Personalization is a popular trend that enhances the customer experience. It starts with knowing the customer — or maybe a better way to say it is remembering the customer. I stayed at a hotel last year, and when I was checking out I mentioned how nice the room was. When I came back, nearly a year later, the front desk clerk welcomed me back and mentioned that they had given me the same room that I stayed in before. I was impressed, and after my stay, I looked forward to returning again. After all, this is the hotel that “knew me.”
Thanks to CRM (Customer Relationship Management) systems and behavioral analytics solutions, companies can track customers’ preferences, buying patterns and more. As a result, they can create personalized experiences that make customers feel valued and appreciated. The concept of personalization falls into multiple categories: customer service, sales and marketing. All three of those are important aspects of the overall customer experience.
Evergage is a company that specializes in real-time personalization in the digital/online world. Its platform improves visitor engagement and the customer experience, which leads to more sales. Teaming up with Researchscape International, Evergage recently conducted its fourth annual "Trends in Personalization study." Here are a few highlights:
• The power of personalization — Virtually all (96%) marketers agree that personalization advances customer relationships. Eighty-eight percent say they’ve realized a measurable lift in business results from their personalization campaigns.
• Machine-learning personalization on the rise — Currently one in three marketers (33%) relies on machine-learning personalization; that is, using algorithms and predictive analytics to dynamically present recommendations and experiences at the individual “one-to-one” level. Among those that don’t, another 32% plan to do so in the next year.
• Multiple channels deployed — Marketers are using personalization in email campaigns (72%), as well as on their company’s website (57%), mobile site (28%), web app (20%) and mobile app (18%).
The focus of the report was on the digital world, yet the basics of personalization work just as well in person as they do online. The more you know about the customer, the better you can tailor the experience, which includes marketing messages. Personalization done well will enhance the customer’s experience and increase sales.
Andy Zimmerman, CMO of Evergage, shared some tips to consider. First and foremost, he suggests starting with the end in mind. Imagine the experiences that you want to deliver to your customers, then work backward to deliver them.
Zimmerman recommends personalization campaigns that focus on matching people with the most relevant content. For example, your company may be marketing an eBook for promotional purposes. To drive more downloads of the eBook, don’t market the same to everyone. Promote specific content from the eBook that is of interest to a defined group of customers. This is why it’s so important to track and segment customers into smaller groups based on different criteria. This is the beginning of personalization: different marketing messages to different groups of customers. And with the advent of machine learning, the technology exists to go even further to tailor experiences to each individual.
Zimmerman also suggests “putting yourself in the customers’ shoes.” How do your customers want to receive communications and marketing messages from you? You must consider what is appropriate. For example, if the customer has done a minimal amount of business with you, sending a highly personalized email with somewhat personal information about the customer might come across as intrusive, annoying or even creepy. There must be a balance – or maybe some type of permission from the customer.
So, what’s acceptable? Perhaps you’ve walked into a store that you did business with six months ago. The salesperson at the store not only recognizes you, but also remembers what you purchased the last time you were in. He then makes suggestions based on that last purchase. Most people would find that impressive, not at all creepy and totally acceptable.
But, will this work online? Can this type of personalized experience transfer to the digital world?
Amazon does it brilliantly. Its technology remembers what you looked at and bought the last time you visited the website. When a returning customer signs in, he or she gets a “Welcome Back” message along with sales messages that include promotion of what the customer looked at in the past, as well as what Amazon recommends based on the customer’s browsing habits and recent purchases. Most customers expect and accept this type of promotion. Some might argue that this works because it’s Amazon. I’ll argue that it works for any company, as long as it’s done with tact and doesn’t come across as too aggressive. Aggressive sales tactics, both online and in person, can come across as pushy and insincere.
Zimmerman emphasizes that the message must be valuable, relevant and genuinely helpful. You must have an accurate understanding of each visitor’s true needs and interests. For example, during the checkout process of an online purchase there may be a product recommendation. Is it related to what the customer is buying? If the customer is buying a can of paint, it makes sense to promote paint brushes or a paint roller – and maybe an article with tips on using the type of paint being purchased. It doesn’t make sense to promote an unrelated item, such as a hammer or buzz saw, or an article about plumbing repair.
I started this article with an in-person example: the hotel that kept records including the comment I made about the room on my last stay. We ended with an online example of a customer buying a can of paint and getting messages for related items during the check-out process. Be it a marketing message or an in-person experience, personalization is a relationship builder that makes customers feel welcomed, remembered and valued as individuals.
