In a world in which we are bombarded with messages and advertisements, it’s easy for the average consumer to tune out. We spend our lives surrounded by broadcast messages designed to reach the largest – and therefore most generic – audience possible.
That’s why personalization stands out to us. It shows that companies are willing to spend the time to gather information about us, and put it to use. It’s an effort that’s well rewarded, as this infographic from Monetate demonstrates.
In fact, three quarters of U.S. consumers like when brands – even large corporate brands – send them personalized messages and offers, and almost as many (73%) enjoy buying from brands that personalize the experience. Tellingly, only 5% dislike buying from brands that personalize.
Consumers also appear to recognize that there is a trade-off of personalization against privacy – and they don’t seem to mind. 76% believe that they get more relevant offers when they share information with brands, and a full 88% reported that they valued that added relevance.
It should come as no surprise, then, that business which focus on the customer experience (such as through personalization) deliver better returns for shareholders, with “customer experience leaders” delivering 43% collective growth over six years as contrasted with 14.5% for the S&P 500 in general and 33.9% decrease for so-called “customer experience laggards”.
You can see similar results in lower-level metrics. Personalization of communication and the consumer experience can lead to a 72% increase in email click-through rates, a 53% increase in average order value, and a 33% increase in conversion rates. And when it comes to sales, personalization delivers clear returns on investment; 41% of consumers buy more when they receive personalized emails, 40% buy more when that personalization is multi-channel, and 39% buy more when products are suggested based on past orders.
Thanks to advances in data gathering and management, even websites can be personalized based on past purchase history, viewing behaviour, even location. One company, RS Components, measured the results of increased personalization and saw big increases in revenue per session, particularly when personalizing the website experience based on location (95% increase in revenue per session and 42% increase in conversion rate).
Still not convinced? Consider this: personalization has become an expectation of many consumers, with 98% agreeing or strongly agreeing that they expect relevant product information and products. Despite this – and a recognition from 96% of business leaders that personalization makes sense – a mere 6% of businesses have a personalization strategy.
So this is your chance! Work with your team to personalize the consumer experience by date and time, past purchases, geography, demographics, or anything that can help your customers relate, and ensure that you deliver that personalization across channels. Before you know it, you’ll be seeing the benefits of a more engaged consumer base.
