Personalized customer experience may seem unnecessary in your business model, but its impact cannot be overstated.
The Gist
- Personalization priority. A personalized customer experience boosts retention and conversion rates, making customers more likely to stick around.
- AI advancements. AI in customer experience expedites data analysis, making personalization more efficient and accurate.
- Consistency counts. Consistency in personalization efforts helps adapt to customer volatility, contributing to long-term relationships.
We celebrate Customer Service Week and CX Day in the first week of October. Customer service is a term neatly nested within a more robust category known as customer experience (CX). Many other factors comprise the overall customer experience, including user experience (UX), personalization and emotional connection. Personalization is a crucial attribute that makes up the customer experience category. Personalized customer experience may seem unnecessary in your business model, but its impact cannot be overstated.
A personalized customer experience provides satisfaction and retention, reinforcing positive brand identity in the customer’s head. It drives higher conversion rates for businesses looking to close sales. Additionally, it helps to reduce customer churn to keep your customers loyal. When customers feel valued, they tend to stick around.
So, how can businesses improve their personalized customer experiences? We’ve distilled a few simple tips to help you brush up on your customer experience knowledge ahead of Customer Service Week and CX Day on Oct 3.
1. Get to Know Your Customer’s Preferences for Personalized Customer Experience
Getting to know your customers is fundamental to enhancing your personalized customer experience. Award-winning entrepreneur and CX keynote speaker Brittany Hodak’s best-selling book "Creating Superfans" speaks to the importance of discovering the needs and wants of your customers.
The book teaches that businesses must invest the time and effort to truly understand their audience if they want to turn their customers into loyal brand ambassadors, also known as “superfans.” By taking a deep dive into customers’ preferences, pain points and aspirations, companies can tailor their products, services and interactions to cater precisely to their needs. Hodak writes, “Customizing the ‘little’ things, like asking your customers if they’d prefer to chat via phone, email, or text, shows that you’re able to put their needs and preferences above your own and makes you appear easier to work with.”
Personalized customer experience, at the most basic level, is treating your customers the way they want to be treated. By actively listening, empathizing and adapting to your customer base's evolving needs, you boost customer satisfaction and create a loyal fan base that champions your brand, ultimately driving sustained success and growth.
Related Article:AI in Ecommerce: True One-on-One Personalization Is Coming
2. Use Customer Data to Personalize Your Communications
The simplest way to increase the quality of your personalization efforts is to analyze what customers like. This is why it’s incredibly important to synthesize customer data into usable insights on what they wish to see. The information you discover in this step can then be extrapolated into more effective and engaging communications.
You can segment your communication channels by tracking customer data based on demographics. Additionally, you can tailor your messaging based on customer interest, like using cookies to track notice of individual products.
Learning Opportunities
Using these practices, financial advisers could personalize advice based on individual customer financial circ*mstances. Retailers and ecommerce companies could make personalized product offers based on purchase history. Realtors can target recommendations based on browsing history. The applications are endless.
Related Article:Mastering Personalization in Digital Marketing Strategy
3. Make it Easy for Customers to Share Their Preferences
While it’s extremely beneficial to analyze customer data, it’s equally as essential to allow customers to tell you what they like directly. Sometimes, data can be hard to interpret, and conclusions made from data analysis alone don’t paint a complete picture. Platforms like Mailchimp offer solutions to help businesses create a straightforward line of communication for their customers to share their preferences. This step is vital to personalized customer experience.
The key here is making a streamlined preference center most prominent on your website and mobile app. It should include concise language and allow consumers to have a say over their privacy, notifications and product preferences. This information is critical because it is much harder to misinterpret. Decisions made with this data will have a customer stamp of approval, allowing for more amiable communications.
Related Article:3 Ways Ecommerce Brands Can Use AI for Personalization
4. Use AI in Customer Experience to Your Advantage
One of the most recent yet pivotal additions to the CX world is artificial intelligence, or AI. This technology allows individuals to take tasks based on analysis or data synthesis as outlined in the previous steps and expedite them. This lets you implement conclusions from that data into your customer experience with a much lower turnaround time.
AI technology can be used to gain and employ insights across the board. For example, MaestroQA, a quality assurance (QA) software platform designed for customer support and call center teams, uses AI for Auto QA workflows to analyze 100% of customer interactions. With a typical manual process, teams can only get a snapshot of what’s really happening. The efficiency gained by technologies like this is invaluable to companies that seek to truly understand their customers’ needs.
5. Be Consistent With Your Personalization Efforts
The final tip for creating a personalized customer experience is to remain consistent. Customer opinions are volatile and likely to change quickly, so you must remain vigilant and change with them. It’s not enough to make small changes occasionally, but one consistent, continuous push to stay relevant. "The Effortless Experience"by Matthew Dixon, Nick Toman and Rick DeLisi, offers practical strategies and case studies that demonstrate the benefits of a consistent approach to customer service and how it can contribute to long-term customer relationships.
This continued effort toward personalization means that you can adapt with your audience throughout many changes, including industry shifts, general attitudes and even internal adjustments. It’s impossible to plan for every potential outcome, so these steps must be taken ad nauseam and even further. This persistence will be rewarded with a CX that keeps customers satisfied and returning for more.
Key Strategies for Effective Personalized Customer Experience
Personalizing the customer experience is an essential aspect of business success. To achieve this, businesses must invest time and resources into understanding the needs of their customers, catering to their preferences, and fostering emotional connections. Using data and technology and providing an open feedback pathway will add to your efforts' efficiency and accuracy. Furthermore, consistency in personalization is vital, as customer opinions are volatile and subject to change.
Businesses should continuously adapt to evolving customer needs through personalized customer experience, industry trends and internal shifts to maintain customer satisfaction and loyalty, ultimately driving sustained success and growth in a highly competitive market.
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