No matter how you look at it, today’s retail environment is challenging because of increased competition, price pressure from discounters, and price transparency for shoppers. Differentiation, defined as the process of adding a set of meaningful and valued differences to distinguish a brand’s offering from that of competitors, is key to a brand’s success. However, traditional differentiation approaches are not as effective as they once were, as competitors can easily imitate them. But differentiation is still possible through personalized approaches in which brands create unique and personalized experiences tailored to each individual customer.
78% of customers are most likely to buy from brands that better personalize the experience…[yet] only one in five consumers globally saw personalization
Personalization is poised to dramatically transform the customer experience to encompass every touchpoint throughout the customer’s journey – from marketing to sales to service, and everything in between. The only way for a brand to deliver on that experience is by intimately knowing the customer – what motivates and incents the customer to make a purchase. When executed well, such personalized experiences enable brands not only to differentiate themselves but also to gain a sustainable competitive advantage. That’s because not only do 80% of customers say the experience a brand provides is as important as its products/services1, but also because 78% of customers are most likely to buy from brands that better personalize the experience2. The benefits that a personalized customer experience delivers don’t end there, as:
- Conversion rates increase by 202%3
- Customer Acquisition Costs (CAC) decrease by 50%4
- Likelihood of repurchase increases by 50%5
While customers’ expectations regarding personalization are clear and the benefits of delivering on these expectations are significant to brands, KPMG’s survey of 18,520 customers across 20 countries shows that there is a gap between rhetoric and reality. In particular, only one in five consumers globally saw personalization – be it in terms of service, communication, or offers.
So, if you’re not delivering a personalized customer experience, what are you waiting for? If you don’t know what personalization strategies you can employ, read this article.
Want to learn more about Polymatiks and how it enables personalization through offers? Click here to book your demo or email us at email@example.com
1. Salesforce 2. Retail Customer Experience 3. Hubspot 4. Forbes 5. Clipchamp