Personalisation is something that your customers will take for granted. But if you get it wrong they can leave you never to return, and show up at your competitor’s. Thanks to proponents like Amazon, Facebook, and Netflix, today personalised experiences are a basic customer expectation.
Bombarding customers with irrelevant information is the surest way to lose them. Think of it, we would never want to be bothered with unwanted emails, irrelevant coupons, and texts. This is where personalisation makes a world of difference to improve customer experience by offering meaningful, tailored, and relevant communication.
If we are to go by numbers, McKinsey says that at least 80 percent of consumers feel that personalised experiences are vital to them.
Why Should Personalisation Matter?
Because your customers expect it.
There was a time when personalisation was only confined to product recommendations and targeted offers. But over time this has totally changed to garner a significant role in the entire customer experience landscape. Consumers now look for that touch of personalisation from their very first interaction with a brand and throughout. This helps them make better purchase decisions and manage their time and money as per their unique preferences.
Almost every customer experience management platform aims for higher levels of customer engagement and ensures consistency. After all, customer experience can define a brand and distinguish it from its competitors. In this regard, nothing can beat real-time personalisation.
Personalisation Drives Customer Loyalty
Personalisation is a core determinant of customer experience and loyalty. At least 70 percent of customers feel that their brand loyalty is largely influenced by how well a brand understands their individual needs. To stay competitive in the current online business landscape and differentiate your brand, it is vital to leverage the power of personalisation for effective customer experience management.
Technology has now become a daily must-have for consumers searching for companies that meet their specific interests in the best possible way. And meeting the specific needs of each customer means understanding every consumer as an individual and gauging their unique preferences. Acquiring that level of understanding takes considerable time, for which companies heavily rely on the buying history of their long-term consumers. As such, more than 64 percent of digital marketers are now focused on making consistent personalised experiences a top priority.
Personalisation Cuts Overheads and Boosts Profits
An efficient personalisation programme aims to improve customer experience and empowers a company by anticipating the unique needs and preferences of each customer. And when it performs consistently, it becomes the core of a fantastic customer experience programme. But that is not where it stops.
Delivering a highly personalised customer experience can optimize expenses involved in marketing and sales endeavors. Studies suggest that it can reduce sales and marketing overheads by almost 10 to 20 percent. Naturally, that reflects in your profit numbers too.
Personalisation Drives More Sales and ROI
Providing personalised recommendations is central to delivering more than just a top-notch customer experience with the highest level of convenience. Done the right way, personalisation can help trigger a hike in your company sales figures by at least 1 to 2 percent, especially for retail brands. This is typically brought about by enhancing customer engagement as well as brand loyalty among those who are already loyal.
In fact, by targeting your regular consumers, you can aim for ROI that is at least three times higher than what your mass promotional activities would yield. This is because personalisation can lead to around 20 percent higher rates of customer satisfaction and an almost 15 percent boost in the rates of sales conversions. (Source)
Despite personalisation being the need of the hour, with global brands aiming for real-time and hyper-personalisation, almost a considerable percentage of marketers still struggle to achieve this. Given the statistics and studies, it is evident how significant personalisation is in today’s business scenario. Failure to deliver personalised experiences does not just impact customer experience but also tarnish your brand image, reputation, and the rate of conversions you generate.
Delivering personalised experiences is therefore, the most powerful tactic in your marketing strategy; it can be a more potent factor as a competitive differentiator than even technology or pricing.