The world’s most successful companies are those that seamlessly adapt their strategies to enhance the customer experience. Take e-commerce giant Amazon – one of the first online sellers to offer personalized “just for you” recommendations to customers. Businesses that make the effort to recognize customer preferences and help them enjoy a customized shopping experience are reaping the benefits of increased revenue and loyalty.
Today’s consumers expect a heightened level of service, whether shopping online or at a brick-and-mortar store. They assume brands will remember who they are, what products they like and whether they prefer communicating through social media, email or text messages. A personalized customer experience that is both intentional and proactive leads to higher retention rates and better return on investment. According to an article published in the Harvard Business Review, personalization can yield up to eight times the ROI on marketing expense and can boost sales by 10 percent.
A personalized customer experience is key to success
Some businesses like Qualtrics, excel at delivering a superior customer experience. Think about the boutique hotel that remembers your preferences and has your favorite newspapers and brand of coffee on-hand. As another example, take Spotify’s curated playlist of songs that are generated based on users’ listening habits. It’s a custom-made soundtrack they think customers will really like – and most of them do. A critical component to success for any business is to make customers feel cared for, appreciated and special.
The opportunity to increase revenues and customer loyalty is ever present. Data shows that consumers respond to tailored recommendations across every channel, which in turn drives more sales. Cultivating a more personal relationship with the customer inspires confidence and encourages feedback that can be utilized to create a more positive and cohesive customer journey.
The advantages of creating a custom shopping experience – through loyal customer rewards, individual thank you emails or other means – are many. An estimated 40 percent of consumers make larger, more expensive purchases than initially planned because their shopping journey was personalized.
Personalization engenders loyalty
According to a recent survey by Segment that polled 1,000 U.S. consumers, nearly 45 percent said they would be more inclined to make a repeat purchase following a personalized shopping experience.
Personalized recommendations fuel impulse purchases
Personalized recommendations on services and products also drive impulse purchases, particularly among males. 49 percent of polled consumers purchased an item spontaneously after a brand made a personalized recommendation.
Personalization connects on an emotional level
Cultivating a deep, trustworthy relationship with customers takes more than just savvy marketing. Those that connect with customers on an emotional level are on the right track, as this elicits positive feelings that ultimately drive repeat business and recommendations to friends and family.
Personalized customer service generates more sales
The long-term benefit of personalization is the opportunity to reap more sales. Brands that do it best generate nearly 6 times more revenue than competitors who lag in this area. A personalized customer experience is a powerful tool that can boost your bottom line significantly.