By Vlad Gozman, a serial entrepreneur and the founder & 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 study by Epsilon found 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 currently excel at delivering personalization.
There is a disconnect between what consumers want and what companies are delivering. This gap presents a huge opportunity for businesses that are willing to invest in personalization. Let’s explore four key reasons why.
Consumers are increasingly demanding personalization.
As noted above, the vast majority of consumers want personalized experiences. This preference is only going to become more pronounced as younger generations come of age. Millennials and Gen Z are digital natives who have grown up expecting tailored content and recommendations. If you’re not offering personalized experiences, you’re at risk of losing these valuable customers.
As the Gen Z consumer base grows, businesses must focus on delivering personalization at scale. This is no easy feat, but it’s becoming increasingly necessary as more and more of these consumers enter the marketplace.
Personalization drives loyalty and customer lifetime value.
From the clothes we wear to the social media platforms we use, loyalty to a brand is quickly becoming a thing of the past. In this environment, personalization can be a powerful differentiator.
When done well, personalization builds loyalty and customer lifetime value. Research shows that companies that excel at personalization generate an incremental 10% to 15% revenue lift from their efforts.
Personalization boosts engagement and conversion rates.
It’s not enough to just offer personalization—you also need to execute it well. Sloppy execution can result in disengaged customers and may also lead to lower conversion rates.
On the other hand, businesses that get personalization right 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 are catering to them specifically.
Personalization can support other business goals.
Finally, it’s important to note that personalization is not an isolated initiative; it’s a keystone habit that can support other business goals. Whether you’re looking to increase sales or improve customer retention, personalization can help. By investing in personalization, you’re making a smart decision that will pay off in multiple ways.
How To Achieve Personalization
Building out a personalized customer engagement strategy used to be a Herculean effort. You needed to segment your customers, design tailored content for each segment and then manually send that content through email or some other channel.
Today, there are myriad software options that make it possible to automate and scale personalization. Take an e-commerce website selling women’s clothing, for example. Rather than 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 type of engaging, personalized experience is far more likely to convert 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, driving even more value for your business.
Personalization is no longer a nice-to-have, it’s a must-have. Give your customers the tailored experiences they crave and boost your bottom line in the process.