By Vlad Gozman, a serial entrepreneur and the founder and CEO of involve me. Follow @vladgozman on Twitter.
Consumers today are bombarded with marketing messages from companies vying for their attention. In this noisy landscape, personalization has emerged as a key differentiator.
A recent survey by Epsilon shows that 80% of consumers are more likely to do business with a company if it offers them personalized experiences. And yet far fewer respondents said they believe companies are currently excelling at delivering personalization.
There is a discrepancy between what consumers want and what companies deliver. This gap presents a huge opportunity for companies willing to invest in personalization. Let’s look at four main reasons why.
Consumers are demanding more and more personalization.
As mentioned above, the vast majority of consumers want personalized experiences. This preference will only become more pronounced as younger generations grow older. Millennials and Gen Z are digital natives who grew up expecting tailored content and recommendations. If you don’t offer personalized experiences, you risk losing these valuable customers.
As the Gen Z consumer base grows, companies must focus on delivering personalization at scale. This is not an easy feat, but it is becoming increasingly necessary as more and more of these consumers enter the market.
Personalization drives loyalty and lifetime customer value.
From the clothes we wear to the social media platforms we use, brand loyalty is quickly becoming a thing of the past. In this environment, personalization can be a powerful differentiator.
When done right, personalization builds loyalty and lifetime customer value. Research shows that companies that excel in personalization generate an additional 10% to 15% increase in sales through their efforts.
Personalization increases engagement and conversion rates.
It’s not enough to just offer personalization, you have to get it right. Sloppy execution can lead to disengaged customers and can also lead to lower conversion rates.
On the other hand, companies that apply the right personalization see increased engagement and conversion rates. The trick is to use personalization in a way that feels relevant and useful to customers, without coming across as intrusive or creepy. Make the customer feel like you understand their needs and cater to them specifically.
Personalization can support other business goals.
Finally, it is important to note that personalization is not an isolated initiative; it’s a cornerstone habit that can support other business goals. Whether you want to increase sales or improve customer retention, personalization can help. By investing in personalization, you are making a smart decision that pays off in multiple ways.
How to achieve personalization?
Developing a personalized customer engagement strategy used to be a huge effort. You had to segment your customers, design custom content for each segment, and then manually send that content via email or another channel.
Today, there are countless software options that make it possible to automate and scale personalization. Take, for example, an e-commerce website that sells women’s clothing. Instead of bombarding visitors with a generic product listing, the site could use a no-code tool to create an interactive quiz that asks visitors about their style preferences.
Based on the answers, the quiz would then recommend specific items and direct visitors to a personalized product selection. This kind of engaging, personalized experience is much more likely to turn consumers into paying customers.
Whether it’s a quiz or an email, interactive content doesn’t have to stop after the purchase. You can continue to use it to upsell and cross-sell products and services, adding even more value to your business.
Personalization is no longer a nice-to-have, it’s a must-have. Give your customers the tailored experiences they crave and improve your bottom line in the process.