One of the hottest topics in marketing currently is personalisation and the experiences it creates. Certain businesses have recognised this and have become very good at delivering a personalised experience. Let’s say you’ve stayed at a hotel and when you go back they remember the type of room you prefer, how many pillows you like and the type of beverage you enjoy with your breakfast. This kind of service is now becoming more and more common and is moving into different industries, retail in particular.
Salespeople have two options when a customer enters the store. They can either just try to make a sell – which lacks any personalisation at all, or they can try to learn about the customer and make personalised suggestions based on what information they’ve learnt about them. This is a much better method which is more probable to result in the customer spending more than they originally intended.
Personalisation is something that customers want all the time, not just once in a blue moon. Getting recommended an accessory to go with an outfit, or having a recommendation made upon something you’re looking at in a menu are all examples of the kind of personalisation that people want as a rule, not an exception.
Businesses that can deliver this experience are more likely to benefit – as customers are typically willing to spend much more money when they receive such a custom-tailored service. With new research showing that consumers are expecting, if not demanding highly personalised experiences. Despite this research, a lot of businesses are still missing the opportunity to use personalisation. Peter Reinhardt, CEO and founder at data management company Segment commented “Shoppers expect brands to remember who they are, whether they’re on a digital channel or in-store, however, very few companies can actually deliver on these tailored experiences.”
Over 1,000 consumers were surveyed by Segment, with 7% claiming that they felt frustrated when their experience was impersonal and a majority being less than impressed by the lack of personalisation in their shopping experiences. From the survey it’s clear to see those businesses that do use personalised experiences come off greater than those that don’t, with customers much more likely to spend more money. Below are some of the main findings from the survey:
- Impulse Purchases – Due to personalised recommendations, 49% of customers bought items that they did not intend to from the brand they were interacting with.
- Loyalty – After a personalised shopping experience, 44% of consumers say that they are more than likely to repeat – this is where personalisation really pays off.
- Increased Revenue – Over 40% of consumers say because of the personalised experience they have ended up buying something more expensive than they planned to.
With eMarketer estimating that total retail sales will hit $5.68 trillion by 2021, Accenture has predicted that companies which integrate a smart digital strategy into personalised customer experiences, a $2.95 trillion prize is waiting. In comparison, this strategy is like when Netflix recommends movies and TV shows based on what you’ve watched and enjoyed – leading to more subscription renewals and higher sales.
Cementing a customer’s decision to do business with you could come down to knowing what they want and need. Not knowing this information could lead them straight into the arms of your competitors.