4 Reasons you Need to Prioritize (true) Personalization
Personalization has come to mean a lot of things: a name token in an email, targeting micro-segments of customers, website recommendations. But the truth is, today’s personalization – the kind that customers are increasingly demanding – is much, much more than that.
True personalization is about deeply understanding your customer’s behavior, preferences and history while delivering a fluid, personalized experience that’s consistent with those interactions across every single channel.
In light of the importance of an outstanding CX in today’s competitive digital landscape, businesses must allocate the appropriate resources, budget and leadership so that true personalization can be deployed across every customer touchpoint.
Still don’t think your business needs to be prioritizing personalization? Consider these 4 reasons why it’s absolutely necessary.
1. Your customers expect truly personalized experiences.
Surprised? Probably not. Customers have been signaling to the market for quite some time that personalization is not only something they value but also something they’re willing to trade their loyalty and disposable income for.
In fact, 91% of consumers said they would be more likely to shop with brands who recognize them and provide relevant offers and recommendations.
2. Your competitors are already doing personalization
I know what you’re thinking – creating a fluid, personalized customer experience across channels is easier said than done. And you’d be right. For the last 5 years, businesses have faced massive internal hurdles around budget, leadership and technology which has greatly slowed progress to accomplishing omnichannel experiences.
Despite these initial struggles, merchants are beginning to come out on the other side with personalization at the top of their priority list – 94% of businesses say personalization is critical to their current and future success.
To avoid getting left behind, it’s imperative that businesses should be forward-thinking in their personalization initiatives and invest in those efforts accordingly – instead of playing catch-up.
3. True personalization makes you more money
Personalizing a customer experience – even just on a website – impacts your bottom line. In fact, 88% of U.S. marketers reported seeing measurable improvements due to personalization — with more than half reporting a lift greater than 10%.
But truly personalizing the customer experience across channels does so much more than benefit revenue. These relevant and efficient brand experiences also enhance customer relationships and build long-term loyalty.
As evidence of this, personalization can be shown to reduce acquisition costs by as much as 50%. This is largely due to the consumers who believe personalized experiences are very appealing, as they are 10x more likely to be a brand’s most valuable customer and make more than 15 transactions in one year.
4. Not personalizing is a risk for your businesses
Businesses that don’t personalize experiences aren’t just missing out on sales and revenue, they are also at risk of losing customers for life – Aberdeen Group Inc. claims that companies with the strongest omnichannel customer engagement strategies retain an average of 89% of their customers, as compared to 33% for companies with weak omnichannel strategies.
To ensure merchant’s don’t forgo increased sales, revenue and customer loyalty, merchants need to prioritize their personalization strategy and technology selection to meet consumer needs.
The importance of personalization in today’s digital economy cannot be overstated. To help ensure that your personalization efforts are maturing to the pace of the market, take our Personalization Maturity Quiz then download our State of Personalization report.