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When you hear the word “personalization” what's the first thing that comes to your mind? For many, it's that handy “You might also like” box sitting below a product on the e-commerce site. While product recommendations are an effective and great tactic for personalizing content, they're still just the tip of the iceberg.
Let's take a step back and re-think personalization as more than a sales tactic. It's not only about directing customers towards the next purchase, but it’s also about creating overall experiences. Experiences that feel tailored, seamless, and - dare I say – effortless. Personalization shouldn't be looked at anymore only as a marketing tool, it's a strategic driver that impacts the whole business.
Why experience personalization transforms your business?
Personalization isn't just a trendy marketing buzzword anymore, it's quickly becoming the backbone of modern business strategy. When done right, it's not just about making your customers happy – it's about rethinking how your organization operates. From marketing and sales to customer service and product development, personalization can unify your approach and amplify results across the board.
Today's customers have high expectations. They want relevant content, tailored offers, customized service delivered to them at the right time across all touchpoints, whether they're on your website, reading an email, using your app or visiting your store. Falling short isn't just disappointing, it opens the door for competitors who are ready to meet these expectations.
So why does it matter? What do customers then expect? And why does this need your attention?
- Customer loyalty and retention: Personalization builds trust. Customers who feel understood and valued are more likely to stick around and come back.
- Revenue growth: Different research shows that companies that excel at personalization drive 40% more revenue. That's a significant edge.
- Strategic differentiation: In crowded markets, your customer experience will be your competitive edge. Personalization makes it memorable; it ensures your brand is not just remembered but preferred.
From reactive to proactive: The evolution of personalization
Let's be honest, personalization used to be quite simple and might feel almost reactive. Remember the days when adding a customer's first name to the email felt almost groundbreaking? Times have changed, obviously. Modern personalization leverages data, AI and insights to anticipate customer needs before they even realize them. Ok, it sounds nice but what could that actually mean?
For example:
- A customer browsing your website sees content tailored to their industry or interest. For example, when you are booking a trip for your next family vacation, the experience could be totally different depending on if you want to travel to The Alps or Cuba.
- Your app suggests the next step on your journey. Frequent travellers could be prompted an option to book a seat upgrade to their upcoming flight or it could be reminding a customer to spend their loyalty points before they expire. And of course, with a tailored suggestion where, how and for what.
- Even in-store sales associates can access profiles to provide personalized recommendations. Suggesting a matching accessory to someone who recently purchased a high-end smartphone.
It isn't about being intrusive – it's about being relevant and helpful!
Key takeaways
Personalization isn't just about selling – it's about solving problems and being proactive! Offering your customers the service they didn't yet know they needed.
What decision makers should you then prioritize?
- Data as a foundation: Personalization starts with data but not just any data. Focus on the quality over quantity – not all the interesting data is important. Ensure your team has the tools to analyze and act on it. First-party data is and will be your best friend here!
- Cross-functional collaboration: Personalization is not just a marketing project – it's a company wide effort! Sales, IT, Customer Service and Operations all have a role to play in it.
- Invest in scalable technology: Choose solutions and platforms that grows with your business. And with your customer expectations! Modular platforms, headless CMS systems and AI-driven tools can future-proof your efforts.
- Measure and Optimize: Set clear goals, track progress and use customer feedback to refine your approach continuously.
Finally, personalization isn't a all or nothing game. You don't need a massive overhaul to start delivering value. Begin small – start by improving one customer touchpoint. Make it smarter, more relevant and truly personal.
When you’re ready to scale up, Solteq can be here to help you. We can create a strategy together and turn it into actions, one step at a time.
Personalization isn't the future, it's the now. Let's make it work for your business.
If you want to get started with experience personalization, contact our Advisory Services team.