By Nitika Sharma
India’s e-commerce market is booming, currently valued at $123 billion and projected to soar to $300 billion by 2030, as per market research firm Statista. To fuel this meteoric growth, e-commerce companies are diving deeper into understanding shopper behaviour—right down to answering a crucial question: Are you shopping for yourself or someone else?
This simple insight is driving a transformative shift in customer relationship management (CRM), pushing the boundaries of personalisation. By identifying not just individual preferences but also the broader networks of potential buyers linked to each customer, e-commerce platforms are leveraging CRM tools to deliver highly tailored recommendations. From cross-selling complementary products to upselling premium options, these strategies are designed to elevate market share, financial performance, and customer loyalty. As personalisation becomes the cornerstone of online shopping, companies are rewriting the rules of engagement in India’s ever-expanding digital marketplace.
Evolving Role in Understanding Customer Intent
Traditional ecommerce focuses on tracking individual customer behaviour, but now they are moving beyond that to analyse for whom customers are shopping. Are you buying a new tablet for personal use, or is it a gift for a family member? Are you browsing children’s clothing for your kids, or picking up something for a friend’s baby shower? By identifying these subtle differences, companies can tailor recommendations, offer complementary products, and even suggest related items that align with the intended recipient like gifting it.
The Statista report highlights that AI is heavily utilised in CRM, with 50% of users employing it for open feedback analysis and content creation, and 48% using chatbots and NLP tools for customer interactions. Machine learning applications like predictive analytics (26.6%), customer behaviour prediction (21.4%), and voice recognition (20.8%) are also gaining traction, enhancing customer insights and engagement. CRM tools integrated with AI, such as IBM’s Watson Assistant, Salesforce’s Einstein GPT, and HubSpot’s ChatSpot, detect browsing and purchasing patterns. For instance, if a customer frequently buys toys, the system may infer they’re shopping for children and suggest personalised options like age- or gender-specific educational games or clothing, based on previous purchases for that recipient.
How CRM Systems Distinguish Personal from Proxy Purchases
One of the biggest challenges for ecommerce is to identify who exactly the “end-user” of a product might be. With CRM’s predictive tools, companies can get closer to understanding whether a product is for personal consumption or intended for someone else. Many websites and apps now directly ask users, “Are you shopping for yourself or someone else?” The response enables companies to refine product recommendations instantly.
Take, for example, popular e-commerce platforms in India like Amazon, Myntra, and FirstCry, which tailor their recommendations based on user profiles and the intended recipient of each purchase. Amazon, known for its extensive data-driven recommendations, adjusts its suggestions based on user behaviour; if you are shopping for a family member, it may highlight home essentials or lifestyle products. In contrast, for personal purchases, it draws on past orders and browsing patterns to recommend products that align with your preferences. FirstCry, a leading platform for baby and kids’ products, goes a step further by creating specific profiles for different children in a family. For instance, when purchasing for a child, users are prompted to specify whether the product is for their own child, niece, nephew, or any other relation, and the platform uses this data to suggest gender and age-appropriate, relevant products for each profile. Similarly, on Myntra, when users browse for someone else, they are asked to provide details like the recipient’s age and gender. This enables Myntra to tailor its recommendations precisely, offering clothing and accessories that match the intended recipient’s preferences and needs, enhancing the shopping experience for both the buyer and the recipient.
Enhanced Personalisation with Cross-Selling and Up-Selling
During festive times like Diwali, Christmas, Rakhi, or Mother’s Day, CRM systems become especially valuable for retailers aiming to personalize recommendations. As customers shop for gifts, companies can use cross-selling and up-selling to offer items aligned with seasonal needs. For instance, if a customer buys a perfume as a Diwali gift, CRM might suggest complementary items like gift wrapping or festive home décor. Likewise, a Mother’s Day shopper buying skincare for a gift might see higher-end products or matching beauty sets recommended, enhancing both the shopping experience and purchase value based on her updated by you.
Strategic and Financial Gains from Targeted CRM
Understanding whether customers are buying for themselves or others allows CRM to target marketing during high-demand periods. By identifying and catering to those shopping for loved ones, retailers can optimize their seasonal campaigns, increasing ROI through relevant, recipient-focused advertising. Instead of only acquiring new customers, they expand their reach through the networks of existing buyers, maximizing their impact on each transaction in festive as well as all seasons.
Building Loyalty Through Timely Recommendations
Personalized CRM fosters loyalty by understanding both the customer and their recipients, increasing the likelihood of return visits. E-commerce platforms now use CRM to remind customers of birthdays or anniversaries, making gift recommendations and creating a seamless shopping experience. This approach deepens trust, builds loyalty, and ultimately drives repeat business through meaningful, timely suggestions. Also, in festival times offer unique opportunities for CRM to foster repeat business and deepen customer loyalty. For example, Amazon platforms often remind customers of important dates like Diwali or Christmas, prompting gift suggestions for family members. This festive personalization makes shopping easier and more meaningful, strengthening customer relationships by anticipating their needs for loved ones.
Understanding that Shopping Isn’t Just Personal
One of the most intriguing aspects of CRM’s evolution is the recognition that shopping isn’t always personal. Customers often act as intermediaries, purchasing on behalf of others. CRM’s advanced capabilities acknowledge this reality, creating opportunities to cater to diverse needs through a single shopper. This deepened understanding allows companies to offer a holistic service experience that reflects the customer’s entire ecosystem.
For customers, this kind of CRM-driven personalization offers the dual benefit of convenience and relevance. Shoppers save time as they are presented with meaningful suggestions for everyone on their list. For companies, this approach ensures that they remain top of mind for each shopping occasion, building loyalty and fostering long-term relationships.
A More Informed Approach
As e-commerce companies leverage more advanced tools, they address not only who their customers are but also who they are shopping for. This shift enhances personalization, making it easier for customers to find exactly what they need while supporting the company’s strategic and financial objectives. By combining insights about personal and proxy purchases, companies are better equipped to increase their share of wallet, improve customer satisfaction, and drive repeat business. In the future, CRM will only deepen in its ability to understand the interconnected nature of modern shopping, creating win-win scenarios for businesses and customers alike.
So, next time you shop online, remember: companies are not just interested in you—they’re interested in everyone you’re shopping for.
The author is assistant professor- marketing at International Management Institute New Delhi. (Views expressed are the author’s own and not necessarily those of financialexpress.com)