Business Transformation

Why personalisation is the secret to excellent customer experience

Tailored experiences boost customer loyalty

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Transforming customer experience with customer communications management

Discover how CCM can help your business deliver market-leading CX

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Amazon founder Jeff Bezos once described the company’s recommendation engine as “a soulmate”; someone who knows the customer better than they know themselves. This business model - which puts customer insight at its core - has led to Amazon’s monumental success, and in turn to a shift in the whole customer experience landscape.

Today, every consumer expects a business to know them and personalisation has become crucial to the success of a modern brand. Nearly two in three consumers (62%) now expect businesses to provide personalised offers based on their previous purchases, according to Salesforce research[1]. While four-fifths of consumers (80%) are more likely to do business with a brand that offers a personalised experience.

Done correctly, personalisation doesn’t just benefit the customer, it has the potential to accelerate business growth, improve customer retention, reduce costs and increase up-sell and cross-sell opportunities.

However, with customer expectations constantly rising, businesses struggle to keep pace. According to research[1] only 13% of business leaders described their organisation as “truly customer centric” in 2018, which was a 3% decrease from 2014. The results suggest that consumer trends are typically moving faster than businesses can adapt.

More than just a number

The average person today receives a huge amount of information traffic during the course of a day via email, messaging and social media. With that in mind, consumers are less tolerant when it comes to brand communication. Receiving excessively frequent, generic or irrelevant communications bound for a database of contacts, will only prompt customers to cut contact. However, by ensuring that messages are tailored to that customer’s personal interests, brands can continue to provide value.

A great example of a how personalisation can be effective is Starbucks’ gamified mobile app that integrated its rewards system with being able to customise and order drinks. It used information such as purchase history and location to get as personal as possible in its communications with customers. Their personalisation strategy is paying off: according to research[1], almost 50% of smartphone owners who regularly use restaurant loyalty apps use the Starbucks app.

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Chatbots deliver tailored support

Chatbots and virtual assistants are helping brands to deliver this. By linking the technology to customer data sources the assistants are able to provide tailored responses. Gartner predicts that one quarter of customer service operations (25%) will integrate virtual customer assistants or chatbot technology by 2020 – compared to just 2% of companies using this software in their customer experience offering in 2017. This sharp spike in usage suggests this technology will be instrumental in driving personalisation in customer service, at scale.

Predictive personalisation

Businesses at the forefront of customer experience are taking personalisation one step further and are harnessing data to predict the future needs and requirements of their customers. By reviewing volumes of customers data, businesses can begin to identify trends and model customer needs based on their personal buying habits. An example of this is car company Volvo[1], who use data-insight to predict when cars need to be serviced and what parts need to be repaired or replaced. This type of personalisation helps Volvo to support its customer better, in turn building better loyalty to their brand.

Meeting customer expectations

Consumers are increasingly demanding greater personalisation and are quicker to disregard or condemn brands that fail to take their individual preferences into account. Aspiring to Amazon-level customer knowledge may be beyond the reaches of many businesses, however, embracing the power of personalisation will help your brand build stronger relationships with customers and improve the chances of positive engagement. In turn, happy customers spend more, stay loyal and help spread the positive message about your brand.

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