Financial Markets, Institutions and Risks (Oct 2024)
The Impact of Content Personalization on Customer Engagement and Market Risks of E-Stores
Abstract
This article examines the impact of content personalization on customer engagement in the Algerian e-commerce sector. By analyzing data from 70 e-commerce stores operating in Algeria between January 12, 2023, and October 10, 2023, the study highlights the importance of personalization strategies in enhancing customer experiences and driving sales. The research employs a mixed-method approach, combining quantitative data analysis of website metrics with qualitative insights from customer surveys, to provide a comprehensive understanding of the effectiveness of personalization. The findings reveal a growing adoption of data collection methods, particularly website analytics (86%) and customer surveys (75%), which reflect a heightened awareness among Algerian e-commerce businesses of the need to track and analyze customer behavior. The research identifies a higher-than-average bounce rate (32%) compared to global standards (26%), suggesting technical and behavioral challenges that affect customer retention. Similarly, the average click-through rate for Algerian e-commerce websites (2.5%) is slightly below the global average (3%), indicating a need for building trust and credibility in the online shopping environment. The study underscores the significance of addressing these challenges by improving website performance, simplifying payment processes, and leveraging direct customer feedback to align offerings with customer preferences. Personalized content, derived from robust data analysis, is shown to enhance engagement by creating relevant and meaningful customer experience. The article provides valuable insights into the Algerian e-commerce market, outlining both opportunities and challenges. The emphasis on personalization, trust-building, and a customer-centric approach is critical for businesses aiming to thrive in this evolving landscape.
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