Personalization is now essential

By Vlad Gozman, serial entrepreneur and 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 become a key differentiator.

A recent Epsilon study found that 80% of consumers are more likely to do business with a company if it provides them with personalized experiences. And yet, far fewer respondents said they thought companies were currently excelling at personalization.

There is a disconnect between what consumers want and what companies are offering. This gap presents a huge opportunity for companies looking to invest in personalization. Let’s explore four main reasons.

Consumers are increasingly demanding when it comes to personalization.

As noted above, the vast majority of consumers want personalized experiences. This preference will only increase with the age of the younger generations. Millennials and Generation Z are digital natives who grew up expecting tailored content and recommendations. If you don’t deliver personalized experiences, you risk losing those valuable customers.

As the Gen Z consumer base grows, companies need to focus on personalization at scale. It’s not an easy task, but it becomes more and more necessary as more and more of these consumers enter the market.

Personalization drives loyalty and customer lifetime 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 customer loyalty and lifetime value. Research shows that companies that excel in personalization generate an additional 10% to 15% increase in revenue from their efforts.

Personalization increases engagement and conversion rates.

It’s not enough to offer customization, you also need to execute it well. Sloppy execution can lead to disengaged customers and can also lead to lower conversion rates.

On the other hand, companies that successfully personalize see their engagement and conversion rates increase. The trick is to use personalization in a way that feels relevant and useful to customers, without appearing intrusive or scary. Make the customer feel like you understand their needs and are specifically addressing their needs.

Personalization can support other business goals.

Finally, it is important to note that personalization is not an isolated initiative; it’s a fundamental 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 are making a smart decision that will pay off in many ways.

How to do the customization

Crafting a personalized customer engagement strategy used to be a Herculean 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 a myriad of software options that automate and scale customization. Take the example of an e-commerce site selling women’s clothing. Rather than bombarding visitors with a list of generic products, 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 and personalized experience is much more likely to convert consumers into paying customers.

Whether it’s a quiz or an email, interactive content doesn’t have to stop after purchase. You can continue to use it to up-sell and cross-sell products and services, generating even more value for your business.

Customization is no longer a pleasure, it’s a must. Give your customers the personalized experiences they need and increase your results in the process.

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