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The value of personalization

Knowing the client is a key to improving the business and personalization is the way to do that, personalization is not only a crucial capability, it is a must-have. Consumers don’t just want personalization, they demand it!

But what personalization means? Personalization means creating targeted strategies for a certain cluster of customers. In order to do that you need information about clients, every type of information such as tastes, habits and personal information could be useful if analyzed and used in a good way; to have them you need to listen and understand the voice of the customers.

Consumers think of personalization as a positive experience of being made to feel special. They respond positively when brands demonstrate their investment in the relationship, not just in the transaction. For example, checking in post-purchase (e.g. asking to write a review, sending a how-to video) or remembering important events (e.g. birthday, years of loyalty) generate positive brand perceptions by the customers.

Knowing the client and personalization are not simple activities, but if developed well and surrounded by an organization that supports them, they bring real and tangible benefits to the company:

  • First Purchase: 76% of consumers are more likely to consider purchasing from brands that personalize;
  • Loyalty: 78% of customers are more likely to repurchase if personalized;
  • Referral: 78% of consumers are more likely to refer friends and family to companies that personalize;
  • Revenue stream: from 5% to 25% of revenue driven by personalization;
  • Growth: companies that capture more value from personalization grow 40% faster.

Therefore, customers should be the real focus of a company, knowing them and targeting them with tailor-made strategies is a way to improve the strength of the company in the market, and be sure to don’t wrong the way but stay focused on what customers want!

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