Customer Experience News & Trends

Why personalization is key to great customer experiences

Solving the right problem is one thing, but doing it with a personalized attitude is a completely different story. In the overly saturated business landscape of today, the real success lies in helping your customers in the same way you would help your close friend. 

This is precisely why companies like Starbucks, Netflix and Spotify remain high on the success radar decades after they started operating. They have quickly grasped the importance of personalization and stuck to the practice early on. 

To survive in the cut-throat business environment where reinventing the wheel doesn’t seem to be an issue, you have to think out of the box. And, at times, it can be as simple as reflecting on the customer experience you provide and refining it by leveraging the human connection and the latest technologies available.

Personalization helps anticipate needs

Taking time to develop customer profiles might just be the essence of great customer experience with an individualistic approach. 

The days when offline shopping was the main driver of sales are long gone. More and more people are spending time searching online for that household item they saw in the TV commercial or the loungewear collection that was heavily advertised on social media. This prompts businesses to adapt to the big demand volumes and deliver accordingly.

Digital retailers like Amazon and Asos, for instance, have incorporated sections with recommended products into their platforms. Basing off of the purchases the customers made in the past or are making in the present, this tailored tactic helps them to efficiently discover the buyer persona.    

Wishlists and rates of the purchased products integrated into the companies’ websites help earn even more data about the prospects. In addition to contributing to the algorithms, the tools keep customers coming back.

To prevent the “analysis paralysis” caused by the countless options, businesses ought to implement personalized recommendations and experiences. Thanks to the quickly growing deep learning technology, it’s now easier than ever to use data as the voice of the client.

The message is clear: Experiment with funnel messages and social media notifications delivered at the right time, and you will stand out from the crowd.

Personalization builds unbreakable trust

The most straightforward outcome of a customer experience catered to every individual is the foundational trust. When you look beyond the conversion rates, you start seeing what your customers want and what impedes them from receiving it. 

You can go as far as finding out what their ultimate goals are – this way you will be able to customize your offer even more. 

By demonstrating your genuine interest in helping others, you create a safe space for them to share their troubles with you. The engagement then turns into a solid relationship with an emotional connection, which ultimately leads to customer satisfaction and sales.

Function of Beauty is a primary example of a beauty startup whose personalized approach – an online hair-oriented quiz – guaranteed them a sweet spot among the most promising companies today. Whether buyers’ aim is to seal their split ends, moisturize the scalp or define high-maintenance curls, customers can find the product that meets their particular needs. The result? Happy clients who are willingly choosing to subscribe to the brand’s monthly plans in exchange for personalized service.

Win retention and loyalty

There is no strategy as effective at creating a loyal customer base as personalization.

By letting the customers know your appreciation for them through offering birthday discounts, handwritten thank-you notes and secret giveaway entry tickets, you are setting yourself up for long-term success. These seemingly minuscule gestures go a long way towards giving  buyers the reason to stay. 

A study conducted by BCG found companies that adopted personalization are more likely to increase their incremental revenue by 10%. This stems from the boosted number of loyal customers who stuck by the businesses in spite of the appearance of other innovative brands on the horizon.

To have a supportive group of people who are just as excited about the new product launch as you are is worth its weight in gold. They will spread the word without you having to spend thousands on marketing. With a devoted fan base, your company can beat competitors.

Become personalization-focused the ‘it’ factor

Salesforce showed customers expect to be offered relevant products and services before they even come in contact with a company. This might put a strain on brands that didn’t offer tailored solutions before.

But it doesn’t have to. You can reap the benefits of providing personalized products and services without sacrificing your company’s strategy. Instead, make personalization a part of it, and the results won’t leave you waiting. 

You can increase engagement generated from a carefully curated customer service experience. Customers will be persuaded to pay the price for an outstanding service, which, in turn, will lead to higher revenue. And you’ll gain loyal customers who will gradually bring more value to your company.

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