How Personalizing Customer Experiences Can Increase Loyalty
Is your company looking to increase customer loyalty and drive engagement? Then you need to deliver personalized experiences.
According to a recent report by Salesforce, 70 percent of consumers said “a company’s understanding of their individual needs influences their loyalty.” 69 percent felt the same about personalized customer care.
Thanks to technology and digitalization, consumers now expect more from the brands and companies they purchase from. Customers are willing to offer up their data and information in order to have improved experiences, but they also expect (and demand) that these same companies use this data effectively. By 2020, it is estimated that 75 percent of business buyers will expect companies to anticipate their needs and make suggestions.
Is personalization really that important? YES! Just look at these stats below.
Customers Get Turned Off If It’s Impersonal
- 71 percent of consumers express frustration when their shopping experience is impersonal
Customers Are More Likely To Come Back If Their Experience Is Personalized
- 44 percent of consumers say that they will likely become repeat buyers after a personalized shopping experience with a particular company.
Customers Demand Immediate Satisfaction
- 54 percent of consumers expect to receive a personalized discount within 24 hours of identifying themselves to a brand. 32 percent expect a discount to be issued after just one hour!
Customers Expect Brands To Know Them
- 41 percent of consumers say that they expect representatives in a brand’s physical store to know what they have purchased online, but only 19% have experienced this.
Personalization Leads To More Sales, More Expensive Purchases, And Impulse Buys
- Nearly 50 percent of shoppers have purchased a product that they did not initially intend to buy after receiving a personalized recommendation from a brand.
- 40 percent of consumers will spend more money on an expensive product because their experience was personalized.
- 85 percent of impulse buyers were happy with their purchase, and only 5 percent actually returned items they reported being unhappy with.
So What’s The Problem?
Currently, the majority of consumers are unimpressed or displeased with the lack of personalization in their shopping experiences, according to a survey by Segment. With technology continuing to improve, consumers’ demands are increasing, but many brands are struggling to meet these expectations:
- 77 percent of marketers say real-time personalization is highly important, but 60 percent report it’s a challenge to execute
- 46 percent of companies say outdated (or legacy) technologies are major barriers to their ability to offer personalization; 32 percent claim that lack of relevant technology is a major challenge
- 33 percent of the top retailers say they have limited to no capabilities to support personalization
- 31 percent of businesses don’t know how to properly use or analyze the data they collect
This needs to CHANGE!
So what can be done to improve personalization?
Loyalty Programs Are Leading The Charge
A loyalty program not only helps a brand stand out from its competition, but it also provides valuable customer insight that allows a company to personalize its marketing.
According to a recent study by Accenture, 77 percent of consumers participate in a retail loyalty program. A loyalty program offers customers the ability to share their data with a company in return for rewards and incentives. Using this data, your brand can determine specific behaviour trends, tailor-make your offerings to meet your consumers’ needs, and effectively optimize your brand’s marketing opportunities.
If your brand or company wants to properly compete and meet the demands for personalization that your consumer base expects, you need to consider adopting an effective loyalty program. The insight and data provided will lead to predictive analytics, allowing you to maximize customer lifetime value and create personalized and valuable shopping experiences.
In our next post, we’re going to focus in on “10 Ways To Reward Customers And Offer Personalized Experiences.” Stay tuned!
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