The Power of Personalization in Elevating Business Performance and Customer Experience

The Power of Personalization in Elevating Business Performance and Customer Experience
Feb 22, 2024
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Would you trust someone who doesn't know you, your name, background, age, or what you do for a living offer you advice on how to run your life?

Marketing to prospects without customization amounts to the same thing. Have you, as a business leader, baked effective personalization into your sales and marketing strategy?

Trust is built through strong, sustained relationships. And personalized interactions that recognize, value and and acknowledge individuals as unique, pave the way for strong enduring connections between business and their customers.

It makes business sense, too.

According to a McKinsey report, personalized marketing reduces acquisition costs by as much as 50%, raises revenue by up to 15%, and enhances marketing by up to 30%.

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What customers expect

Customer expectations from the businesses they engage with are high, and businesses must personalize to give them what they want. Industry studies revealed that more than 71% of consumers expect personalized interactions as a given.

Their expectations include:

  • Relevant Recommendations: Customers expect personalized recommendations specific to their preferences and the unique needs of their businesses. For businesses this entails a thorough understanding of past interactions and the ability to predict future requirements for a more tailored experience.
  • Timely Suggestions: Timeliness is crucial, with customers anticipating product suggestions and recommendations to arrive at the right moment. Relevant information must be shared before a purchase decision is finalized and should add value to the decision-making process.
  • Pre-emptive Reminders: In scenarios involving renewals or subscriptions, customers value proactive communication. Businesses are expected to provide pre-emptive reminders about upcoming renewals, ensuring a seamless and uninterrupted customer experience.
  • Enhanced Customer Experience: Personalized content expectations extend to an enhanced overall customer experience. Customers desire content and solutions that go beyond generic interactions, offering information and assistance specifically tailored to their individual needs.
  • Cross-Channel Personalization: There is a growing demand for cross-channel personalization, where businesses deliver a consistent experience across various platforms such as apps, websites, and emails. Customers expect cohesive and harmonized interactions, reinforcing brand consistency and customer loyalty.

At the same time, there are some things that they do not want.

What customers don't want

Understanding what customers don't want is just as vital. What can be off-putting are:

  1. Irrelevant Messaging and Recommendations: Customers strongly dislike receiving irrelevant messaging or recommendations that do not align with their individual preferences or needs. For instance, repeatedly suggesting pet food options to non-pet owners demonstrates a lack of knowledge of the target audience. To foster positive engagement, precisely targeted content that is reflective of the customer's interests will reap the best outcome.
  2. Creepy Messaging: Customers appreciate personalized content but draw the line at messages that feel intrusive or overly detailed. While leveraging data is essential for customization, businesses should exercise discretion in the level of personal information used. Customers do not want to feel that their privacy is compromised or that companies have access to an excessive amount of personal data. Striking the right balance in personalization ensures respectful interaction.
  3. Incorrect Timing: Timing is crucial in delivering personalized content, and receiving product recommendations after a purchase has been made can be irritating for the customer. This not only misses the opportunity to influence the buying decision but can also be perceived as a lack of attentiveness to the customer's journey. Aligning timing with the customer's buying cycle ensures that suggestions and recommendations are made at the most opportune moments that add value to customer decision-making.

Benefits of Targeted Personalized Advertising for the Business and Expected Returns

9 benefits of targeted personalized advertising for the business - Think ABM

Targeted personalized advertising offers numerous advantages for businesses, contributing to a range of positive outcomes that extend beyond immediate sales. Here's a peek into the key benefits:

  1. Customer Loyalty: Targeted personalized advertising fosters a deeper connection with customers. Tailoring content to individual preferences and needs, helps create a more engaging and personalized experience, leading to increased customer loyalty. Satisfied and loyal customers are more likely to make repeat purchases and become brand advocates.
  2. Building Competitive Advantage: In a crowded market, personalized advertising can serve as a powerful differentiator. Businesses that effectively leverage customer data to tailor their marketing strategies stand out from competitors. This customized approach not only attracts new customers but also reinforces a competitive advantage, positioning the business as a leader in understanding and meeting customer needs.
  3. Enhance Brand Loyalty: Personalized advertising contributes significantly to building and enhancing brand loyalty. When customers feel that a brand understands and values their preferences, they are more likely to develop a strong sense of loyalty. This emotional connection goes beyond transactional relationships, creating a brand allegiance that withstands competitive pressures.
  4. Understanding of Customers: Targeted advertising provides valuable insights into customer behavior, preferences, and buying patterns. This understanding allows businesses to refine their marketing strategies, improve product offerings, and tailor communication channels. The more businesses know about their customers, the better equipped they are to meet their needs and expectations.
  5. Increased Revenue: A direct result of effective targeted personalized advertising is an increase in revenue. Presenting products or services that align with individual preferences reduces the buying cycle time, nudging favorable purchase decisions, sales, and ultimately boosts revenue.
  6. Privacy: Respecting customer privacy is paramount in personalized advertising. By transparently communicating data usage practices and ensuring compliance with privacy regulations, businesses can build trust with customers. This trust, in turn, contributes to positive brand perception and customer loyalty.
  7. Building Brand Community – Making Brands Standout: Targeted, personalized advertising helps create a sense of community around a brand. When customers feel a personal connection to a brand, they are more likely to engage with the community, share experiences, and contribute to the brand narrative. This community-building aspect makes the brand stand out in the market.
  8. Customer Retention: Personalized advertising is a powerful tool for customer retention. By continuously delivering relevant content and offers, businesses can encourage repeat purchases and prevent customer churn. The ongoing personalized engagement reinforces the customer's connection with the brand.
  9. Better Conversion: Targeted advertising improves conversion rates by presenting customers with products or services that align closely with their needs and preferences. This relevance in advertising content increases the likelihood of a customer completing a desired action, such as making a purchase or signing up for a service.

Discover how Think ABM can optimize your sales funnel and boost revenue growth.

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The benefits of targeted, personalized advertising go beyond immediate sales. It fosters customer loyalty, competitive advantage, brand enhancement, revenue growth, and community building. However, above all businesses must balance these advantages with a commitment to customer privacy and transparent data practices to maintain a positive and sustainable relationship with their audience.

To do this, as a business, what you need to do is listen to your customers. Personalization demands intimate knowledge of the customer and their journey. Being tuned in to their likes, preferences, and sensibilities significantly improves customer understanding. Emphasize, support, and facilitate your customers in their journey. Be the friend who helps with the correct inputs at the right time and gently nudges customers to make the decisions that are a win-win for both.

To know more about how you can personalize your sales and marketing interactions for the best results, get in touch with us at info@thinkabm.com.

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