They will need to sign up for a service or have access to someone else’s online bill pay account in order to do so.
• You cannot cancel, edit, or change an eCheck payment after you submit it to the recipient. You can, however, delete it from your bank’s online bill pay service if you wish to void the transaction—just keep in mind that this option isn’t always available.
• When sending an eCheck payment to someone else, they will receive an email notifying them of the incoming funds. This email will include your name or business name, which is why it’s important to double check the information you provide before submitting the payment.

Remember: an eCheck is a safe and secure way to send money online because it requires both parties to authorize the transaction. It may require some time for the recipient to receive confirmation from their bank that the funds have been deposited, but once the ACH debit delay has passed, they will be able to access those funds.

Tokenization is the process of replacing a sensitive data element with an algorithmically generated value, or token. Credit card tokenization is a specific type of tokenization that is used to protect credit card information.

When a credit card number is tokenized, the actual credit card number is replaced with a unique identifier, or token. This token can be used to process payments, but the credit card number is not exposed. This protects the credit card number from being compromised if the system is hacked or breached.

How Does Credit Card Tokenization Work?

Credit card tokenization works by creating a token that is linked to a specific credit card number. When a purchase is made, the token is used instead of the credit card number. This makes it impossible for hackers to steal credit card information.

Before any transaction can be run on a tokenized credit card, it must be validated with the payment processor or merchant account. This occurs automatically during each transaction behind-the-scenes. Payment gateways and processors will work with the tokenization provider to ensure that each transaction is authorized.

What are the Benefits of Credit Card Tokenization?

There are several benefits of credit card tokenization, including:

• Increased security – Credit card tokenization protects credit card numbers from being compromised in the event of a system breach. This helps to reduce the risk of identity theft and fraud.
• Reduced PCI compliance requirements – When credit card numbers are tokenized, merchants are not required to comply with the Payment Card Industry Data Security Standard (PCI DSS). This can save businesses time and money.
• Simplified payments – Tokenization makes it easy for customers to make purchases, as they no longer need to enter their credit card number. This can increase sales and improve customer satisfaction.

How Does Tokenization Affect Customers?

Customers will not typically notice any difference when their credit card is tokenized. All of the behind-the-scenes work is handled by the payment gateway or processor. The only thing that customers will see is a simple purchase process that is easy and convenient.

Are There Any Risks Involved with Credit Card Tokenization?

Credit card tokenization does involve some risk, as tokens can be stolen or compromised. However, this is mitigated by the fact that tokens are linked to specific credit card numbers. This means that if a token is compromised, the credit card number can be revoked and replaced.

How Does a Customer Get a Token?

Customers do not need to take any action to get a token. The tokenization process occurs automatically behind-the-scenes. When a customer makes a purchase, the token is used instead of the credit card number.

Are There Any Disadvantages of Tokenization?

One disadvantage of credit card tokenization is that it will only work with specific browsers. Since the system behind tokenization does not support certain encryption protocols, some browsers may not be able to process transactions. This typically only affects users on macOS or Linux. Customers who are unable to make a purchase using their browser can always use an alternate payment method.

By understanding what credit card tokenization is and how it works, businesses can make informed decisions about whether or not to adopt this technology. Tokenization provides increased security and reduced PCI compliance requirements, making it a valuable tool for businesses of all sizes.