Personalization is the answer to growing customer expectations of the experience delivered by organizations. Based on the 2019 State of the Connected Customer report, up to 84% of customers want to be treated as a person, not a statistical number. It is becoming very important to prepare the offer, experience and service model for the customer, along with matching the channel per individual customer expectations. For years, institutions have followed the principle of the next best offer, currently transformed to next best action.
It has become necessary to take into account events that occur in real time. Technologies available on the market allow to “follow” the customer in the digital world, analyze potential customer needs and allow to predict the next actions of the customer. In addition, up to 70% of Customers emphasize the importance of reinforcing engagement built on previous interactions with the company/brand. Thus, how we act and what kind of experience we provide to Customers will determine Customer loyalty and his buying and relationship decisions. Taking measures aimed at individualizing the sales and service process brings tangible benefits.
Based on McKinsey studies, it appears that the aforementioned activities help organizations reduce customer acquisition costs by up to 50%, increase revenues by 5-15% and increase the effectiveness of marketing activities by 10-30%. In the current rather unstable market situation, C/I optimization becomes even more challenging than before. Organizations can no longer act differently and, in a way, are forced to properly tailor their offerings and experiences per “person” rather than per statistical number. Hyper-personalization, on the other hand, means having access to a lot of data and giving customers the comfort that their data is safe.
So how do we meet customer expectations for personalized communications and offerings while overcoming customer concerns about data misuse. Based on Boxever’s research, in which 61% of respondents expect organizations to provide offers tailored to where they are and what they are currently doing, but as many as 62% categorically disagree that brands should have access to their location. So how do you build a fully personalized offer and customer experience?
